Negative equity on condo & can’t afford it. Should I lease it for less than my mortgage payment or short sell?

Bought my home for $ 320K and it is worth about $ 250K. My payment is $ 2300. I can no longer afford this payment because of other bills/loans. I can lease it for $ 1400 and pay the difference of $ 900. I will live with Family for 1 yr (rent free) & payoff debt. BUT, 12 mos @ $ 900=$ 10,800. Chances are that the value of my home will not be $ 320K+ for at least 2, maybe 3 years. I hope to afford my old $ 2300 pmt after I payoff the loans/credit..but I should I do a shortsale now and cut my losses. Problem is that I would like to save my credit. I like my home but I just cant afford it right now. Should I short sell and still move in w/family then later Rent for awhile till I can get back in the market? Or what? Need help big time. I’m making pmts on time, but barely! Should I save my home & credit & live with family and payoff debt or just get rid of it (condo) all together and payoff credit/loans for a few years (since I know the short sale will ruin my credit.) Signed, Very Stressed.

I currently am going on 4 months behind on my mortgage. I just bought the house a year ago. Due to a recent job loss I put my house on the market to try to avoid foreclosure. I tried refinancing no luck there due to my recent late payments and income loss and I live in Phoenix where the market has slumped. A friend of a friend offered to do a short sale of $ 260K. I owe $ 306K. In return, he will rent it back to me for the price of the new monthly mortgage for a 2 year lease, then after 2 years, sell it and we split the profit 50/50. I have an 80/20 loan through the same lender. The short sale will take care of the 1st loan, but not the second and the mortgage company already stated that they will come after me for the remaining debt. I have been getting advice and everyone says it doesn’t sound like a good deal so I should probably just let the house foreclose. What is your advice? Any suggestions you can provide me?

Register New Account
Reset Password