[kpcrisco]

We have been trying to sell our home for almost two years now but because of the market crash no one wants to pay a decent price. We know we could sell it for what we owe but the problem is with a realtor you are adding a huge amount and then the sellers want you to pay closing costs. Our home was purchased for $177.500 in 2005 and we put $50,000 into it. Everything is new including roof, gutters, siding, all lighting all flooring and carpet. There is absolutely nothing that needs to be done to our home and all of the realtors agree. Most everythng is new. We owe $169,000 on the home and we have been offered $170,000 but the only reason we could not take that amount is because you then have to add $11,000 for the broker and $5,000 for the buyer's closing costs. We don't have that kind of money. If we deeded it back to the bank (if they agreed) we know they could get at least $170.000 for the home. Is that a possibility. We need to move back to Florida where our family is as our Mother is 84 years old and don't know what to do. We really don't want to go into foreclosure because we have excellent credit. What are our options. Thanks.

[smoothy]

You are damned lucky if you got an offer that high... in fact you may end up regretting not taking it... the crisis isn't over yet, there are very few places that are anywhere near what they were 5 years ago near the top of the market... and many placens that are 1/2 that right now.

THe only options you have if you aren't willing to pay that difference are what the mortgage holder allows you to have... they own the house... you just get to live in it until you pay them back. That's what the lien is. They get theirs first.

Since you got that close to selling what was your CURRENT appraisal come in at... what are compairable homes selling for in the area.

I'm willing to guess like most people you bought in too late and you aren't accepting the real current value your house has now the market turned down.

Im in a rare area that has had little drop in one of the few areas of the country that never experienced the huge swing... and my house still went down over $60.000 from what it was in 2005, and I consider myself lucky. That's less than a 10% drop from its peak around that time. What you actually put into it means nothing... what its worth now... this week means everything.

[ma0641]

I agree with Smoothy. Bite the bullet, sell the house, take the loss on capital gains taxes and be glad you did get an offer that high. Borrow the shortfall against your 401K or sell some assets.

[Fr_Chuck]

Yes you are very ( very ) lucky to get an offer that high. In most cases houses today are selling for 25 to 50 percent less than they did 3 years ago. I have seen ( and bought) some that was selling for 300,000 three or four years ago, but today are selling for 100,000 to 125,000. 100,000 homes are going for about 35,000.

You can buy several nice 3 bedroom 2 bath homes on 1/4 to 1/2 acre for 40,000 that all have fenced yards.

Several things, first you can see if the bank will accept a short sale,

Next you can see if your real estate broker will accept a much lower commission rate. If you would sell under a short sale, they require the agent to accept about 1/2 the normal commission.

Also no the bank would not get the 170,000 either, banks sell property with real estate agents and they also have to pay commission, and they are asked to cover closing or will refuse, so they will be getting lower offers if no closing is paid.