So we know we screwed up…

[svelte]

…the nugget in TG’s advice that you may overlook within his exquisite light-hearted banter is that you should consider buying your long-term dream home NOW and then letting the AZ home go (since it will take awhile for your credit to recover)…

Decisions like these are hard to make and you won’t know if you made a decent one at this juncture for another few years, but it’s just money. You know the old saying, as long as you have your health…

[Anonymous]

Choice #4 is what many folks are doing. Another reason why this housing market will limp along for a long, long time. Especially AZ.

[Anonymous]

Choice #4 is what many folks are doing. Another reason why this housing market will limp along for a long, long time. Especially AZ.

[Anonymous]

Choice #4 is what many folks are doing. Another reason why this housing market will limp along for a long, long time. Especially AZ.

[Anonymous]

Choice #4 is what many folks are doing. Another reason why this housing market will limp along for a long, long time. Especially AZ.

[Anonymous]

Choice #4 is what many folks are doing. Another reason why this housing market will limp along for a long, long time. Especially AZ.

[bubble_contagion]

4. Use our $175,000 cash to buy a house in San Diego while we still have 800+ credit scores and walk away from the Tempe condo (not sure if we have recourse loan – do remember the broker made it a “secondary home” loan to get us a competitive rate)

This is correct answer if your loan is non-recourse. Those $40K that you over paid will turn into $100K+ by the time you add the loan interest, taxes and loss in earnings if you had invested that money. Let the bank take the hit. Everybody else is doing. Think of the children, you can send them to college with that money.

[bubble_contagion]

4. Use our $175,000 cash to buy a house in San Diego while we still have 800+ credit scores and walk away from the Tempe condo (not sure if we have recourse loan – do remember the broker made it a “secondary home” loan to get us a competitive rate)

This is correct answer if your loan is non-recourse. Those $40K that you over paid will turn into $100K+ by the time you add the loan interest, taxes and loss in earnings if you had invested that money. Let the bank take the hit. Everybody else is doing. Think of the children, you can send them to college with that money.

[bubble_contagion]

4. Use our $175,000 cash to buy a house in San Diego while we still have 800+ credit scores and walk away from the Tempe condo (not sure if we have recourse loan – do remember the broker made it a “secondary home” loan to get us a competitive rate)

This is correct answer if your loan is non-recourse. Those $40K that you over paid will turn into $100K+ by the time you add the loan interest, taxes and loss in earnings if you had invested that money. Let the bank take the hit. Everybody else is doing. Think of the children, you can send them to college with that money.

[bubble_contagion]

4. Use our $175,000 cash to buy a house in San Diego while we still have 800+ credit scores and walk away from the Tempe condo (not sure if we have recourse loan – do remember the broker made it a “secondary home” loan to get us a competitive rate)

This is correct answer if your loan is non-recourse. Those $40K that you over paid will turn into $100K+ by the time you add the loan interest, taxes and loss in earnings if you had invested that money. Let the bank take the hit. Everybody else is doing. Think of the children, you can send them to college with that money.

[bubble_contagion]

4. Use our $175,000 cash to buy a house in San Diego while we still have 800+ credit scores and walk away from the Tempe condo (not sure if we have recourse loan – do remember the broker made it a “secondary home” loan to get us a competitive rate)

This is correct answer if your loan is non-recourse. Those $40K that you over paid will turn into $100K+ by the time you add the loan interest, taxes and loss in earnings if you had invested that money. Let the bank take the hit. Everybody else is doing. Think of the children, you can send them to college with that money.

[waterboy]

“I just read SD Realtor’s post and think we will need every penny we have for a downpayment as the market is going up again”

Be careful with the thought that the market is going up again and you are going to be priced out. The market has seen a nice pop in the spring & summer months for homes under $500k in good areas of San Diego, but I think that most agree it won’t continue to skyrocket back up. Greater chance it will fall back on stabilize.

Keep your part time job for a few more years and pay someone $20-$30k yr to help you with the kids. Keep in mind the condo in Tempe could take 5-10 more years to bounce back to a price where you would break even after fees, but if its in a good part of Tempe it should bounce back in 5-10 yrs.

Work harder on renting it. Its hard to believe an ASU student or young professional wouldn’t pay $750 mo. How are you posting the rental? It might not be as easy this year to find someone (especially at $1k mo) but you should still be able to find somebody.

If not…try short sale. If you owe $120k and sell for $80k you will have to come up with approx $6k in closing costs and fees, so you are actually bringing more than $40k to the table and have already lost $20k down payment if you get out now.

Way I see it, you have 3 options if its a non recourse loan.

1. Stop paying now and just lose your down payment and credit ($20k loss)

2. Rent unit for next 5-10 yrs at approx $250 mo loss ($15k-$30k spread over 5-10 yrs)

3. Sell now for $80k. ($65k loss)

If you wouldn’t be able to sleep at night if your credit was bad (or worried about stress of landlord for 5-10 more years), then just sell it now and hopefully you could get a little more than $80k so loss isn’t as bad. Just know you will have to work a few more years to make it up.

