V8 Beast Posted January 29, 2012 Report Share Posted January 29, 2012 The story... - Buy a house 7 years ago in a good neighborhood for what seemed like an ok price. - Over the year taxes increase and the value of the home drops tremendously. - Square footage of the house is wrong as listed. When this is found the price drops even more. - With the value of the house dropping it would take 3-4 years of payments to break even. Literally throwing 4 years of money away on something that is unlikely to return a profit. - For what Im paying I could be in a better house. A house that if the value dropped I wouldnt mind. Not some stupid started home I got when my wife and I made less money. With the increases and drop in price its like paying 185k on a 140k home. - After talking to a few specialists they stated paying on a house like this is a waste of money with the way the market is now. The value in this neighborhood is unlikely to go back up as much as its dropped. - I called the mortgage company to look into a short sale or other options. After trying many different angles they are completely unwilling to work with us unless I stop paying them. The fact that we pay on time makes them unable to help us. Plus we already have the lowest interest rate they offer. - My father in law offered to put a house in his name if we had to take a credit hit. On average it takes about 2 years on a short sail before you can get a decent interest rate... but I dont know if I would be comfortable doing a rent to own from a family member. At the same time I would swallow my pride to put my family in a better situation. Do you stay and hope the value of the home increases? Stop paying and see if they will work with you (take a big hit on credit) Take some kind of legal action? The person said they are very likely not to approve a short sale for a loss that big. If they dont approve it do you just walk away and take the father in law up on his option? Take another option not listed. Ive been through every scenario possible with my wife. Im hoping someone that has possibly been through this before can chime in and shed some light. Paying them is no issue... but at the same time I got a house to get away from throwing my money away to renters. Now Im a renter in my own home. The responsible side of me makes it close to impossible to foreclose/shortsale. I feel it was my decision to buy this house and as little kid then I learned what not to do. On the flip side I hope the mortgage company can see how a good paying customer wouldnt be willing to hand them tens of thousands with a smile on their face. Quote Link to comment Share on other sites More sharing options...
John Bruh Posted January 29, 2012 Report Share Posted January 29, 2012 Man up. I bought my house in 2007. Spent 30k in upgrades. Sold it last year for 7k less the original price. Credit is still perfect. Also I have a backup contract on a house that was sold for 221k in 2005. They short sale listed it at 131k. So they will take a big loss if they have too. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted January 29, 2012 Report Share Posted January 29, 2012 The fad in Cali is "Strategic Default". Get into something while you can, then walk away. Personally, we have Renters in our house and are sucking up the pride and living w/ my Parents until we are in a position to sell. Not where I expected to be at my age, but we put Smalls above ourselves (Parents included). KillJoy Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 29, 2012 Report Share Posted January 29, 2012 stop paying on it and take the credit hit. srs. stick it to the bank. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted January 29, 2012 Report Share Posted January 29, 2012 At this point if I come into some money, or find a better deal I would walk away from this house completely. A few years ago I never would have even thought about screwing over the bank in this fashion but things happen. I would certainly either have the new house in my parents name or secured before I made this decision. I would also have what ever vehicle I planned on driving for the next few years secured as well if I required loans for my cars. It will mess up your credit but you can fix that within a few years and be good to go by the time its to get a new car. The only thing I would consider is if I would need to have decent credit for my job or any future job I would need until the credit rating is back. I have lost nearly $60k from my own personal savings over the last 3 years and if something doesnt happen I will be bankrupt by the end of the year. Certainly not anything I planned or was caused by me being stupid with my money. I have held off seeking the benefits that are possible for me of contacting my bank because of my situation and asking for alternative payment options but now I have to just to cover my ass. The only thing that makes me feel good is knowing that most people could never have survived as long as I have been able to with no income. I would call the bank and lay it out for them and tell them the ball is their court to work with you or deal with the house when your out. If you have already decided you dont want to be in that house than thedecision is easy. Keep in mind your probably middle aged now and is your credit score something your going to let stop you from being happy for the time you have left? Do what makes you happy, there are consequances whether you stay and keep paying or just get out now. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 29, 2012 Report Share Posted January 29, 2012 Suck it up and pay it. You will essentially "throw away" 40k, but if you just walk away or even work out a short sale I bet you end up paying over 40k in additional interest on future purchases because of what it did to your credit. Even if you have your in-law purchase you a new house that is 250k, and in a couple years you get it put in your name. Even if you only pay 1% higher rate than the best available because of the forclosure, the extra interest over 30 years will be higher than 40k. Plus whatever additional interest you pay on car loans for the next 10 years, credit cards etc... Quote Link to comment Share on other sites More sharing options...
