I am a homeowner considering a short sale. I'll be upfront and say that there will not be a hardship until we close on the new house. My wife and I are purchasing a new house and in a normal market, we would be able to sell our condo for an amount that was adequate and move on with our lives. But, this is not a normal market so we will soon have 2 houses and 3 mortgages. We owe $192k on the condo and a trusted agent friend told us that we would be lucky to get $185k. When we close on the new house, we are considering putting up the condo for a short sale. Does this sound like the right move? There will be no way we can afford both houses and we cannot rent due to the HOA rental cap. Do I continue to pay the mortgage as long as I can while going through the short sale process? I hate feeling trapped like I feel right now.

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Jeff,
You are absolutely right. There is going to be some sort of repercussion following any of the routes available at the moment. Even if I rent, I will have to pay some out of pocket per month. I have thought about not buying the new home, yes, but I find it hard to pass up a deal like we are getting now, especially because we are going to have our first child soon and the new home actually has space for 3 people.

Just to be clear, my intention is not necessarily to slide clean out of the obligation, I would be willing to pay a reasonable amount, but I have to think about it like this: If I tried to sell last year, I may have sold high enough to pay off the loans. If I sell in 1 or 2 years I may be able to sell high enough to pay off the loan. Just right now, the market is not letting me do so and I'm sick and tired of getting the short end of the timing stick. My intention was never to buy a condo and then slide out from the obligation of paying at some point in the future. The intention was to buy a condo and sell it in a couple years to move into a house. Well, a couple years have passed, a new house is available, and I can't sell my condo for reasons outside of my control. Nobody at my level could have foreseen the market collapse like it did (well, some people did, but I wasn't friends with any of them). Don't bother playing the violin for me, I know how it sounds. =o)

There is a new development in that the rental cap I thought we had approved in the HOA may not actually be in place. Something about not having the right number of votes for approval. I'm trying to get more information.
Keep fighting, don't give up and everything will work out for you, a few years from now it will be a distant memory.
One thing to think of, is there someway to "lease purchase" your condo to get around the rules of the HOA?

Cody Vandermyn said:
Jeff,
You are absolutely right. There is going to be some sort of repercussion following any of the routes available at the moment. Even if I rent, I will have to pay some out of pocket per month. I have thought about not buying the new home, yes, but I find it hard to pass up a deal like we are getting now, especially because we are going to have our first child soon and the new home actually has space for 3 people.

Just to be clear, my intention is not necessarily to slide clean out of the obligation, I would be willing to pay a reasonable amount, but I have to think about it like this: If I tried to sell last year, I may have sold high enough to pay off the loans. If I sell in 1 or 2 years I may be able to sell high enough to pay off the loan. Just right now, the market is not letting me do so and I'm sick and tired of getting the short end of the timing stick. My intention was never to buy a condo and then slide out from the obligation of paying at some point in the future. The intention was to buy a condo and sell it in a couple years to move into a house. Well, a couple years have passed, a new house is available, and I can't sell my condo for reasons outside of my control. Nobody at my level could have foreseen the market collapse like it did (well, some people did, but I wasn't friends with any of them). Don't bother playing the violin for me, I know how it sounds. =o)

There is a new development in that the rental cap I thought we had approved in the HOA may not actually be in place. Something about not having the right number of votes for approval. I'm trying to get more information.

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