Hello,
We have decided to throw in the towel on this almost 50 year old block house in Florida, central, just south of Tampa. We bought in 2002, the mortgage (including tax, homeowners and flood ins), the payments were 860$ per month. Fast forward to 2008, the payments are almost $1600 per month, flood and homeowners have sky rocketed since the 2004/2005 hurricane years, we have never filed a claim. Now we get a letter from our mortgage co. US Bank Home Mortgage, they are now requiring SINK HOLE insurance, there are NO sink holes in this area of Florida. The insurance laws were recently changed, homeowners now does not cover sinkholes, only catastrophic, meaning if you have a sinkhole, you home will probably be fixable (at huge cost) but if your home falls into a huge hole that suddenly appears, you will be covered. Sinkhole insurance is now optional coverage, fine with me, BUT the mortgage companies are going to require you carry it, from what I have researched, sinkhole coverage will cost about the same as flood ins. A lot of $$.

We give up, enough, next will be maybe shuttle insurance, you just never know when the shuttle will go amiss and possible crash into our home, yeah right, about as much chance of that as a sinkhole! Anyway, any pointers? We are going to get our funds in order and stop making mortgage payments in October, hubby is worried about the county and the taxes, can they withhold say, getting a drivers license renewed because of unpaid taxes? The taxes will go unpaid till the foreclosure is final, probably up to a year at this point, the courts are swamped.

Any info or tips would be great, our minds are made up, we are 57 & 59, we will never pay this house off, it has been a constant battle, we have both always worked full time, the costs of owning have risen steadily, we can't take anymore. We can rent a really nice home further south where there is a glut of newer homes that were built around the real estate boom and now sit vacant. Hubbys job is secure, he actually works in that area a lot, his boss will save lots of $$ on fuel and wear & tear on the vehicle. We do not want to spend every dime until one of us drops trying to hold onto the now, mold infested house, we would like to be able to breath and relax a little before we die.
Again, any help appreciated!
moonpiepattee

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Originally Posted by moonpiepattee

hello,
we have decided to throw in the towel on this almost 50 year old block house in Florida, central, just south of Tampa. we bought in 2002, the mortgage (including tax, homeowners and flood ins), the payments were 860$ per month. fast forward to 2008, the payments are almost $1600 per month, flood and homeowners have sky rocketed since the 2004/2005 hurricane years, we have never filed a claim. now we get a letter from our mortgage co., US Bank Home Mortgage, they are now requiring SINK HOLE insurance, there are NO sink holes in this area of florida. the insurance laws were recently changed, homeowners now does not cover sinkholes, only catastrophic, meaning if you have a sinkhole, you home will probably be fixable (at huge cost) but if your home falls into a huge hole that suddenly appears, you will be covered. sinkhole insurance is now optional coverage, fine with me, BUT the mortgage companies are going to require you carry it, from what i have researched, sinkhole coverage will cost about the same as flood ins. a lot of $$.

we give up, enough, next will be maybe shuttle insurance, you just never know when the shuttle will go amiss and possible crash into our home, yeah right, about as much chance of that as a sinkhole! anyway, any pointers? we are going to get our funds in order and stop making mortgage payments in october, hubby is worried about the county and the taxes, can they withhold say, getting a drivers license renewed because of unpaid taxes? the taxes will go unpaid till the foreclosure is final, probably up to a year at this point, the courts are swamped.

any info or tips would be great, our minds are made up, we are 57 & 59, we will never pay this house off, it has been a constant battle, we have both always worked full time, the costs of owning have risen steadily, we can't take anymore. we can rent a really nice home further south where there is a glut of newer homes that were built around the real estate boom and now sit vacant. hubbys job is secure, he actually works in that area alot, his boss will save lots of $$ on fuel and wear & tear on the vehicle. we do not want to spend every dime until one of us drops trying to hold onto the now, mold infested house, we would like to be able to breath and relax a little before we die.
again, any help appreciated!
moonpiepattee

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The only question I see here is whether your drivers license can be suspended or not renewed for debt - and the answer is, no.

If you have another question which I missed, please come back and post it.

Well, it sounds like you have formulated a plan. I guess I'm not sure what, exactly, your questions are?

If you don't secure sink hole insurance the mortgage company will secure it for you and tack the cost of it onto your bill. If you stop making your mortgage payments, as you know, the house will fall into foreclosure and you'll lose whatever you've already put into the property. AND, depending on the terms of your note, the bank will still be able to come after you for the balance of your mortgage after the house is sold and that amount applied towards the mortgage. They're not likely to just forget about it and let you go on your merry way.

I've never heard of a foreclosure affecting anything like the ability to renew your driver's license or anything like that.

Of course I would question the issue that they can force you to take coverage not required in the original mortgage doctument. While you would have to fight it out in court, I don't see how they legally can require anything not required in your contract.

But no you can renew your drivers license.

So you bought in 2002. How much did you put down? How much have you paid? What do you owe and what is the current value?

