PP here with the money losing rental. We did look into short sale but it seemed you needed some kind of circumstance like losing a job or inability to make payments for the bank to work with you. Also, we can afford the payments although they are painful. Wouldnt a short sale destroy our credit? I am open to options!

We bought our first house in 2005, a townhouse in the Alexandria section of Fairfax County. It's currently under contract for $37k less than what we paid for it. Given that at points in the last 8 years, it would have sold for almost $100k less than we paid for it, we're actually grateful that now we're only losing $37k (plus everything we've put into it over the years). We'll walk away with about $50k to put towards the down payment on our forever home after we pay closing costs and realtor commission.

That depends. If the person holding a rental mortgage is receiving rental income, the answer would be to hold on to it and wait. We sold 3 rental properties - condos - between '05-'07 and made over $700K and during that period, had a positive rental income. We just purchased a short sale condo in DC and will again have a positive cash flow after paying the mortgage and condo fee.

Anonymous wrote:This is our situation as well. We ended up renting our former home but we lose money every month. We did not have the money to bring a check to the closing on that house and put a downpayment on our new house. So we are hoping prices will rise at least a little in the next few years!

Please folks don't hold onto to money losing rentals in the hopes prices will recover. Some would argue the current recovery is based on Fed stimulus. Yesterday we saw a -1% GDP, showing we still have problems beyond the Feds abilities. Another quarter like that, hello Recession. It's fine if you live there and are underwater. But pouring more money and taking risk prices could drop again? Please don't. Look at short sale please.

This is our situation as well. We ended up renting our former home but we lose money every month. We did not have the money to bring a check to the closing on that house and put a downpayment on our new house. So we are hoping prices will rise at least a little in the next few years!

Anonymous wrote:Our house is listed at 15% less than we paid in 2006, and who knows what the offer price will be. Depressing, but we have to move on from it.

This was us, though closer to 20%. Ended up getting 10% less than what we paid in 2005 - and not a penny of the two bathrooms and kitchen remodels.

That said, we were able to get into our next (hopefully forever!) house for probably 25% less than we would have in 2005; and 25% of the more expensive house made it worth it for us. Even though the house we sold was our 1st, and so we lost our downpayment competely

Anonymous wrote:Are you guys in dc?

Yes, I know this board likes to perpetuate the idea of infinitely rising prices, but it's not the case for all of us.

Don't forget that some of these people that purchased a home in 2005/2006, also sold a home and made a hefty profit.

Anonymous wrote:

Anonymous wrote:Are you guys in dc?

In a DC, generally it's a Dickinsonian market, a tale of two cities. marginal neighborhoods with so-so schools have not recovered while desirable places for wealthy folks have far exceeded previous bubble. Exception to this is gentrifying places, but that's pretty transformative and hard to compare apples to apples.

Yep. We sold a condo in a mostly crummy (suburban) area for nearly $30K less than we owed. That was in 2012, and prices there are still nowhere near bubble prices. Prices in our current (also suburban, but well-regarded) area are not that far off the bubble, though this isn't DC itself or N. Arlington, so I think it will be some time before they exceed the bubble.

But anyway, yes, we took a hit, and though it still affects us to this day (I'd like to have that $30K back), it was probably worth it. I hated everything about that area and needed to get away for my mental health and our life progression.

Anonymous wrote:Are you guys in dc?

In a DC, generally it's a Dickinsonian market, a tale of two cities. marginal neighborhoods with so-so schools have not recovered while desirable places for wealthy folks have far exceeded previous bubble. Exception to this is gentrifying places, but that's pretty transformative and hard to compare apples to apples.

Our house is listed at 15% less than we paid in 2006, and who knows what the offer price will be. Depressing, but we have to move on from it.

Are you guys in dc?

our condo. bought in 2010. I am HOPING to get what we paid for it.

Lucky in love, unlucky in real estate.

Yup, under contract for far less than we paid in 05, despite an awesome kitchen remodel and a lot of other updates. However, 2005 was a crazy time, we had a terrible realtor and probably overpaid. Got kind of screwed by significant issues not disclosed as well. Also in what are generally considered "bad" schools and lots of really low comps for a number of reasons. It is what it is though, and fortunately we sold a townhouse at that time so have some equity. Moving on...

I bought my home in 2005 and would like to put in on the market soon. However, I don't think I will be able to price it for much more than I paid in 2005 and will likely lose money. Has this happened to you or anyone you know?