Solution to negative equity?

**jackw** · 12-21-2011, 08:43 AM

Due to foreclosures in my subdivision my condo is under water by about $25k. Chances are that these will be the new prices (based on expert opinions) and there will not be a recovery for this area. So my new thought process is to pay down the mortgage to get it to the price of the foreclosures and just dump it so I can move on and not have to deal with this condo anymore. Short sale and foreclosure is not an option for me. Renting is an option but not a very attractive option due to the hassle.

Anyone have any thoughts on my "pay down mortgage to foreclosure pricing" plan??

**markbrian** · 12-21-2011, 09:26 AM

If renting the condo, short sale & foreclosure are all not options for you, then paying it down is an option. Do you have to sell now?

**jackw** · 12-21-2011, 12:25 PM

Originally Posted by markbrian

If renting the condo, short sale & foreclosure are all not options for you, then paying it down is an option. Do you have to sell now?

No - don't HAVE to sell right now. But REALLY unhappy living in this area. Quality of life right now is in the toilet.

**Greg** · 12-22-2011, 05:18 AM

Put your condo up for sale at the current market price and be prepared to bring money to the closing table to pay off the balance of the loan not covered by the sale. The longer you wait to sell the more you will have to bring to closing so price your condo to sell quickly. Pricing a little high trying to get some more money out of it will cost you in the long run. In a declining market time is money lost.

**agentgigi** · 01-01-2012, 11:32 AM

Or you could try leasing it with an option to purchase. With so many people unable to qualify for loans these days this has been a great strategy. Collect an option price of about 5% of eventual sales price and give the buyer a time table in which they can buy is they can get a loan. Option money can be kept if they do not purchase. Also, you can make the payments cover the mortage payments which is probably higher than rent this way.