I know a guy who bought his condo for about $500,000 at the peak. It’s now worth under $300,000. He doesn’t have the equity to refinance. And because he got a fixed rate mortgage, he’s not enjoying the low rates of today. Rent on a comparable place is much lower than carrying costs.
Can’t do a short sale because, on his income, he can afford the mortgage payments. Remember that sellers must submit short-sale packages and justify the short-sales.
He put more about 30% down… I’d say ignore the sunk costs, buy another place, and walk-away from the old one.
In business, you have to step back from the moral outrage and think objectively.[/quote]
You said it yourself… He can afford the payments…He shouldn’t be able to do a short sales…For him it’s FC or exit…Why should he be getting an incentive to do a short sale.. Too damn bad…
