I guess I'm just looking to get some thoughts on our situation as I am incredibly nervous about the whole process.
We have a condo that we bought (in Connecticut) in 2005. Obviously, its worth far less that we owe.
We moved and have been renting it out (losing at least $400 every month). We grew out of it, it was a tiny 2 bedroom. We tried selling, but couldn't get an offer anywhere near our asking price.
We now have a mortgage on a primary residence. The primary residence does have some equity (20% down). We've found that with gas prices rising, etc. (I commute to work) that we cannot afford that outlay any longer.
I am considering attempting a short sale on the condo, but I Vdo not want to put myself at risk for having to sell the primary residence. I have my in-laws living with us, and we cannot afford to have to move and lose this house.
Here is the summary:
Primary mortgage: Aurora Loan Servicing $151,000
2nd Mortgage: E-trade bank approx. $30K
Fair market value would be around $150K for the condo.
This was our primary residence for 5 out of the last 6 years.
We've got 20% equity in the new house (as the in-laws gifted us 20% down because they were moving in).
This is all in Connecticut.
My chief concerns are that we are not forced to sell our primary residence. I would stop making payments in February (when the current tenant leaves). I am planning on contacting a local lawyer and short sale expert agent to assist me in the process. I'd even be willing to kick in some money if needed. I guess I'm posting here because I'm nervous about just how wrong this process can go!
At the same time, I'm putting no money towards retirement right now, we are on a strict budget, and everything just keeps getting more expensive! It's too much hanging over our heads.
Any advice / help / thoughts would be awesome!