Letting the house go in foreclosure would have an adverse affect on your credit and may prevent you from getting credit in the future. It may also affect your ability to rent.

And letting it go in foreclosure doesn't end your liability. Have you tried to sell? Even try a short sale?

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Originally Posted by ScottGem

So you bought in 2002. How much did you put down? How much have you paid? What do you owe and what is the current value?

Letting the house go in foreclosure would have an adverse affect on your credit and may prevent you from getting credit in the future. It may also affect your ability to rent.

And letting it go in foreclosure doesn't end your liability. Have you tried to sell? Even try a short sale?

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Hi again,
We owe 154,000$ on the house, that includes a $50,000 home equity loan that we took out to upgrade the ac/heat unit, hot water heater, paid the house, remodel one bathroom, etc. we did not use all the $50,000, they will return to the credit union. It is impossible to sell a house in this area, there are numerous abandoned homes, rental & sale signs on many homes, we would be lucky to even get maybe 89,000$, if that. The neighborhood is deteriorating and all the abandoned homes make it even worse.

Our mortgage company can and well purchase sinkhole insurance if we do not provide it and they are not picky how much they pay, we have been through all this with flood insurance, I have boxes full of correspondence concerning flood insurance. I once upped the deductable to save a little on the premium, the rejected that change and we were forced to change the amounts back.

We can not continue to battle this financial fight. The mortgage was 863$ when we purchased the home in 2002, that was more than manageble, then the hurricane years came and doubled our payments. I am 57 and have hep c, I work full time because we need it to pay the mortgage, I inject B-12 daily and also take Adderall to make it through the day, it's awful. The company I worked for for 6 years sold out and I am now working for $4 an hour less and driving 40 miles total per day, my car gets 15 miles to the gallon, gas is costing me 55$ - $60 a week. My husband feel off a ladder 4 years ago and shattered his heel into 31 pieces, he limps very bad but he still works, much of his work is driving, that helps.

We are not just irresponsibly bailing out, we have tried in earnest to keep this house and keep up, we can't. If one of us gets sick or unable to work, we would lose the home in 6 months anyway, we can never pay it off, we would be in our 80's if it was even possible.

I am just looking for some guidelines as to different issues that I am sure will arise & how to handle them, I know it will be very bad, collectors are ruthless. We know we will never be able to purchase another home because of credit issues, we can live with that. We plan to rent, rentals are many now and prices are reasonable. We do plan to look around for a mobile home to purchase in a year or so, that way if something happens to one of us, just having to pay park/lot rent, will be possible. If you pay cash for a mobile home, you are not required to have insurance and mobiles are very affordable, we are not too proud to live in one. We just want to be able to live for a few years without the constant worry and the mortgage company dictating what we must do, to protect their interests. I would like to have at least a couple years to enjoy life without the worry I have dealt with almost all of my life, I doubt either one of us will live to a ripe old age.

Any pointers, or do's & dont's will be greatly appreciated, we are overwhelmed from having to finally make this decision, scared and worried about what could happen, any help would be welcomed.

Thank you all very much for even reading!
moonpiepattee

Quote:

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Originally Posted by moonpiepattee

hi again,
we owe 154,000$ on the house, that includes a $50,000 home equity loan that we took out to upgrade the ac/heat unit, hot water heater, paint the house, remodel one bathroom, etc. we did not use all the $50,000, they will return to the credit union. it is impossible to sell a house in this area, there are numerous abandoned homes, rental & sale signs on many homes, we would be lucky to even get maybe 89,000$, if that. the neighborhood is deteriorating and all the abandoned homes make it even worse.

our mortgage company can and well purchase sinkhole insurance if we do not provide it and they are not picky how much they pay, we have been thru all this with flood insurance, i have boxes full of correspondence concerning flood insurance. i once upped the deductable to save a little on the premium, the rejected that change and we were forced to change the amounts back.

we can not continue to battle this financial fight. the mortgage was 863$ when we purchased the home in 2002, that was more than managable, then the hurricane years came and doubled our payments. i am 57 and have hep c, i work full time because we need it to pay the mortgage, i inject B-12 daily and also take Adderall to make it thru the day, it's awful. the company i worked for for 6 years sold out and i am now working for $4 an hour less and driving 40 miles total per day, my car gets 15 miles to the gallon, gas is costing me 55$ - $60 a week. my husband feel off a ladder 4 years ago and shattered his heel into 31 pieces, he limps very bad but he still works, much of his work is driving, that helps.

we are not just irresponsibly bailing out, we have tried in earnest to keep this house and keep up, we can't. if one of us gets sick or unable to work, we would lose the home in 6 months anyway, we can never pay it off, we would be in our 80's if it was even possible.

