NEED HELP!!!! WHAT SHOULD WE DO!!!

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Fvo2_IHB

New member
We are currently living in WEST IRVINE on Jamboree and Robinson. Our family is in a crisis because we are running on only 1 income vs. 2 income (before). The cost for our mortgage per month is $5500 but the I only make about 4000 per month. We have talked to a real estate agent. He suggested that if we have enough money we should hold onto the house. However, if we don't have enough money we should sell. We also talked about loan modification to get my monthly payments to lower. Also we talked about putting the house up for rent. ( I DON'T WANT TO MAKE ANY DECISIONS YET, WITHOUT SOME INPUT!) WHAT SHOULD I DO? I do really want to keep the house but do not want to go broke in the process.



SELL? (WHAT IF THE MARKET TURNS AROUND)

LOAN MOD? (WHAT IF I DON'T QUALIFY)

RENT? (If I could rent for anywhere from $2500-2700 per month, I would really want to keep the house)
 
Get a bankruptcy attorney and tell him your entire situation. Im pretty sure lawyers have to help their client because they represent you, and based on what you said you may have serious issues that require informed decisions and planning. I am not saying file for bk, i am saying find someone who knows about this stuff, get him as your lawyer, then ask him. Sometimes, as crazy as it may sound, paying a lawyer a couple thousand even when you barely have anything to make ends meet might be well worth it. Dont feel stupid, ask questions.



Good luck
 
Not to worry, check out our options. I would try the easiest to hardest first.

Loan Mod, sell, maybe even walk away. Try all options first.



A BK attorney might be the way to go if you are drowing hugely in debt (house, credit, cars, etc. etc. etc.). These are tough times, do not think you are without options, they just might not be desirable options to you.

Good luck

-bix
 
<img src="http://www.pjcj.net/yapc/yapc-eu-2006-enigmatic_perl/slides/images/match.jpg" alt="" />
 
how long u guys r on 1 job? all depends how soon u guys can get back to 2 income. if its not possible in the next 3-6 months then def u should try to talk to ur lender with all the docs. if all else fails there's no point living in a home which u cannot afford. also don't worry mkt is not coming back.
 
[quote author="Fvo2" date=1235372796]We are currently living in WEST IRVINE on Jamboree and Robinson. Our family is in a crisis because we are running on only 1 income vs. 2 income (before). The cost for our mortgage per month is $5500 but the I only make about 4000 per month. We have talked to a real estate agent. He suggested that if we have enough money we should hold onto the house. However, if we don't have enough money we should sell. We also talked about loan modification to get my monthly payments to lower. Also we talked about putting the house up for rent. ( I DON'T WANT TO MAKE ANY DECISIONS YET, WITHOUT SOME INPUT!) WHAT SHOULD I DO? I do really want to keep the house but do not want to go broke in the process.



SELL? (WHAT IF THE MARKET TURNS AROUND)

LOAN MOD? (WHAT IF I DON'T QUALIFY)

RENT? (If I could rent for anywhere from $2500-2700 per month, I would really want to keep the house)</blockquote>


It's plain and simple. Either get more money or sell. Sounds like to me your mortgage payment was well over 50% of both of your incomes. If you didn't over extend yourself, then you would never be in this situation. That was your first mistake. You bought under the assumption that nothing would ever go wrong. EVER.



But to be frank, based on your statement "SELL? (WHAT IF THE MARKET TURNS AROUND)" sounds like to me that you could care less about the home. Only thing you care about is money. You see, if you truly cared about your home you wouldn't even make a statement like "what if the market turns around". You wouldn't be caring if the house was worth 1M or 100K. All I hear you telling me is that you will do whaver it takes to keep the home so you can earn back the losses or perhaps even profit from the gamble you took that clearly backfired.



We could have bought during the bubble years. We wanted to have a home or in your case even take a shot at making money. However, the risk of not being able to make payments if something went wrong was there. If one of us lost their job, we would be living paycheck to paycheck. A small rise in costs would push us to default. It's the risk that we didn't want to take no matter how bad we wanted to buy. Before we bought, we wanted to be in a position where we can survive off of one income only and have plenty of money in the bank to survive six months in case both of us lost our job. Doesn't sound like you did that!



So in that case what do you want us to say? Yes I hope you do get a loan mod subsidized by our tax dollars? So that you can stay in your home on my expense while we rent? Us? The responsible individuals that wanted to make sure under any circumstance we would be able to meet the obligations we commit to? No thanks!



Good luck though.
 
I kind of smell a rat here. Oh well, anyway, there really isn't any way anyone can comment on this without knowing a few things. What is the current mortgage balance? What is the current appraised value (or a close estimation)? What kind of loan is this and at what percent? Not much to go on so far. If you are willing to give some more details, maybe you might get some useful answers.
 
Hey BlackVault,



Patronizing and blaming those who were trapped in the world of rising prices is moronic. It is not the workers fault he never read Keynes or Mises. It his not his fault that he never understood that his increase in pay was met with an earlier increase in prices. It is not his fault that the perception created by credit expansion created the illusion of stability.



