what happens when a house won't sell? - Mothering Forums

Forum Jump: 
 2Likes
 
Thread Tools
#1 of 29 Old 07-18-2008, 12:22 AM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
How do you unload a house that won't sell?

We have a fixer upper in a depressed area of rural NH. Houses are sitting for a couple years. We were talking again tonight about selling. Prices have slumped enough that we're underwater, but we'd be willing to go into some debt to get into a better place to live.

How DO you sell an unsellable house? Can you turn it over to the city for the assessed value or something? What if it just WON'T sell, at any price? No one wants an old expensive oil sucking fixer upper these days.
gentlemango is offline  
Sponsored Links
Advertisement
 
#2 of 29 Old 07-18-2008, 12:53 AM
 
koofie's Avatar
 
Join Date: Sep 2003
Posts: 2,409
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I would try branching out in where you advertise. If you have "greened" you house in any way, even by only using green products, you can advertise it on a green house website. If you have land, you can advertise it as land or on a website that focuses on land. You can also ask to see if anyone can just take over payments, and they would get whatever equity you have. I can't guarantee anything will work, but a lot of the above can be done for free. Also, if you have anything you can offer regarding services, you can throw it in with the deal, sewing or childcare or research or carpentry, whatever. You can also just put it on the market and let it sit - someone may come along in 2 years if you can wait!

Good Luck!
koofie is offline  
#3 of 29 Old 07-18-2008, 12:58 AM
 
texmati's Avatar
 
Join Date: Oct 2004
Posts: 6,760
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Quote:
Originally Posted by gentlemango View Post
How do you unload a house that won't sell?

We have a fixer upper in a depressed area of rural NH. Houses are sitting for a couple years. We were talking again tonight about selling. Prices have slumped enough that we're underwater, but we'd be willing to go into some debt to get into a better place to live.

How DO you sell an unsellable house? Can you turn it over to the city for the assessed value or something? What if it just WON'T sell, at any price? No one wants an old expensive oil sucking fixer upper these days.

All houses will sell... it might just be much lower than what you expect. Maybe try one of those 'we buy ugly houses' poeple?

I didn't realize that the real estate market in new hampshire was so down... I always thought of it as a ritzy area... like conneticut.

Texmati-- Knitter, Hindu, vegetarian, WOHM. Wife to superdadsuperhero.gif and mom to DS babyf.gif24 months, and DD boc.gif 8 months! .

texmati is offline  
#4 of 29 Old 07-18-2008, 11:59 AM
 
SleeplessMommy's Avatar
 
Join Date: Jul 2005
Posts: 5,113
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
You can give the house back to the mortgage company - deed in lieu of foreclosure. Or you can drop the price until it sells, and do a short sale. There will be a hit to your credit.
SleeplessMommy is offline  
#5 of 29 Old 07-18-2008, 12:40 PM
 
wildmonkeys's Avatar
 
Join Date: Oct 2004
Location: Metro DC
Posts: 1,620
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I agree with pp - it will sell eventually. Just maybe not for as much as you need/want. Is renting it while it is on the market a possibility? Or bringing in boarders for a bit so that you can get together some money to pay any difference between what you owe and what you can sell it for...

I used to live in WVa which is also rural and a difficult real estate market and I have heard of it taking multiple years to sell a house. Good luck.
wildmonkeys is offline  
#6 of 29 Old 07-18-2008, 02:08 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Thank you for helping me brainstorm. Is there a law about giving the deed in lieu of foreclosure? Right now the bank is saying that they would need the deed plus about $200K to make up the difference.
gentlemango is offline  
#7 of 29 Old 07-18-2008, 02:55 PM
 
Jilian's Avatar
 
Join Date: Jun 2003
Posts: 12,040
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm pretty sure you can only do a short sale if it is your primary residence. You can only do a deed in lieu if the property is vacant. You have to be behind in payments and contact your mortgage company's loss mitigation dept. Most places will not even talk to you until you are 1-3 mos behind. Then you request a deed in lieu, the legally cannot offer it to you because it is too beneficial to them (vs foreclosure). You usually need to prove a hardship, like a major hardship. They'll likely ask for financial documents, bank records, proof of income, etc along with a hardship stating why you feel you are unable to pay. Then it takes a month or so and they give you their decision. If you have a second mortgage or home equity on the house it is VERY hard to be granted a deed in lieu.

