On 7/5/2019 9:11 PM, micky wrote:
In alt.home.repair, on Fri, 5 Jul 2019 20:00:17 -0500, Dean Hoffman
wrote:

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.


Does he have a place to go?

One thing he can do is notify the bank that he is going to walk away. A
relative did that a couple of years ago and they worked with him to
avoid a lot of crap.

A lawyer may help if bankruptcy is an option.