Guest mitsumodder Posted June 18, 2009 Report Share Posted June 18, 2009 So, in these wonderful economic times my family is looking at taking a serious loss. Here's the situation...we moved into an extra house my in-law's had. We were going to buy it when our other house sold. Our other house has been on the market for 1.5 years now. Recently we found out the hard way that vacant home owners insurance is double that of a lived in house, this raised our payments about $250 a month. Now that the value has fallen below what we owe on it we are really screwed due to having an equity loan. On top of all this, the last few buyers inspections have told us the house needs 15-20k in foundation repairs. Finally, we have a 4 month old baby girl soaking up plenty of diapers and formula. So, here we are 2 months late on payments, facing foreclosure, and somewhere around 30k upsidedown. Is anyone else in this situation? What do we do? Foreclose? We dont have the money for the repairs and without them no one is going to buy it. I contacted my lender and they didnt seem too happy to help and said they would call me back, I am yet to hear from them. Quote Link to comment Share on other sites More sharing options...
Pedro1647545510 Posted June 18, 2009 Report Share Posted June 18, 2009 Sorry to hear this. I hope it works out for the best in the end. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted June 18, 2009 Report Share Posted June 18, 2009 Sorry to hear man. I dont know if you got a bad deal when you got the place or what but being on unemployement for who knows how long and getting a fraction of my paycheck at that, I have wondered the same thing. I am lucky to have a savings even though I am blowing thru my used corvette money to live. I feel for you. Winter will be interesting for us this winter as well. But I am not letting it ruin our summer and I should be saving more than I am. Quote Link to comment Share on other sites More sharing options...
verse Posted June 18, 2009 Report Share Posted June 18, 2009 Yep, I am. Not much I can do until they tell me to get out. Quote Link to comment Share on other sites More sharing options...
Guest mitsumodder Posted June 18, 2009 Report Share Posted June 18, 2009 savings? lol, whats that? Quote Link to comment Share on other sites More sharing options...
FormulaMatt Posted June 18, 2009 Report Share Posted June 18, 2009 Man, that's a shitty situation. Do you have the option of moving back in it and out of the house you really want? If you give up the empty and let it go through foreclosure, it will be VERY hard or next to impossible (at least for a while) to get a loan for the house you are in and want to buy. Either way, best of luck to you. Quote Link to comment Share on other sites More sharing options...
smokin5s Posted June 18, 2009 Report Share Posted June 18, 2009 I'm in a very similar situation, but somehow I'm still making all the payments so we are not behind, but every realtor we've talked to has told us to plan on bringing 25k to closing and my mortgage company has told me that I make too much for them to do any type of mortgage adjustments to help out as well as I make too much for a shortsale. dude, the shittiest part of the situation, if you do forclose, the bank can garnish your wages... Quote Link to comment Share on other sites More sharing options...
AJ Posted June 18, 2009 Report Share Posted June 18, 2009 the bank can garnish your wages... "oh i'm affraid my wages can't be garnished" /fletch lives Quote Link to comment Share on other sites More sharing options...
Mojoe Posted June 18, 2009 Report Share Posted June 18, 2009 First let me say posting your situation on here is probably pretty tough. But, the fact is there are many people on here that work in different fields, so CR can e a good sounding bourd when you don't know anyone who can give you a good answer. With that said, you're fucked! And by that I mean, either way you lose. So at this point it might be time to think damage control. I'm guessing you have the pressure of buying from family and the expectation that has been created. What will be the dicission that leaves you and your family in the shortest recovery time? I'm going out on a limb and saying to think 2 years out at the earliest, probably 5 yrs. I don't know your income or all the exact numbers, but second incomes may have to be looked at. As much as it may suck, you took a loan on a house with a bank. You are obligated to it. You made arrangments with a family member. Your plan to have the other home sell is now unrealistic, it seems. So you may have to step back from the home you want. As said before, you aren't getting a loan for the home you want, if you have the one for sale now in fourclosure. And if it does fourclose, you are not doing anything for a while without a substancial out of pocket. I don't know the condition of the home for sale. you said it needs repaired. You also have to sort out if you want your family in a place with foundation issues. If it's livable and safe, you are better off moving back in and sorting that out. And try to move once you recover from this. If you push to stay in the place you want, you more than likely won't get financing for it given the other home if it's fourclosed. So then it's up to how nice and understanding your family is. If you say fuck it and let the house go, with out your family, your are looking at appartments or a very understanding private lease person. Your situation is too real and common in the last 3 years. Best thing I can say to ease your mind is, if you are going to fourclose, these are the best times. The recovery and understanding of programs that aren't out yet will take the economic times into consideration. It's not going to be great, but options will be out there. Too many people are in your same shoes for that much business to be lost in the future by the current guild lines we have. I've been away from that stuff for a while. Best of luck to you. Quote Link to comment Share on other sites More sharing options...
mrtbolt64 Posted June 18, 2009 Report Share Posted June 18, 2009 Have you considered renting it out? Since your already living else where that might be a viable option since you could wait to sell it if you had renters in or even entertain the idea of land contract with the potential renters after like a two year period with part of there rent going toward down payment Quote Link to comment Share on other sites More sharing options...
