Tell us what's happened to you recently (that's interesting)

Athryn · 2009-10-21T11:57:57.000Z

Reed:

Yeah, the loss would be far too great. Even though I put 10% down when I bought it. A nearby unit recently foreclosed, and others units have been selling for drastically less than they were a couple years ago. If those are any indication, I’d lose something like $50k. That’s not counting the down payment I made (which I don’t expect I’ll ever recoup), just what’s outstanding on the mortgage vs sale price.

If I could make some deal with the bank, I’d love to do that. But how much would they realistically budge on it?

Have you asked a realtor? I would check with one before you assume that it’s a loss.

mouselock · 2009-10-21T12:06:33.000Z

TheTrunkDr:

IANAL
This is where it starts to get sticky, if they believe you can carry the mortgage then probably not a whole lot. If you appear as though you can’t they’ll likely take what they can get to avoid foreclosure. You should also check your mortgage contract as you might not be permitted to rent it out, if you’re looking to make a deal this can actually help you out as your expenses will be quite high maintaining two properties.

Make sure you know what the hell you’re doing. If you go looking to short sell a mortgage, it could easily trash a credit rating. Taking a $200/mo loss for a few years may be a lot more palatable than 5+ years without any credit.

TheTrunkDr · 2009-10-21T12:19:26.000Z

mouselock:

Make sure you know what the hell you’re doing. If you go looking to short sell a mortgage, it could easily trash a credit rating. Taking a $200/mo loss for a few years may be a lot more palatable than 5+ years without any credit.

Absolutely, I wasn’t advocating a short sale if can actually carry the mortgage but when it comes to these sorts of negotiations your only leverage is to make the bank believe a short sale or a foreclosure are possible outcomes. They’re not going to let some amount slide just because you ask nicely.

As was said above do find out what a reasonable sale price might be and what it could possibly be down the road. Assuming it’s a loss now and that the market will pick up later isn’t necessarily what will happen. It could be that the market will be down in a few years and you’ll have lost more money, as is what happened to me (or more specifically my ex).

Reed · 2009-10-21T12:25:24.000Z

$200 is the minimum monthly loss too. No one has bit yet on the rental rate that achieves this. More likely looking at $300, possibly up to $400.

TheTrunkDr:

Were you laid off or did you quit? Being laid off would be better in this situation.

I quit, but was half laid off in March or so (been half-time since then)…if that makes any difference.

Athryn:

Have you asked a realtor? I would check with one before you assume that it’s a loss.

I’m in the process of doing that just to make sure. But I really can’t imagine it wouldn’t be a huge loss with the prices that other units here have been selling at. :(

TheTrunkDr · 2009-10-21T12:29:57.000Z

Reed:

$200 is the minimum monthly loss too. No one has bit yet on the rental rate that achieves this. More likely looking at $300, possibly up to $400.

I quit, but I’ve been half-time since March or so…if that makes any difference.

I’m in the process of doing that just to make sure. But I really can’t imagine it wouldn’t be a huge loss with the prices that other units here have been selling at. :(

Considering your time frame and what you’re saying it likely is a loss, still could be better taking that loss now than a bigger overall loss (after the mortgage/rent difference and the maintenance) and again the peace of mind of not having to worry about an apartment on the other side of the country. If you can claim some hardship (half time, requiring you to look for another job and finding it on the west coast could qualify) you could have a shot at that bank deal to cut your losses a little.

Lorini · 2009-10-21T13:32:09.000Z

Depending on your tax situation Reed, it could still be worth it to rent it. That’s what we did when we were in your situation and the writeoffs really really helped. Consult a tax advisor for more information on writing off the house.

Eilonwy · 2009-10-21T13:34:29.000Z

They ordered my diploma today even though they still don’t have a grade for me (supposedly it will be in by Friday) so it looks like I’m graduating in November!

TheTrunkDr · 2009-10-21T13:45:50.000Z

mmalloy:

They ordered my diploma today even though they still don’t have a grade for me (supposedly it will be in by Friday) so it looks like I’m graduating in November!

Heh, I remember my college graduated me and sent me my diploma despite the fact that I still had two or three required courses that I hadn’t even taken yet. I went back and pointed out the mistake mostly so I wouldn’t get screwed later but also because one of those courses was a group study followup from the previous semester and I didn’t want to leave them hanging.

