Should I keep hoping that the house sells or give it back to the bank?
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  1. #1
    Registered User Daisygirl's Avatar
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    Default Should I keep hoping that the house sells or give it back to the bank?

    I've mentioned my impending bankruptcy. I've had my house on the market since May with nary an offer. I've had open houses, it's been online and in the paper - it's just not selling.

    I live in an apartment in the city where I work now I am not making house payments but I still pay the utilities and insurance. The insurance is $300 a month because the rates are higher since no one lives there. Overall, I am spending over $400 a month to keep this house on the market.

    My kids and I are living paycheck to paycheck, quite literally barely keeping our heads above the water.

    My question is this: do I keep paying for the house expenses or just call the bank and say, "Take it!"

    If it sells, I'll still be financially busted but I won't be going bankrupt for quite as much money. It would pay of two of the biggest debts, leaving me only $70K in debt, instead of $170K. I don't know that I could pay off the $70K any more easily than the $170 but I might be able to come up with some way to make small payments through one of those credit counseling places.

    Either way, my credit is completely shot. I'm not really concerned with that. I just feel guilty and dishonest by filing for bankruptcy. It feels like I stole that money, even though I had every intention of paying it back at the time.

    Any thoughts?

  2. #2
    Registered User lparker's Avatar
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    SO if you walked away from the house, you'd save over $700 a month that you could use somewhere else? Give it back.

    If you filed for bankruptcy, you can't sell any assets down here.. probably the same up there.

    If you're going bankrupt, I don't see that a credit council service will help. The court will take care of how your debt will be discharged.

    As far as feeling guilty, unless you went into debt with the intention of NOT repaying it, you fell into the same game most of the rest of us did...the banks/credit card companies gambling that you will repay, so they keep offering more cards and higher limits. You take them up on it because "they wouldn't give it to you unless they thought you could handle it".

    I don't know about the laws in Canada, but the banks down here don't give a damned about their CC customers...if they did, they wouldn't have double the interest rates last year.
    BEF fully funded
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    heloc - $3,299 - 0 yes, yes, yes!
    mortgage - $62,382
    van payoff = <$9,500

  3. #3
    Moderator monkeywrangler71's Avatar
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    How much do you owe vs. what it is listed for?

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    Registered User Daisygirl's Avatar
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    I have a 1st, 2nd, and 3rd mortgage on the house. The 3rd is my business loan. In order, I owe $88K, $11K, and $36K. The house is listed for $119K - so even if it sells, I'll still have that debt - there is additionally about $40K of debt not attached to the house.

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    Default If you can swing it..i would continue to make the payments until it sells

    I think foreclosure or bankruptcy is for when you absolutely cannot pay it...it is when you have to choose between putting food onthe table for your kids or other essential items that you cannot live without....other than that...I think someone should pay their bills...i don't know your situation so i can't give you an answer...Good luck with whatever you choose to do.

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    Moderator monkeywrangler71's Avatar
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    You owe $135K on it and it is listed for $119K? Does your realtor know that there are 3 mortgages? If you don't have the money to pay the difference plus your closing costs, you can't sell the house.

    Have you spoken to the bank? How long since you stopped making payments? It might be in foreclosure already.

  7. #7
    Registered User Daisygirl's Avatar
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    Quote Originally Posted by monkeywrangler71 View Post
    You owe $135K on it and it is listed for $119K? Does your realtor know that there are 3 mortgages? If you don't have the money to pay the difference plus your closing costs, you can't sell the house.

    Have you spoken to the bank? How long since you stopped making payments? It might be in foreclosure already.
    We have a legal waiver from the 3rd mortgage-holder that allows us to sell, even if it doesn't cover their mortgage. It was drawn up by an attorney and signed by both parties.

    I haven't spoken to the bank recently but wouldn't I have received something from them if it was in foreclosure? They have been in contact with my realtor to make certain we are still trying to sell. I stopped making payments in August.

    I just want it gone, at this point. I'm so tired of this mess I've made.

  8. #8
    Moderator monkeywrangler71's Avatar
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    Okay, so if they are going to release the lien on the 3rd mortgage then you need to get $99k plus commission and legal fees. You should be able to drop your price about 10k and still break even. The bank is going to take it within a few months anyway, I would go down to $109k in a last-ditch effort to sell. If it won't move at 109 let them foreclose.

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    Registered User annymoll's Avatar
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    I do not think it is inappropriate that you feel bad about filing for bankruptcy. Too often I hear of those who just lightly brush it aside as"A nice, fresh start", or who blame their creditors .You have a conscience.Maybe you can file for a reorganization of your debts, which will allow you to repay them, but within a budget you can afford.That would be different than just walking away from the mess.

  10. #10
    Registered User frugal is fun's Avatar
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    A quote that we use often at work is "Hope isn't a strategy".... I don't know the ins and outs of bankruptcy or foreclosure but I'd most definitely be thinking of other alternatives.
    Judy


    never loose site of the big picture

  11. #11
    Registered User Daisygirl's Avatar
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    I guess this point is moot now. I stopped by today to do my weekly check in on the house and it was deadbolted with new locks - I assume from the bank.

    Even though I knew this would happen, I cried my eyes out. I know, pretty stupid - not like it was unexpected.

    Thank you for all the advice, though.

    And I agree, as well, that bankruptcy should be a last option - I haven't made these decisions lightly.

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    Default ummm....

    I would have thought you would have gotten a notice from the bank if it was foreclosed on...I think they would do this by the book....and you said you only stopped making payments in august....I would have thought it would have taken longer than 6 months for a foreclosure to go all the way through...however i am in no way an expert on these things, maybe someone else could clue me in that has gone through a foreclosure on the steps that are taken..I have recently been set up on a repayment plan that is enabling me to pay extra every month to catch it up...Thank Goodness but would like to know the steps that are taken and roughly how long it would take to happen...just in case i am in the same boat which in today's economy could be so... thanks for your help and i am so sorry you have to go through this... it must be mentallly exhausting...i know just trying to prevent foreclosure was mentally exhausting enough for me...

  13. #13
    Registered User Daisygirl's Avatar
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    I wish I knew more answers to tell you, alotofgooddeals. I'm not sure where you are, but I am in Canada, so the laws may be slightly different here than where you reside.

    Good luck getting caught up on your mortgage. I hope it all works out for you.

  14. #14
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    Default yeah... that could be the difference..

    I live in the U.S so the laws are probably different...but anyhow i hope that your feeling better and maybe you are sort of relieved...take care...

  15. #15
    Registered User arnie's Avatar
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    Daisygirl,
    I am so sorry to hear about your situation. I have a house that I hate but I know I will be in the same situation if I try to sell it. I definitely owe more than it is worth and nothing is selling in Atlanta right now.
    I know how upsetting it must have been to find the locks changed- the reality of it must have been overwhelming.
    Hugs to you.

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