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Upsidedown on Mortgage |
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I own a home in FL that I bought over 2 years ago for $175K. With the market as it is, homes are listed in that area as low as $150K. I owe about $160K on my mortgage, which is a 30-year fixed mortgage. Five months ago I moved out of state for work. I have been unsuccessful at trying to rent the property through a property manager. Even though I am able to afford the mortgage and my rent where I now live, I hate to lose this money each month. Should I try to sell and take a major hit or continue trying to find a renter and hope that the market turns around in a year or so, so that I will not lose as much money? |
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What you're asking me is really a matter of personal finance advice. If there were one good way to go, you'd have found it for yourself by now. I'm afraid you're going to lose no matter which way you turn. BTW, consult a CPA about whether you can take expenses on the property as a rental loss, if you can show that you've been trying to rent it. If that's possible it will lessen the past losses somewhat.
But as for what to do in the future -- that's a very personal matter.
I know what I'd do. I'd bite the bullet, sell for whatever I could, consult a CPA about whether the loss is deductible because you don't live there and truly have been trying to rent the place (again, I'm not sure about that but it's worth investigating.)
But you know your whole financial situation -- and your outlook on the future -- better than I do. It's something you'll have to decide for yourself. |
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Edith
Originally published on February 15, 2008 |
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