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    Thread: 40k upside down. Talk to me about forclosure....

    1. 07-10-2012 02:49 PM #26
      Quote Originally Posted by AIRider View Post
      Learn how to do the repairs yourself!
      Still have to spend money for materials. Not once have I paid anyone to works my house.... I have a wrap around porch, 25ft across the front and 30ft down the side. The roof was sagging and after a close inspection I found that the 3" pipes pounded 2ft into the found was the only thing holding it up. Ripped it all out, most was rotten and not to code. Found free pressure treated 2x6's on Craigslist, just needed to pull the nails.... But the posts cost money, footings, nails, screws, ect. Still had to spend $2000 and I haven't gotten the decking down yet.... Have you looked into the cost of roofing shingles lately?

    2. Member hugoaswho's Avatar
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      07-10-2012 03:19 PM #27
      Your house is probably worth less then 100k if it's in condition you are saying it's in (leaking roof etc)
      ...there's nobody that is going to buy your house for even that...the only thing you can do is walk away or invest the money into the repairs which you are not going to get back, but might atleast be able to sell the house.

      The banks and gov have refi programs (HARP) to address this, if you do not qualify all you can do is walk away now and lose all the $ you paid so far or keep paying and hoping your roof wont cave in.

      The bright side is that after you walk away and they foreclose the house there is a chance you can bid on the forclosure and buy the house for 1/10 of what you owe now
      Last edited by hugoaswho; 07-10-2012 at 03:24 PM.

    3. 07-10-2012 03:24 PM #28
      haha! i was hoping for that so i didnt need to move. my father in law said he would buy it and when my credit came around i could buy it back off him.....

    4. 07-10-2012 04:51 PM #29
      Personally, I would think long and hard about what you thinking about doing. I would call your lender and ask what programs they have or find out who your investor is. Someone already mentioned Harp program earlier. If you do walk away just know you wont be able to buy a pack of pensils without paying through the nose. I work with a lady that is going through a short sale, possible foreclosure(bank hasnt approved her short sale yet). She missed a payment on her first and second and her credit fell like a rock. During this process, her car died and she went to get a loan. Lets just say her rate is through the roof. Basically unless your home is a death trap, find a way to get it fixed. Second job, steal, kill, or borrow, cut off everything you dont need that you pay for monthly. Also if it were not for the repairs, would you even be thinking about walking away?

    5. 07-10-2012 05:20 PM #30
      I don't qualify for the government programs because my loan isn't backed by Freddy Mac or Fanny May.
      And what you were saying about your friend that missed payments. that's the killer for me, they need me to miss payments before they're willing to work with me. So my credit would be effected either way....
      If the property didn't need so much repairs, I'd probably not be thinking about walking as much, but I'd still not be comfortable in my situation. every time I think about putting the money into the repairs I get discouraged. I don't think you can understand the feeling till you've been there. For at least 2 years I've had the weight of this on my shoulders, every time I come home from work all I see is the work that needs to be done. Then I start thinking about the money, it's a ****ty way to live.

    6. Member blue70beetle's Avatar
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      07-10-2012 06:13 PM #31
      This is a perfect example of the point I made earlier. You bought the house, it was going to need repairs of some sort at some point, it dropped in value, and now you are seriously considering just walking away from it because you don't like the situation you're in.

      What in the world entitles you to a different situation?

      This sort of crap is the reason I made the "childish" comment early on in the thread. Don't like your situation? Don't worry about it...walk away and let someone else deal with it! (I don't let my kids do this, btw - if they commit to something, they are required to finish. I don't want to take a chance that one day they might, for example, buy a house and then just decide to walk away when they don't like the way it turns out!)

      Some people dislike my analogies in here, but I'll toss out another just for fun. If you got pulled over for DUI, whose fault would it be, the cop or the bartender? Obviously the bartender, since he gave you the drinks. Oh, and because of this, he loses his license and goes to jail because it sure would be an inconvenience for you.

    7. Senior Member dunhamjr's Avatar
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      07-10-2012 06:44 PM #32
      Quote Originally Posted by blue70beetle View Post
      Some people dislike my analogies in here, but I'll toss out another just for fun. If you got pulled over for DUI, whose fault would it be, the cop or the bartender? Obviously the bartender, since he gave you the drinks. Oh, and because of this, he loses his license and goes to jail because it sure would be an inconvenience for you.
      again no.

      its the bartenders fault if he hands you the bottle and tells you that no matter how much you drink that you will not get drunk... and beyond that no cop would ever pull you over anyways.

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    8. 07-10-2012 07:19 PM #33
      Quote Originally Posted by blue70beetle View Post
      This is a perfect example of the point I made earlier. You bought the house, it was going to need repairs of some sort at some point, it dropped in value, and now you are seriously considering just walking away from it because you don't like the situation you're in.

      What in the world entitles you to a different situation?

