Stuck: Our condo won't bring enough money to pay off loan and realtor fees what are our options?

Question

What is a Do a "Deed in Lieu of Foreclosure to Bank"

Answer 1

hold onto the property until it does

talk to your bank about a short sale (you'll receive a 1099 for the difference and need to pay taxes on it as income)

see if your r.e. agent will take a slightly smaller commission, it's better than not getting one at all

the "f" word, foreclosure

Answer 2

I'd like to add that you no longer have to pay taxes on it as earned income. Plus you do not pay for the r.e agents comission in a short-sale the bank does. But that does not mean they wont haunt you for it! The have ways to get wage garnishments for the next 10yrs

Answer 3

Sell your property yourself, with a flat fee MLS. . . . .

Do a short sale of property if your bank will cooperate

Rent out the condo and wait for market to improve

Do a Deed in Lieu of Foreclosure to Bank

Answer 4

Not a good time to sell condos unless you are in SF bay area or Hawaii because condos are still going up in price.

Answer 5

If you aren't facing foreclosure, the best thing to do is hold onto the condo until such time you can sell it for enough to at least break even or not have to bring too much cash to closing.  Ideally, the market could possibly rebound for you in the next couple of years and you could come away with some of your equity, conservatively speaking.  Also, realtor fees are negotiable.