What to do when you can't get out - Mothering Forums

Forum Jump: 
 
Thread Tools
#1 of 30 Old 11-19-2009, 09:39 PM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
almost 6 years ago we bought a house in a "transitional" neighborhood. We wanted ot make sure we did not over buy so the payments were reasonable. Rehabbing was starting to sprout up here and there but we were probably one of the first to move in. Now 6 years later and the economy has tanked completely halting any improvements and actually making everything take a turn for the worse. It is just not safe here anymore and with 2 small children I can't justify staying. We can't take walks outside or really spend any time in our yard. The schools are horrible and filled with gangs, we would have to do private school for sure which is $11k a year min. Drug dealers are openly dealing and nothing gets done. i call but they are still here. Last week a huge fire took over the block behind us (we share the alley) when presumably addicts set fire to an abandonned house. This particular house has already been set on fire once this year. My husband gets pulled over by the cops with our children in the car because they think he is here to buy drugs. They are tough Chicago cops and pretty scary, not somethign I would want my children to remember happening on a regular basis. Our garage has been burgelarized not once, not twice but 3 times. One of our windows have been shattered. I just can't live here anymore.

We talked to a realtor who said we would be lucky if we could sell with a $25k-$50k loss.I know for some that is peanuts when looking at how far upside they are on their mortgage. We would stay if the area was safe for children and suck up the private school cost but it is not.

I would consider selling at a loss but to even get that price we would need to make the place "pretty" meaning new paint etc. The loss would mean a personal loan to cover the difference as we do not have $20 plus K sitting around.

So, our problem is. We can afford the payment and the help I have looked into we are not eligible for since we are not financially in trouble.

You wise mammas, is there an option I have not thought off.

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
Sponsored Links
Advertisement
 
#2 of 30 Old 11-19-2009, 09:55 PM
 
eirual's Avatar
 
Join Date: Mar 2006
Location: GTA, Canada
Posts: 4,310
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Is there any chance of renting it out?

Any chance at doing anything to help the neighbourhood?

Laurie, wife to guitar.gifDH (Aug/04), mom tobikenew.gifDS1 (Nov/05) and bfinfant.gifDS2 (June/12).

 

eirual is offline  
#3 of 30 Old 11-19-2009, 10:18 PM
 
shayinme's Avatar
 
Join Date: Jan 2005
Location: land of lobster and lighthouses
Posts: 5,089
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I am from Chicago, where exactly are you located as far as neighborhoods. I used to live in Wicker Park and Bucktown back in the early 90's before they got gentrified and I am thinking you might be able to rent it out for a decent price especially of someone else thinks there is potential.

Knowing Chicago the way I do, I know you are in a bad area it can be really bad.

Mothering since 1992...its one of the many hats I wear.
shayinme is offline  
#4 of 30 Old 11-19-2009, 10:18 PM
 
Eman'smom's Avatar
 
Join Date: Mar 2002
Posts: 6,099
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Do you have to be in finacial trouble to short sale? Honestly I'd take out the loan or whatever to move from that. I know 20+ grand is huge but I'd try to find a way to pay it to stay safe.

Mom to ds 9 dd 7 : and dd 3/08 : if I can I go to
Eman'smom is offline  
#5 of 30 Old 11-19-2009, 10:26 PM
 
RiverSky's Avatar
 
Join Date: Jun 2005
Location: Paradise
Posts: 6,622
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I think short sale is a reasonable possibility. Renting out is iffy, only because if it's such a bad neighborhood, you might find that repairs are constant and the tenants won't take as good care of the property as you would, therefore it might become even more of a target. It sort of depends on how much your mortgage/tax/insurance is and how much rent you could get for it, too.

Otherwise, there is the option of giving the keys back to the mortgage company, but I don't know what the laws are like, what sort of financial (tax?) repercussions there might be for such a thing. Personally, I'd probably take a big hit on my credit just to get into a safer neighborhood.

Make sure that no matter what you do, you keep insurance on the place until you are absolutely POSITIVE that you would no longer be liable for anyone being hurt on your property.
RiverSky is offline  
#6 of 30 Old 11-19-2009, 10:42 PM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by shayinme View Post
I am from Chicago, where exactly are you located as far as neighborhoods. I used to live in Wicker Park and Bucktown back in the early 90's before they got gentrified and I am thinking you might be able to rent it out for a decent price especially of someone else thinks there is potential.

