Putty Posted November 3, 2009 Report Share Posted November 3, 2009 We've had our house up for sale for about 3 months. One showing. No calls, no offers. My neighbors house is up for sale, too. They paid $260k for their house. The offers they are getting are close to 100k less. Yes, 100k. So that means to me.....I need to drastically drop the price of my house to even begin to get bites. What's that tell me...well, I lower the shit out of it, it sells. Before I can close, I have to cover the gap, which could be upwards of 50k or more. Do I have that liquid....NO, so that means that idea is even no good. Each home around me has foreclosed...all empty. Homes are selling in the area but to people I would rather not be neighbors with. Hell, they are getting homes at damn near 40% off. I realize this is going to fubar my credit, but to accomplish the plan my wife and I have, I don't see another option for getting out of the house. I place it in short sale, stop paying on it, save the monthly mort in an acct somewhere....Find a nice house where we want it, rent it. Pay between 1600-1800 a month on a rental until we are able to buy it. Thoughts? See this link http://www.usatoday.com/money/perfi/housing/2009-11-02-voluntary-foreclosure_N.htm Quote Link to comment Share on other sites More sharing options...
Guest mitsumodder Posted November 3, 2009 Report Share Posted November 3, 2009 foreclosure will prevent you from buying for nearly 10 years. we just took a $23k loss but at least its gone. we are now renting, i may rent for the rest of my life... i like it, something breaks i call and its fixed. if you do quit paying on it and start saving make sure the savings are not with the lending instusion or they can take them Quote Link to comment Share on other sites More sharing options...
Ramsey Posted November 3, 2009 Report Share Posted November 3, 2009 Couldnt you just stay in your home? Quote Link to comment Share on other sites More sharing options...
Putty Posted November 3, 2009 Author Report Share Posted November 3, 2009 foreclosure will prevent you from buying for nearly 10 years. we just took a $23k loss but at least its gone. we are now renting, i may rent for the rest of my life... i like it, something breaks i call and its fixed. if you do quit paying on it and start saving make sure the savings are not with the lending instusion or they can take them If it prevents you from buying another home for 7 to 10 years, but you stated you may possibly rent forever, why do you care? I'd cash a check to myself each month and stack the cash somewhere, so it can't be touched by a bank. Couldnt you just stay in your home? I could. I love the house. Too bad I can't lift it and take elsewhere. Crime is starting to pick up, I often wonder if i'm being plotted on..my garage is packed with shit..my quad, bikes, etc. I have a gun in damn near every room in preparation of a home invasion. Plus it is in Cols schools. We moved there because a kid wasn't in the immediately plan, so schools were not an issue. Now it will be. I want out for peace of mind and a diff school district. Quote Link to comment Share on other sites More sharing options...
timmy43016 Posted November 3, 2009 Report Share Posted November 3, 2009 dude...it takes years to recover from that sting on top of needing what...20% minimum to buy next home...which you cant afford until old is completely paid off? 1600-1800 a month in rent on top of all the others fees you will have to deal with may bury you alive. you will end up in an apt with even more neighbors you dont want to deal with. prices are climbing again and market is stabilizing...deal with your neighbors now and maintain your credit. sell when things pick back up. keep it on the market and hold steady...will take a while, but someone will eventually buy. if you default and destroy your credit...we will be in another recession by the time you clear up your crap. Quote Link to comment Share on other sites More sharing options...
John Bruh Posted November 3, 2009 Report Share Posted November 3, 2009 just do the short sale ( i believe you can stay in the house for almost 1yr) so save the money and put it into a safe or deposit box so it can not be traced. then file for bk. Quote Link to comment Share on other sites More sharing options...
Skinner Posted November 3, 2009 Report Share Posted November 3, 2009 I told you to not build there. Should have built over here in Galloway. Quote Link to comment Share on other sites More sharing options...
John Bruh Posted November 3, 2009 Report Share Posted November 3, 2009 what neighborhood is your house built in. and galloway isnt that great! Quote Link to comment Share on other sites More sharing options...
Drewhop Posted November 3, 2009 Report Share Posted November 3, 2009 If you are going to destroy your credit because of a few neighbors then you are a moron. I am in process of repairing my credit and there is no way I would do what I did a 2nd time. Quote Link to comment Share on other sites More sharing options...
timmy43016 Posted November 3, 2009 Report Share Posted November 3, 2009 If you are going to destroy your credit because of a few neighbors then you are a moron. I am in process of repairing my credit and there is no way I would do what I did a 2nd time. especially if you are going to rent at the rate of 1600-1800 a month!!!! Quote Link to comment Share on other sites More sharing options...