We were granted a deed in lieu in May because our son was born with a surprise heart defect and needed heart surgery @ 2 weeks old and now needs lifetime cardi follow up. On top of that DS1's dad rarely pays child support and continues to take us back to court. Those two reasons together qualified us for a deed in lieu but they needed proof. We sent medical records, bank statements, and a billion other documents. We had GMAC. A friend with Wells Fargo was denied both short sale and deed in lieu because her husband's business slowing to a halt was not a good enough reason for them.

Zen doula-mama to my spirited DS1 (2/03), my CHD (TAPVR) warrior DS2 (6/07) & a gentle baby girl (8/09)
Jilian is offline  
#8 of 29 Old 07-18-2008, 03:18 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Crap. We'd be denied then. Our circumstances aren't that dire, our income is okay, we hate living here and can't afford to fix this place up or keep it heated. But it won't sell either so I guess we're stuck.
gentlemango is offline  
#9 of 29 Old 07-18-2008, 03:59 PM
 
meganmarie's Avatar
 
Join Date: Jan 2005
Location: Bergen county, NJ
Posts: 662
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
How low can you go? I've noticed that sellers around here (NJ) have been a little slow to adjust to the current slow RE climate...they are not lowering prices enough and so their houses sit there. But when there's a real bargain, it goes. Anything will sell for the right price. If you put your place on the market for the value of the underlying land, less the cost of knocking down the house, then it might be the right price for someone who wants to build new! But that doesn't seem like a great solution for you.

Could you rent it (just enough to cover the mortgage) while you move elsewhere? That is what my MIL is doing while she waits for the market in her area to stabilize.

Or, could you re-look at the idea of fixing up the place? I know you say you can't afford it - and yet you say you are willing to go into debt if it will help you make a move. Do you have the ability to take out a home equity loan? I was quoted a rate of 4.5% on one last month. I think $20K in NH would go a long way to make some good changes - upgrading the heating system, giving the kitchen a minor facelift, energy-efficient windows. And a little sweat equity too - new paint, planting flowers, repairs - can help.

We just put our house up for sale. Beforehand, we invested 2.5 really intense weeks in a mini-makeover. It was like living in an HGTV episode. We did it all at night between 9pm and 1am after kids went to bed. On our own we touched up paint, patched ceiling holes, cleared out clutter, fixed up the basement, repaired a door, re-grouted the tub, did landscaping, etc. We got contractors in for 3 high-impact jobs (roof, fencing, and paving) totaling about $5500. And at the end of it all our house was *sparkling.* We sold it in 3 weeks for the price we needed despite the crappy market.

Have you had a real estate agent in to look at the place? We had two come by. They gave us very good and specific advice about which upgrades we really needed to do.
meganmarie is offline  
#10 of 29 Old 07-18-2008, 04:21 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
It needs a lot of structural work, along the lines of $100K worth. I think our only hope would be to sell it as a fixer, but we're so underwater I don't know if we can take on enough debt to lower the price to what it would take to sell.

Edit: thank you for the idea of having a realtor come in and give us feedback, I had not thought of that!
gentlemango is offline  
#11 of 29 Old 07-18-2008, 04:36 PM
 
kerc's Avatar
 
Join Date: May 2002
Location: The Great White North, Minnesota
Posts: 7,230
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by meganmarie View Post
We just put our house up for sale. Beforehand, we invested 2.5 really intense weeks in a mini-makeover. It was like living in an HGTV episode. We did it all at night between 9pm and 1am after kids went to bed. On our own we touched up paint, patched ceiling holes, cleared out clutter, fixed up the basement, repaired a door, re-grouted the tub, did landscaping, etc. We got contractors in for 3 high-impact jobs (roof, fencing, and paving) totaling about $5500. And at the end of it all our house was *sparkling.* We sold it in 3 weeks for the price we needed despite the crappy market.
We did this too! We made a list and just started at the top and worked to the bottom. It SUCKED. But our house (starter size home) sold in 7 days.