[waterboy]

“I just read SD Realtor’s post and think we will need every penny we have for a downpayment as the market is going up again”

Be careful with the thought that the market is going up again and you are going to be priced out. The market has seen a nice pop in the spring & summer months for homes under $500k in good areas of San Diego, but I think that most agree it won’t continue to skyrocket back up. Greater chance it will fall back on stabilize.

Keep your part time job for a few more years and pay someone $20-$30k yr to help you with the kids. Keep in mind the condo in Tempe could take 5-10 more years to bounce back to a price where you would break even after fees, but if its in a good part of Tempe it should bounce back in 5-10 yrs.

Work harder on renting it. Its hard to believe an ASU student or young professional wouldn’t pay $750 mo. How are you posting the rental? It might not be as easy this year to find someone (especially at $1k mo) but you should still be able to find somebody.

If not…try short sale. If you owe $120k and sell for $80k you will have to come up with approx $6k in closing costs and fees, so you are actually bringing more than $40k to the table and have already lost $20k down payment if you get out now.

Way I see it, you have 3 options if its a non recourse loan.

1. Stop paying now and just lose your down payment and credit ($20k loss)

2. Rent unit for next 5-10 yrs at approx $250 mo loss ($15k-$30k spread over 5-10 yrs)

3. Sell now for $80k. ($65k loss)

If you wouldn’t be able to sleep at night if your credit was bad (or worried about stress of landlord for 5-10 more years), then just sell it now and hopefully you could get a little more than $80k so loss isn’t as bad. Just know you will have to work a few more years to make it up.

[waterboy]

“I just read SD Realtor’s post and think we will need every penny we have for a downpayment as the market is going up again”

Be careful with the thought that the market is going up again and you are going to be priced out. The market has seen a nice pop in the spring & summer months for homes under $500k in good areas of San Diego, but I think that most agree it won’t continue to skyrocket back up. Greater chance it will fall back on stabilize.

Keep your part time job for a few more years and pay someone $20-$30k yr to help you with the kids. Keep in mind the condo in Tempe could take 5-10 more years to bounce back to a price where you would break even after fees, but if its in a good part of Tempe it should bounce back in 5-10 yrs.

Work harder on renting it. Its hard to believe an ASU student or young professional wouldn’t pay $750 mo. How are you posting the rental? It might not be as easy this year to find someone (especially at $1k mo) but you should still be able to find somebody.

If not…try short sale. If you owe $120k and sell for $80k you will have to come up with approx $6k in closing costs and fees, so you are actually bringing more than $40k to the table and have already lost $20k down payment if you get out now.

Way I see it, you have 3 options if its a non recourse loan.

1. Stop paying now and just lose your down payment and credit ($20k loss)

2. Rent unit for next 5-10 yrs at approx $250 mo loss ($15k-$30k spread over 5-10 yrs)

3. Sell now for $80k. ($65k loss)

If you wouldn’t be able to sleep at night if your credit was bad (or worried about stress of landlord for 5-10 more years), then just sell it now and hopefully you could get a little more than $80k so loss isn’t as bad. Just know you will have to work a few more years to make it up.

[waterboy]

“I just read SD Realtor’s post and think we will need every penny we have for a downpayment as the market is going up again”

Be careful with the thought that the market is going up again and you are going to be priced out. The market has seen a nice pop in the spring & summer months for homes under $500k in good areas of San Diego, but I think that most agree it won’t continue to skyrocket back up. Greater chance it will fall back on stabilize.

Keep your part time job for a few more years and pay someone $20-$30k yr to help you with the kids. Keep in mind the condo in Tempe could take 5-10 more years to bounce back to a price where you would break even after fees, but if its in a good part of Tempe it should bounce back in 5-10 yrs.

Work harder on renting it. Its hard to believe an ASU student or young professional wouldn’t pay $750 mo. How are you posting the rental? It might not be as easy this year to find someone (especially at $1k mo) but you should still be able to find somebody.

If not…try short sale. If you owe $120k and sell for $80k you will have to come up with approx $6k in closing costs and fees, so you are actually bringing more than $40k to the table and have already lost $20k down payment if you get out now.

Way I see it, you have 3 options if its a non recourse loan.

1. Stop paying now and just lose your down payment and credit ($20k loss)

2. Rent unit for next 5-10 yrs at approx $250 mo loss ($15k-$30k spread over 5-10 yrs)

3. Sell now for $80k. ($65k loss)

If you wouldn’t be able to sleep at night if your credit was bad (or worried about stress of landlord for 5-10 more years), then just sell it now and hopefully you could get a little more than $80k so loss isn’t as bad. Just know you will have to work a few more years to make it up.

[Author]

Posts