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Stuck With Mortgages |
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Edith: We are at a crossroad, we need advice. We live 55 miles away from our employment, we have been driving for four years. With the cost of gas, and with our family in the same city as we work, we would like to re-locate there. But we owe more on our house than it appraises for. We are in a great location, it is a very nice home. How do we solve this? Should we try to rent it or try to sell it, but if we sell how can we clear the title? |
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Are you sure you know what your home would appraise for? Have you asked local real estate brokers for a rough guess? If you’re depending on the tax assessment figure, remember that can sometimes be different from market value.
If there were one clear right way to go, you would have found it for yourselves by now. I can only tell you that being an absentee landlord is risky. The job is a lot more complicated than just opening the mail on the first of the month and taking out a rent check. Proper selection of tenants is absolutely vital, and after that you still need someone on the spot to handle emergencies and keep an eye on things.
I don't know rent levels in your area, or how much your monthly debt service amounts to, and without figures in front of me I just can't form any opinion on the financial aspect of your decision. A good way to start might be by going to the library and reading up on being a landlord, to get a feel for what's involved. And it won't cost anything or obligate you to consult with local real estate brokers and ask for advice. |
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Edith
Originally published on September 6, 2006 |
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