Greetings all, this is my first post to this forum. Thank you in advance for your expertise.

My situation is this (as i'm sure many others are I purchased a condo (powderwood) for 182,000 1 year ago. It has turned into a financial headache, and my life has led me to live in another state. I wish to sell, but according to my math I would have to sell for over 189,000 to break even, and comparable units in the same complex (several) are listed for under 165,000. At the moment i have barely enough money in the bank to make this month's mortgage payment, let alone absorbe over 30,000 dollars in loss...This condo is an anchor on my life. I have done a little research into seller-financing but have been advised that this is a risky endeavor. Also, I am not renting it monthly at this point since I have to be able to show it to the few interested buyers who see it on MLS. Any ideas as to other options? Please help!

Thank you-

Ryudo.

You should really consider a short sale. What state are you in?

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Why did you buy it if you could not make the payments?

Help! I've purchased a stock and the value has gone down... How can I get my money back?

Sounds like you are screwed.

I'm sorry if I sound like a %rick but when you invest in things there is an upside and a downside. You have unfortunately found the downside.

Are you in a ski town or a beach town? I'd try to get it rented and stick it out for another year or two till the market rebounds.

Maybe someone else has a better solution but either you are going to loose money now or you need to find a way to make the payments and break even or make a profit in the future.

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I second the rental idea - hire a local rental agency!

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Drew T. Nichols
Greenville SC Real Estate

I would rent it out as well. Too many other short sales already.

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Sunnyvale Real Estate
Santa Clara Real Estate
Cupertino Real Estate

Rent it out my friend. You don't want a foreclosure on your credit if at all possible. At $189,000 your monthly nut shouldn't be too much. Stick it out and sell it when the market changes. Pretty much what Coastal said. Seriously though Coastal makes a good point. If you don't have enough money to even make a mortgage payment, why did you burden yourself like this?

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First of all, talk to an attorney. I would agree that your best option is to rent, but if you can't find a renter, you might consider a short sale, as it is usually less of a hit on your credit than a foreclosure would be.

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Liane Jamason, Realtor
Keller Williams Realty
Tampa FL Homes|Free List of Tampa Short Sales & Foreclosures|TampaRealEstateGeek.com

Liane Jamason is a Realtor in Tampa Bay servicing St. Petersburg, Clearwater, Tampa, Carollwood, Westchase, Ybor City, South Tampa, Davis Island, Brandon, Riverview, Apollo Beach, Ruskin and beyond!

Thank you all for your advice. Actually, I do earn enough to make the mortgage, but I no longer wish to live in Utah, and renting it out has been a huge pain. The condo is in Park City, Utah. This was my first real estate investment and there was a lot of family pressure to go into this deal, and I learned the hard way. I plan on renting it out till the market gets better, though according to my sources that will not be happening for a very long time, with more war looming and the slide into a true recession. Thank you again for your honest opinion...

Hell if you can afford the mortgage.....then find a renter and ride out the market. After a few years, take an equity loan out and buy another and you're on your way.

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Jeff Hill
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Moving without selling was a BAD idea. Renting would be a good SHORT TERM solution but you don't want to be an out of state landlord for long. That ranks high up on the list of BAD ideas (right behind moving to another state and leaving a vacant condo behind).

Your home will almost certainly rent for less than the mortgage so you'd be paying the difference every month ... but its certainly better than paying the full mortgage.

A lender will not likely work with you on a short sale if you haven't been late. Why should they absorb the cost of your poor decisions? If you do a short sale that's not considered "settlement in full" they'll come after you for the difference so you'll still owe the $30k AND you'll have a short-sale on your record.

As has been mentioned, Renting is probably your best bet until the market turns around or you can get into a better financial situation. There's a good chance that you just paid too much for this and the market has correct itself. It's not "coming back" and you should just get out now and count it as a lesson learned.

I would give equal consideration to selling the property and getting an unsecured loan (credit card, bank loan, car refi, whatever) for the difference. I'd rather have a $30,000 debt paid out over 5 years (virtual car loan) than have a $180,000 loan out there indefinitely. The $30k loan is smaller, lower payments, under your control, fixed in scope, doesn't have tenant hassles and has substantially less risk.

Dave Ramsey would call this "stupid tax". It's a $30,000 real estate course you just signed up for. If you don't learn your lesson, you can re-enroll later. :-)

Seriously, if you don't think the market's coming back around in the next 3 to 5 years, I'd just eat the $30k while your credit is still good. You're likely to be paying out $400+ a month even if you DO get it rented. Plus, I bet you've got an ARM or other undesirable loan so your bad situation is only going to be getting worse. I'd just cut the tenant out of the equation. Sell the house, pay the remaining balance over the next 5 years and NEVER do this again.

Good luck!

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