froglegs

To anyone who has come in to this thread to read, thanks for listening and letting me get this off my chest!

Well, to make a long story short our house is about to go to a Sherriff sale on May 18th, the beginnings of foreclosure.
AH and I have discussed this situation over and over again and come up with a situation we can live with and one we think is best for our family, but I keep getting different opinions, points of view from people (i.e the realator we are working with) that are making me question my choices, and that really frustrates me, because then I am trying to people please and not take care of my own needs, but I don't want anyone to be mad/disapointed in me so I want to do what they think I should do.

The bottom line is, we would be able to save the house, but it's not a good idea for us. The mortgage company wants us to make a payment of 3,000 a month until November, then 5,000 a month in Dec, then 2,400 a month after that (our normal payment is 1416.00 a month). The reason our mortgage increased is due to forced escrow for property taxes and forced flood insurance and 2 deliquent payments (from last summer) and an adjustable APR that went up. We have tried to work with them, but the best they could do was a 2400 a month payment for the next 3 years, and that may not work for us down the road, it's just too much.

Anyway, AH just took a buyout from work, he purchased a small business for the time being, but we have no idea what that will generate, and most small businesses take a few years to get up and running. He will get a large lump sum, which we had planned on using toward different more affordable housing (probably putting something down on a land contract or rent something and pay the first year in full).
I guess I just don't think it's feasable to committ to a 3,000 mortgage payment on a house that doesn't even meet our needs (no basement, no sidewalks, no fenced yard). AH bought the house on his own when we were seperated with the intention of getting a roomate, not raising 2 children in it, it's NOT child friendly. And I don't know what our future holds with his career so we really need to be in more affordable housing, at least something if all you know what breaks loose I know I can afford on my salary, I am always looking out for #1 , you know how that goes.....

So, AH & I decided to let the house go, start fresh somewhere else and look for something that suits our family and our pocketbook. We will be paying off all my debt too, so I figure in a year or 2 things will look a lot better for me. AH will not be able to get another mortgage and I don't want my name on a mortgage (just in case) so we thought a rental for now would work and re evaluate in a few years.

The realator is freaking me out, like we will not be able to rent anything because of this foreclosure. I tried telling her that it's not in my name, and between my job and us walking into a house the first years worth of payments, who's gonna turn that down??? But she is worrying me into calling the mortgage company and paying their ridicolus payments and living to make a mortgage payment.

I think she thinks were stupid because we could afford to pay $3,000 a month, but that would leave us virtually nothing left, and no room for lives "errors" should any arise , so we are just letting it go with the hopes of starting fresh, and doing things the right way next time...

Aaah.... thanks for letting me type this all out. I just really feel like I am letting people down, and people will think less of me if my house goes into foreclosure, I shouldn't care because I am doing what I think is best for me and my family, right? We are not going to wind up in a cardboard box right?

Thanks for reading, I needed to surround myself with positive people for a moment....

kj0975

I think your plan sounds good. 3000/mo is alot to pay for something u dont want and doesnt suit your needs. Remember the real estate agent is also looking out for #1. So sometimes they have altier motives. Go with what u want to do. Follow your gut and live in somethingthat u can afford and will give u a little extra for what life sometimes throws at us. To be tied down to something u dont want doesnt make lot of sense and its not in your name so u might be ok. I think u have put alot of thought in this and hopefully it will all work out the way u want it to.

Jewelz

If this realtor is giving you a hard time even if its just making you feel bad why dont you go to a different one?

Froglegs, go with your gut. I believe you made your decision a while ago dont allow her to make you second guess yourself.

Hugs,
jewel

Brownie

Hello Froglegs - I'm a Mom of an AD and my name is on her Mortgage - since she is using again (still working) I am facing reality that she could be in danger of losing her home - and that would mean as mortgagee they would be calling me - yesterday AD called and said one mtg payment didn't go through even though she said there was enough money - so I read your post and replies with interest because I am not interested in keeping the house. Hope you and hubbie work out the problem.

froglegs

Thanks for the replies everyone.
To answer some questions....

We live in Michigan where the housing market is horrible...The relator told me he showed 15 houses today and 11 were bank owned (foreclosures) people are losing their houses left and right. We really don't have a lot of equity in the house, we have lived there for 2 1/2 years and somehow after all of the escrow and everything else they tacked onto our mortgage we owe MORE than what we paid for the mortgage, how that's possible, I have NO IDEA, so equity is not a concern at all...

I don't want the house in my name, if I am going to get a mortgage it would not be on that house, granted the house itself is beautiful and only 3 years old, but if I am going to put my name on something I would like it to be a place I know we will be staying in for a long time, we would have had to move in a couple years anyway we are already outgrowing it with no basement and all the toys!

I want to say thanks for the replies......
I really needed to hear it was okay today.... ((Hugs))
I guess I've been through worse than this in my life

mooselips

legs,
good idea, I think.
Start fresh. If the business starts taking off, buy something in YOUR name.
Sounds like a plan to me. But, I don't know too much about all this foreclosure stuff.....

