fantasiafirefly
Aug 9, 2010, 09:47 PM
We have to move in the next 4 months as my husband has accepted a job in Hawaii.
We bought our house for about $238,500 in March 2006 and now the estimated value is around $95,000 (at most). There are a lot of apartments and rentals in our neighborhood and every other house around has been foreclosed. Many houses have now been resold for around $75,000. We've been told with a short sale that we would need to come up with the taxes of the original loan amount (around $40,000 I think) at close, which I don't know how we would do that. As far as renting, our mortgage is about $1800/month (interest only) and in our area I doubt we could find renters willing to pay that. I hate to walk from the house, but it seems to be looking like the best option at this point, but if we were to do that, I don't know what the legal ramifications would be. We have a pool, so I didn't know if it turns green or someone falls in after we have vacated, are we responsible? Also, we have 2 mortgages from 2 separate banks, one for around $200k and one for around $40k, so with walking we didn't know how this would work.
As far as finances, we have a lot of debt... Our daughter was premature and we are still paying hospital bills from her birth; I think we still owe around $1000. We have a lot of credit card debt as well around $30,000 between 3 cards and we had taken out a $20,000 loan 3 years ago to pay off one of the credit cards which we are still paying on (I think there's another 2 years on that). Then we have 2 car payments, I believe we owe around $16,000 on one and around $10,000 on the other. My husband and I both have student loans as well and my husband was audited 3 years ago and we still pay $500/month for that.
I didn't know with all this extra debt as well if maybe bankruptcy would be the best option for us. The house is only in my name, so if we did walk or bankruptcy would it affect my husband as well?
My husband and I make a good living, he brings home about $80k/year and I bring home about $40/month so we are able to pay our bills but with finance charges we never have any extra cash. We live very modestly, so it's not like we live extravagantly. I am hoping to be able to make a clean start and wipe some debt while we are in Hawaii. We plan on selling one car and will have to rent while there. So if we are renting, I'm guessing we will have to acquire a place before proceeding with any of these options. We would prefer to buy of course but seeing all this debt, I doubt it's a possibility, plus 2 bedroom shacks there are over $400k. My husband had mentioned trying to bargain with the mortgage company and see if they would transfer our loan to another house so they would still be getting money. I don't know what to do... obviously there are a lot of variables and we are clueless as to what to do.
Thanks for taking the time to read my lengthy question. :)
We bought our house for about $238,500 in March 2006 and now the estimated value is around $95,000 (at most). There are a lot of apartments and rentals in our neighborhood and every other house around has been foreclosed. Many houses have now been resold for around $75,000. We've been told with a short sale that we would need to come up with the taxes of the original loan amount (around $40,000 I think) at close, which I don't know how we would do that. As far as renting, our mortgage is about $1800/month (interest only) and in our area I doubt we could find renters willing to pay that. I hate to walk from the house, but it seems to be looking like the best option at this point, but if we were to do that, I don't know what the legal ramifications would be. We have a pool, so I didn't know if it turns green or someone falls in after we have vacated, are we responsible? Also, we have 2 mortgages from 2 separate banks, one for around $200k and one for around $40k, so with walking we didn't know how this would work.
As far as finances, we have a lot of debt... Our daughter was premature and we are still paying hospital bills from her birth; I think we still owe around $1000. We have a lot of credit card debt as well around $30,000 between 3 cards and we had taken out a $20,000 loan 3 years ago to pay off one of the credit cards which we are still paying on (I think there's another 2 years on that). Then we have 2 car payments, I believe we owe around $16,000 on one and around $10,000 on the other. My husband and I both have student loans as well and my husband was audited 3 years ago and we still pay $500/month for that.
I didn't know with all this extra debt as well if maybe bankruptcy would be the best option for us. The house is only in my name, so if we did walk or bankruptcy would it affect my husband as well?
My husband and I make a good living, he brings home about $80k/year and I bring home about $40/month so we are able to pay our bills but with finance charges we never have any extra cash. We live very modestly, so it's not like we live extravagantly. I am hoping to be able to make a clean start and wipe some debt while we are in Hawaii. We plan on selling one car and will have to rent while there. So if we are renting, I'm guessing we will have to acquire a place before proceeding with any of these options. We would prefer to buy of course but seeing all this debt, I doubt it's a possibility, plus 2 bedroom shacks there are over $400k. My husband had mentioned trying to bargain with the mortgage company and see if they would transfer our loan to another house so they would still be getting money. I don't know what to do... obviously there are a lot of variables and we are clueless as to what to do.
Thanks for taking the time to read my lengthy question. :)