Hi guys, so we recently bought a house for around 810k in the bay area last december. Unfortunately, my housemates (my Aunt and her wife) are going through a divorce. The mortgage is split between me and my aunt’s ex and she honestly hasn’t been living with us for months now and wants out.
The value of the house is now 770k on Zillow. I know it’s just an estimate but the value of the house when we bought it was 850k..
Our options are to rent out the house for 2/3 of the mortgage and me and my aunt’s wife will add what’s missing to complete the 6.5k mortgage. But then me and my aunt will need to get a smaller condo or apartment. Also handling a rental would be another headache..
Theres an option to short sell the house without paying any realtor fees but that would ruin my credit for 2 years and I wouldn’t be able to buy any property during that time. Before short selling and destroying my credit im thinking of getting a small condo..
Another is selling it the proper way but then pay about 30k in realtor fees and I worry about the lost value. Do we have to pay extra out of pocket since the house went down in value? (If anyone knows please lmk!)
Please advice.. we honestly don’t know what to do at this point. I am not a real estate expert and I only know these information from my realtor/some research.
Thank you!
We need to sell our house but value went down
byu/Interesting-Growth50 inRealEstate
Posted by Interesting-Growth50
4 Comments
I’m in the same boat as you but with a much cheaper home here in Alabama. It’s been a nightmare so I feel for you. I can’t even short sell because my lender won’t allow it for 90 days and I’m at like 65
>Do we have to pay extra out of pocket since the house went down in value?
Yes. To sell a home where $810k is owed on the loan the bank needs to get $810k. If the buyer pays $770k, there are realtor commissions and closing costs. The difference comes from the three of you. That might be $85k.
Or get the bank to approve a short sale. Or a deed in lieu. In many cases they won’t approve it if you all can afford it. As you mentioned it affects all of your credit.
You have another option. Get a room mate or two. Financially that should be better than renting the whole home then renting another place nearby.
Sell it for what it’s worth. Prices could continue to fall (likely will). Good luck
Find a discount realtor…