“I have owned my house since 2006. My employer reduced my salary by 30% and now I have to move out of state where I have found a new job.
The house is a problem. Since 2006 my house price has dropped by about $40,000. That means I have a $40,000 deficiency, which I don’t want to pay.
I have option to rent the house, but I am still considering a short sale. Any advice? Sergio.”
Here was our answer to Sergio’s Question: Sergio, I would attempt a short sale. Depending on your situation and the type of loan you have, more than likely you will not have a deficiency.
I can give you a better answer after I get more information from you. I wouldn’t recommend renting the house. How hard is it going to be to manage when you are out of state?
What if the tenants stop paying? What if a pipe breaks and floods the house? I’m not saying don’t rent the house. I just know from past experience that managing rental property from a distance is super tough.
I knew a real estate investor who targeted what he called “tired, out of town landlords.” He would offer to buy their property below market.
Surprisingly, many of them accepted his lowball offers because they were so tired of dealing with the property. Here is the other downside on renting.
You will probably have negative cash flow every month. I don’t know what your house will rent for. But, if you are upside down on your house value, then you are likely also upside down on the rental value.
That means you will almost certainly lose money on the rent every month. With your precarious financial situation, recent 30% salary cut, and move out of state, the last thing you need is another bill each month.
With a short sale you can walk away owing nothing, with no tax liability, and be eligible to buy another house in 3 years.
That sounds a lot better to me than being stuck with a money losing house 2 years from now. Thinking about a short sale? Visit one of Chicago’s short sale experts at www.ShortSaleSuperMan.com
I can help you short sale your property and get back on your feet. Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Chicago loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, phillip buoscio.
phillip is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc.. Chicago Short Sales Realtor:
Phone: (312) 953-6725. email@example.com.
View My homes for sale at www.BetterLivingRealty.com. Visit www.ShortSaleSuperMan.com for more information on Chicago short sales.
Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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phillip buoscio, Better Living Realty – Buoscio Brokerage, Inc., and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are phillip’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc..
This information on Chicago Short Sale Question: Should I Short Sale My Home? is provided as a courtesy to our viewers to help them make informed decisions.