We aren't alone in this scenario, but we are underwater on our house- $23,000 according to neighborhood comps. We have to move due to the military and we found a renter in less than a week, which is great! However, we were looking at the fees to sell our house. We are hoping the market rebounds in 2 years but even so, if we sell our house at the price we have in mind, we'll owe almost $14,500 in fees, commissions, and closing costs. Ouch. I can't see our home rebounding that much in value (basically, $14,500 more than what we're asking would break us even). We REALLY don't want to use that much of our savings. Other than For Sale By Owner, do we have a choice?
In the market today so many people are in the same situation you are, it is sad but the market probably not rebound for 5 years. One of the things you can do is sell your home to person that has money, a job to support the house but has issues with their credit and can not get a loan. It's called owner carry, owner finance are several of the names of this strategy. You get a down payment, and keep the loan in your name. The buyer will make monthly payments to you or your bank depending on how you set it up. Generally the buyer will pay more than to you than the house is worth because they will be happy to get the house due to their credit situation. There are several places you can get more information cancerning owner financing online. This is the way alot of people are going to avoid having two houses to pay mortgages on. I was a real estate agent a few years back.
You can go the sale by owner route and pay an agent who brings you a buyer. That way you reduce the total commission you would have paid to your listing agent by half. I would suggest you keep a renter in the house for a few more years. However, the key is finding a good tenant. If you there is absolutely no equity in the home and you want to completely get rid of it, then you might consider a short sale. Any real estate agent will be able to give you more information on how to do a short sale.
