what to do with my house?

**Dancing Lotus** · 09-21-2010, 01:12 PM

Here it is black and white:
We bought our house 4 yrs ago when the prices were at an all time high. We paid 217,000 for the home. We financed 117,000
All was well and good for the first two years. Then Dh's fist layoff happened. It all went down hill from there. We burned all our savings and then fell behind on the payments. For the last two years we have been in a ridiculous limbo with the house.
Due to late fees and penalties we now owe 137,00 on the house. Yes that's 20,000 more then we financed.
The current marked value is around 112,000 now and that's not taking into account the extensive repairs that need to be done.

Here is the deal- we really , really need to move.
I don't think we can sell because we would have to bring money to the table. Not to mention my town is slowly becoming a ghost town.
Titusville exists for one reason, the space program. Next month thousands more will be getting laid off and with each layoff we have more empty houses.

We are currently considered in default and still don't know if they will be letting us keep the house.
Dh wants to let it go. His credit is completely destroyed at this point so that's not really concerning him.
My concerns are walking away from all the money we put down on the house. But will I ever be able to see that money again anyways?

I don't know what to do and time is running out. Moving won't improve our financial situation in the short term but
if we move I will be able to go to school and make enough money to nearly double our income , therefore improving the situation drastically. We do still have my credit to buy another home in the future.

Be honest here. This is a huge decision and although I know only I can make this choice I just want to be sure I'm not missing anything.

**Greebo** · 09-21-2010, 01:47 PM

Originally Posted by AnnK

Here it is black and white:
We bought our house 4 yrs ago when the prices were at an all time high. We paid 217,000 for the home. We financed 117,000
All was well and good for the first two years. Then Dh's fist layoff happened. It all went down hill from there. We burned all our savings and then fell behind on the payments. For the last two years we have been in a ridiculous limbo with the house.
Due to late fees and penalties we now owe 137,00 on the house. Yes that's 20,000 more then we financed.
The current marked value is around 112,000 now and that's not taking into account the extensive repairs that need to be done.

Here is the deal- we really , really need to move.
I don't think we can sell because we would have to bring money to the table. Not to mention my town is slowly becoming a ghost town.

The first thing you can try to do is a short sale. Since you're already in default, they may see the wisdom in taking whatever they can get for it. This, however, depends on having a buyer.

We are currently considered in default and still don't know if they will be letting us keep the house.

The next thing you try is a "deed in lieu" - this is where you GIVE the bank the house in exchange for not foreclosing.

Dh wants to let it go. His credit is completely destroyed at this point so that's not really concerning him.

This is your last option - this is the most passive path and the one that will happen by default if you don't do something proactive.

My concerns are walking away from all the money we put down on the house. But will I ever be able to see that money again anyways?

Forget it. It's gone. Unless you find a buyer willing to pay more than you owe that money is gone. If you could afford to ride it out it wouldn't matter, but you can't, so it doesn't.

I don't know what to do and time is running out. Moving won't improve our financial situation in the short term but
if we move I will be able to go to school and make enough money to nearly double our income ,

And how will you do that w/o debt?

Anyway don't move until you lose the house or have a job lined up somewhere else.

**Dancing Lotus** · 09-21-2010, 02:56 PM

Thanks Greebo.
First Dh's work is half way between here and where we want to move. It's a half an hours drive now and by moving an hours drive further south he will still only have a half an hours drive. The mileage is actually about 4 miles less if we move, I know I timed it so he won't need to be changing jobs.

As for me going to school without incurring any debt. There are grants I qualify for that will cover most of it and what little help I may need my father wants to help me with.

**Greebo** · 09-21-2010, 02:58 PM

How does moving affect your ability to go to school?

**Dancing Lotus** · 09-21-2010, 03:21 PM

I will have the support I need to help me with our children. Don't forget my husband is a student and his work often involves weird shifts. There are times that I am simply on my own and I have no help where we are now.

**Greebo** · 09-21-2010, 03:33 PM

Sounds like you try to sell as a short sale first, then if you have no choice, you go to plan b - deed in lieu - followed by letting em foreclose.

**Maine Girl** · 09-21-2010, 03:56 PM

Ann,

I am so sorry that you and your family are going through this. Keep your chin up!!!

**MomToTwoBoys** · 09-22-2010, 10:03 AM

The first thing I also thought is that a short sale might be worth trying. Since your DH's credit is shot, you guys could short sale it and live in a rental until it's repaired enough to obtain another one (if you wish to do so).

I think that even with all of the money lost on the house, the main objective is to keep a roof over your head in the future. Whether that's in a house of your own or a rental, the priority is to make sure your family has secure shelter.

I'd honestly go for the short sale and take up a rental.

**nodmicks** · 09-22-2010, 10:11 AM

I think the others nailed it with trying a short sale first. School sounds like a great option Ann!

**frugalwarrior2** · 09-22-2010, 12:32 PM

Ann-I guess I don't understand. If his credit is shot why isn't yours? If your married, his bills are your bills and vise-versa?
Hope it all works out w/ the move. Seems like you've been so much lately.

**Greebo** · 09-22-2010, 12:43 PM

Originally Posted by frugalwarrior2

Ann-I guess I don't understand. If his credit is shot why isn't yours? If your married, his bills are your bills and vise-versa?
Hope it all works out w/ the move. Seems like you've been so much lately.

Being married does not automatically make one liable for the spouses debts.

**Dancing Lotus** · 09-22-2010, 02:22 PM

When we had credit cards they were not joint cards. I had mind he had his. Mine were much smaller in debt and therefor paid off. His were too big to handle and got out of control.
All the utilities are in my name, because I was the one who called to turn them on.
The car is in my name only.. He paid for it but wanted it in my name because it's mine and he has always wanted to make sure I felt that I owned my own things.
The late payments on my house do not show up on my credit report but do on his because he is the primary.

**stinkbug** · 09-22-2010, 06:21 PM

Is that a state by state thing?....my husband is the *primary* on our mortgage...I haven't even worked for 10 years. But it still shows up on my credit. Is your name ON the mortgage???

**Greebo** · 09-22-2010, 08:02 PM

Originally Posted by stinkbug

Is that a state by state thing?....my husband is the *primary* on our mortgage...I haven't even worked for 10 years. But it still shows up on my credit. Is your name ON the mortgage???

Its on your credit because you're on the mortgage too. You're on the mortgage because it was one of the papers you signed at closing. The primary is just the person listed first - if you two divorced, and you moved out, you'ld still be on the mortgage.

**stinkbug** · 09-22-2010, 09:51 PM

That's what I was asking the OP.....she said it didn't show up on her credit, but indicated that she IS on the mortgage, so I was confused. IOW, How could it NOT be effecting her credit....?