I feel the need to clarify our position regarding our (still empty) rental home in Las Vegas, and a new post seems like the best way to do it. So for the record, we are not at all considering a short sale! As I stated in the previous post, I do not believe our situation warrants one: We are able to meet the expenses of owning the rental, even without tenants to pay the rent — we just don’t like it!
SHORT SALE For those of you still wondering, a short sale is when a bank agrees to allow the sale of a home for less than what is owed on the mortgage, without the borrower making up the difference. (At least not immediately.) (Read the fine print!) Usually for a bank to consider this, you will need to already be behind on your mortgage payments: the bank needs to determine that they will bring in more on a short sale than if they had to foreclose. Obviously, this is still not good for your credit score, but it’s not as devastating as a foreclosure.
MILITARY MOVES When I queried realtors in Vegas late last year about the possibility of selling our rental, one of them told me that they had been gaining a lot of experience helping local military families facing a PCS work out short sales. Obviously, a military family on orders is moving, whether they like it or not. Apparently, the banks are recognizing that as well and are working with them.
That particular realtor, and the others I spoke with as well, all agreed that a short sale is not the best choice for our situation.
I do believe that you should pay back money that you borrow. God willing, someday we will do just that!
Related posts:
- Calling All You Number Crunchers and Personal Finance Gurus (or just anyone with an opinion): Would You Sell Your (Empty) Rental at a Loss?
- I know hindsight is 20/20. Do we really need to pour salt in the wound?
- Hallelujah! PTL! We have renters for our house in Vegas! Woo-Hoo!
- Budget Busters Averted (for now).
- If a change is as good as a rest, I should be comatose by now.
{ 3 comments… read them below or add one }
I do understand that the point of this blog is budgeting and paying off your debt. And I understand that you plan on paying it all off. That being said, if a short sale did end up making sense, in your situation, for your family, is it really any of our business? Sorry, I just feel bad that you feel the need to explain yourself.
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jolyn Reply:
March 10th, 2010 at 3:58 pm
We were never considering a short sale!
Of course a short sale is the right choice for some situations, and I, too, would never judge someone who was in that position. Thankfully, we are not in that position. If that situation changes, you guys will be the first to know.
Or, you know. The third or fourth.
I just don’t want anyone to come across this blog and leave it thinking that someone who could pay $1000+ each month extra toward debt would even consider doing a short sale!
So don’t feel bad. I want to explain this. Unfortunately, it doesn’t seem to be going too well.
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I am sorry you feel like you have to defend your decision. That isn’t cool.
I am with you….no easy way out. You pay back what you owe.
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jolyn Reply:
March 10th, 2010 at 9:16 am
No worries, I didn’t feel like I was defending our decision to pay off the rental, just clarifying it. Some of the comments from the last post led me to believe that some readers understood that we planned on doing a short sale, and that simply isn’t the case! I really wanted to make sure that anyone coming across this blog didn’t leave it thinking we weren’t going to pay our debt just because we don’t feel like it.
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I have absolutely no doubt that you will, indeed, repay the money you borrowed on the (still empty) rental property! Keep your heads up!
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jolyn Reply:
March 10th, 2010 at 9:22 am
Thanks, Nicole! I do have high hopes that we will pay it off, be it by selling it in a couple years’ time or just sucking it up and snowballing the payments!
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