Going through forclosure, will it DQ me?

[noelchabanel]

I don't know if you have any kids but maybe you and the wife could move out of your home and rent it out. IDK what rental prices are for homes in LV now but im sure it must be close to your mortgage payment. Rent out your home and use the rent $$ to pay as much toward your mortgage payment as possible. Until you get into a better financial situation maybe you can move into a small, inexpensive studio apt for the time being. Any way you slice it your in a tough situation right now. Depending on what path you take to fix this will determine wether it will be difficult or catastrophic for yourself and your future.

I do not think this would be good advice. You will have to claim the rental income on your taxes, then you will have to pay YOUR OWN rent to live in someone elses house. You still have to cut the grass, fix the water heater, paint the house, etc. and also budget for the 6 months it may be vacant until someone you are comfortable renting to decides they can afford it and wants to move in. Realistically, only someone in the same situation as you will be interested in renting this house long term, and you already know they can't afford to cover all your costs. You will still be paying a large chunk of the mortgage even while living in a studio. Unless you have an estate and are moving into a roach motel--in a neighborhood that won't appreciate having a police academy recruit as a neighbor--you won't save any money. The math just doesn't work out.

[rohardi]

Vegas, feel free to PM me with any mortgage related questions.

[vegas8921]

Bottom line is you should have said THANKS JOEY AND OTHERS FOR THE ADVICE I WILL CALL THE MORTGAGE COMPANY IN THE MORNING AND SEE WHAT MY OPTONS ARE. You chose to say, I'm just going to let the bank forclose on it and try to save some money. THAT my friend is why your getting the responsed you are.

They will add this months mortgage to the end of the loan and my payment might go up a couple of dollars. I will however get a 1 30 day late on my credit report but that's better then a forclosure of course. In October Im goint to try to refinance through that bill that just passed in congress today for people who financed between 2005 and 2007 who's property values plumitted. It is a program I will look into seriously so that I can hold onto my house. FHA will buy my current loan as long as my current lender agrees to sell it to FHA at 90% of the homes current value instead of going through an expensive forclosure process. The new loan would be a 30 yr fixed but I would only owe 90% of todays value which would save my but financially in lowering my monthly payments by about 500. I'm trying to find a way gentlemen and all you who are trying to point this hard head in the right direction, THANK YOU. I can be hard headed. We all have weaknesses that's why we need each other to sharpen one another. Im being sharpened by you all. Thanks and I hope to be a police officer like some of you. I will let you all know when it happens. Give me a few months K

[vegas8921]

Vegas, feel free to PM me with any mortgage related questions.

Hey I will need your help when this new bill about FHA coming up on October 1st goes online to help people who financed between 2005-07 whos home values have plumitted. Have you heard of this 300Billion dollar bill? You should check it out online. I hope I get in that program. It sounds like I would qualify for it after I read it. It could save my home value and about 500 a month. Thank you for your offer for mortgage advice. I will let you know

[vegas8921]

[quote=BaseballFan;941385]This is the separation that I'm speaking of between a legit counseling service a fraudulent (sp?) one.
This was a good link, cool helpful

[vegas8921]

Its not your finances per se. Its your demonstrated eagerness to find the easy way out, and to attempt to resolve a conflict by avoiding it.

Its easy for you, right now, to talk about how you'd make collars and not let fear get in your way because, right now, the situation isn't real to you. Its a hypothetical exercise.

You have nothing to lose by being honest with your investigator because, right now, the situation isn't bad. You're not in foreclosure, the sheriff isn't knocking on your door, you haven't even missed a payment. So you tell the guy doing your BI that you've had the foresight and clarity to see that you might have trouble on the horizon, but here are the real, tangible steps you're taking to deal with it: you're re-arranging your finances, cutting out luxury spending, seeking to increase household income, and contacting your lender to work out mutually agreeable terms.

It's the ****tiest housing market since Reagen left office; they don't want your house. And if you give them any alternative whatsoever, they won't take it.

Im hard headed at times but Im getting it. All of this is great help. I did let my BI know in an email last night and got a response. Cool. I also talked to my mortgage Company today. You guys are great. Some times Im slow but I will get.

[Roger Dat]

Good to see your becoming proactive. Stay in that direction. Background investigators understand we all have problems but they want to see your doing everything you can to come out on top and resolve the problem not just let it go and say oh well. Good luck.

[cntryboy0531]

It's really hard for me to have any sympathy for people who buy houses they can't afford.

I'm no financial wiz or prophet, but I saw this coming a mile away. People have the foolish idea that lenders are looking out for the consumer's best interest. Yeah, you can get into a house with an adjustable interest rate, but it's a fool's game to think that interest rate will stay low. And when they came out with interest only loans, I knew we were headed for disaster.