Knowing Chicago the way I do, I know you are in a bad area it can be really bad.
We are in West Humbolt Park/ East Garfield Park depending on who you ask.

I doubt anyone will think it has potential.

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
#7 of 30 Old 11-19-2009, 10:58 PM
 
shayinme's Avatar
 
Join Date: Jan 2005
Location: land of lobster and lighthouses
Posts: 5,089
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Pernillep View Post
We are in West Humbolt Park/ East Garfield Park depending on who you ask.

I doubt anyone will think it has potential.

Yikes. I know Humboldt Park and that always struck me as an area where gentrification might never happen. I know how bad it was in the 80's and 90's and yeah, you might be hard pressed to rent to anyone. Though and I admit its been 7 years since I lived in Chicago but having spent 30 years there and still having family there I know the city. Is it possible you might be able to find young folks (artists) or those without kis who might be want to rent it?

Like others have said short of a short sale or walking away both which I imagine have their own issues, I would probably take out the loan and do whatever to just leave.

Mothering since 1992...its one of the many hats I wear.
shayinme is offline  
#8 of 30 Old 11-19-2009, 11:14 PM
 
maciascl's Avatar
 
Join Date: Nov 2004
Location: The Land of Confusion
Posts: 3,544
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Call a real estate agent & talk to them about a short sale!! Just because you talk to someone doesn't mean you have to do it, but atleast get soem honest answers about how it might be able to help you.

Cheryl, wife to an amazing man, homeschooling SAHM to Gavin 12/03, Rhys 09/06, and Ian Aug 11, 2010.

maciascl is offline  
#9 of 30 Old 11-19-2009, 11:24 PM
 
SleeplessMommy's Avatar
 
Join Date: Jul 2005
Posts: 5,113
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Short sale
SleeplessMommy is offline  
#10 of 30 Old 11-20-2009, 05:07 AM
 
Paxjourney's Avatar
 
Join Date: Mar 2007
Location: PNW USA
Posts: 576
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 3 Post(s)
I think at some point you'd have to put personal safety over finanical security. I'd pick whatever option does the least to my financial security to increase my (and my childrens) personal safety.

Pax, loving wife since 2001, Mother of DD1 (12) and DD2 (8 1/2). Entering our 5th year of Homeschooling: Eclectic mix of curriculum and child interest lead. Backyard urban chicken chasers.
Paxjourney is offline  
#11 of 30 Old 11-20-2009, 10:02 AM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I am surprised that so many are recommending shortsale. When we discussed it previously we were told it would not be accepted by the mortgage company as we are well within our ability to pay the monthly mortgage. Maybe it is time to try asking the question again.

An

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
#12 of 30 Old 11-20-2009, 10:25 AM
 
BetsyS's Avatar
 
Join Date: Nov 2004
Location: world of craziness
Posts: 5,307
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
A couple of years ago, we wanted to get out of our house (my dh was transferred for work, but it was conditional on selling our house, because he needed to live close to the new job), but the mortgage company didn't consider that a good reason for a short sale. They wouldn't approve us for a short sale at all. FWIW, we are about $60,000 upside down on our house. When we asked about the short sale (2 years ago), we thought we were about $30,000 upside down.

Our circumstances have changed in the last two years (as a result of turning down that transfer, dh's income has fallen by 1/3, housing prices in my neighborhood are continuing to fall), but we're still not eligible for a short sale.

The mortgage company has said that if we are several months behind on our mortgage (we are current, by the skin of our teeth, but still current), they'll talk to us about deed in lieu of foreclosure, but I'm not really holding my breath on being approved for that.

Our bank seems to have pie-in-the-sky ideals that no one is really all that desperate to get out of their house (for whatever reason), and that we'll all continue to stay in our houses/mortgages and make it work.
BetsyS is offline  
#13 of 30 Old 11-20-2009, 10:50 AM
 
SleeplessMommy's Avatar
 
Join Date: Jul 2005
Posts: 5,113
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Pernillep View Post
... as we are well within our ability to pay the monthly mortgage...

