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Need advice on financial situation

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Need advice on financial situation

Old 08-26-10, 06:09 PM
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Need advice on financial situation

I need to talk to someone about my house and financial situation. I'm happy to pay someone for their time but am not sure who I need, a realitor, a lawyer or a financial adviser.

Here is my situation, well, most of it anyway...

We are very upside down on our house, about $30,000. The local rumblings are that the housing market isn't going to shift any time soon. We've also had many houses in our neighborhood up for sale so our market is flooded big time. Nothing is selling and on the rare times that a house does sell it's for way lower than the asking price. One house in our neighborhood was listed for $275000; it sold for $219000...

Our house needs about $5000 worth of repairs and cosmetic stuff done to it before we could sell it and then it is doubtful that it would sell anytime soon. Also, we don't have the money to put into the house or the skills to do the work ourselves. I have ZERO emotional attachment to this house and am happy to see it go. Also, the condition of our credit is not a concern; getting out of this house is.

We don't qualify for any sort of mortgage restructuring. We have already spoken with our lender about things, they don't wanna play nice.

Oh yeah, we need to get out of our house due to reasons I'm not going to discuss so don't ask please.

Any help will be greatly appreciated.

thanks
Old 08-26-10, 06:18 PM
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Re: Need advice on financial situation

what is your current mortgage rate/terms?
Old 08-26-10, 06:19 PM
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Re: Need advice on financial situation

Rent that sucker out. This isn't a good time to sell.
Old 08-26-10, 06:20 PM
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Re: Need advice on financial situation

Can't rent it for what we pay out each month, I have no clue what our mortgage terms are, I'm sure they suck though.
Old 08-26-10, 06:22 PM
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Re: Need advice on financial situation

Get an appraisal done and let them aware of the propose $5k home improvement specifics. Ask them to do an appraisal without the improvement and suppose appraisal with the improvement. My guess is that you aren't going to see an increase in your house worth the $5k improvement. Clean up your house the best you can and sell it as is. You'll need to pay for seller's agent's commission, this needs to be taken care of first.
Old 08-26-10, 06:23 PM
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Re: Need advice on financial situation

You don't have to rent it for the amount you pay out. You only have to rent it for the amount you will be paying in rent when you move. Then your payments will be the same as you are paying now, and your new rent will be covered. Make sure you save some money for maintenance on the home that you still own and a rainy day when the house sits empty.
Old 08-26-10, 06:29 PM
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Re: Need advice on financial situation

Thor luv, we can't afford rent and the cost of a mortgage. If we are paying out say $1200 in rent and our mortgage is say $2500 but we only rent the house out for say $1100 then that doesn't work so good in our favor...
Old 08-26-10, 06:30 PM
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Re: Need advice on financial situation

Originally Posted by SuperJim88 View Post
Get an appraisal done and let them aware of the propose $5k home improvement specifics. Ask them to do an appraisal without the improvement and suppose appraisal with the improvement. My guess is that you aren't going to see an increase in your house worth the $5k improvement. Clean up your house the best you can and sell it as is. You'll need to pay for seller's agent's commission, this needs to be taken care of first.
No matter what, we're not going to be able to sell this house for anywhere close to what we owe on it.
Old 08-26-10, 06:32 PM
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Re: Need advice on financial situation

Originally Posted by Kittydreamer View Post
Thor luv, we can't afford rent and the cost of a mortgage. If we are paying out say $1200 in rent and our mortgage is say $2500 but we only rent the house out for say $1100 then that doesn't work so good in our favor...
That's why you move somewhere where the rent is 1100. Which should be nearly comparable to your current home if that's what you can rent it for.

Check on the tax ramifications of course. I think you can still deduct that mortgage for one rental but there may be certain circumstances where you cannot. You should be able to depreciate it as well (I think). Assuming it works tax-wise, I don't see the problem. You retain the home for a future sale and only pay for maintenance on one home (the one you own).

If your problem is that you simply can't afford your mortgage right now, then it's a different issue.

But if you rent for the same price you rent out at, you should be okay. Rent for a little less if you need a little more income to cover yourself.

Imagine you and your next-door neighbor are in the same situation. You give them 1100 to live in their house, they give you 1100 to live in yours. Clean swap. You can afford mortgage plus rent because you have rental income in addition to your current income. It's pretty much like that, with a 3rd party. Just make sure your house stays rented.

