Donna and John purchased their townhome in $2015.$ Property values have declined due to weaker demand for housing caused by the closing of the nearby military base in $2022.$ They believe their current mortgage balance exceeds the townhome$$s current market value by at least $$20,000.$

Their family has grown from $2$ to $4($adding two children$)$ and as a result, they need more living space. The children will be starting school within the next $6$ months. They are not pleased with the quality of the current school system. They need more living space and want their children to attend school in a better school district. Donna and John have decided to look for a different home. They would like a detached single$-$family home with at least $3$ bedrooms, $2$ full baths, a $2-$car garage, and a $$ acre back yard.

After interviewing several Realtors, Donna and John have selected you to find them a new home and discuss the options of either selling or renting their current home.

Donna and John ask you to respond to the following:

Explain the three methods used to appraise the value of our townhome and recommend the most appropriate method to use.

Explain and describe the information included on the TRID form and how it benefits the home buyer.

If we decide to rent out our home, we would like to exclude tenants who have a pet of any kind or for any purpose. What, if any, government regulations will impact this decision?

List the steps in the loan process used to qualify us for a mortgage and explain how our current mortgage balance may impact the qualification decision.

Explain the advantages and disadvantages of selling or renting our townhome. Assume that we would have to take an early distribution from our individual $401$Ks to make the down payment on a new home and that our total household income is sufficient to qualify us to carry two mortgages.

If we stopped making the monthly mortgage and escrow payments, what action$($s$)$ would our current lender bank take?

Regarding our townhome, which course of action would you recommend: selling the townhome, renting the townhome, or stopping making the mortgage and escrow payments?