down by $20,000? There seems to be a disconnect between the old way of thinking and the reality of the new economy.
We have two homes: one that my new wife had owned prior to our marriage and one that was purchased shortly before we married six months ago. We moved into the newer home and began renting my wife's at a large loss (almost $1,000/month in the red). Based on current comps in the market, it looks like my wife's home is now underwater (to the tune of approximately $20,000).
Now, to me, the financially intelligent thing to do would be to look into negotiating a short sale or deed in lieu. However, my wife's parents, who happened to help furnish the 20% down payment on the home, want to adhere to all of the loan documents and the "promise to pay". They want us to sell the property in a standard sale and help to provide the approximate $30,000 shortfall (balance of the outstanding debt + other seller costs).
It just doesn't make sense to pay up another $30,000 after already losing the $70,000 down payment.
Help me make my argument to them!
Thanks
We have two homes: one that my new wife had owned prior to our marriage and one that was purchased shortly before we married six months ago. We moved into the newer home and began renting my wife's at a large loss (almost $1,000/month in the red). Based on current comps in the market, it looks like my wife's home is now underwater (to the tune of approximately $20,000).
Now, to me, the financially intelligent thing to do would be to look into negotiating a short sale or deed in lieu. However, my wife's parents, who happened to help furnish the 20% down payment on the home, want to adhere to all of the loan documents and the "promise to pay". They want us to sell the property in a standard sale and help to provide the approximate $30,000 shortfall (balance of the outstanding debt + other seller costs).
It just doesn't make sense to pay up another $30,000 after already losing the $70,000 down payment.
Help me make my argument to them!
Thanks