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Instead, the 32-year-old software engineer found herself drowning in an underwatermortgageback in Austin.
I felt like I was in financial quicksand, she said.
The more I struggled, the deeper I sank.
Heres how Jess navigated this real estate nightmare and what she wishes shed known from the get-go.
Also see five myths about debt you shouldnt believe.
What Is an Underwater Mortgage?
Simply put, an underwater mortgage is when you owe more on your home than its worth.
In Jesss case, she bought her Austin condo for $300,000 in 2019.
Unfortuately, she still owed $285,000 on the mortgage.
I didnt even know this was possible, she said.
I thought property values only went up.
You live, you learn.
What a headache, she said.
Three months of paperwork hell, only for the bank to say nah at the last minute.
Coughing Up Cash
Unfortunately, Jess had no choice but to bring money to closing.
I wrote a check for $20,000 just to sell my own home.
It honestly sucked, she said.
Credit Score Carnage
Even worse?
Her credit score took a hit.
I went from the high 700s to the 600s.
That was a tough blow because you need good credit for pretty much everything, she said.
I wasted months Googling stuff I didnt understand, Jess said.
I shouldve talked to a real estate attorney right away.
The Tax Man Cometh
Jess lucked out on taxes, but just barely.
If Id sold a year later, I wouldve owed taxes on that $20,000 the bank forgave.
I dodged a bullet, she said.
But the thought of unclogging a toilet from a thousand miles away freaked me out.
The other lesson Jess learned is that she wished shed just stayed a renter.
Squeeze That Job Offer
Jesss biggest regret?
Not negotiating better relocation benefits.
Silver Linings Playbook
Despite the financial bruising, Jess loves living in Denver especially as a renter!
If my toilet clogs, thats not my problem!
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