An
You could sell and bring cash to the table :-( Or you could rent it out at a loss each month. Either way moving sounds like a good idea.

Real estate standards may be very different for bad-neighborhood houses. You may need to paint just the 1st floor, or skip paint entirely and offer cash back at closing.

You might be able to find lender-specific advice here, to see if anyone had gotten a modification in a similar situation:

http://www.loansafe.org/forum/
SleeplessMommy is offline  
#14 of 30 Old 11-20-2009, 12:43 PM
 
honeybunmom's Avatar
 
Join Date: Jan 2007
Location: Midwest
Posts: 1,750
Mentioned: 7 Post(s)
Tagged: 0 Thread(s)
Quoted: 20 Post(s)
Just wanted to send you some hugs. I can relate, kind-of. We live on the west side - we're still pre-cute neighborhood name. It's just the west side, still. We bought 5 years ago, but just moved in last month. We've been rehabbing, rehabbing, rehabbing. You know where the cops shot at a drug dealer (I'm sure this is descriptive of more than one west side news story, but, stay with me) last week when he tried to mow them down with his car and ran into a traffic light? In the alley right across the street from us. My husband could see what was going on because there is a vacant lot adjacent to where this all happened so, no house to block his view.

There are open drug deals going on on the block behind us multiple times a day. There are nice neighbors on our street, though. We do send our daughter to preschool outside of the neighborhood, though and plan to enroll her in the new waldorf school the preschool feeds into.

I do hope you are able to get out. The vacant new house down the street from us has dropped in value by at least $100,000. They were initially asking close to $400K and have dropped it to $299,999.

Yet, the property taxes have gone up about 500% since we bought the place. This second installment for this year showing the greatest hike of all.

Again, obviously no real advice here, just wanted to send you hugs and good luck.

Mama to add 10/05; ds 3/09, and two angels
honeybunmom is offline  
#15 of 30 Old 11-20-2009, 01:22 PM
 
Dingletwitz's Avatar
 
Join Date: Nov 2009
Location: Wisconsin
Posts: 185
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I was in your position last year--owed 120K still on the 130 mortgage, and the real estate person I consulted with did one of those neighborhood estimates and came in about 70k....I also lived in an area that originally had potential, but hit the skids while I was there...lots of meth and gang activity, drive by shootings, etc. etc. So, after much back and forth about it, I decided to foreclose and join the (gasp) other over 100 home owners within the square mile. I was able to save a lot over the months I squatted (for lack of a better term) and came out of the other end having made the decision to have crappy credit for 10 years as opposed to paying off 50k for 10+ years. Either way there's no mortgage in my future, but that's not such a bad thing either. The neighbor on one side foreclosed on 200k and it auctioned for 50, the other one foreclosed on 500k and just went to auction.
I hope something works out for you to get your family safe. Shoulda coulda woulda, eh?

SMC to dd 4/07.
Dingletwitz is offline  
#16 of 30 Old 11-20-2009, 01:35 PM
 
jeliphish's Avatar
 
Join Date: Jul 2007
Posts: 1,892
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
...I've always wondered if people in your situation would have any way of suing the city for allowing conditions to stay so poor. ...like due to their inability to properly and efficiently deter crime as well as allow the public school systems to deteriorate...your well being is jeopardized. I’ll see if I can find some case studies.

I'm sorry...I know this is stressful

Blessed with two BEAUTIFUL little girls: Kylie (09/06) and Maggie (4/09) :
jeliphish is offline  
#17 of 30 Old 11-20-2009, 02:39 PM
 
mnnice's Avatar
 
Join Date: Apr 2003
Posts: 2,172
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I guess I would ask the question of if you could afford rent in a place that is safer and meet the monthly payment on a personal loan? If the answer to this is yes then I would do the legwork to get out (looking for a personal loan, a real estate agent, a new place to rent). Bring $20,000 grand to the table is only a couple years of private school.

I don't know if both you and your partner WOTH, but if one person was a SAHP I would seriously consider stopping even if just for the short term to either make or pay off the money you need to bring to the table (especially if your property taxes are going up like in honeybunmom's situation).
mnnice is offline  
#18 of 30 Old 11-20-2009, 03:15 PM
 
excitedtobeamom's Avatar
 
Join Date: Jan 2004
Posts: 810
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I would find a way to get a loan for the difference and sell immediately. Good luck!