Quote:
Have you had a real estate agent in to look at the place? We had two come by. They gave us very good and specific advice about which upgrades we really needed to do.
Good idea. Also free.
Quote:
Originally Posted by gentlemango View Post
It needs a lot of structural work, along the lines of $100K worth. I think our only hope would be to sell it as a fixer, but we're so underwater I don't know if we can take on enough debt to lower the price to what it would take to sell.

Edit: thank you for the idea of having a realtor come in and give us feedback, I had not thought of that!
What would it take to make you like living there? Not love, but like? A new furnace here ran us about 5000 bucks installed -- we converted from oil to natural gas. We estimate it saved up big $$ heating last year. We should more than recoup that cost in 4 years if oil keeps going in the general trend it is going.

Insulation is also a "cheap" (er) fix. We have a 2 story foursquare. I was quoted last summer at 1800 dollars to blow insulation into the walls. My nextdoor neighbor did that and saved over 300 bucks last year.

Both insulation and a furnace would be things you'd list in the selling anyhow.

Kristin -- mom of Erin (11/5/02) and Leah (9/29/05)
kerc is offline  
#12 of 29 Old 07-18-2008, 06:45 PM
 
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)
Quote:
Originally Posted by gentlemango View Post
Crap. We'd be denied then. Our circumstances aren't that dire, our income is okay, we hate living here and can't afford to fix this place up or keep it heated. But it won't sell either so I guess we're stuck.
This is us, too. Our house is in a cookie cutter neighborhood. We're a 3 bedroom. There is a 4 bedroom down the street for sale, listed at $25,000 less than what we paid for ours 3 years ago. It isn't selling at that price, either.

I'm scared to find out what that house really does sell for (it's a short sell). That'll tell us what our house is likely to get.

And, we don't really have a place to get the money for the in between part between what the house is going to sell for and what we owe. We anticipate owing about $40,000 or so. We have credit cards, but that's such a nasty place to be that we'd love to avoid credit card debt. We feel like we're in a real pickle.
BetsyS is offline  
#13 of 29 Old 07-18-2008, 06:51 PM
 
mightymoo's Avatar
 
Join Date: Dec 2003
Location: Mass. Confusion
Posts: 10,291
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Even if the house needs structural work, I agree you need to make it look as nice as possible. Cheap updates, especially ones that highlight hte main features of the house and reduce any major downsides. Then you have to price it right. Go to all the open houses for houses in your area and your price range. Look critically at your house and these houses? Are these houses nicer? If they are, then you are overpriced. In order for your house to sell, a buyer needs to think your house is better than all the houses of similar price. If your house has serious issues you can't remedy easily or cheaply, then you have to lower the price until you are competing against much smaller homes so that size becomes a big advantage.

If you are only trying to sell it becuase you want to move, I would take it off the market now, go from room to room and look it over with a critical eye and make a big list of things that need to be done. Then aim to get as many done as possible to put in on the market next March. The spring market is the best time of year to sell, you won't have the stigma of having been on the market a long time or the hassle of having to keep it perfect for months and months.

We sold our house in 1 month, but we used a realtor, put it on the market in March, we gutted and remodeled two bathrooms (very economically for a total of $5K for both - they were extremely dated and in the end looked like new), painted, ripped up carpet, etc. We didn't want to spend a lot of money, but knew the outdated (yellow tile in one, blue tub & tile in another) bathrooms would mean buyers would discount our house $15-20K or overlook it altogether. We did the remodels in 3 weeks (a craaaaazy 3 weeks) We priced it right, looked very carefully at the competition and if we hadn't gotten an offer when we did, we would have dropped the price further. We had to sell quickly because we bought another house and didn't want to carry two mortgages, in the end it worked out perfectly, we had the two houses for only 3 weeks. I do feel I had an advantage in that my parents are real estate agents and I work as their assistant, so I know this market in my area extremely well.


I think the problem here (and with a lot of houseson the market now a days) is that I suspect the price that would sell your house is well below what you are willing (or able) to take for it. You might seriously reconsider whether now is the best time to sell. Even if the house is not what you want, you might be better off waiting for things to even out and take the time to fix the house up than to walk away with a serious debt hanging over you or a foreclosure or short sale on your credit, etc.

