Short sale vs foreclosure

[Mattso3000]

This same scenario happened to my BFAM back in 2007 but it just so happened that my wife was going through BMT and we were looking for an inexpensive living arrangement. We split the mortgage and house 50/50 for 3 years when we decided to take the plunge and buy a house of our own. His new fiance moved in and things went perfectly.

There is a solution for you out there, just keep the chin up and you'll find it.

On a side note, if you need a cigar to relax there will be one for you at Burn in Burnsville if you feel like making the drive. I'm heading over shortly and will be there till ~2, there's some decent stuff in the vault.

[cobra03]

Its a pain in the ass if you dont want to be a landlord but you could consider renting it out for a few years in hopes that the market turns around and you pay it down some more. i dont know if its feasable in your situation and trust me i speak from experience its kind of a pain but its better than taking a bath trying to sell or going into foreclosure.

[billybarue]

40K upside down and the situation your in you need to sell NOW. As mentioned, market trends aren't bright.

Talk to the bank and see if you can re-structure.

Get the house on market ASAP - BY OWNER. Any one can do it, and you need to save those commissions to put against your being behind on the mortgage. If your house is 250K, than you'll save $15,000K (6%) in sales commissions. You need to give that 15K to the bank that holds the note on your house - not a realtor. Even if you have to get the house sold below market (or appraised) value - you have 15K to play with if you sell by owner (FSBO).

You are coming up on Autumn, a poor time to try to sell. I'd have the sign in the yard tomorrow and be re-painting and sprucing the house up. It doesn't appear your situation coupled with the economic outlook are about to improve. You need to act now. I am sorry for your circumstances and best of luck.