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Can I Get Rid of Second Home Without Big Loss?

Questionshadow wide Can I Get Rid of Second Home Without Big Loss?

Q: I have a townhouse that I have owned for 7 years and is worth about $40K less than I owe. Due to circumstances I won’t go into, I bought another house and started renting out that townhouse (at a significant loss). Now just under a year later, I cannot really afford the mortgage on the two homes and need to sell the new one I bought (moving back into the townhouse). My question is, am I going to get out of this without owing a ton of money? What do I have to look out for? I don’t want to go the foreclosure route but if I end up doing that on one home, might as well do that on both right? - Two Houses Too Many in Minnesota

A: In order to make a decision I highly recommend getting a complete Comparative Market Analysis from at least two Realtors who know your area. I have sold quite a few in Woodbury myself as have many others. You’ll need to find out what you can really expect to net in a sale in the current market prior to making any decisions about “going the foreclosure route” as it has a huge impact on your credit and what you’ll be able to do in the future. It’s a tough market but getting better with less inventory and still very low interest rates. In your area the single family home should sell quicker than a town home IF priced right. Pricing is the key.

Deb Casper is a Realtor with RE/MAX Specialists in White Bear Lake, MN. 

A: Talk to a qualified REALTOR and ask them to do a comparative market analysis on both properties. It is our job to provide our clients with the most up to date, hyper-local neighborhood information. Big web sites look at national data, and it is not applicable on the local level.

Without knowing the numbers, it is impossible for me to give you specific advice. Here are some things you want to look at- which property will give you the best equity in five, six, seven years from now? Which property is the best long-term decision? Set yourself up for the future, and look at your properties as financial assets in your portfolio.

Valerie Leivo is a Realtor® with Keller Williams in Santa Rosa, CA.

 



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