      This sort of crap is the reason I made the "childish" comment early on in the thread. Don't like your situation? Don't worry about it...walk away and let someone else deal with it! (I don't let my kids do this, btw - if they commit to something, they are required to finish. I don't want to take a chance that one day they might, for example, buy a house and then just decide to walk away when they don't like the way it turns out!)
      I feel bad for your kids then. Your teaching them to continue no matter if they made the wrong decision, even if they recognize it and have a way out. I was taught to always assess what I'm doing, if it's right for me then keep going and if not, make the best of it any way you can. Your talking like I owe so much to the lender, who are you kidding? They're in it for a profit, and they'll always do what's best for their bottom line. If they were to act towards me they way you describe i should act, I wouldn't have had a reason to make this thread. Your completely out of touch with the reality I'm in, it's easy for you to sit there and lecture when your not the one in the hole.

    9. Member eluwak's Avatar
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      07-10-2012 09:50 PM #34
      A couple of things as we have been recovering from a short sale ourselves:
      - If you can make the payments, and have had no major changes to income, then it is unlikely you will be able to short sale it. Maybe the bank will work with you, but not likely if you went to sell strategically.
      - A strategic default will be a target for the bank to seek a deficiency judgement if your state allows. So don't think by walking away that you get off scott free (you could be lucky depending on the state laws though).
      - A short sale/forclosure will blacklist you from obtaining a mortgage for at least two years. At two years you can get a mortgage if you have 40% down. At four years if you have 20%. At three years you qualify for FHA at 3.5%. You might weasel a local bank to give you one earlier, but it's usually based on extenuating circumstances that you clearly don't have (I was laid off and had to relocate for work and still didn't qualify).
      - If you short sale the house a family member is not allowed to purchase it. If it goes up for auction I don't know, but depending on where you are banks tend to buy the house for sale using the "auction" as a front for writing off losses.

      I'm sorry you don't like your house anymore. I thought about strategically defaulting once when my wife's income is reduced. When I got laid off though there was no "strategic" about it with the payments being more than my wife brought home. Think long and hard about it because the consequences suck, especially if your wages get garnished for walking away when you could have afforded it.
      <insert comment here>

    10. 07-11-2012 01:23 AM #35
      40k isn't so bad..........think of all those that have lost millions.......

      for sale lahaina maui: 800k purchase price 2009 bunch of improvements for sale 2012 765k

      sold 600K

      owner carrying the paper, probably will recover his cost in interest if the new owner actually pays him

      I guess it's all relative as to what a big loss it.......\\

      the lesson here for me is: maintain the house

    11. Senior Member dunhamjr's Avatar
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      07-11-2012 01:34 AM #36
      Quote Originally Posted by mauslick View Post
      40k isn't so bad..........think of all those that have lost millions.......

      for sale lahaina maui: 800k purchase price 2009 bunch of improvements for sale 2012 765k

      sold 600K

      owner carrying the paper, probably will recover his cost in interest if the new owner actually pays him

      I guess it's all relative as to what a big loss it.......\\

      the lesson here for me is: maintain the house
      Umm. If the current owner is carrying the note, the earned interest will probably wipe that "loss" you mentioned in no time.

      Also. I think the op was being kind saying 40k, other things he has said makes it sound closer to 70+...

      Note that zillow says he is 40k under water against the current loan balance of 193k... Not the 220k he actually paid.
      Last edited by dunhamjr; 07-11-2012 at 01:38 AM.
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    12. Member eluwak's Avatar
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      07-11-2012 02:07 AM #37
      40k isn't that bad. 70k isn't that bad. I was 223k underwater on a house appraised for 360k, purchased for 350k, and sold for 127k. If you don't have the cash it doesn't really matter if it's 5k or 500k though.
      Last edited by eluwak; 07-11-2012 at 02:10 AM.
      <insert comment here>

    13. Senior Member FlashRedGLS1.8T's Avatar
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      07-11-2012 07:12 AM #38
      Quote Originally Posted by eluwak View Post
      '12 Pathfinder - Mine
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      I think what Eluwak is saying is to default.

    14. Member YEAHTOM's Avatar
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      07-11-2012 08:25 AM #39
      Have you contacted your tax assessment office? If houses are selling around you for cheaper then your tax assessment they need to reassess your house. I saved $92 a month because the county had my assessment so high. It was extremely easy to do, I filled out a form and sent in examples of houses around me. I know this isn't a solution but every bit helps.

    15. Member eluwak's Avatar
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      07-11-2012 08:31 AM #40
      Quote Originally Posted by FlashRedGLS1.8T View Post
      I think what Eluwak is saying is to default.
      Yes, because my current situation completely reflects where I was three years ago

      Ignoring the fact that I was the breadwinner and my wife's income alone wouldn't pay our old mortgage if we devoted 100% to it...

      With my brand spanking new base model Pathfinder, and my wife's not so loaded Acadia we have to pay pay $1k a month into savings, paying ~$3k/mo for kids schooling, and have reduced our debt to these two car loans and a rapidly dissolving consolidation loan. We have a plan if one of is laid off again, and can afford to live off one income.