SpaceGhost Posted January 30, 2012 Report Share Posted January 30, 2012 Went looking at a few builders today. Brian I know EXACTLY what you are thinking. The amount of house you get for $$$ is insane right now. A $275k house is 1800 a month, $325k is 2200 and 375k is $2500 a month with only 5% down. 30 year fixed. $275-$350k houses are 3000-3500 Square Feet. We walked through a couple and with most "Upgrades" these are in this price range, and are like dream houses to us. We looked at one house today that is $280,000 standard with MI and with almost every upgrade we want it's around 350k. It feels like a mansion, and the wife gets her dream kitchen. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Suck it up and pay it. You will essentially "throw away" 40k, but if you just walk away or even work out a short sale I bet you end up paying over 40k in additional interest on future purchases because of what it did to your credit. Even if you have your in-law purchase you a new house that is 250k, and in a couple years you get it put in your name. Even if you only pay 1% higher rate than the best available because of the forclosure, the extra interest over 30 years will be higher than 40k. Plus whatever additional interest you pay on car loans for the next 10 years, credit cards etc... Why would I take it out of their name until I was able to get a good rate? How are my credit cards going to be impacted? I dont believe in credit cards. I have 3 cars and recently started buying cars out right so that I can be more like Nurkvinny and get new-to-me cars when ever I want. Dont read to far into it. The only real issue is would you really feel comfortable paying someone $40k for nothing, when you could put that towards something of value. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 The fad in Cali is "Strategic Default". Get into something while you can, then walk away. Personally, we have Renters in our house and are sucking up the pride and living w/ my Parents until we are in a position to sell. Not where I expected to be at my age, but we put Smalls above ourselves (Parents included). KillJoy Yeah, parents in my case would rather buy a house than have us move in with them. Went looking at a few builders today. Brian I know EXACTLY what you are thinking. The amount of house you get for $$$ is insane right now. A $275k house is 1800 a month, $325k is 2200 and 375k is $2500 a month with only 5% down. 30 year fixed. $275-$350k houses are 3000-3500 Square Feet. We walked through a couple and with most "Upgrades" these are in this price range, and are like dream houses to us. We looked at one house today that is $280,000 standard with MI and with almost every upgrade we want it's around 350k. It feels like a mansion, and the wife gets her dream kitchen. EXACTLY!!!!!!!!! Or I can toss money into a pit of morals so I can say I did the right thing for a blood sucking bank that signed off on my dumb decision.. And just when I go to sell this house and break even the market has picked up thanks to Ron Paul and my dream home is $2000 a month again. At this point if I come into some money, or find a better deal I would walk away from this house completely. A few years ago I never would have even thought about screwing over the bank in this fashion but things happen. I would certainly either have the new house in my parents name or secured before I made this decision. I would also have what ever vehicle I planned on driving for the next few years secured as well if I required loans for my cars. It will mess up your credit but you can fix that within a few years and be good to go by the time its to get a new car. The only thing I would consider is if I would need to have decent credit for my job or any future job I would need until the credit rating is back. I have lost nearly $60k from my own personal savings over the last 3 years and if something doesnt happen I will be bankrupt by the end of the year. Certainly not anything I planned or was caused by me being stupid with my money. I have held off seeking the benefits that are possible for me of contacting my bank because of my situation and asking for alternative payment options but now I have to just to cover my ass. The only thing that makes me feel good is knowing that most people could never have survived as long as I have been able to with no income. I would call the bank and lay it out for them and tell them the ball is their court to work with you or deal with the house when your out. If you have already decided you dont want to be in that house than thedecision is easy. Keep in mind your probably middle aged now and is your credit score something your going to let stop you from being happy for the time you have left? Do what makes you happy, there are consequances whether you stay and keep paying or just get out now. Having the option from the In-laws is what made the decision hard. With it taking about 5 years on a foreclosure, a 2 on a short sale before you could buy a house I figured I would be stuck renting anyway. Now that I know the family can have a house to live in that will initially be mine, it makes the decision more complicated. Quote Link to comment Share on other sites More sharing options...