Hugs,

rozied

If you feel letting the house go is in your familys best interest........the heck with what anyone else thinks!!! Its your life & you know best for you.
The kind of people that would say anything negative are not worth knowing.
Love,
Diane

teke

sounds like you already know what you need to do for you, try not to second quess yourself, like somebody already said, see if you can get a second opinion, that might be a good idea but if you are set on not keeping the house, its not the worse thing that could have happened. i do understand you not wanting to be locked into a payment that you don't know if you could handle it on your own, just in case you need to. keeping you and yours in my prayers

GwenMarie30

Hi Froglegs. I want to give you a hug simply cause I know exactly of what you are going through. Our mortgage co did the same thing to us because we missed payments and they kept increasing or mortgage payment from $800 to $1600 and rising. We also failed to realize that our taxes werent in escrow so they sold our house on the court house steps for the back taxes. Apparantly the mortgage company didnt file with the county that they had the loan and so we didnt know what was happening before it was too late. Long story short the mortgage company fixed everything so we could keep the house. We had potential buys before all this took place and were able to sell the home quickly. We didnt get much out of the sale, just enough to pay some bills and pay for the move. I still dont know what happened, but by the grace of my HP we made it through and have the opportunity to start over. So Im sorry your going through this but there is something better. When one door closes another opens. Good luck to you. It will work out.

(((((Froglegs))))))

patchoulli

Trust youself...you know whats right for you and yours. I wouldn't saddle myself with that kind of payment and the stress that come with it either..

hopeful in TX

Sounds like your plan is pretty sound to me. I am in TX and things might be different where you live, but I rented an apartment right after we filed bankruptcy. I had to pay a larger deposit, but I wasn't left out in the street. Check with some apartments around and see what they say. I agree with KJ in an earlier post ----the realtor is probably looking out for his/her best interests - not yours. I can understand not wanting to put all of your money in a house --that's one of the reasons why i rent. I can live in the community I want to live in without worrying about expenses connected with home ownership and still have some money left at the end of the month to do some things I want to do. Don't let what other people think make you make the wrong decision. I say go with your gut feeling---

hope213

i hate it when anyone loses there home.could you sell it instead of letting it go? just a thought.prayers for you & your family.

greeteachday

Froggie, You sound like you have given this lots of serious thought and weighed your options well. I do agree with you that I doubt that all property owners will refuse to rent to you if you are willing to pay in advance. I think they will be begging you to rent from them...That's just my opinion, but my gut tells me few would say no to a sure thing for a year.

I'm so sorry for all the stress...All the crazy mortgages that have been offered in recent years scare me. With the housing market not so hot and so many adjustables and balloons going crazy, i can understand how you owe more than the original mortgage. I hope that things calm down in time and you can find what is good for your family and a fixed rate too. But for now, I think you have made a mature decision and should not worry about what others think. Hugs...How are the little ones doing?

Codieneaddict

Froglegs, If it were me I'd do what ya'll plan on doing. Just let the house go, cut your losses, and rent/buy something else. $3,000 is a LOT of money to pay a month. Especially, if you don't particularly want the house. Best of luck to ya!

tropikgal2

Ok, like maybe I am just dumb or something....but $3000.00 a MONTH?!?!?! Holy cow!! You must live in a REALLY expensive area!!! Here you could get 3 houses for that much $$!! And decent ones, too!!! In nice neighbourhoods!! I agree, let that house go!

cece1960

Hi Frog,
I'm a fanatic bill payer so your position would put me in a tizzy also.
But you didn't sign the mortgage. As they say what seems too good to be true usually is, and the mortgages they were and are selling have big catches to the original affordable monthly payment.
What upsets me is the banks are really setting a lot of people up..."sure you can afford it its only $$$".
If your area is like mine, I have no doubt that many of the other homes that are up for sale found themselves in a similar spot as you.
There are many landlords who would jump at employed renters with a years rent down.
As far as the realtor...tell him/her to go pound salt. Chances are they made their $$$ off the attractive sales, and they fear a blackmark on their record from the brokers and/or banks they use.
I do hope you are able to clean the slate and start over, using this experience as guidance for future purchases. Perhaps a new setting, that represents the both of you and your decisions is perfect right now.
Good luck on the house hunting...it CAN be FUN !
((((Hugs)))
Cece

MeggieStar

Frog and All...

As you may know, I'm in Michigan also. The housing market and the economy is TERRIBLE. The market is 4-8% below the national average right now and practically every family has someone out of work or taking a buyout from the Big 3. There just aren't any jobs out there, for anyone! If you drove around any neighborhood here, even the nice ones, you just wouldn't believe it. There are SO many empty, abandoned homes or repossessed homes that have been forclosed on just sitting there, empty. My dad is a realtor and houses he's had on the market for 8 MONTHS have not had ONE LOOK at them, let alone an offer. Basically the War and rising gas prices have crippled our auto industry which is what MI depends on the most, and as a result, our economy is down the drain.

Frog, I know it's hard. While personally I would do everything in my power not to lose my house because that's just me, I had a very close family member lose their home to forclosure and while it WAS difficult to rent, the landlord they ended up renting from was very understanding of their situation and realized that more and more renters are having the same problem. I think owners of homes would rather rent them than have them forclose, so they are willing to work with renters.

And just so you know, the bank tried to raise my mortgage over $400 dollars this year due to my changing APR and escrow. I just paid the escrow off and it only went up $100 instead. It's just ridiculous what we are all living through here in this State. But...we can't leave because No one is buying houses!!

Ann

Frog, I think your gut feeling is correct.

You can rent something decent in Michigan right now for a reasonable rent and this would allow you to save toward a home sometime in the future. If you calculate the mortgage interest costs, the taxes, the maintenance and upkeep, and any major repairs that may be necessary...you might be surprised at how much your home is costing before you pay one cent against the mortgage principal.

Plus, with the job market so bad in Michigan right now, you might consider moving to another state sometime in the near future, and if you are renting it's a lot easier to make the transition instead of trying to sell a house in a terrible market....you'd probably take a loss and add that to the other costs and it's a no brainer, yes?

Do what you can live comfortably with and the heck with what the realtor says...he's fighting for his financial life right now and is thinking of his OWN best interest.

Hugs