Investment Property Across Country, Looking For Options

matt422

LoanSafe Member
May 28, 2017
2
0
1
41
Hi, I bought a 1 bdrm condo in southern NJ for $120k in 2006. I moved across the country in 2014 to further my career and want to know what I can do to get this albatross off my ledger. I just bought a house in my new location for $281K. The property has been rentable at a breakeven rate, but property managers in the area that aren't terrible are hard to come by.

I currently owe $61K and the Zillow Zestimate just crossed $70K for the first time in years. A couple of condos in the complex just sold for $69k, but they had renovations and I don't really have the free money to upgrade the property (and the fiance would kill me if I were spending more money on that condo than my house). I'm not really in immediate financial distress, but I may be if I can't unload this place before repair bills start coming in.

So what are my options here?

I have been researching a number of "nuclear options", including short sales, DILOF, or just walking away because I'm so sick of having this thing. Of course, by the numbers, things don't look that bad. I'm just freaked out by the possibility of having massive repair bills hit me.
 
Last edited by a moderator:

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Hi,

You don't really have any other options than either to walk away, short sale, deed in lieu, lease option to buy or do nothing. A DIL and or short sale will be very difficult to come by especially if you are not having financial issues. That leaves you with walking away, lease option to buy or do nothing.

Maybe you can sell it via a lease option to buy where they new owner will take care of the repairs etc.
 

matt422

LoanSafe Member
May 28, 2017
2
0
1
41
So how do I "walk away"? Just stop making payments? On the mortgage, taxes insurance, and condo fee?

Hi,

You don't really have any other options than either to walk away, short sale, deed in lieu, lease option to buy or do nothing. A DIL and or short sale will be very difficult to come by especially if you are not having financial issues. That leaves you with walking away, lease option to buy or do nothing.

Maybe you can sell it via a lease option to buy where they new owner will take care of the repairs etc.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
Why don't you try selling the home via regular sale, if you have a small amount of equity that will take care of some of the closing costs.

6% commission to selling agent & buyers agent: 4200.00
Closing costs average: 3000.00
Total costs: 7200.00

Current balance owed: 61,000.00 + 7200.00 = 68,200.00 - you're still profiting from the sale. Try not to damage your credit and just unload on the property would be my advice. Shoot if you have to pay 3K to get rid of it, that in my eyes would be more beneficial than damaging your credit.
 
  • Like
Reactions: Moe Bedard

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
So how do I "walk away"? Just stop making payments? On the mortgage, taxes insurance, and condo fee?
Yes and then hope for the best and plan for the worst.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Why don't you try selling the home via regular sale, if you have a small amount of equity that will take care of some of the closing costs.

6% commission to selling agent & buyers agent: 4200.00
Closing costs average: 3000.00
Total costs: 7200.00

Current balance owed: 61,000.00 + 7200.00 = 68,200.00 - you're still profiting from the sale. Try not to damage your credit and just unload on the property would be my advice. Shoot if you have to pay 3K to get rid of it, that in my eyes would be more beneficial than damaging your credit.
The problem Erik is that the condos that did sell near $70k were renovated and his condo is not which probably means he would get much less than the comps.