Last edited by Th0r S1mpson; 08-26-10 at 06:39 PM.
Old 08-26-10, 06:40 PM
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Re: Need advice on financial situation

if your current lender won't play, then try somewhere else. In Massachusetts there is a company called East/West mortgage offering refinancing in the 4s for a one time $500 fee... they can't be the only one.
Old 08-26-10, 06:42 PM
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Re: Need advice on financial situation

I'd be surprised to see a refi on an upside-down loan in the 4's for $500. But maybe it's out there. Even with some equity that would be a good deal. Usually an appraisal is required for a refi and I'm not sure this would pass the test.
Old 08-26-10, 06:45 PM
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Re: Need advice on financial situation

Awwwwww (((((((((((((((((Kits)))))))))))))))))))))))

I always have a spare bedroom if you don't mind a little cat hair. I'm sure our various menageries would get along fine after the initial bloody battles.

Sorry I don't have better advice than that. I live in a co-operative so don't have a mortgage per se.
Old 08-26-10, 07:05 PM
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Re: Need advice on financial situation

Ok, we can't rent, it's in our loan terms. So, what sort of professional should I call? Mortgage broker? Honestly, we'd like to get out of this house and I'm very ready to just pack my bags and leave it.
Old 08-26-10, 07:07 PM
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Re: Need advice on financial situation

Originally Posted by Kittydreamer View Post
Ok, we can't rent, it's in our loan terms.
Maybe that's the answer. What will they do if they find out?
Old 08-26-10, 07:08 PM
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Re: Need advice on financial situation

I have no advice to offer here, I just wanted to say HI, KITTY!
Old 08-26-10, 07:09 PM
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Re: Need advice on financial situation



just sayin'
Old 08-26-10, 07:11 PM
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Re: Need advice on financial situation

Originally Posted by TallGuyMe View Post


just sayin'
So you're suggesting she has another cookout?

:runs from thread:
Old 08-26-10, 07:14 PM
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Re: Need advice on financial situation

Patented Lunatikk Advice:

Burn the place to the gr--

Darn you, Doc!
Old 08-26-10, 07:16 PM
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Re: Need advice on financial situation

I recently had to make a very hard decision on what to do with my house in Hawaii. I was losing my job and there were no jobs in the future so I gambled and moved to the mainland for the time being until the job market returns to the island. My mortage plus HOA dues each month are $1,303.97 and I rented the house for $1,500.00. I'm working on the mainland and I'm making enough to pay $700.00 in rent and my bills (cell phone, gas, groceries and 2 credit cards). I'm storing away as much extra income as I can so I can move back to Hawaii once I land a job there.

Since you don't have any attachments to the house I say try and rent it out (to cover it's costs) and move into something cheaper to help with your financial situation. You mentioned you didn't know if you needed a realtor or a financial advisor. I have a really good broker that I keep in contact with on the island and also a financial advisor. Both I've had in my life for the past 5.5 years. My advisor is great when I have money and pushes me hard to work on saving and investing when I have little. My advisor only charges a small yearly fee which I don't mind paying considering the institution carrys all of my finances. I don't have a bank account, I do everything through them and they are nation wide so no matter where I move I can always have a local office to go to if I need it.

Times are hard right now and your not alone. Keep the faith and good luck with everything.

***Edit**** Just read the comment about not being able to rent. So I guess disregard the above statement - LOL
Old 08-26-10, 07:17 PM
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Re: Need advice on financial situation

TallGuyMe.....damn...don't tempt me...

Tom, took me a minute to remember....you butthole.
Old 08-26-10, 07:19 PM
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Re: Need advice on financial situation

Try this:

https://www.naca.com/index_main.jsp
Old 08-26-10, 07:26 PM
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Re: Need advice on financial situation

Ok, to recap...

I don't want the house.
We cannot rent it.
No, I'm not burning it down.
Tom, bite me or I'll send you some more of my special chicken.

What are my other options???
Old 08-26-10, 07:37 PM
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Re: Need advice on financial situation

Originally Posted by Kittydreamer View Post
Ok, to recap...


What are my other options???
Give the keys back to the bank, and walk.
Old 08-26-10, 07:38 PM
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Re: Need advice on financial situation

Originally Posted by Kittydreamer View Post
Ok, to recap...

I don't want the house.
We cannot rent it.
No, I'm not burning it down.
Tom, bite me or I'll send you some more of my special chicken.

What are my other options???
does it have to be spelled out for you? stop paying the mortgage, walk away from the house, have the bank foreclose and take the hit on your credit. the only positive i see in this is that since you won't be paying your mortgage, you'll have at least a few months of money saved up to put a deposit on a rental house/apartment.
Old 08-26-10, 07:41 PM
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Re: Need advice on financial situation

Originally Posted by Deftones View Post
does it have to be spelled out for you? stop paying the mortgage, walk away from the house, have the bank foreclose and take the hit on your credit. the only positive i see in this is that since you won't be paying your mortgage, you'll have at least a few months of money saved up to put a deposit on a rental house/apartment.
Ah I have missed this place. Thank you.....

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