When cycles get overheated you sell into the next asset class that is recovering or if your LTV is low you just hold for the cash flow until the market turns again and look for deals in the mean time.  

It provides for time for a market to recover.

There are markets that have as yet recovered from the collapse of real estate however a market such as mine,( resort, high 2nd & 3rd homes), never fell off more than 5-8%.

I am 59 years old and I know what to do because of my experience in construction and real estate and learning on BP and others since I have been recovering the past 5 years.  

Ideally there should be dedicated entity created to be the owner of the note on record, and you or your 401K entity should be a member or beneficiary in that entity so that you have recourse on the funds and liquidation of the asset to recover your investment, should things go sideways.

If you are not planning on holding the departing residence for a minimum of 8-12 years as a rental which still might not be long enough to take a hit to the equity that's there and recover it fully (if it takes such a hit), then sell now and redeploy the equity into your new house (if you are so inclined) or invest it into any number of principle protected low or no load investments that can return at least as much as it will likely earn as equity...with no risk of loss of principal.  

                                                      Sam Shueh, Campbell, CA                                                                                                       May 11,2016After 4th quarter 2011 (trough) home price went up recovering from the Great Recession.

As soon as you close on a property get an insurance policy that will cover you in case there is a loss.I am 59 years old and I found BP about 8 months ago while I was still recovering from the brain annurism and a stroke I had in late 2010.  

seems like the rest of the USA real estate market has recovered but the northeast is still way behind. whats going on

Right after you close get an insurance policy that will protect you if there is a loss.I am 59 years old and I am trying to start over again when I finish recovering from my brain annurism and a stroke.