i am just looking for some guidelines as to different issues that i am sure will arise & how to handle them, i know it will be very bad, collectors are ruthless. we know we will never be able to purchase another home because of credit issues, we can live with that. we plan to rent, rentals are many now and prices are reasonable. we do plan to look around for a mobile home to purchase in a year or so, that way if something happens to one of us, just having to pay park/lot rent, will be possible. if you pay cash for a mobile home, you are not required to have insurance and mobiles are very affordable, we are not too proud to live in one. we just want to be able to live for a few years without the constant worry and the mortgage company dictating what we must do, to protect their interests. i would like to have at least a couple years to enjoy life without the worry i have dealt with almost all of my life, i doubt either one of us will live to a ripe old age.

any pointers, or do's & dont's will be greatly appreciated, we are overwhelmed from having to finally make this decision, scared and worried about what could happen, any help would be welcomed.

thank you all very much for even reading!
moonpiepattee

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Florida

Quote:

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Originally Posted by moonpiepattee

we can not continue to battle this financial fight. the mortgage was 863$ when we purchased the home in 2002, that was more than managable, then the hurricane years came and doubled our payments.

we are not just irresponsibly bailing out, we have tried in earnest to keep this house and keep up, we can't. if one of us gets sick or unable to work, we would lose the home in 6 months anyway, we can never pay it off, we would be in our 80's if it was even possible.

i am just looking for some guidelines as to different issues that i am sure will arise & how to handle them, i know it will be very bad, collectors are ruthless. we know we will never be able to purchase another home because of credit issues, we can live with that.
moonpiepattee

---

Talk to a financial advisor before you do this. I'm not sure that you are getting that foreclosure does not eliminate the debt. So if you do lose the house, you may not be stuck with the insurance premiums, etc. but you may still be stuck paying the difference between what the bank gets for the house and the amount of the mortgage. And the bank may be able to garnish your wages, freeze your bank account, etc. to get that money. So you may be in exactly the same situation financially, without a house to stay in. A financial advisor may be able to find a better solution for you. You mentioned a credit union loan... you may want to see if they have someone who can talk to you. Or, if your employer has an Employee Assistance program, they may be able to give advice or refer you to a reputable person to advise you.

Quote:

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Originally Posted by froggy7

Talk to a financial advisor before you do this. I'm not sure that you are getting that foreclosure does not eliminate the debt. So if you do lose the house, you may not be stuck with the insurance premiums, etc., but you may still be stuck paying the difference between what the bank gets for the house and the amount of the mortgage. And the bank may be able to garnish your wages, freeze your bank account, etc. to get that money. So you may be in exactly the same situation financially, without a house to stay in. A financial advisor may be able to find a better solution for you. You mentioned a credit union loan... you may want to see if they have someone who can talk to you. Or, if your employer has an Employee Assistance program, they may be able to give advice or refer you to a reputable person to advise you.

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Thank you! We got a referral last evening for an attorney that specializes in bankruptcy/debt, I will call Monday AM for a consultation appointment.

We do understand the financial & moral responsibilities, but then again, US Bank Home Mortgage has not been very "moral". We signed agreement @ closing to maintain flood insurance on this property & have, even though it has climbed to 20 times more that it was @ that time. We did not, however, agree to maintain sinkhole insurance, volcano insurance, shuttle insurance, etc. The insurance companies seem have been given an open ticket to change, add or revise any requirement that want to, by our own "For the People" government, why are they exempt from basic laws? Could it have anything at all to do with political contributions or kick backs, you think?

We are normal, law abiding, hard working citizens that are getting continually bent over, by "law abiding, American companies". It bothers us to have to "walk away", however it bothers us more to see no end in sight, and an old age of stress, worry and certain homelessness at some point. Neither one of us have a retirement plan, my husband was employed by Mosler Safe Company for 28 years, they had been in business since 1880, his "retirement fund" was company stock, certainly it was secure? They went "belly up" in 2001, he received a check in the amount of $2,300.00, (twenty three HUNDRED), as final settlement for his retirement funds, end of story. My job is office admin. I was in the printing graphics industry for 20 years with several companies, mostly small with no great benefit packages, I considered myself very fortunate if they offered health insurance. I currently make $11.00 an hour and I spend almost $60 per week for gas to get there, there is not a lot left. Neither one of us has health insurance @ this point, hubby has VA benefits, but that is minimal, he did 3 tours in Viet Nam with the Navy but does not have any service related injuries, hence his VA coverage is limited, at best, and he also pays on a sliding scale for that. It took over a year to have an Umbilical Hernia repaired through the VA for him, including about 8 trips and days off work to drive to Tampa VA, 60 miles each way because they are not accepting new patients @ Bay Pines in St. Pete, there is a 2-3 year waiting list to go there.

Please excuse my "whining", I am seriously upset, we both are, this is by far the hardest decision we have ever been forced to make & there is a long ugly road ahead. We can only hope that there is a small rainbow after this storm and maybe there will be a few "good" years, maybe we can breath and smell the roses, it's been a long hard road so far.

Thank you very much for your input, I agree, we do need a legal opinion. I appreciate you taking the time to respond, I will post updates, if that is OK here? There are many others in the same situation.

Have a great weekend!
Moonpiepattee