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I have a home in a small town where the housing market is not all that great. I have tried to sell and rent my house with little sucess and right now I am facing an almost 3 hour commute round trip to my job in the city. So much of my finances are going toward gas I dont have a lot of expendible income to make improvements on the house. I dont want to face foreclosure, or a short sale for fear I wont be able to obtain a loan for another house closer to the city. Any suggestions??? I am all out of idea...

Hi, Amanda, sorry to hear about your predicament. I would definitely not be thinking about buying another house closer to the city in the foreseeable future, especially if gas costs are pushing your budget to the limit now. Have you worked with Realtors before?

If not, I think you need to talk to some and get information about comparable houses and their prices. If you have already done this and can't afford to let the house go for the price the market now allows, then it appears to me that you have two options--either continue to commute, or look into a short sale or foreclosure. Even if this hurt your credit score, your life might be better off.

Amanda, Welcome to the Real Estate Boards!

Sounds like you are in the very fortunate situation of being able to make your decision based on relevant facts instead of desperation but I do hear what you are saying...

So what to do? Not an easy question now days but there are answers. For example, what is the differential between your mortgage payments and current value? If close, I would say to sell, move on and chock the loss up to experience.

Renting the current place doesn't sound like a feasible plan nor does staying there until the market recovers which might take many years. Reading your posts, I take it that you are young and, being young, you have more options in this situation than those of us who are older.

To the point, sell now, take the loss and move on. It will take some time to recover from the financial loss BUT, in the meantime, you will be living in an area where you work, play and socialize. Hard to put a dollar value on that.

I would not recommend damaging your credit score if you can possibly avoid it. That credit score is what protects you from sudden unexpected expenses (e.g., medical or other emergency). What would you do if you needed money quickly and had damaged credit? Any loan--for any reason--would be more difficult to obtain and would be at harsher terms. And it stays on your credit report for up to ten years.

I recently faced a very similar situation. I had a job transfer to a new state and the market was bad in my area. I choose to sell my house at a loss, pay the money and move on. Yes, it bit and I wish it had been different, but I have no regrets--I am free to move on with my life unencumbered.

I agree with Idaho--if at all possible, take the loss and move on. You will need time to recover from the loss of money, but you will also not be bound to a place that no longer works for you, and your quality of life (and your credit score) will be in a much better place.

Good luck and please post back and let us know how it worked out for you.

Yep, take the loss and move on, you may even have to bring money to the table. anything is better than damaging your credit. Speak to your Realtor, and tell them what you need and are willing to do to get out.

Agree, Amanda - I'd do my best to prepare the home for sale and attempt to work with the bank, i.e. ask them to forgive all or part of the loss and approve a short sale. (BTW, IMHO, you'll need to verify federal and state tax laws WRT the taxation of any forgiven debt.) On the plus side, a short sale will damage your credit for a shorter period of time than a f/c.

If you're young and single, I'd suggest renting closer to the city and work on improving my overall financial and credit situation for the next couple of years. (It's o.k. to have some fun, too.) Another important consideration - you'll need sufficient cash to cover a rental deposit, advance rent, moving costs and other incidentals.

If you interview a few prospective realtors, request a comparative market analysis (standard form) to review comps in the area. I'd consider either pricing the home 10% below the competition (with the bank's approval) to move it and hopefully start a bidding war (??) and/or providing an incentive to the buyers' realtor - say an extra 1% commission. It's a good idea, IMHO, to also visit open houses in your area to check out the competition.

Please let us know how everything works out. Good Luck!

This message has been edited. Last edited by: SurfNow,

Amanda - I agree with the others, definitely get people in there to give you estimates on really what you might be able to get, but you're going to have to price it to sell (not try to get more so you can buy another house)... With the real estate market as it is, I would sell the house - whatever it takes, rent a nice condo/house/apartment in or near the city you work in - to make sure you really like it there - and in a few years, think about buying. That will give you time to save money AND to make sure you know exactly where you want to live.... When you interview realtors, think back to why you bought the house to begin with (not sure how long you owned it) - and try to recapture that for another buyer..... Good luck, and do let us hear back from you...

You need to know where you stand in "YOUR" marketplace. ..for a starting point.

Call and interview a few Realtors..ask them to bring comps, give them a tour and "listen" to what they have to say.

Have you up to date balance on your mortgage handy. Ask them to figure you an estimated closing costs sheet to see what you expenses are..and what you will net at closing...based on their suggested list price.

Don't be over-anxious with them, as you don't want to list at a desperate price, if you don't have to..based on comps.


Have them leave the comps with you and the est. CC sheet and let them know you want to review and will call should you decide to list. You do not have to list on the spot.

Assess, then decide your direction.

This message has been edited. Last edited by: real estate lady,

hello Amanda, have you tried holding an open house? You could advertise your open house, and have everyone come in one day.

That way, you will create competition for the home, and you could even record what people are saying about your home, so you can understand why it is not selling.