First a little background...
I'm a 29 year old woman who lives with her boyfriend of 6 years. The house I am in now I bought prior to really getting involved with my male counterpart. When I bought the home I had no intention of staying in it forever. At the time I bought the house (2007) I thought the houses had come down as far as they would and the crash was over. I bought a house I felt would be fairly easy to flip when the time came to move.
- Is near both major high-ways of the metropolitan area
- Is within walking distance of a major university
- Is at the center of several bus stations
- Near a military base
- Is within a 5 minute drive of the train station
- Is within a 10 minute drive of one of the predominant shopping/eating areas of the town
Location wise the town-house is perfect. A 3br, 2 1/2 bath 1500 sq ft piece of fabulous. I adored the open-layout downstairs and the little white-wash porch reminded me of the old-style southern homes. It's a great town-house--but it's not a place I want to raise a family in or stay forever. My boyfriend and I really want to settle down, get married and start a family. He's a country boy and wants a yard and honestly I don't blame him. I want a dog our yard is smaller than the tiniest of the bedrooms and most of it is cement. It barely holds our garden every year so there's no place to let an animal run free. There are dog parks in the city but realistically my life is so busy I doubt I would consistantly find the time to take her.
On top of this our neighborhood is deteriorating. The majority of the properties around us have turned into rental homes over the past few years. Only one of our original neighbors remains and many of the renters near us are absolute pests. Like the playing loud music, parking behind your driveway, letting their children run over your flower garden sort of pests
. Crime has gone up, burglaries have gone up, vandalism has gone up and last year a woman was even shot in the face 3 blocks from where I live. While it's fine to live in as an adult I wouldn't want to raise children here. I want a traditional suburban or rural home complete with a yard, a garage and enough space between me and the next guy that when we both exist our house at the exact same moment I cannot count his nosehair.Here's the problem
I owe about 160k left on a home that Zillow estimates to only be worth 140k. There's a 20k shortage there if
I manage to find a buyer to pay it at-market-value.The delima
I've talked with my boss, several friends and a lot of different people trying to see what options I have. I originally had planned on going with Plan A below until my boss mentioned that I should not wait. That it is definately a buyer's market right now and real estate loans were at their best. If anything I should not wait
and instead go forward on trying to find the best deal now.Solution 1: The Slow Road
In order to sell my house I will attempt to flip it back right-side-up. I will do this by paying extra on principal every month. This plan will have my mortgage "right side up" in 2-3 years so I would be able to sell this home and buy another in 2015/2016 depending on the market.Solution 2: The Alternate Road
My boss' suggestion is as follows.
1. Find a forclosure property that meets all my real estate credentials--basically find my 'dream home' as a forclosure. (Just out of curiosity I did a seach and found several houses that meet my requirements in a nearby city. It's a longer commute but potentially worth it).
2. Do a 'short-sale' on my existing home.
3. Roll over the difference from the short sale into my new mortgage. The forclosure or bank-owned property will be selling at below market value of the home so basically I would eat the equity in the new home to pay off the old home.
The goal is to move into a new home that I will
stay in for the forseeable future. A home to raise children in, a home to stay in for the long haul.