Homeschooling Momma to DD 8 years old, DS 7 years old, DS born 03/11 by adoptionheart-1.gif , waiting for DD born 07/10 and two furry labs. Wife to my wonderful husband of 12 years.
excitedtobeamom is offline  
#19 of 30 Old 11-20-2009, 03:26 PM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by jeliphish View Post
...I've always wondered if people in your situation would have any way of suing the city for allowing conditions to stay so poor. ...like due to their inability to properly and efficiently deter crime as well as allow the public school systems to deteriorate...your well being is jeopardized. I’ll see if I can find some case studies.

I'm sorry...I know this is stressful
That is a good one for my hubby to research He has already been arguing if you could sue the city for allowing sunday church goers to violate parking laws

But what they would say is .... sucks to be you.. you should have known better moving in with a bunch of (insert racial slur)

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
#20 of 30 Old 11-20-2009, 04:32 PM
 
Fuamami's Avatar
 
Join Date: Mar 2005
Posts: 4,375
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mnnice View Post
I guess I would ask the question of if you could afford rent in a place that is safer and meet the monthly payment on a personal loan? If the answer to this is yes then I would do the legwork to get out (looking for a personal loan, a real estate agent, a new place to rent). Bring $20,000 grand to the table is only a couple years of private school.
That's an idea.

I would call your mortgage company and explain to them. And I would research your state's laws on foreclosure. We are trying to avoid it and I've been looking at this site:

www.loansafe.org

There's a lot of good stuff on there. I've heard that many banks won't consider a short sale until you are 90 days late, but they might. Also, according to myfico.com, the reporting and hit on your credit score are exactly the same for foreclosure and short sale, BUT I've heard a lot of people say that when it came down to it the hit was only 100 points for short sale vs. 200-300 for foreclosure. And, of course, you probably won't be able to get a mortgage for at least 5 years if you just let it go to foreclosure, but I've heard short sellers have better luck getting mortgages sooner.

Mommy to kids

Fuamami is offline  
#21 of 30 Old 11-20-2009, 05:11 PM
 
RollerCoasterMama's Avatar
 
Join Date: Jul 2008
Location: the burbs
Posts: 5,387
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 49 Post(s)
Yup. Short sale vote. I'm in the middle of one right now. We can afford the payment. It was a decent value when we bough 4 years ago. Though it got to where we couldn't afford our payments for a while this summer when my husband lost his job again and there just wasn't anything left in the savings account. So we got a forebearance for 3 months to get through the summer. When the forebearance was over, we were planning on picking back up with payments and then proceding to the short-sale, but the mortgage company didn't want mess with the paperwork of rolling the 3 months of back payments back into the mortgage and then doing the shortsale. We ended up in the strange position of not making mortgage payments for 6 months. Which made it much easier to save up moving costs!

There are definitely credit implications for most people (the only loophole would be if you'd filed a bankruptcy that technically included the mortgage and you just stayed on in the house and continued to make payments). USUALLY you won't be liable for the upside down part if the bank accepts the short-sale offer. The tax implications are rare---there's a form you can fill out to erase it. It's mostly the credit implications. You won't be able to finance a new house with an FHA-type mortgage for 5 years from the date unless they change the rules. So make sure you're willing to rent for a few years if you start down this path (though from your description, I'd definitely be doing it asap!!).

They'll want a hardship letter from you---but it can probably be as simple as "we need to move and can't sell our house for what it's worth". They'll also ask you to provide financial information - income and expenses. And they'll repeatedly ask you throughout the process if you want to try and qualify for a program to stay in your house. You can say no! Ask around for a realtor specializing in short-sales. They'll know better than anyone. They're pretty used to it by now. For us, the hardship part was a divorce and neither of us could afford it on our own....well I could probably, but not without counting on child support which I don't want to do. Too risky.

Right now we're still showing our house. We've been actively on the market for almost three weeks. The mortgage company has treated us respectfully (if a little absent mindedly) throughout the process.