Mightymoo - Mom to DD (6) and DS (4)
mightymoo is offline  
#14 of 29 Old 07-18-2008, 07:50 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
That's precisely the problem. How much debt is reasonable to take on? $75K? $100K? How much money is too much to lose? How much debt is too much?
gentlemango is offline  
#15 of 29 Old 07-18-2008, 10:54 PM
 
SleeplessMommy's Avatar
 
Join Date: Jul 2005
Posts: 5,113
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Some ideas - having a real estate agent look at the house is free. Try 3 or more. Some are more helpful/forthcoming than others about what to fix up.

The cost of the structural fixes may be lower now with many underemployed contractors. You need the structural fixes done, but not by the most expensive contractor out there. Is this an older farmhouse with stone foundation? Some people have done minor house jacking and sistering of beams as a DIY... but you have to be really careful. If you ask around maybe you can find someone locally who has done it before.

Was the damage disclosed when you bought it? Do you suspect fraud in the inspection or appraisal of the house? If its a newer house (< 10 years old, you sue the builder)

You can do a web search on your mortgage company, NH, and deed in lieu. Find out if they have let other people off the hook. Also call around to local companies that are helping people with mortgage problems. Your local craigslist may be a source of info.

You can "soften up" your mortgage company by not making payments. The worst they can do is foreclose on the property. In a foreclosure sale they loose about 40% of the homescurrent value. So a short sale benefits them greatly. If you are really $200K underwater, this is the way to go.

Alternately, take in borders and wait for better real estate conditions.
SleeplessMommy is offline  
#16 of 29 Old 07-18-2008, 11:04 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Wow, great advice. Going to chew this over. Thanks.
gentlemango is offline  
#17 of 29 Old 07-19-2008, 05:02 PM
 
BabyA'sMom's Avatar
 
Join Date: Jan 2008
Posts: 95
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
BIG FYI:


Please oh please do yourself a favor and DO NOT do a short sale. The difference between the amount you owe and the amount your mortgage company accepts is counted as income by the IRS. You pay taxes on money you never even received!

Maybe doing a short sale gets you out from under a mortgage, but it puts you in debt with the IRS! Frankly, I don't know which is worse.

I do feel your pain. I married a man right when the housing market crashed. He had the house up for sale, but not one person even looked. Now similar houses nearby are being offered at 50% of asking price two years ago. And they're still not selling.

Hang in there!
BabyA'sMom is offline  
#18 of 29 Old 07-21-2008, 04:47 PM
 
deditus's Avatar
 
Join Date: Feb 2006
Location: In the LandOLakes missin the mitten
Posts: 2,978
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by BabyA'sMom View Post
BIG FYI:


Please oh please do yourself a favor and DO NOT do a short sale. The difference between the amount you owe and the amount your mortgage company accepts is counted as income by the IRS. You pay taxes on money you never even received!

Maybe doing a short sale gets you out from under a mortgage, but it puts you in debt with the IRS! Frankly, I don't know which is worse.

I do feel your pain. I married a man right when the housing market crashed. He had the house up for sale, but not one person even looked. Now similar houses nearby are being offered at 50% of asking price two years ago. And they're still not selling.

Hang in there!

Unless you qualify for the Mortgage Forgiveness Debt Relief Act.

http://www.irs.gov/individuals/artic...179414,00.html

Emily, cooking allergen free, knitting, reading, gardening Mom to 1 beautiful girl, born in the water on July 1, 2006 Wife to 1 handsome man since September 10, 2005
deditus is offline  
#19 of 29 Old 07-24-2008, 12:31 AM
 
CrunchyGranolaMom's Avatar
 
Join Date: Feb 2002
Location: Boston, MA
Posts: 492
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by meganmarie View Post
We just put our house up for sale. Beforehand, we invested 2.5 really intense weeks in a mini-makeover. It was like living in an HGTV episode. We did it all at night between 9pm and 1am after kids went to bed. On our own we touched up paint, patched ceiling holes, cleared out clutter, fixed up the basement, repaired a door, re-grouted the tub, did landscaping, etc.
Megan, you are my hero! Seriously, I read this post two days ago and just keep thinking of you and your dh working every night to get your house in shape!