Snowflake Posted November 3, 2009 Report Share Posted November 3, 2009 My g/f's dad has a house in Pataskala that has been for sale for alomst 6 months. He had one showing in the first 4 months and then another showing a few weeks ago that looks like the new owners. He was real frustrated that nobody was coming to see the house and thought about dropping the price. He had it listed for 199k. He hung in there and the people he's in contract now with are getting it for 189k. He dropped it 10k and is still walking away happy. I would just wait it out. My house isnt worth shit right now but its all I have and Im not letting it go until I can get my money back out of it. Just remember how it felt when you first bought your house. You will want that feeling back if you go back to renting... Hang in there... Quote Link to comment Share on other sites More sharing options...
Putty Posted November 3, 2009 Author Report Share Posted November 3, 2009 Timmy, my original plan was to rent the place out. Cover the mort 100%. Go to bank and get an additional loan for a new home for us to live in. Problem there is...we have an FHA loan. You are only allowed one at a time. Therefore, i'd have to do a conventional loan that requires, as you said, 20% down. So on a $220K house, which I am looking to buy, i'd need a healthy down payment. If I enter short sale, save the same money as my mort each month. By time bank kicks me out, i'll be done saved 14k or so....rent a place where I want it and be golden. I dread ever having to enter an apartment again. I never could. I dont want to make a rash, bad decision, but I dont see any other way out. I told you to not build there. Should have built over here in Galloway. Oh please...that area is going through the same shit...Dont fool yourself. what neighborhood is your house built in. Walking distance to Mifflin High..I think that's the school....Stelzer road area. If you are going to destroy your credit because of a few neighbors then you are a moron. Peace of mind....concerned about safety, plus a different school system. My kid will not enter Cols schools. Quote Link to comment Share on other sites More sharing options...
Bam Posted November 3, 2009 Report Share Posted November 3, 2009 i feel sorry for you. new builds suck for this reason alone. not to mention everything else that comes with a new community. i would think long and hard about this, if you don't do it correctly i'm pretty sure tehy can garnish your wages until the difference is paid, etc. is the house in both your names or just yours? by crime going up do you mean like on your block or columbus in general? where do you think you will move that you will be able to get away from crime completely? helll i live in bexley and some shit got stolen out ofmy cars a month back,it happens everywhere but i still feel bexley is a damn safe community and appreciate the schools they offer. do you have any idea how much negative equity you owe? how long have you been in your house and what other debt do you have? i would consider buying whatever large items you want BEFORE you start defaulting on your house, be it a new car, etc, whatever if you had thought about it,because if you go through with it you'll get raped for years on loans/interest/etc. good luck. Quote Link to comment Share on other sites More sharing options...
SpaceGhost Posted November 3, 2009 Report Share Posted November 3, 2009 Charles, don't be stupid, you haven't had the kid yet it's going to be another 5 1/2 years until the kid goes to school, see what the market is then. Even if your kid goes to COlumbus schools for the first couple of years like K and 1st and 2nd grade you can send them to a charter school for free. My sister in-law lives behind the Cleveland Ave Meijer between 161 and Morse Rd, and I pick her kid up at Cornerstone Academy which was just built in the New Albany area by me. She pays nothing for him to go there. Your kids will not "have" to go to columbus. Don't ruin your credit. Be patient ya knuckle head. My god anyone can teach adding and subtracting and colors and basic english. My daughter is 2.5 and can count, knows most of her alphabet, colors, and has a huge vocabulary and is able to have a conversation with you. If parent's put in the time, your kid will learn. It's not the school system, it's the fucking parents fault. Columbus gets a bad rap because too many columbus city school parents don't value education. If you are close to Mifflin, your kid should be able go to Cornerstone Academy. (it's east of hoover dam on Walnut rd.) The kid rides the bus in the morning, and I pick him up at school and take him home with me when I get off work at 3:30pm. http://cornerstoneacad.org/ Quote Link to comment Share on other sites More sharing options...
timmy43016 Posted November 3, 2009 Report Share Posted November 3, 2009 Timmy, my original plan was to rent the place out. Cover the mort 100%. Go to bank and get an additional loan for a new home for us to live in. Problem there is...we have an FHA loan. You are only allowed one at a time. Therefore, i'd have to do a conventional loan that requires, as you said, 20% down. So on a $220K house, which I am looking to buy, i'd need a healthy down payment. If I enter short sale, save the same money as my mort each month. By time bank kicks me out, i'll be done saved 14k or so....rent a place where I want it and be golden. I dread ever having to enter an apartment again. I never could. I dont want to make a rash, bad decision, but I dont see any other way out. Oh please...that area is going through the same shit...Dont fool yourself. Walking distance to Mifflin High..I think that's the school....Stelzer road area. you didnt mention renting out the old. i just dont want you to fall into another statistic catagory. Quote Link to comment Share on other sites More sharing options...