If you can't sell, there is the foreclosure option---but that will hurt your credit for longer. In your shoes, I'd put the house on the market asap and see what could be done.

Unfortunately, anyone that's purchased in the last few years and needs to move is going to be in a similar boat. It's going to be really common for a while and I don't think it's going to go away for a number of years.
RollerCoasterMama is online now  
#22 of 30 Old 11-20-2009, 06:24 PM
 
RollerCoasterMama's Avatar
 
Join Date: Jul 2008
Location: the burbs
Posts: 5,387
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 49 Post(s)
OOH!!! My realtor just called with some info that doesn't do anything for me, but might help you. He said that there's a new program where if you are current on your mortgage and you do a shortsale because of hardship, you can qualify for an FHA loan immediately afterwards. Don't know if it will help, but it's worth talking to someone about!
RollerCoasterMama is online now  
#23 of 30 Old 11-21-2009, 12:20 AM
 
Leta's Avatar
 
Join Date: Dec 2006
Location: Ishpeming, MI
Posts: 3,458
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I would fully explore a short sale as a possibility. If the bank won't go for it, honestly, I'd let them foreclose and take the credit hit.

IDK about IL, but I know in my state, foreclosure takes a minimum of six months. Usually, you have to miss a couple house payments in order for the bank to start foreclosure proceedings, and then the bank has to give six months to live in the home and come up with all the money you owe if you want to stay there.

In practice, I know of a few homeowners who went into, for lack of a better way to put it, planned foreclosure. They saved their house payments for 8-12 months, and allowed themselves to be foreclosed upon, and then went out into the rental world with battered credit but some savings.

I know some people think this is wrong and unethical, but I for one think it's acceptable. Your family's safety is priority one. The bank knew the risks when they extended you the loan. And you would be paying for it- your credit score can affect many things.

There are worse things than paying rent on a safe place a few months in advance, yk?

Trying to turn hearts and minds toward universal healthcare, one post at a time.
Leta is offline  
#24 of 30 Old 11-23-2009, 04:25 PM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
So, I spent some time on the phone with an experienced short sale realtor today and it is really starting to hit.
We bought responsibly, didnt over extend or allow ourselves to become house poor. Now we are paying for it because we can still afford the payments so shortsale will be really hard (read impossible) to get approval for. Had we, on the other hand, taken out another $100k mortgage bought in a nicer area we would have it much easier.
Next step is to call a few real estate attorneys. This is going to be a long road.

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
#25 of 30 Old 11-23-2009, 06:13 PM
 
mnnice's Avatar
 
Join Date: Apr 2003
Posts: 2,172
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
First--hugs your situation sound very frustrating and I know I would so want out yesterday if I was in your place.

I recently had a someone I know share about the move they had made from a very troubled part of Racine, WI to the middle of nowhere, WI and how she was relishing the peace and quiet and lack of fear she felt. It does take a toll on your psyche for sure.

However, I don't think the $20,000 upside down needs to be that insurmountable. People have $20,000 of debt on credit cards for meals they should have eaten at home. People have $20,000 in debt on degrees (or parts of degrees) that didn't give any more marketable job skills. I am sure there is a clueless person out there that is that upside down on her/his car. My point is people are in debt for far more nonsensical reasons.

I am a pretty anti-debt person in general, but taking on $20,000 in debt to be out of your situation seems cheap compared to continueing to make interest and principle payment, taxes, and insurance on this place right now when you feel so unsafe there. Cheap compared to paying tuition you can't afford. Needing to bring cash to closing (even cash you don't really don't have in this case) is disheartening and depressing, but it sounds better than having the house and it's entire balance of your mortgage on your shoulders.

I am sorry you feel penalized for doing the right thing. I hope your consult with an real estate attorney yields some good ideas and strategies.
mnnice is offline  
#26 of 30 Old 11-23-2009, 08:00 PM
 
jentilla's Avatar
 
Join Date: Nov 2004
Location: napping in SC
Posts: 711
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Honestly, if my family were in jeopardy I would foreclose without a blink. Housing prices will continue to fall, things are not going to improve ANY time soon. Get you family out now. Rent a piece of land and in 10 yrs price "might" have stabilized. Hey if the banks can shove off all their bad debt AND get money for it, why can't main street?