Our house is on the market now (sigh...no bites yet) and I knew it was coming and slowly worked throughout the year to get it read. I can't imagine doing all that work and having kids around. I can barely check my email after my kids are asleep!

gentlemango: good luck figuring it all out. We're also faced with the "all houses will sell. They just may sell for a lot less than you'd like them to" situation

Mama to four great girls: 14 , 12 , 7 and 4
CrunchyGranolaMom is offline  
#20 of 29 Old 07-24-2008, 01:41 AM
 
Treasuremapper's Avatar
 
Join Date: Jul 2004
Posts: 3,589
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
You might want to hang on to see what happens with the elections going on and everything. In the meantime, have you considered buying a St. Jude statue and burying it upside down? It worked for me.
Treasuremapper is offline  
#21 of 29 Old 07-24-2008, 01:50 AM
 
Citymomx3's Avatar
 
Join Date: Jan 2005
Location: New York City
Posts: 624
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Quote:
Originally Posted by Treasuremapper View Post
In the meantime, have you considered buying a St. Jude statue and burying it upside down? It worked for me.
LOL! I was going to suggest the same thing - except it's St. Joseph. Totally worked for my parents when they were selling their house. Bury it upside down somewhere in front of your home.

Angela
 
DD(20) Hair Stylist in Manhattan
DD(18) Graduate of the (real) Fame school, now a Dance Theater major at a performing arts conservatory
DS(13) Experiential Charlotte Mason homeschooler
Citymomx3 is offline  
#22 of 29 Old 07-24-2008, 02:07 AM
 
Treasuremapper's Avatar
 
Join Date: Jul 2004
Posts: 3,589
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Quote:
Originally Posted by Citymomx3 View Post
LOL! I was going to suggest the same thing - except it's St. Joseph. Totally worked for my parents when they were selling their house. Bury it upside down somewhere in front of your home.


Darn, you're right! You can find St. Joseph at any Catholic supply store or you can order it online. My house closed just 17 days after I put it on the market. (but, of course, that was a year ago )http://www.fisheaters.com/stjoestatue.html

You don't have to believe, it will work whether you believe it or not.
Treasuremapper is offline  
#23 of 29 Old 07-25-2008, 01:00 PM
 
turtlewomyn's Avatar
 
Join Date: Jun 2005
Posts: 3,251
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We had our house on the market for 18 months. We tried everything, including a St. Joseph statue (and we are atheists). DH had accepted a job, and we did get an offer on our house, but it fell through at the last minute (we went into sign the papers and there was no funding on the other side). We rented it to the potential buyer and had to move as we had another house under contract. We were assured that the funding would come through, but it never did. We took the house off the market for six months and have now just put it back on for a short sale. It is currently on the market for 10k less than what we bought it for, but 80k less than what we owe because we refinanced at the height of the boom. Our renter is putting in an offer for 25k less than that, so if the bank accepts it we will have sold it for 105k less than what we owe on it. We are only doing this because we can no longer afford to pay two mortgages (the rent was covering barely half the mortgage). I doubt that the debt will be forgiven, but if it is, we will owe a bunch in taxes (we normally get 5k back every year). If the debt is not forgiven we will have to file for bankruptcy.

So, if you can keep making it in your house, I strongly suggest that you do.
turtlewomyn is offline  
#24 of 29 Old 07-25-2008, 02:51 PM - Thread Starter
 
gentlemango's Avatar
 
Join Date: Jun 2006
Location: NH
Posts: 386
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
That is an awful story. So sorry.
gentlemango is offline  
#25 of 29 Old 05-10-2014, 05:21 PM
 
dlmklncstr's Avatar
 
Join Date: May 2014
Posts: 1
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)


We have listed our house for the last 3 years and it was only shown 3 times by realtors other than the one we listed it with.  It has been on Zillow for about 6 months (we did this ourselves) and it still won't sell.  We have had it priced from $119,000 to $100,000. We have tried to use the "we buy houses" people & they just jerked us around and changed said they couldn't give us but $86,000, which would leave an out-of-pocket payoff of about $15,000. OUCH. We cannot put any money into the house because we would never get that money back (one of the realtors told us that). I have recently lost my job & we really need to sell this house and the bank will not let us borrow money for another house until this house is out of our name. Does anyone have any ideas on what to do????? We are trying not to ruin our credit & are too worried about renting the house because of the chance of not finding a good tenant & we don't have the money to make any repairs should they damage it. 

dlmklncstr is offline  
#26 of 29 Old 07-22-2014, 01:57 PM
 
kittywitty's Avatar
 
Join Date: Jul 2005
Location: The Room of Requirement
Posts: 13,061
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 8 Post(s)
I know this is old, but updates?

