BiggerPockets

Why not aggressively price the homes so you don't have to keep dropping your price? If you're listing the property for the right price, it will sell. Doesn't that seem like the right move, rather than wait it out for months, constantly dropping your price, and paying all of the expenses on the property in the meanwhile?

If you want a property to sell, you can make it sell. You just have to be willing to take what people (other than you) think it is worth.

I had to make similar decisions on a rental last year, when the block it was on turned the wrong way, and I couldn't rent a unit, no matter what I did. I either needed to unload, and fast, or suffer months or longer of paying for a property that I'd never be able to fill with a tenant that I'd want in there. I priced aggressively and got much less then I wanted, but the property was out of my hair, along with all the problems that were attached to it, all of a sudden.

Anne,

If you own the rental and other stuff, they can certainly sue you for enough to cover your debt. Of course, you'll need to check with an attorney to determine exactly what they can do in your state.

Anyway, if you have excellent credit and some assets, you need to fix this situation. As Josh said, I would aggressively sell the house and cut down on your expenses, so that you can preserve your credit and your reputation. What could possibly be the advantage of allowing the bank to foreclose on your house, when you have the ability to sell it and preserve your credit? That sounds crazy to me!

Mike

Could you move into the rental and then rent your house until the market turns?

Jon & NC Mark -
Our residence was refinanced to an interest only loan 2 yrs ago - PITI is 1650. which is more than we can afford now.
The rental was carrying itself at $1200/mo with a PITI of $1100. But now, we're making improvements (thinking we will move in), which has been about $7000 out of pocket (savings).
Now is the moment of truth. What is the best thing to do? I think moving into the rental is probably the smartest thing, and reducing the residence to sell. Two years ago we tried to sell it at $375, but now have it listed at $339 (which IS the best deal in the neighborhood).
Think it's time to go to $325, and see if that brings a crowd. We can't take less than $300, or we won't be able to pay realtor fees.
Thanks for lots of good advise!

My daughter is a realtor but unless i"m desperate I sell FSBO. It's hard but all you have to do is be willing to have open houses, get those signs and flyers in the tube and be nice to people. With concerted effort, we sold two houses within 8-14 days on two opposite ends of our town. Who knows more about the house than you do?

When you have tight margins (and both of these had been redone) you price the houses as low as you can (for me that's no commission FSBO) and work it.

I'd sell both and rent for awhile until I got back on my feet. If you have a portfolio held loan to a land contract, As your mortgage bank if they have that type of mortgage.

Sometimes there are a number of solutions.
I feel the owners' instincts are many times better than the "professionals"

DO consider the FSBO--for Sale By Owner. In fact, consider a modified "5Day sale" The book "How to Sell Your Home in 5 Days" may be available at your local library, and it is available at bookstores.
It helped me understand HOW to sell by ownner, without the fsbo companies. I am preparing to do one now.

I will not follow the book, but have decided to tweak it a few different ways.
If you're interested, I will be glad to share them.
Ofgift

I just lost a response to you because BP was down,
Google "Kyle Cascioli." His website has a contact place, but go to the site itself. He has a lot of 5-Day related information. He is a RE agent in Denver who does a modified version of the 5 Day sale, and his site can be helpful.
Google "the official site of the 5-Day Method and the Book How to…" Sign up for the forum, read, ask questions, learn.

Basically, and not real accurately,
Have your house inspected, and have the results available.
Advertise your house for about half what it's worth during a 5 day period starting any WEDNESDAY you choose, show it ONLY Saturday and Sunday for a few hours each day, and sell it Sunday night. You advertise starting on a Wednesday. If you do not have 25 responses by Friday night, do NOT proceed with the sale. Find out what happened, correct it, and reschedule for another time.

You determine what the market value is, cut that in half, and list it on local print media and free websites. The author gives you the info for the ads, (by owner, general location, description, date, days, times, "Will be sold Sunday night to the highest bidder", your phone and email. You do not give your address until Friday night, after you know you have the 25 responses and are going ahead with the sale.
He gives you info for both the quick and the detailed descriptions, the telephone log, the bidding rules, etc. Avoid major events weekends, holiday weekends, etc. He tells how to handle various problems, and various things you might expect.

I will tweak his method several ways:
I will not use a 50% reduction for a listing price. I will use either a 20 to 25 % reduction list price, OR determine the lowest amount I'll accept, and have the bidding start there. My hours will probably 1 to 5 PM on Sat and Sunday.

I will advertise at least the Wed. prior, so that I have two weekends of advertising. I do not think I will pay for a newspaper ad this time. I did before and did get many responses from it, but still do not think it was cost effective. I do expect to use Craigslist and other free websites, and probably a flat fee MLS listing, using a few suggestions regarding that. I may send out postcards to a local area radius. I don't know how far I will go, a few blocks or subdivisions, or a few miles…
If I don't get the 25 responses, I will cancel and reschedule.
I will have neighborhood comps available if there are any available. Not much is selling here now.

There's possibly a few more things but I can't think of them now.
I will hire a couple of friends to help with the 2 open inspection afternoons.
I will use a title company for the closing. I did talk to a re lawyer, and he said he's too expensive for the little work that needed done, that a title co would handle it far less expensively than he would. That may be state dependent.
If you have other questions, ask!
Ofgift

Meant to include that, if my house does not sell via the 5 Day sale, and it might not, even though we are going into our strongest selling season now, I may keep it fsbo. I may do a second sale a month lataer, or just list it at the perceived market value, rather than the beginning bid price.
Or, if I can get a 3 month contract with a RE agent, I may do that instead.
Best wishes.
Ofgift

The proponents of the 5Day sale suggest NOT etting an appraisal. that's explained in the book and on the forum, in the archives, or ask there why not.

I didn't get one, and won't for this next sale.
Ofgift

*****SOURCE*****FROM CHASE BANK
HOPE THIS HELP___ FYI--Im new here =)
The "Making Home Affordable" Program

President Obama recently announced the Administration's plan to further prevent foreclosures and assist borrowers with mortgage loan modifications as part of the Homeowner Affordability and Stability Plan. This new Making Home Affordable program is a $75 billion plan to assist customers who are struggling to make their mortgage payments.

Chase is committed to helping our customers keep their homes. With the new eligibility details announced on March 4th for the Homeowner Affordability and Stability Plan, we have expanded options to help achieve this goal.

Making Home Affordable is expected to help:

* Home Affordable Refinance: Homeowners who have been continuing to make their monthly payments but have not been able to take advantage of refinance options to historically low interest rates because they have seen their property values fall.
* Home Affordable Modifications: Homeowners who are now struggling to make payments due to reduced or loss of income.

We will continue to update this page as more information becomes available about new rules, procedures or programs.