Birth Photographer mom to four blessings
jentilla is offline  
#27 of 30 Old 11-23-2009, 10:43 PM - Thread Starter
 
Pernillep's Avatar
 
Join Date: Jan 2007
Location: The Weeesst Siiide (Chicago)
Posts: 651
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mnnice View Post
However, I don't think the $20,000 upside down needs to be that insurmountable. People have $20,000 of debt on credit cards for meals they should have eaten at home. People have $20,000 in debt on degrees (or parts of degrees) that didn't give any more marketable job skills. I am sure there is a clueless person out there that is that upside down on her/his car. My point is people are in debt for far more nonsensical reasons.

I am a pretty anti-debt person in general, but taking on $20,000 in debt to be out of your situation seems cheap compared to continueing to make interest and principle payment, taxes, and insurance on this place right now when you feel so unsafe there. Cheap compared to paying tuition you can't afford. Needing to bring cash to closing (even cash you don't really don't have in this case) is disheartening and depressing, but it sounds better than having the house and it's entire balance of your mortgage on your shoulders.

I am sorry you feel penalized for doing the right thing. I hope your consult with an real estate attorney yields some good ideas and strategies.
Yeah the $20k is now a distant fond memory. I would easily take out a $20k loan. We got some realistic info today from the realtor and it is looking a lot more like $75k-$100k. Not sure if our first realtor was clueless or trying to sell us a pretty picture.

Pernille, Married to : mom to my 2 littel boys :4/12/07 and : 8/24/09
Pernillep is offline  
#28 of 30 Old 11-24-2009, 01:24 AM
 
zebra15's Avatar
 
Join Date: Oct 2009
Location: State of Confusion
Posts: 4,738
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 21 Post(s)
Quote:
Originally Posted by Pernillep View Post
Yeah the $20k is now a distant fond memory. I would easily take out a $20k loan. We got some realistic info today from the realtor and it is looking a lot more like $75k-$100k. Not sure if our first realtor was clueless or trying to sell us a pretty picture.
If you want out, then I would sit down and interview a number of realestate professionals. Have them tour your home, have them show you comps, etc. They need to sell you on why they should be working for you. Talk to agents, the lawyers, the bankers, make an educated decision. Also make sure you have a secure place lined up to move to. This could "ding" your credit and make housing difficult to find. So make your next move very cautiously. Once your decision is made on listing the property and which agents etc you are going to use, what terms you are going to use etc go from there and be confident in your decision. What ever happens happens.

Please remember the listing price is only a starting place, the final offer may be no where near what you list for. For example your loan may be 300k, you still owe 275k, the houses are listing for 175k and you end up selling for 150k. The only number that matters is the final number when you finish the sales contract.

I have 'housing' issues at the moment (thanks to an eviction from income problems) and I am having a heck of a time finding a place to rent, but I am continually working on finding a place and I remain confident that someone will give myself and my child a chance.

Mom to J and never-ending , 0/2014 items decluttered, 0/52 crafts crafts completed  crochetsmilie.gif homeschool.gif  reading.gif  modifiedartist.gif

Seeking zen in 2014.  Working on journaling and finding peace this year.  Spending my free time taking J to swimteam

zebra15 is online now  
#29 of 30 Old 11-24-2009, 03:23 PM
 
mnnice's Avatar
 
Join Date: Apr 2003
Posts: 2,172
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Pernillep View Post
Yeah the $20k is now a distant fond memory. I would easily take out a $20k loan. We got some realistic info today from the realtor and it is looking a lot more like $75k-$100k. Not sure if our first realtor was clueless or trying to sell us a pretty picture.
Bummer
mnnice is offline  
#30 of 30 Old 11-25-2009, 11:52 AM
 
Turquesa's Avatar
 
Join Date: May 2007
Posts: 4,038
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 45 Post(s)
I can't address the real estate end of your concerns, but FWIW, you sound like a good candidate for FAFSA. Not many people know that government financial aid is available to send kids to private school and not just college. If nothing else, you might look into that so that you can keep your kids safe while you weigh your housing options.

In God we trust; all others must show data. selectivevax.gifsurf.gifteapot2.GIFintactivist.gif
Turquesa is offline  
Reply

User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off