excell Posted November 3, 2009 Report Share Posted November 3, 2009 FYI in Ohio the lender can choose to recover damages from you unless explicitly placed in writing that they waive this right; it's usually only done as part of a short sale. If you short sale without the guarantee or foreclose they can come after the full loss on the mortgage. Also, they don't have to short sale. They know your credit information and they'll find out your financial situation. If they have reason to believe you can/should pay they likely will not let you short sale and force you into foreclosure so they can attempt to recover the loss. Quote Link to comment Share on other sites More sharing options...
John Bruh Posted November 3, 2009 Report Share Posted November 3, 2009 Walking distance to Mifflin High..I think that's the school....Stelzer road area. im pretty sure i know where thats at. but mifflin has been a bad place to live for a long time now. you could just hang in there like everyone else has said, but it's all what you personally think is the best. Quote Link to comment Share on other sites More sharing options...
Skinner Posted November 3, 2009 Report Share Posted November 3, 2009 what neighborhood is your house built in. and galloway isnt that great! its still better then columbus city schools. Quote Link to comment Share on other sites More sharing options...
jmc3271647545506 Posted November 3, 2009 Report Share Posted November 3, 2009 i personally filed chapter 7 best thing i ever did my attorney informed me to stay away from chapter 13 my family has done this also economy is ruff if u have any queustions pm me and i will give u my number i will say this my parents baught a new house 3 years out of it Quote Link to comment Share on other sites More sharing options...
John Bruh Posted November 3, 2009 Report Share Posted November 3, 2009 its still better then columbus city schools. thats not saying much Quote Link to comment Share on other sites More sharing options...
Spidey2721 Posted November 3, 2009 Report Share Posted November 3, 2009 why not rent out the house your trying to sell? Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted November 3, 2009 Report Share Posted November 3, 2009 The market is a shithole right now, and prices are already artificially inflated about 5% higher than what they should be because of the fucking $8000 first time buyer incentive. ... wait til it falls off, and your home gets even more devalued. Thennnn, wait even a bit more til hyperinflation sets in because Obama wrote too many checks with his mouth, bailouts etc... Quote Link to comment Share on other sites More sharing options...
Mallard Posted November 3, 2009 Report Share Posted November 3, 2009 Timmy, my original plan was to rent the place out. Cover the mort 100%. Go to bank and get an additional loan for a new home for us to live in. Problem there is...we have an FHA loan. You are only allowed one at a time. Therefore, i'd have to do a conventional loan that requires, as you said, 20% down. So on a $220K house, which I am looking to buy, i'd need a healthy down payment. If I enter short sale, save the same money as my mort each month. By time bank kicks me out, i'll be done saved 14k or so....rent a place where I want it and be golden. I dread ever having to enter an apartment again. I never could. I dont want to make a rash, bad decision, but I dont see any other way out. Oh please...that area is going through the same shit...Dont fool yourself. Walking distance to Mifflin High..I think that's the school....Stelzer road area. Peace of mind....concerned about safety, plus a different school system. My kid will not enter Cols schools. The amount you have to put down on a conventional mortgage can depend on your credit. If you have really good credit you can put as little as 5-10% down. The lower the amount you put down, the more likely you'll be paying PMI or "Lender Paid PMI" which is basically accepting a higher interest rate. I would not default on your home unless you are in a financial situation where you can't make payments. The bank knows what your situation is and they will come after you for damages. Also, I think for a short sale you have to prove financial hardship, so if you can make payments with no problem right now you're not going to be approved for it. Lastly, I am a product of Columbus Public Schools, as well as several other people on here that I know. Getting a good education is all about the parents and the student. CPS has the environment where any student can apply themselves and get a good education. If you don't think your neighborhood school is up to par you can go through open enrollment and send them anywhere in the CPS system. Quote Link to comment Share on other sites More sharing options...
Putty Posted November 3, 2009 Author Report Share Posted November 3, 2009 Keep the input coming...I am really confused on what to do. However, I realize you get out of a school system just as much as you put into it. That said, I feel Cols teachers hate being there as much as the kids. Statistics show that standardized test scores are far lower than other systems. I don't want to enroll my child into such a system. Quote Link to comment Share on other sites More sharing options...
Doug1647545489 Posted November 3, 2009 Report Share Posted November 3, 2009 3 months, that's it? My parents had their house on the market for 8-9 months and ended up taking a $100k hit to move down here to NC. Don't be retarded and walk away from your home unless you truly can't afford it. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.