Should I sell the house or keep it?
I am in NJ. I have a house that I bought and I am renting it out right now. I am renting myself.
My problem is that the rent is $350 less than the mortgage. So I am loosing ~ $4000/yr, if you add other related expenses.
Does it make sense to keep the house or should I just bite the bullet and foreclose. I think It will be hard to sell it (value has dropped). Meanwhile I can't move into it, becuase it's too far from work. My credit is excellent right now. I know that it will be trashed once I foreclose, but is it worth it to keep loosing that kind of money just to protect credit rating?
It sounded that you have no equity in this house. You owed more than it worth. Your rent is supposed to cover the mortgage and tax expenses. It is not an investment. It is a burden to your own finance. Get rid of it or jack up the rent to cover the mortgage.
Are you renting or owning another house near your work? Is the distance is unbearable to commute?
Please do not let them foreclose on you..that is the worst thing that you could possibly do. Try to refi the house and get the payments lowered or get a part time job. Owning your own home is your best investment ever.
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Could you raise the rent to match your payment? If not try to sell first. Foreclosure will ruin your credit.
References :
It sounded that you have no equity in this house. You owed more than it worth. Your rent is supposed to cover the mortgage and tax expenses. It is not an investment. It is a burden to your own finance. Get rid of it or jack up the rent to cover the mortgage.
Are you renting or owning another house near your work? Is the distance is unbearable to commute?
References :