SpaceGhost Posted January 30, 2012 Report Share Posted January 30, 2012 We are moving forward and taking advantage of this. With rates under 4% we are doing anything to make this happen. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 30, 2012 Report Share Posted January 30, 2012 Alternatively bc, might want to wait for this obamortgage crap coming through. Sounds like there may be some mortgage help coming through via the .gov. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Gabe, I probably make too much money to qualify for anything Obama has to offer Ben, Im leaning towards sucking up my pride and taking the father in law up on his offer. I just feel like I was taken advantage of initially and the dropping value is pushing me over the edge. I was that guy that used to say suck it up.. but I dont bust my ass at work to give it away. If they are willing to work with me I'll stay, but it seems unlikely Quote Link to comment Share on other sites More sharing options...
Bam Posted January 30, 2012 Report Share Posted January 30, 2012 I'm not sure what I'd do. I'm not underwater but I have more in the house than it's worth. Does that mean I should default and move on? I also know I could probably get 'more' for my money elsewhere or in a new house, but again, does that mean I should give up on this house? How does that make sense? Again, I'd like all the things that come with a new to me house, like I'd be happy to have a larger layout, a larger garage, another bathroom, etc etc, but I bought a house in an area where I am happy with and knew going in I could 'live' with everything forever if need be. Quote Link to comment Share on other sites More sharing options...
Big Chief2011647545501 Posted January 30, 2012 Report Share Posted January 30, 2012 I love how everyone is blaming the banks for the loss in housing values. I compare that to investing in a stock and losing money on it. Do you blame the brokerage firm you use for the loss? Sell the house take the hit and move on, dont ruin your credit it takes too long to rebuild. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 I love how everyone is blaming the banks for the loss in housing values. I compare that to investing in a stock and losing money on it. Do you blame the brokerage firm you use for the loss? Sell the house take the hit and move on, dont ruin your credit it takes too long to rebuild. It is the banks fault in a lot of cases. In mine its not because I wasnt considered high risk. In a lot of cases they approved these increasing rates, and loans for people outside of their means so they could clean up on interest. Thats not an opinion its a fact. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 I'm not sure what I'd do. I'm not underwater but I have more in the house than it's worth. Does that mean I should default and move on? I also know I could probably get 'more' for my money elsewhere or in a new house, but again, does that mean I should give up on this house? How does that make sense? Again, I'd like all the things that come with a new to me house, like I'd be happy to have a larger layout, a larger garage, another bathroom, etc etc, but I bought a house in an area where I am happy with and knew going in I could 'live' with everything forever if need be. Quote Link to comment Share on other sites More sharing options...
Bam Posted January 30, 2012 Report Share Posted January 30, 2012 Did they FORCE you to sign the papers? NO, flat out. PERIOD. Read what you sign, understand what you sign, and you wouldn't have shit to bitch about. You NEVER had to buy a house to begin with, you could have rented this entire time, and yet YOU chose to buy the house, to sign the mortgage, and to take the risk. I'm sorry, I can understand you wanting to walk away from your house because you owe more than you someone says it's worth. But obviously you FELT it was worth it when you purchased it, otherwise you would have been stupid to do so, correct? My house 'lost' $35k in value from Spring 09 to Fall 11, but I'm not bitching. It's only what some schmuck told me it was worth, not what I feel it's worth and I have no reason to sell or move so the 'value' is moot at this point. Again, do what you want, but at least be a man and own up to the fact that ONLY you put yourself in this position, no one forced it on you. Quote Link to comment Share on other sites More sharing options...
