Do we sell our condo or Take a risk and wait?!?

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We have mortgage on the condo we live in that is worth now what we owe on it.. maybe a little less. Our dilemma is whether or not to sell or stick it out. We have student loans and high credit card balances. In addition we have a prepayment penalty for one more year if we get out of the loan, it is about 9k penalty. My husband wants to stick it out, but I am afraid that we will not take advantage of selling it now and buy another place for less so we can build equity on a better neighborhood. We have 2 young children under the age of 1 and want them to attend a better school district as well. To add to the problem, we are running low on HOA reserves because other units are foreclosing and are delinquent on HOA payments.

There are multiple high cost projects that need to be done to maintain the complex, so more money will need to be taken from the HOA.

So, we sell now and take can we can, pay the penalty or wait until the economy goes up again. We were originally planning to move out in 5 years to a better school district, but with all the HOA problems and debt that we have, we don’t know what to do. To sell and move to an apartment to pay bills, sell and buy a new place or not sell it all and stick it out. Thank you so much, we greatly appreciate it!!


  1. Reply
    May 16, 2011 at 3:46 am

    I suggest you consult with a certified accountant on this issue. A casual forum like Yahoo Answers isn’t going to go anywhere. I wish I can help you but without numbers and everything, no one can.

  2. Reply
    May 16, 2011 at 4:11 am

    Laura. Try and sell your condo. You have nothing to lose…just make a decision to try and sell yourselves…or, use an agent. I’ve sold many properties and never could do it myself. I hear Craig’s List is free and people are using it now, in all towns. I’ve also had to pay a prepayment which really made me angry.. I actually think it’s illegal now BUT the important thing is to get out of debt as fast as you can and lower your monthly payments. Do anything to sell. In the end, you’ll be relieved. Just don’t expect to sell immediately…it could take a very long time…but your credit is important and no one said the market will go “up”. Who knows? Get a sign out already.

  3. Reply
    Ed Atun
    May 16, 2011 at 5:09 am

    I think your situation is worse than you expect. The $ 9,000 penalty ruins any chance of a sale in 2009. There is a good chance that your condo is worth less than the mortgage and you won’t realize that until you have been on the market 3 months without an offer.
    If you wait for a year until the penalty is gone, prices will have gone down another 20%. So you are really “under water” at that point.
    Your guide to this situation will be the number of repossessed condos in your complex. If there are no repo’s, you can sell..

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