Snowflake Posted June 19, 2009 Report Share Posted June 19, 2009 insurance + match + accelerant = problem solved My friend is in a similar situation. It sucks but good luck... Quote Link to comment Share on other sites More sharing options...
Sam1647545489 Posted June 19, 2009 Report Share Posted June 19, 2009 Rent it out. It is what I am doin on my old house since I moved in with my girl into a new condo. Since the market is shit I plan on renting it till the market comes back around. Even if you cant get 100% of the full amount of the mortgage at least you should be able to get close to it and should be able to afford the remaining amount till the market comes back. Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted June 19, 2009 Report Share Posted June 19, 2009 Why not live in the house? Insurance goes back down, and you are back to less bills in the end. BTW, how in the hell can they raise your home insurance $250 a MONTH, that seems literally insane. A whole year is about twice that normally.... Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted June 19, 2009 Report Share Posted June 19, 2009 And how do they know/care nobody lives there? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted June 19, 2009 Report Share Posted June 19, 2009 id say tell your inlaw's "sorry, gotta go". hopefully you dont have anything signed with them requiring you to live there. while it may be an ideal place for your family, you'll be able to find something else when the time is right. move back into your house for the time being, keep from losing your ass so when the time comes that you are able to buy a house, you can. remember, the forclosure will stay on your credit for 7 years, and if they seek a judgement, i believe those stay for 10 years, and after that, if they wish, they can renew it. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted June 19, 2009 Report Share Posted June 19, 2009 Any other debt you are under on? Quote Link to comment Share on other sites More sharing options...
Guest mitsumodder Posted June 19, 2009 Report Share Posted June 19, 2009 a few more facts... we are unable to move back because my wife is the "bread winner" and her job is too far from the old house to commute. her family is very understanding about everything and willing to work with us. we have looked into renting it out and most people cant afford it or we are scared to rent it to them due to it getting trashed and us loosing more value. the whole vacant insurance thing is so much BS i cant explain it and we are thinking of ways around it, for example, moving a few pieces of furnature back and staying there once every week or so. as for being behind on other things, i think the only thing is my tool box payment and deferred student loan payments. i talked to my realtor and the lender late yesterday and we are looking at the possibilty of a "short sale" i just dont know the specifics of it. waiting on paperwork, as we have 2 intrested buyers offering about 25-30k less than what we owe. Quote Link to comment Share on other sites More sharing options...
Putty Posted June 19, 2009 Report Share Posted June 19, 2009 That sucks! Sadly, if you can't afford it..let it go. No need to stress over what you can't control in any way. You're not alone in this matter. As we all know it's all over the place. Good luck Quote Link to comment Share on other sites More sharing options...
AJ Posted June 19, 2009 Report Share Posted June 19, 2009 insurance + match + accelerant = problem solved My friend is in a similar situation. It sucks but good luck... a firefighter friend of mine said yo use a candle since they can't prove that was arson since there are so many candles in so many peoples houses. Quote Link to comment Share on other sites More sharing options...
Drewhop Posted June 19, 2009 Report Share Posted June 19, 2009 i talked to my realtor and the lender late yesterday and we are looking at the possibilty of a "short sale" i just dont know the specifics of it. waiting on paperwork, as we have 2 intrested buyers offering about 25-30k less than what we owe. Since I dont know much about selling houses. Can you sell the house for less than is owed. Then get a loan for value you are under and pay that off? Quote Link to comment Share on other sites More sharing options...
verse Posted June 19, 2009 Report Share Posted June 19, 2009 At least my house has $20k in equity, so I won't be out any money when they take it. I know how it feels though. Quote Link to comment Share on other sites More sharing options...
Guest mitsumodder Posted June 19, 2009 Report Share Posted June 19, 2009 Since I dont know much about selling houses. Can you sell the house for less than is owed. Then get a loan for value you are under and pay that off? that is basically a short sale, except the debt is "eaten" by the lender if they agree to a sale price with intrested buyer. Quote Link to comment Share on other sites More sharing options...
Casper Posted June 19, 2009 Report Share Posted June 19, 2009 a firefighter friend of mine said yo use a candle since they can't prove that was arson since there are so many candles in so many peoples houses. Wow......... Quote Link to comment Share on other sites More sharing options...
verse Posted June 19, 2009 Report Share Posted June 19, 2009 a firefighter friend of mine said yo use a candle since they can't prove that was arson since there are so many candles in so many peoples houses. I'll have to remember that. We may have to delete this post in the future though. Quote Link to comment Share on other sites More sharing options...
Drewhop Posted June 20, 2009 Report Share Posted June 20, 2009 I'll have to remember that. We may have to delete this post in the future though. Quoted. I will unquote this for a small fee. Quote Link to comment Share on other sites More sharing options...
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