They are getting married, but separated by real estate
"Jerry," as we shall call him here, wrote to me over the weekend with a dilemma that is increasingly common these days amid a still tough real estate market.
He's engaged and wants to move with his fiancee closer to Boston, where his wife's family lives.
But Jerry bought a townhouse in the Merrimack Valley for $180,000 near the peak of the bubble back in 2005.
And he now finds himself $30,000 underwater on his 1,100 square foot, two bedroom and 1 ½ bath townhouse.
So what should he do? Jerry has thought of everything from trying to do a short sale to renting out his townhouse.
A direct kind of guy, Jerry succinctly laid out the options he is mulling over in his email to me.
- Sell it, take a loss & buy something closer to family.
- Rent it and try to break even & buy closer.
- Rent it and try to break even & rent closer.
FYI, all of these options require me to do some minor upgrades to make the place a little more appealing/marketable.
My question(s) for you is who is the best person to discuss my situation with: real estate agent, rental agency, real estate lawyer, or financial advisor? I am at a loss as to what implication any or all of these may have on me both long-term and short-term. I did speak with a real estate agent very briefly, but he didn't really tell me anything that I didn't already know.
Your input on any free (or paid) resources that are available to me locally or online would be greatly appreciated."
My two cents is that renting is the only likely option right now - Jerry's employed and doing fine financially so his lender is not going to let him go down the torturous short sale route.
However, renting comes with its own set of pitfalls, which Jerry is clearly aware of. "Landlord is not an occupation I relish having," he acknowledges, clearly with an eye to midnight phone calls about faulty toilets.
Fearless readers and contributors, I throw this one over to you.