Big Chief2011647545501 Posted January 30, 2012 Report Share Posted January 30, 2012 It is the banks fault in a lot of cases. In mine its not because I wasnt considered high risk. In a lot of cases they approved these increasing rates, and loans for people outside of their means so they could clean up on interest. Thats not an opinion its a fact. Wheres the personal responsibility in this country? Always quick to blame the other guy for their mistakes (not saying you but in general). If someone doesn't understand the terms of their loan or the risk their getting into don't buy or have the common sense to seek proper advice. If someone buys something they cant afford thats their own damn fault. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Did they FORCE you to sign the papers? NO, flat out. PERIOD. Read what you sign, understand what you sign, and don't bitch about shit otherwise. You NEVER had to buy a house to begin with, you could have rented this entire time, and yet YOU chose to buy the house, to sign the mortgage, and to take the risk. I'm sorry, I can understand you wanting to walk away from your house because you owe more than you someone says it's worth. But obviously you FELT it was worth it when you purchased it, otherwise you would have been stupid to do so, correct? My house 'lost' $35k in value from Spring 09 to Fall 11, but I'm not bitching. It's only what some schmuck told me it was worth, not what I feel it's worth and I have no reason to sell or move so the 'value' is moot at this point. Again, do what you want, but at least be a man and own up to the fact that ONLY you put yourself in this position, no one forced it on you. Does typing in caps makes you feel better? Have I done it or am I asking for opinions? Is my mortgage paid on time and am I working with the bank... If comprehension and an adult conversation is above you then get the fuck out. K thanks, buy Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Wheres the personal responsibility in this country? Always quick to blame the other guy for their mistakes (not saying you but in general). If someone doesn't understand the terms of their loan or the risk their getting into don't buy or have the common sense to seek proper advice. If someone buys something they cant afford thats their own damn fault. Its always a buyer beware, I agree... But in this case the companies are causing themselves trouble by trying to make a quick buck. If you talk someone into buying a home they cant afford, then how can you get mad when they cant afford it? Quote Link to comment Share on other sites More sharing options...
Bam Posted January 30, 2012 Report Share Posted January 30, 2012 Does typing in caps makes you feel better? Have I done it or am I asking for opinions? Is my mortgage paid on time and am I working with the bank... If comprehension and an adult conversation is above you then get the fuck out. K thanks, buy lol. Nothing adult about that. I'm just saying do as you please but don't bitch about it being the banks fault or anything along those lines. Like the chief said, have some personal responsibility. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 lol. Nothing adult about that. I'm just saying do as you please but don't bitch about it being the banks fault or anything along those lines. Like the chief said, have some personal responsibility. When did I blame the bank for my issues? I remember saying to cheif that in my case I wasnt at risk so its not the banks fault. I'll revisit what I said about comprehension earlier.. It is the banks fault in a lot of cases. In mine its not because I wasnt considered high risk. In a lot of cases they approved these increasing rates, and loans for people outside of their means so they could clean up on interest. Thats not an opinion its a fact. In case you missed it. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 So lets make this nice and clear. If you are in a situation where you can make your money worth more value at the expense of another do you take it? In this case the person losing out is the bank in the form of a short sale if possible. They are getting the currents house worth, instead of the initial worth. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Just looking for opinions, not a bitch fest. If you feel I should not persue a shortsale then do so without being an asshole. Thanks Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted January 30, 2012 Report Share Posted January 30, 2012 BANK MADE ME BUY HAUS...DISRESPECTED MAH HOLE FAMLY RON PAUL FOR NEW HAUS 2012...HAKUNA MATATA!!!! Quote Link to comment Share on other sites More sharing options...
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