No good options.

[Rafiki31]

I am in a pickle. I relocated for a job 2 years ago. Put my home up for sale. After several price drops I tried renting. The hardwood floors were damaged, the brand new stove was ruined and the dishwasher broken, the renters paid only 2 months rent. Took several months to get the deadbeats out. Hard to be a landlord from 36 hours away. So put the house back on the market, had to repair all the damage to make it resellable and do a deep clean. It has now been on the market for another whole year. Carrying costs about 2K a month. My credit card debt is accumulating at a close rate to my carrying costs and I am now relying on them for gas & groceries. I already have 2 jobs and pretty much do nothing but work. Bank did not approve a short sale. They had unrealistic expectations on what price they were willing to take and also require that I move home and live in it until it sells, which is not feasable I could not find a job there that is why I left. Bank basically told me to go ahead and stop paying they would be happy to forclose. Can't refinance, due to outstanding amount on loan being less than value of the home. Tried that. Bank said no.

So now a family member wants to rent. Said he can only afford 800 a month. He seems like a responsible kid and knows my dad very well. He is also fairly handy if anything breaks. That leaves me with 1200 deficit to pay each month but at least it is something. Other option is to forclose and ruin my creidt which is on its way to ruin anyway with all the credit card debt.

Would you let him move in? Or just give up and stop paying? I have never missed a payment, but it is really taking a toll on my debt. I am at the breaking point where I just want this albatross off my back. I dream of planning a vacation. Haven't actually been on one in 5 years. I am also hanging on to a car that is starting to be unreliable. I just want to go back to having a normal life without this huge weight leaning on me all the time. I also haven't bought new clothes in ages. I have been scrimping to hang on to this home that seems to be an inevitable disaster. I just feel like with this huge stressor gone, I could go back to being normal.

 

[OrangeCountyCommuter]

Personally I would consider either a bankruptcy or default to the bank.


(Now I know the "no debt patrol" on here will probably have all kinds of "you shouldn't have" advice, but that's water under the bridge)

If you can't drop be price any lower without a loss you can't absorb it's time to face the facts and move on. Yes, it's going to hurt your credit, but.... sounds to me that that's going to happen either way.

I don't see where getting less then half the carrying cost is going to help

 

[Reddy]

are you already in another house (buying??) I think I would go bankrupt - your credit is already shot (or will be)
I think in a few years alot peple will be joining you if they haven't done it yet, and most will forgive easier now

 

[Rafiki31]

I just can't compete with all the forclosures on my street. The price my realtor thinks it may actually sell at would be 50K less than I owe plus I would need to come up with realtor commission. I don't have an extra 60K laying around, wish I did. All my down payment and savings are gone. Before I bought the house I was financially doing very well. This house has totally ruined me. Well, the house and my former company closing. I am currently renting.

 

[deakam]

You know--I feel your pain. Stress will kill you faster than eating greasy bacon cheeseburgers every day. Let go of the house. You are already renting and you already have another job so you will not be judged on that. Just sign it back over to the bank. Get your credit cards under control and move on. Don't file bankruptcy unless there is no other choice. You no longer live in the house and there is no way you can go back.

A foreclosure on your credit report is better than a bankruptcy on your credit report. Just make certain that you add a personal statement about why you lost the house. And keep the rest of your credit clean. There are now millions of Americans with a foreclosure on thier credit report and most of them are for the reasons you stated.

 

[Darcy03231]

At this point I think I would walk away from the house and let the bank foreclose. I'd also consider bankruptcy to get rid of any deficiency and other debt and start over. It might be a few years before you can re-establish your credit, but it sounds like you're definintely out of options.

 

[seashoreCM]

Advantages of Chapter 7 bankruptcy:
1. The mortgage company can't come after you for the difference when the house does not bring enough at the foreclosure to cover the mortgage loan.
2. You will not have to pay tax on any amount officially forgiven by the mortgage company when it could not collect that amount.

In some cases you might have to go with Chapter 13 instead of Chapter 7, which will involve paying off some of the accumulated debt.

 

[chris31997]

What does your dad think about this kid renting the house? If you do this, get it in wrinting so that both of you know the terms.

Secondly, would it be possible to have the realtor work as your landlord for a fee? Some companies do this. They could screen the renters for you.


I see these as other options other than the foreclosure or bankruptcy. You will need to talk to someone who specalizes in bankruptcy to make sure you trully are and qualify for it. We had a friend who thought he was and put things on it and it came back to haunt him years later. It did not get caught at the begining. So be careful.

 

[QVCshopper]

I'm sorry you're going through this and that there are so many forclosures on your previous street. I'm guessing this is somewhere like in Michigan that I've heard so much about. Anyway, I think it's best to foreclose in this situation. I just read your thread from last month, and your life will be so much better without the stress and drama. Good luck; you've tried your best to make it. But, maybe it's time to let go.