This is my worst nightmare. We bought a house with substantial issues that were covered up or not disclosed and we are so in debt from it. We have to move for dh's work within a year, anyway, and the housing market hasn't moved yet, so we'll likely need a short sale. :/

AP Mom to 5 knit.gifhomeschool.giftoddler.gif
 
  

kittywitty is offline  
#27 of 29 Old 07-22-2014, 02:21 PM
 
Peony's Avatar
 
Join Date: Nov 2003
Posts: 15,918
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 7 Post(s)
Not the OP but we are/were in a similar situation. There was no easy way out for us. We need excellent credit for Dh's company which relies on lines of credit for large orders, bad personal credit and no lines of credit. Short sale was not an option and the situation was compounded by the fact that we have a 1st and a 2nd on that home. The second is owned by a local bank, there was no way to get out of it. They refuse to negotiate.

We planned ahead. The rental market in the area we needed to be is tight with very few good options. Most rentals are trashed and short term because it is a college town. Renting could not be a long term option either. We were able to rent for 1.5 years while we hunted and planned out our options. We had actually found a home that was for sale but was not selling and asked to rent it which was literally the only reason we got a place to live. It went back on the market the week we moved out. We were able to get approved (barely!) for a mortgage on a second house at the bottom of the local market. And by bottom I do mean bottom. We are in 1200 sq ft for six of us! We moved in and then promptly put the first home up for sale after a horrid experience renting it out (do not consider that). We had to legally evict the tenants due to non-payment which took 5 months of no income to get them out AND they caused 10K of damage to the home. It is actually still under contract because the soon to be owners needed a long closing time but they have already moved in and are paying us rent which is greatly helping us out and have made vast improvements to the home already.

The mortgage company (the first) will be paid off with the sale. We will be stuck with the entire second which is 75K. When all is said and done we will lose well over 100K on that home. That bank agreed to attach the second to our now home that we will never be selling until we die. It took a LOT of back and forth to get them to agree to that but we were finally able to prove that our first home has depreciated that much, and they agreed to let the house be sold which they were originally blocking. It is not ideal but we literally had no other options anymore.

If you are moving in a year, you might want to start calling your mortgage company now. It took us exactly 12 months of back and forth with the 1st and 2nd mortgage companies to get where they agreed to even let the house be sold.

There is no way to happiness, happiness is the way.
Peony is offline  
#28 of 29 Old 07-22-2014, 02:26 PM
 
kittywitty's Avatar
 
Join Date: Jul 2005
Location: The Room of Requirement
Posts: 13,061
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 8 Post(s)
Oh wow! That's terrible. I'm glad it's working out for you now. We plan on trying to sell soon and renting so that if we do move, we can just up and move without worrying about selling. Dh is a teacher, so finding jobs is difficult and can be kind of last minute. We had an offer last week, but couldn't sell the house and move in that short of a time frame. So our goal now is to sell "as-is" for exactly as much as we need to pay off our mortgage and realtor. More would be nice but very unlikely. I can't imagine renting it out. Especially not if we have to move across the country!

AP Mom to 5 knit.gifhomeschool.giftoddler.gif
 
  

kittywitty is offline  
#29 of 29 Old 08-10-2014, 07:48 AM
 
MichelleZB's Avatar
 
Join Date: Nov 2011
Location: Ontario, Canada
Posts: 1,018
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 25 Post(s)
Renting can be a risk, but won't necessarily be the worst option. You can rent out the house you hate, and use the rental payments to cover its mortgage. Then you can rent another house somewhere else.
MichelleZB 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