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I've posted a few times, and the house that I have for sale has been part of the conversation, but I don't think I've posted specifically with my house problem.
My family and I moved across the state three years ago. We put our house up for sale, and it remains on the market. We are in Michigan, which is among the top three or four states (I believe) hit hardest by the housing crash.
I currently owe $106,619 on the house. Our realtor, in an off-the-cuff estimate values our house at about $80-90K. We have it listed at $114,900. Our monthly mortgage+tax+insurance payment is $988. We have had the house rented to our second renter since Oct. 2010. Our rent income is $725/mo. Renters have made all the payments thus far, but not always on time. Obviously, it is rented at a $263/mo. loss, but I'm fairly confident that the mid 700s is about where the market is right now for rentals locally.
To sell the house at its estimated market value would mean, with commission and closing fees, taking a $25K hit. I don't believe I have the capacity to borrow $25K. My credit score is 580. It took a big hit when the house was not rented summer 2010.
I've mentioned before in previous posts that I have about $21K in credit card debt. With the current rent payment and my salary, we cash flow each month now.
My question is - what is my best option - wait for the housing market to turn around, and keep renting the house at a $263 loss, or bite the bullet and sell the house at an estimated $25K loss? Family COULD PROBABLY fill in the 25K gap, but I hate to go down that route.
I should also mention that our renters are interested in purchaing the house on a land contract. They don't have any money for a down payment. We would like 10% down, plus an int+prin payment approximately equal to what they are paying in rent if it gets that far. Our mortgage holder has tenatively approved a three-year land contract - buyers would have to come up with commercial financing at the end of three years.
Advice appreciated.
My family and I moved across the state three years ago. We put our house up for sale, and it remains on the market. We are in Michigan, which is among the top three or four states (I believe) hit hardest by the housing crash.
I currently owe $106,619 on the house. Our realtor, in an off-the-cuff estimate values our house at about $80-90K. We have it listed at $114,900. Our monthly mortgage+tax+insurance payment is $988. We have had the house rented to our second renter since Oct. 2010. Our rent income is $725/mo. Renters have made all the payments thus far, but not always on time. Obviously, it is rented at a $263/mo. loss, but I'm fairly confident that the mid 700s is about where the market is right now for rentals locally.
To sell the house at its estimated market value would mean, with commission and closing fees, taking a $25K hit. I don't believe I have the capacity to borrow $25K. My credit score is 580. It took a big hit when the house was not rented summer 2010.
I've mentioned before in previous posts that I have about $21K in credit card debt. With the current rent payment and my salary, we cash flow each month now.
My question is - what is my best option - wait for the housing market to turn around, and keep renting the house at a $263 loss, or bite the bullet and sell the house at an estimated $25K loss? Family COULD PROBABLY fill in the 25K gap, but I hate to go down that route.
I should also mention that our renters are interested in purchaing the house on a land contract. They don't have any money for a down payment. We would like 10% down, plus an int+prin payment approximately equal to what they are paying in rent if it gets that far. Our mortgage holder has tenatively approved a three-year land contract - buyers would have to come up with commercial financing at the end of three years.
Advice appreciated.
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