Whats the best thing for me to do about my house?
My fiance and I purchased a house almost two years ago in my name. We have decided to seperate and I’m not sure if we are going to get back together. She is moving out and back in with her parents in a different state. I now have this house that I cannot afford to live in on my own. We have only had it for two years so we have been paying mostly interest. It is a 3 bed 2 bath home in a subdivision. The house is in decent shape (bathrooms need to be painted, door locks need to be changed, and a few other minor things), however, I don’t have the extra money to do any of this, nor do I have the money to make a house payment and pay my other bills until it sales. The house is worth approximately $92000 and I owe around $88000. Should I try to sale it on my own, use a realtor, or should I just let it go into foreclosure? What’s my best, cheapest option. I’m not too worried about the foreclosure being on my credit. Please help.
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its up to you
Good Lord don’t go in foreclosure! You should be VERY worried!
Sell it for what you owe and cut your losses!
check out http://www.daveramsey.com and listen to his show archives, that will tell you everything you need to do and you’ll find many other folks in a similar situation!
Good Luck!
Put an Ad in the Paper and rent a room or two till you get it figured out. If you get foreclosed you can basically forget about ever owning a house again. If you can help it do what you can to pay the bills until you can sell it.
Are you serious? Where do you get a house for $92,000 in a subdivision? What is the neighborhood like? You would be crazy to let it go to foreclosure. Can you advertise for a roommate? How much land does it have? Is it a single? Where is it?
If you can afford it keep it and rent rooms out to put $$$$$$$$$$$$ in your pocket…
Or you can due the sobrity house thing and rent out to a pleathera of people and bank the $$$$.
3 people per bedroom and convert the garage in to A dorm with beds charge 100 A week per man and make a mint…… with 15 to 18 people why your rolling in the $$$$$
You should really try to rent it out. Possibly your fiance’s parents could loan you a couple hundred dollars to make the changes and get a renter in before your next payment is due.
If your house is worth more then you own maybe you can get a loan (2nd mortgage) on it to help you fix it up and then put it on the market w/ a relator. You really don’t want to just let it forclose if you can at least sell it and maybe make some money on it. Why not at leas try to sell it and if you don’t care if it forcloses then you don’t have to stress if it doesn’t sell. But trying is best.
Find a new girlfriend or a roommate. Selling a house may take some time knowing how the markets doing right now. Laws on foreclosures are changing day by day. Sometimes they can still go after you down the road if the loaner lost money so be careful if you decide to go this way.
Foreclosure should be your last resort!!!
Here’s what I would do:
1) Immediately choose a realtor and price the house reasonably in order to SELL SELL SELL! If you take a slight loss, it is MUCH better than foreclosing!
2) Move into your parents home, clean up the house, and ‘stage’ it for selling. That means leave very minimal furniture just to show what the rooms are meant to be.
3) If your parents can’t help float your mortgage payment, ask your ex-fiance to help with mortgage. If that’s not an option, think about renting it out to cover the mortgage.
4) Get a SECOND JOB!!!
5) Before I’d ever let my house go into foreclosure, I’d take out an equity loan to pay the mortgage while I waited on the house to sell. Borrowing money from your retirement or taking part of it out is ok too.
Foreclosure should be your LAST resort. Its not just your own credit you are messing with. It will follow you for years and affect your future spouse and purchases.
Talk to your banker and find a great realtor ASAP!
I always said ,single family House is worthless to bye.single family home it will brake you Bonn’s, economically and you not be able to live. Evin if you pay the mortgage and you have no payments,still will cost you 2 to 3 thousands a month for property taxes better of you rent.
That house won’t sell. But, put it on the market NOW. Nobody will look at a young MLS. Google, “fsbo realestate”, you should be able to list it for $300. Tell the bank they can have it back the next time they call you looking for money, and hang up on them. The may call you with a better deal.
I am doing this in Ca. Bought the place pre-marriage too….. bad idea. I was lucky to close that deal. Good luck. Stay Strong.
If both of you bought the house, even though it’s only in your name, why don’t you ask her to cover half of the mortgage payment, and you will give her half of any profit you make when you sell it? Or being that you are living there, ask her to cover 1/4 or 1/3 of the mortgage payment, if you can cover the rest.
Another option is to see if you can rent out the house for equal or more than you owe in PITI (principal, interest, taxes, and insurance). You can then get a cheaper rental that you can afford. You can post an ad for a rental on Craiglist.com for free, or post an ad in one of your local newspapers. Depending on where you are located, there may be other free rental websites you can post on. (Do a search on this website. The question has come up before.)
You would pay the mortgage with the rent money. Technically if you were covered with the rental, you could just leave it like that with the tenant paying off your mortgage.
You may be even able to make arrangements for the new tenants to do some of the work over a period of time in exchange for a small amount of rent temporarily if you can rent it for even higher than your mortgage payment.
Another option is advertising as rent-to-own. The people would give you a small deposit (probably a few thousand dollars) with which you could do the repairs that are necessary, and they would pay a higher than normal rent payment than similar rentals (or what you could get otherwise), with part of it going towards rent credits acting as a down payment. If they exercise their option to buy a year or two or three from now (for a price you would set now), that money as rent credits would be deducted from the purchase price like a down payment. They would have to get a mortgage at that time to cash you out (pay for the house). If they don’t exercise the option to buy the house, you keep all the extra money they paid in rent credits, and you either sell at that time or get another renter in. Either way the original option fee doesn’t get figured into any of that.
If you don’t feel you can handle either rental option, see if an investor would be interested in taking the house subject to the existing mortgage, or as a sandwich lease option, or any other creative way that makes it so you don’t have a foreclosure on your record. Worst-case an investor can probably negotiate a short sale for you, which will affect your credit, but not nearly as bad as a foreclosure would.
If you can just sell quickly for more than the mortgage is, than that is an option as well. With the state of the market in most of the country right now, though, that will probably be very difficult. If you do go this route and use a realtor, make sure your agreement is that you will pay them whatever makes you break even after closing costs and paying off everything you owe. That will be their incentive to get the most for the house. Also, make sure you have it in your contract that you will be trying the other options mentioned above on your own, and if you get someone one of these other ways, you don’t owe them any commission.
Good luck!
don’t really understand if you purchased the home on your own, meaning with your income and credit, how can you not afford it
you were qualified before getting the loan
but then that’s the whole problem with all the foreclosures now
people getting Loans they know they can’t afford and lenders actually giving them loans
good luck
try leasing it out to someone that can afford it
or get another room mate
FIRST, YOU CAN”T JUST WALK AWAY. Read this. http://www.washingtonpost.com/wp-dyn/content/article/2008/04/11/AR2008041101914.html
Get a room mate to help pay the rent until you sell it.