Reed · 2009-10-21T15:15:25.000Z

Well, talked to an area Realtor and I definitely can’t sell. I’d have to bring at least $60k to the closing. A few units here are short selling (or have recently), so they are way underpriced right now. They also did not have good news for me in regards to the rental market. I’ll be lucky to do better than a $400/mo loss.

So I’m going to talk with a tax adviser and see what I’m looking at with the tax situation. If that doesn’t help enough, then I guess a lawyer to see if I can work out a deal with the bank. Maybe see if they will accept a short sell.

dwinn · 2009-10-22T13:55:37.000Z

Well, it’s been long enough not to jinx it (I hope): my lovely wife is expecting and the dwinfant is set to drop in May.

Tortilla · 2009-10-22T13:56:37.000Z

Whoo hoo!

Will this be your first?

dwinn · 2009-10-22T14:43:03.000Z

Yep, and likely last; it took us about 7 years to get to this point, and we’re only getting older.
We’d done some fertility treatment and this was probably the last attempt before trying to figure out if we wanted to do some of the ultra-expensive stuff.

Creole_Ned · 2009-10-22T16:16:35.000Z

I found out today I sprained my right calf while jogging. The doctor told me to not run for at least four weeks.

This has made me sad because I really enjoy running. :(

fire · 2009-10-22T18:19:40.000Z

dwinn:

Well, it’s been long enough not to jinx it (I hope): my lovely wife is expecting and the dwinfant is set to drop in May.

I thought this had something to do with dwarves and evolution.

Congrats!!! Get yourself a doula. Randomized controlled trials agree: having a doula at your birth decreases chances of unnecessary c-section by 50%; decreases epidural and vacuum/forceps extraction by 40%; increases maternal happiness; and helps dad help mom during labor. :)

fire · 2009-10-22T18:20:19.000Z

Creole Ned:

I found out today I sprained my right calf while jogging. The doctor told me to not run for at least four weeks.

This has made me sad because I really enjoy running. :(

I sprained my ankle climbing last week. I found if I don’t go to a doctor, I don’t have anyone telling me just how long I have to stay off my foot. Ha ha ha!

Creole_Ned · 2009-10-22T18:41:24.000Z

:P

I ran twice after the sprain, doing that macho guy “no pain no gain” thing. Fortunately I came to my senses after that or I’d probably have tripled my recovery time. Guys can be dumb like that.

Scrax · 2009-10-22T18:45:59.000Z

My dog was so excited to be near the dog park he jumped out the car window, ran across 2 lanes of traffic, and met me smiling at the dog park entrance as if nothing was wrong.

Dumbass dog. I guess I know better too.

dwinn · 2009-10-22T23:19:19.000Z

fire:

I thought this had something to do with dwarves and evolution.

Congrats!!! Get yourself a doula. Randomized controlled trials agree: having a doula at your birth decreases chances of unnecessary c-section by 50%; decreases epidural and vacuum/forceps extraction by 40%; increases maternal happiness; and helps dad help mom during labor. :)

Thanks! My wife was indeed looking in to a doula, but for sure we’re going the midwife route. When I first heard “midwife”, I had images in my head of something out of Little House, but it’s a program offered through the giant University of the Midwest Medical Center here, so it’s all good.

Juste · 2009-10-23T03:08:43.000Z

fire:

I sprained my ankle climbing last week. I found if I don’t go to a doctor, I don’t have anyone telling me just how long I have to stay off my foot. Ha ha ha!

Not so smart Fire. I managed to sprain my left ankle twice in a week, both times really badly. It’s still not right four months after and it’s probably going to be a few more months before it’s back to normal. Ankles are tricky stuff.

Tortilla · 2009-10-23T04:48:13.000Z

fire:

I thought this had something to do with dwarves and evolution.

Congrats!!! Get yourself a doula. Randomized controlled trials agree: having a doula at your birth decreases chances of unnecessary c-section by 50%; decreases epidural and vacuum/forceps extraction by 40%; increases maternal happiness; and helps dad help mom during labor. :)

Why is decreasing epidural usage a good thing?