Check out some similar questions!

Ari1223 · Mar 19, 2009, 12:13 PM

My question is going to be long but I would really appreciate any help. In 2005, my father passed away. He had a home that needed a lot of fixing up but he only owed $140k on. At the time I was in college. My sister and I each inherited money. I was only 20 years old but the housing market was so strong that I was worried that if I did not buy his home, I would never own a home. I bought the home and paid my sister off. I put almost all of the money I inherited into the home to fix it up. I financed it for $195k. The money I pulled out was to cover living expenses while I finished school and to cover school costs. I got married and my husband and I refinance in 2007 for $250k. We used the money we pulled out to start a party rental business. At first it was going good but then the economy started declining and we sold off the business last year and got some of our money back. At this point I have 10k in the bank. My husband can not get a job here. If we both took lower paying jobs, we would not be able to pay our bills and day care costs for our son. I have a good job offer in Arizona. The problem is that I won't make enough to pay for this home and our expenses up there, even if I rent this home. My monthly payment is almost $1900 and I could probably rent our home for $1100. Part of the $1100 would go to lawn maintenance and part would go to a realtor, leaving us with about $800 towards the mortgage. There is no way we can afford to pay the difference. I have spoken to the bank about selling the house and we will pay back the difference over time, but they can not do that. I really do not want to foreclose. I feel bad for doing it but I don't know what my other options are. The house is only in my husband's name. So will the foreclosure go on my credit? Will they be able to take my assets too (meaning my car)? I hate foreclosing but I feel like regardless of where I live, I can not pay for this home. At least if I move, I can pay for a cheaper home there and accept the job. Thank you for any help.

ScottGem · Mar 19, 2009, 12:25 PM

Have you checked the market in AZ? You may not be able to find a cheaper home.

If the house is only in your husband's name (how did that happen when you bought it from your sister?) then your credit may not be affected or only minimally affected. But you may need his income to buy a new house.

Have you checked into the options available under the stimulus packages? You may be able to get some relief there.

What I would be doing is looking to do a short sale. This way you avoid foreclosure and will have until next April to come up with the extra taxes you will owe.

Ari1223 · Mar 19, 2009, 12:42 PM

Originally Posted by ScottGem

Have you checked the market in AZ? you may not be able to find a cheaper home.

If the house is only in your husband's name (how did that happen when you bought it from your sister?) then your credit may not be affected or only minimally affected. But you may need his income to buy a new house.

Have you checked into the options available under the stimulus packages? You may be able to get some relief there.

What I would be doing is looking to do a short sale. This way you avoid foreclosure and will have until next April to come up with the extra taxes you will owe.

I don't intend on purchasing another home in Arizona. I will rent, which we can afford with the job opportunity.

When my dad passed away, I had to finance it, the bank would not let me take over his loan. I gave my sister cash to buy her out of it and she signed the deed over to me. Then in 2007 we refinanced it in his name, since the income was in his name.

I will check into the options available under the stimulus packages. I am current on our mortgage (through paying out of our savings), so I am not sure if we would qualify for a short sale.

ScottGem · Mar 19, 2009, 12:43 PM

Umm, is the LOAN in his name or did you sign over title to him?

Ari1223 · Mar 19, 2009, 12:47 PM

Originally Posted by ScottGem

Umm, is the LOAN in his name or did you sign over title to him?

His name. He refinanced the house in his name in 2007.

ScottGem · Mar 19, 2009, 04:42 PM

That doesn't answer the question. Did you sign over title to him?

Ari1223 · Mar 19, 2009, 04:58 PM

I believe so, but I am not positive.

ScottGem · Mar 19, 2009, 05:02 PM

This is a key issue