Short Sale or Rent

[tripods68]

If the housing value don't improve in the next couple of years, we might end up short-selling our house, unless we can rent it, enough to cover our mortgage (1563 a month). We live in Northern California. My in-laws plans to live with us once their petition is approved. In the next few years, we need a bigger house with a decent back yard with at least 5 bedrooms and 3 baths. Our house currently (3brm 2 bath) is big enough for 2 adults and two young kids. The in-laws will help us take care our kids while both of us work. In that sense, we need at least another spare bedroom plus my own office.

The concern that I have is our bank might not approved our short sale since we are only underwater for about 60K. And our combined income gross in the mid 150s. I'd like to hear your thoughts on this matter.....

[tripods68]

I also want to add with we have no credit card balance or car payment. We do have 2nd mortgage balance $12,200. We also saving up for at least 20% down payment, in addition to our EF (14K) saved so far. Our goal is to have at least $30K in EF and while saving 20% down payment.

[jIM_Ohio]

Can you add on to the house? Some of those costs might be tax deductible.

Can you rent to the inlaws and move to a condo or apartment?

[tripods68]

Can you add on to the house? Some of those costs might be tax deductible.

Can you rent to the inlaws and move to a condo or apartment?

Adding additional space in our current is not possible unfortunately.


Renting is not an option at all. Most likely, IF they both find jabs, it will be working part time, enough to help absorb some cost living with us. But they will primarily be helping taking care our kids while we are both working. In the future, if they don't like living with us, they can always go back in Philippines.

[snafu]

In the Phillipines extended families live in much smaller quarters than the typical American homes. Rooms are multipurpose so the living room is also used as a bedroom at night for example.

If your parents are not working outside the home, the schedule can be organized so that those leaving use the bathrm 1st etc.

[tripods68]

We entertain a lot friends and family, so we need lots of space. Our home like I've stated is enough to have 4 household, my kids have their own room and ours. We tried rearranging our living quarters for them, but it wouldn't work out.