      So folks can go right ahead and keep quoting my newer vehicles to indicate that I in a self inflicted financial ruin

      We all learn from our past, and we have learned that we will never buy a house that we cannot afford to stay in if we only had one income.
      <insert comment here>

    16. Senior Member FlashRedGLS1.8T's Avatar
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      07-11-2012 08:51 AM #41
      Quote Originally Posted by eluwak View Post
      We all learn from our past, and we have learned that we will never buy a house that we cannot afford to stay in if we only had one income.

    17. 07-11-2012 09:19 AM #42
      I'm glad you jumped in and shared your experience, that was exactly what I was looking for. The 40k I'm saying I'm under water is an estimate, the more research about properties in the area the more I'm convinced it would be much more. It's not that I don't like this house, but it's hard to stay motivated and excited about your living situation when your put in is position. 5 years ago we were saving money, no credit card debt, ect. Now our savings is gone, CC debt gone up, all because this mortgage has our finances stretched to their limits every week. Something as small as an injury at work would be enough to disrupt our finances and make us choose what's gonna get paid.
      We put off having kids because of all this, finally decided making a family is more important then anything else. We lucked out by finding a family member to watch her a few days a week, but if something happens and she no longer can, we simply dont have the money to pay for day care so I dont know what we'd do. We dont have a car payment, which helps a lot. Ive been saying for years that I won't have a payment for a while, not cause we can't afford it, cause we don't need it. I'm lucky enough to be able to keep almost any car going, we have 3-4 cars currently, none worth anything but all running and inspected.
      A few of you had said, "think long and hard about this.". It's pretty much been something ive thought about everyday for the past 2 years. I haven't even set a plan doing it, I'm just looking to see other opinions and maybe experiences on it. To simply stop sending the check every month isn't as easy as said, it's a huge deal. But I'm also lookiing at my hole getting deeper. At some point im gonna need to make the call on this, it's gets more and more obvious every day.


    18. Member ambit's Avatar
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      07-11-2012 10:35 AM #44
      ^^
      The lady I bought my short sale from got hit with that.
      She had the mortgage + 2 home equity loans on the property. Moved to NV to try and evade them.

    19. 07-11-2012 10:49 AM #45
      thats some ridiculous **** right there. the bank can wait up to 20 years for you to get back on your feet again and come back after you. its said that banks dont want you to foreclose, thats bull****. they can recoup their money quicker by foreclosing then coming after you for the difference as opposed to waiting for you to pay your loan the traditional way or granting you a loan modification.

    20. Member hugoaswho's Avatar
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      07-11-2012 01:46 PM #46
      Talk to your congressman they have special people dealing with the issues and cc the bank. After you try everything and you can prove that you do not have money for repairs and house is physical danger to you and your baby then move out and stop paying the bank. They won't be able to foreclose on you for at least 9 months usually based on your state. Then get the bank to show the mortgage documents, half the time they don't even have them...which means they can't prove it


      Best thing is for you to try to sell the house to an entrepreneur who will fix up the house and relist it while you are living there and then once it sells he pays you and you move out while he makes a decent profit.

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      07-11-2012 05:02 PM #47
      yeah, sounds like a case of getting in over your head. was no home inspection done at the sale? i would never spend 200k on a rotting home. best of luck to you on your decision. i would try and stick it though though.

    22. 07-11-2012 06:39 PM #48
      home inspection was done by someone recommended by my restate agent. looking back now, its obvious he blew smoke up my ass so i wouldnt be scared of the house.

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      07-11-2012 08:50 PM #49
      Quote Originally Posted by mr sarcastic View Post
      home inspection was done by someone recommended by my restate agent. looking back now, its obvious he blew smoke up my ass so i wouldnt be scared of the house.
      Home inspections are usually scams. If there was any way to make them liable, I'd go after the home inspector
      Quote Originally Posted by winstonsmith84 View Post
      Tax? I don't mind paying state sales tax. Every time a see a pothole, a school that is falling down or a canceled essential state program, I remind myself why.
      Quote Originally Posted by Tornado2dr View Post
      535 members of congress plus 1 pres screwing us all the time...that's dirty pirate hooker level gang rape.

    24. 07-12-2012 01:17 AM #50
      i think that's what people didn't realize that the agents, lenders, banks, appriasers and anyone to do with real estate was/is corrupt and complecit in inflating the prices so they could make money
      as a matter of fact the whole thing is corrupt, health industry, internet industry, law industry, name it they are all corrupt
      I mean most of these people make used cars sales guys saints.......and I'm not joking

      good news for the OP is that he out 40-70K of the dollars he borrowed a few years ago,
      so the 'acceptable' inflation that the fed controls has eaten away at the value of the money owed.

      no much consolation if you not making more money to overtake the inflation rate.....

      this is why the feds are inflating to lower their 'owed' value that they are never going to pay anyway............
      I guess you could go fed on your debt and not pay it back

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