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Are tax benefits enough for me to keep an underwater condo I hate?

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by JTKinLA, Jun 30, 2010.

  1. JTKinLA

    JTKinLA LoanSafe Member

    I have been considering a short sale for the last several months, and even went so far as to stop paying my mortgage. Unfortunately, the realtors that I've worked with so far have not been very proactive in finding a buyer. I currently owe $415,000 on a condo valued at $280,000.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:eek:ffice:eek:ffice" /><o:p></o:p>
    During this process I received a notice from my bank that my interest rate has dropped to 3.25%, and will stay that way for at least the next 6 months. I have an adjustable rate, and this was the first adjustment. My payment will now be approx. $1700/month ($2300 prior to adjustment), which is less than it would cost to rent a comparable place in Los Angeles.<o:p></o:p>
    What's making the decision to stay difficult is that I absolutely hate the condo I'm living in! The unit and location are OK, but the building and most of the other owners are horrible!! Dogs go to the bathroom and no one bothers to clean up, even in the hallways... The list could go on! I need to make some improvements to my unit also, but I find it difficult to put any money into a home that is so underwater.<o:p></o:p>
    What I'm trying to figure out is if the tax benefits of owning will outweigh the peace of mind I would have living in a place that I would actually appreciate. This is likely a decision only I can make, but I’d love to hear what others have to think! Thanks! <o:p></o:p>
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    You are right, only you can make this decision but here are my thoughts.

    I believe that your sanity and happiness in your home need to come first before financial or tax benefits. Life is difficult as it is. Many of us live in a world that was created for us and we are forced to sometimes take jobs that we do not love and live in places that we do not care to live in.

    I do not like neighbors. Good schools and a pool are important to me. So we moved to an area where they only allow five acre parcels or larger, has great schools, a pool and I am leasing. It has an awesome yard for the kids and room to breathe. They are happy and I'm happy.

    You need to do the Ben Franklin and write down what is most important to you. One side you write the pros and on the other you write the cons of staying. Then you do it on walking away and moving somewhere else. I'm sure you know the answer already but you might as well do it.

    You have to also go over the legal implications of walking away. From possible deficiency judgments to tax implications.
  3. Tarot

    Tarot LoanSafe Member

    Have you considered buying some place else while your credit is still good and then walking away from the one you hate?

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