Real estate property conundrum

[paulsk]

I declared Chapter 7 in March, and now in the 60 day waiting period. The 341 went smoothly and the trustee has filed his final report. No asset case. My mortgage payment is more than 30% of my pay. I have applied for HAMP but no response from my mortgage company yet. I recently got a new job, same pay in another state and might move, the house has very little equity(~3000$) and if I try and sell I will have to pay out of pocket to cover commissions and expenses. Should I walk away or rent the place out?

Renting would cover my mortgage, I would loose the tax deduction one gets for primary residence and I may have to pay taxes on the new income.

Selling would result in me paying out of pocket for expenses related to the sale.

Walk Away - do not know the consequences.

I am not reaffirming my mortgage.

[justbroke]

Walking away would have no affect on your credit report. A short sale, deed in lieu, or foreclosure, however, would have an impact on your ability to obtain a new mortgage for at least 3 years. You could try to sell it a "little" short and then be on your way to recovery much quicker than waiting for a foreclosure.

Having been a landlord, it can be difficult when you are in a different State (or even town/city/county). The management companies are hit and miss. I have to say that again, the management companies are more miss than hit. Finding a management company would be the best way to rent the property. If the property actually generates an income, this may be better! You could rent and then wait for the value to increase to a level which would require nothing out of pocket to see.

You are thinking the right way. The issue is which works best for you and your plans.

[paulsk]

Thanks!

[keepsmiling]

JB is right on, of course, as always.
I'd be strongly tempted-- assuming you can find the cash--- to cough up enough to a buyer for closing costs, whatever... to get a quick, clean sale. Your life will be back to "normal" (whatever that is lol) much more quickly that way. Fresh start and all that. If it's possible.
Congrats on the new job and moving forward with your life!