Real estate Q&A: Is now a good time to sell?

BY GARY M. SINGER

Sun Sentinel

QUESTION: Is now a good time to put my house on the market, or should I wait another six to eight months? -Maureen

ANSWER: Generally speaking, now is a great time to put your house on the market because the inventory of homes for sale has declined, here in South Florida and other areas. Buyers don't have the choices that they did a year or two ago. That's boosting prices and helping sellers.

Contact a real estate agent who has experience in your specific neighborhood. He or she can pull the data that show how many other homes are for sale in your area and give you an idea how long it might take for you to find a buyer. I expect more bank-owned homes to hit the market sometime after Labor Day, so selling now, ahead of that extra competition, could prove to be a smart move.

Q: I own an investment house and already refinanced through the government's Home Affordable Refinance Program. Still, the house is worth much less than what I owe on the mortgage, and I'm not eligible to refinance again through the government program. The rent is just enough to cover the mortgage and association dues. I really have no hardship, but I feel stuck. Short of walking away, what are my options? -Jason

A: Investing in anything carries risk. I have several shares of Facebook that I probably will grow old with. In your case, it doesn't sound as if you can escape without taking a financial hit. But you do have options that can help minimize your loss.

First, you can keep renting the property. By doing this, your mortgage is slowly getting paid off, and the house is less and less "underwater" with every passing season. Eventually, you will regain equity in the house.

If you do not want to take the long-term view on this, you can try to complete a short sale while still making the payments. This will be difficult to do, especially with a tenant in place, but it may work out with a little luck. Walking away is the worst option, in my opinion, because the lender will foreclose and likely chase you down for the amount you owe on the mortgage.

Q: Is it possible for my wife to buy a house without involving me as long as she can qualify for the loan by herself? -James

A: Yes. But if this house is going to be your primary residence, you may need to sign some of the collateral documents, even if you are not on the loan.

ABOUT THE WRITER:

Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

Source: http://www.kansascity.com/2012/06/07/3646680/real-estate-qa-is-now-a-good-time.html