Hey y'all, no idea where this post should go since it's not exactly about foreclosure (yet anyway)... mods please move it if it's in the wrong place....
A friend just retired and moved to New Mexico.
She has a small 2 br condo here in NJ on the market now for 6 mos.
Of course, she bought at the height of the market for 227. She owes ~157 and is listed at 175, which would break her even with fees etc. Her contract with the realtor is expiring in a few weeks and she has asked me to help her out with sale/rental/whatever... bearing in mind, of course, that I have NO experience in any of this. She knows my situation and would like to help me out by paying me some commission.
I'd love to help her out but am worried about doing right by her.
There have been no sales of 2 br's in the complex recently, and the 1 br's have gone for somewhere in the 80's. Realtor wants to drop it to 165. I personally doubt she will come close, since sales of houses in the area have been as low as 109... which if you know NJ at all, is crazy cheap for any livable area.
Her house in NM is being rented for the next month, at which point she would like to live in it (she is living with a friend til then) and will then have two mortgage payments she is responsible for. That will be a problem.
She is willing to rent the NJ place for less than her monthly payment and eat the difference for a while, but even at a loss I think it's going to be a long time since houses are available for the same price. She'd also consider, although with great bitterness, trying to rent the NM house again and coming back to NJ to live in the condo til it sells. Since she has been trying to get back to NM for 5 years (long story, divorce, re-employment for full pension, yada yada) this would be really trying and sad for her.
I have suggested rent to own etc, but don't have enough info to understand that, and she doesn't think she can charge enough in rent to make that work (?)
She is concerned about her credit rating...even tho I have told her she's going to have to let that go at some point...and was told a short sale would be the smallest hit, rather than a deed in lieu.
So my questions for you experienced folks are:
What is the best way to handle this? Is it true about the lesser hit to the CR? won't she have to miss some payments to get the bank to agree to anything? any other thoughts/suggestions/ questions I should be asking?
Thanks in advance. I am in over my head here.
A friend just retired and moved to New Mexico.
She has a small 2 br condo here in NJ on the market now for 6 mos.
Of course, she bought at the height of the market for 227. She owes ~157 and is listed at 175, which would break her even with fees etc. Her contract with the realtor is expiring in a few weeks and she has asked me to help her out with sale/rental/whatever... bearing in mind, of course, that I have NO experience in any of this. She knows my situation and would like to help me out by paying me some commission.
I'd love to help her out but am worried about doing right by her.
There have been no sales of 2 br's in the complex recently, and the 1 br's have gone for somewhere in the 80's. Realtor wants to drop it to 165. I personally doubt she will come close, since sales of houses in the area have been as low as 109... which if you know NJ at all, is crazy cheap for any livable area.
Her house in NM is being rented for the next month, at which point she would like to live in it (she is living with a friend til then) and will then have two mortgage payments she is responsible for. That will be a problem.
She is willing to rent the NJ place for less than her monthly payment and eat the difference for a while, but even at a loss I think it's going to be a long time since houses are available for the same price. She'd also consider, although with great bitterness, trying to rent the NM house again and coming back to NJ to live in the condo til it sells. Since she has been trying to get back to NM for 5 years (long story, divorce, re-employment for full pension, yada yada) this would be really trying and sad for her.
I have suggested rent to own etc, but don't have enough info to understand that, and she doesn't think she can charge enough in rent to make that work (?)
She is concerned about her credit rating...even tho I have told her she's going to have to let that go at some point...and was told a short sale would be the smallest hit, rather than a deed in lieu.
So my questions for you experienced folks are:
What is the best way to handle this? Is it true about the lesser hit to the CR? won't she have to miss some payments to get the bank to agree to anything? any other thoughts/suggestions/ questions I should be asking?
Thanks in advance. I am in over my head here.
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