Buying or Selling a Home/upside-down

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Expert: - 1/19/2011


Question
Hi Todd, We moved to AZ from GA in 2006 and bought our house a few months before the market declined.  We paid $400,000 for the house. We put $90,000 down and got a $300,000 loan. And now the market value is around $280,000.  What do we do? I want to sell, or even walk away from this house and start to put money into another house where we could build equity, my husband does not. How do we go about getting another home loan while still in this situation? Is it even possible? We have a few thousand dollars to put down on another home, but no where near the 90,000 we already have in this house. Any advise would really be appreciated. Thank you Amy.

Answer
Hello Amy - There are so many variables to answer your questions. The initial thought is be exceptionally careful of the advice you receive from family, friends, real estate agents, attorneys, YOUR BANK, the news, as there are many people who convincingly believe what they are telling you but it is probably wrong. First things first, until you seek out specific counsel that has a history of experience dealing with distressed homeowners do not stop paying your bills or making your mortgage payment. You could dramatically reduce the number of options you have if you do stop your payments. There are FREE resources for you to get the appropriate information you need to make a decision based on your current and future financial position. There are HUD Foreclosure prevention specialists and specific real estate attorneys who offer free initial consulting such as  www.freehomeseminars.com; Don Lawrence with Mueller Drury and Lawrence Law PLLC, Scott Drucker with Mack Drucker and Watson PLLC, Bryan Memmott with Brown and Memmott Law PLLC. These attorneys are some of most successful firms in the distressed housing market. Don Lawrence offers free initial one-on-one consultations and Bryan Memmott offers free seminars for distressed homeowners. These individuals can assist you in properly making a great decision for the two of you that makes sense for your specific situation. Don't be fooled by creative marketing. There are a number of scams out there and these referrals are some of the best and brightest minds in working with distressed homeowners. Even if you only get answers to your questions and decide to do nothing isn't that better than feeling you should do something and yet do nothing? Get advice right away make the call today. You can find these firms using google search. Tell them I personally referred you to them. Let me know how its going or if you have difficulty getting in touch with them. Please, get answers to your questions. I chose not to specifically provide a myriad of information as I do not want other people taking advice from this post and using it without getting proper help. This way you all can get to the source of proper information. Plus, nobody can tell you whats right for you if you haven't shared the details of your personal and financial situation. This is not the venue for that information to be shared. You are smart to ask for help. I hope I have helped by providing these referrals. Before you throw more money into a new down payment, invest a small token into sound advice. It may save you thousands in the short run! - Todd Menard

Buying or Selling a Home

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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