I can afford my House, but i’m upside down; Should I sell?
I’ve tried to do a loan-modify, but the banks don’t want to listen to me because on paper I CAN afford it. The price owed is 520k and it’s now worth in the neighborhood of about 300k. I’m locked for 30yrs and have a good rate on the first and the second rate is ok.
I don’t live a lavish lifestyle or have CC debts. But little things like groceries and basic living expenses eat up most my free money. Needless to say, I’m sorta tight. If i have an emergency I have a tiny 401k Investment that I could tap into if need be.
I don’t know much about real estate, I do know that I bought at the wrong time! However, I don’t see the real estate market appreciating in my area anytime soon to reach what I owe on this house. I wanted this house to be a long-term investment and pay off a school loan. But now i’m still stuck with the school loan and an upside down mortgage.
So my question Is:
Even though I can afford it (barely), should I try to get rid of it? Or should I bite the bullet and let it go? Either through a quick sale or something?
Any advice is appreciated.