More or less the same thing happened in the 70's with "balloon" payments. It was similar to the interest only in that at the end of 5 years, you were looking at a balloon payment to pay off the entire loan. When I was buying houses, more than one realtor tried to convince me that I could afford a bigger house if I went with creative financing. Meanwhile I watched a lot of handwringing as people lost their homes because interest rates had gone up and they couldn't find new financing.

I stuck with 1200-1300 sq ft houses I could afford with conventional or VA loans and did fine. Today I live in a much bigger house, but it's nearly paid off. Amazingly, I was able to raise kids in a three bedroom ranch house without any trouble at all. And my house payment was nowhere near the majority of my take home pay.

In my neighborhood, a builder put up a bunch to 3500-4000 sq ft houses and I watched young couples moving in and assumed they either had really good jobs or did some of that "creative" financing. One house had a deputy sheriff's car in the driveway and I know what he makes. I hoped his wife had a really good job. Well, apparently not because that house is now for sale for less money that the builder charged for it originally. All it took was for the prime rate to go up 1/2 a percent and about half these people were out of range of afford-ability. And I would suspect that many are up to their necks in credit card debt to furnish those places too.

We've become a society that lost all sense of delayed gratification. Instead of saving up money, we get what we want immediately on credit and then pay usury interest rates on that money. And now everyone is paying for dumb decisions as the government is now being called on to bail the lenders out.:mad:

I agree. Right before me and my wife got married, we had a modest house built in a nice neighborhood in late 2007. I make ok money, Wife makes crap money right now, but will go up when she gets a bit more job experiance (she has two college degree's, hopefully she'll make more than her $20k now eventually). But, when me and her parents (their wedding gift was a gift for a downpayment) sat down with the builder, and talked over finances and what we could afford, they tried to sell us a house that was much bigger than what we could afford. I refused to buy a house that based on our current (low) budget, I could not afford, even though the mortgage company said we could.

Instead, we got our current house with a fixed rate for a 30 year loan and it's something we could afford. I think people want the instant gratification of something they can't afford and tried to get creative in getting it. And of course, it backfired in their face.

However, I think in the next few years we'll probably sell it, as I'm seeing a ton of less than desirable people move into the houses in the neighborhood. I think that's another down side to the current market. Scummy people who infested the rat holes of the worst neighborhoods can now afford nice houses in decent neighborhoods and are moving in. We've had some real trash move in recently and I NEVER see their cars gone for work.. :rolleyes:

[rohardi]

Vagas, How are you making out with this?

[vegas8921]

Vagas, How are you making out with this?

In two months a real estate agencie is giong to negotiate a short sale with my mortgage company. The mortgage company does not want the property back so I am hoping they will be willing. If not, I will take other steps to ensure that my credit will remain intact. Im doing the best I can with the money I make while my wife finishes school over the next four months. A short sale is a better effort then just walking away. I know that everyone is mad about there properties dropping in value. I have hung on long enough to mine. I've lost 120K and I have no more neighbors. All three have moved out or filed bankruptsy. Not one of them tried to do a short sale to my knowledge. The builder cant even unload the remaining of their lots because the banks are unloading their REO's for dirt cheap. My neighborhood is turning into a ghost town. That's just how Vegas is right now. Its number one in forclosures. My wife and I will be OK.

[sbrad]

In two months a real estate agencie is giong to negotiate a short sale with my mortgage company. The mortgage company does not want the property back so I am hoping they will be willing. If not, I will take other steps to ensure that my credit will remain intact. Im doing the best I can with the money I make while my wife finishes school over the next four months. A short sale is a better effort then just walking away. I know that everyone is mad about there properties dropping in value. I have hung on long enough to mine. I've lost 120K and I have no more neighbors. All three have moved out or filed bankruptsy. Not one of them tried to do a short sale to my knowledge. The builder cant even unload the remaining of their lots because the banks are unloading their REO's for dirt cheap. My neighborhood is turning into a ghost town. That's just how Vegas is right now. Its number one in forclosures. My wife and I will be OK.

I'm really sorry to hear about your troubles, and I'm sorry for jumping your shizit earlier in the thread. But what you are at least ATTEMPTING to do is much better and says more about you than simply walking away. Good luck.

[smcc360]

I'm really sorry to hear about your troubles, and I'm sorry for jumping your shizit earlier in the thread. But what you are at least ATTEMPTING to do is much better and says more about you than simply walking away. Good luck.

Agreed. Good on you for stepping up to it, and good luck.

[Creeker]

Dave Ramsey.

Even in Vegas, Baby.

'nuff said.

[TJMS81]

Dave Ramsey is the man! Work the debt snowball right now.