Orlando Short Sales: Even With The Tight Rental Market It Is Still Often Cheaper To Short Sale And Rent

In most areas the rental market is very tight. Rental prices have been increasing because so many people are losing their home to foreclosure.
But, what is still surprising is that in most cases it is still cheaper to rent than own an upside down home. See, home prices have dropped by 20-50%, depending on the area.
t was a lot less expensive to rent back in the peak of the real estate boom. After the crash rent dropped in many areas.
It has come back up, but it is still cheaper than a mortgage payment on a home bought at the peak of the housing market. Many people are shocked that it is often cheaper to short sale and rent that staying in their home with a loan modification.
Here are the two factors that make it possible to rent a comparable or even nicer home for less than their mortgage
Let’s take the example of a home who paid $150,000 for a home that is now worth $75,000. Their mortgage payment was around $1,350 a month.
They stopped paying their payments and moved to a rental. They found a much nicer, larger home to rent for $850 a month. (This was after trying for months to convince their lender to modify their loan.)
The lender wouldn’t drop the payments below $1,200 a month. The house they are renting is selling today for around $95,000.
Someone can buy that house for $95,000 and rent it for $850 a month without losing money. That is what makes it cheaper to rent versus getting a loanmodification and staying in your home.
When prices were rising it was actually more expensive to own versus rent. But, everyone wanted to own because their house was supposed to go up in value.