If you cared so much about wasted, subsidized, taxes and all other ways governments make money, you would have been bitching about this a long time ago. I was there throughout this entire period of time and saw everything. My friends from high school were the loan originators. Many didnt go to college just to do these jobs. I almost had the same fate, but I after orientation at a equipment leasing company, i KNEW, WITH MY LIMITED HIGH SCHOOL INTELLIGENCE AT THE TIME, that leasing is BULLSHIT. WHO LEASES COMPUTERS TO SCHOOLS WITH A TOTAL VALUE GREATER THAN THE EQUIPMENT? But its ok just discuss the nice golf courses over the phone fuck the details. Yah lets rip off the education system, which in turn will rip off out future skilled workforce. My friend explained these bullshit loans like the arms and the options and the ridiculous 80/20. I had no knowledge of economics 7 years ago, but knew these loans were bullshit. are you tell me that all that time these intelligent genius financiers didn't know it was bound to happen? So you can complain now but this same story happens every 50 years. Sorry if people dont read the most published financial book of all time, less even know its name.



When the truth shines through there will be redemption. Until then, everything is doomed to failure.
 
[quote author="LoudRoar" date=1235393348]Hey BlackVault,



Patronizing and blaming those who were trapped in the world of rising prices is moronic. It is not the workers fault he never read Keynes or Mises. It his not his fault that he never understood that his increase in pay was met with an earlier increase in prices. It is not his fault that the perception created by credit expansion created the illusion of stability.



If you cared so much about wasted, subsidized, taxes and all other ways governments make money, you would have been bitching about this a long time ago. I was there throughout this entire period of time and saw everything. My friends from high school were the loan originators. Many didnt go to college just to do these jobs. I almost had the same fate, but I after orientation at a equipment leasing company, i KNEW, WITH MY LIMITED HIGH SCHOOL INTELLIGENCE AT THE TIME, that leasing is BULLSHIT. WHO LEASES COMPUTERS TO SCHOOLS WITH A TOTAL VALUE GREATER THAN THE EQUIPMENT? But its ok just discuss the nice golf courses over the phone fuck the details. Yah lets rip off the education system, which in turn will rip off out future skilled workforce. My friend explained these bullshit loans like the arms and the options and the ridiculous 80/20. I had no knowledge of economics 7 years ago, but knew these loans were bullshit. are you tell me that all that time these intelligent genius financiers didn't know it was bound to happen? So you can complain now but this same story happens every 50 years. Sorry if people dont read the most published financial book of all time, less even know its name.



When the truth shines through there will be redemption. Until then, everything is doomed to failure.</blockquote>


Your post baffles me. On the one hand you are saying that BV is wrong and then you go on to praise yourself while making the same point BV just made. If you had no knowledge but you could figure it out, then what are you really saying?
 
[quote author="LoudRoar" date=1235393348]Hey BlackVault,



Patronizing and blaming those who were trapped in the world of rising prices is moronic. It is not the workers fault he never read Keynes or Mises. It his not his fault that he never understood that his increase in pay was met with an earlier increase in prices. It is not his fault that the perception created by credit expansion created the illusion of stability.



If you cared so much about wasted, subsidized, taxes and all other ways governments make money, you would have been bitching about this a long time ago. I was there throughout this entire period of time and saw everything. My friends from high school were the loan originators. Many didnt go to college just to do these jobs. I almost had the same fate, but I after orientation at a equipment leasing company, i KNEW, WITH MY LIMITED HIGH SCHOOL INTELLIGENCE AT THE TIME, that leasing is BULLSHIT. WHO LEASES COMPUTERS TO SCHOOLS WITH A TOTAL VALUE GREATER THAN THE EQUIPMENT? But its ok just discuss the nice golf courses over the phone fuck the details. Yah lets rip off the education system, which in turn will rip off out future skilled workforce. My friend explained these bullshit loans like the arms and the options and the ridiculous 80/20. I had no knowledge of economics 7 years ago, but knew these loans were bullshit. are you tell me that all that time these intelligent genius financiers didn't know it was bound to happen? So you can complain now but this same story happens every 50 years. Sorry if people dont read the most published financial book of all time, less even know its name.



When the truth shines through there will be redemption. Until then, everything is doomed to failure.</blockquote>


Yeah, screw the bankers! It's all about "We the People", and you can't expect people to act rationally when you are promising them something for nothing man! What else were these people supposed to do, stay renters and ignore their place on the gravy train?



BTW, LoudRoar... you are ruining my country, GTFO.
 
I am saying caveat emptor,

In mind and body man is sovereign,

But they are a bunch of fragile idiots.



And this is my country and ill be damned if I don't fight for her, "Oscar"
 
Here is what I want someone to say one day.



"I bought a home I couldn't afford. Everybody was making money, and I just didn't want my opportunity to slip. Now...I'm going to lose my home but that doesn't matter.

What does matter is the fact that retirement accounts are being whiped out and jobs lost for individuals that never had anything to do with this mess. Families are

put in difficult financial situations where they might not be able to buy food, pay for their childrens education, or survive their marriage. All because of my greed.

For this I am truly sorry, but I don't expect anybody to forgive me. I know I wouldn't!"



Anyway, that will never happen.
 
The most hilarious part is that you think all this was caused by the "credit crisis." Credit expansion and war are 2 sides of the same coin.

The mortgage thing is only 30% of the reason for our economic woes.



Ford once was faced with a dilemma. They had this car, the Pinto, and had already made a ton of them, then realized that if it gets hit in the back it will cause the gas tank to blow and injure and probably kill occupants in the back seat. They did a cost benefit analysis and decided that it would be better to deal with the law suits later than to replace all the fuel tanks. But in the end they got burned.



The same reckless moral hazard is at work with the war, and instead of a itty bitty fuel tank they loaded tons of tnt into the fuel tank, so instead of the occupants being screwed, everyone at the intersection is. They just dont give a shit because no matter what they can hide behind these invisible walls.
 
FVO2:



If I were you, I'd hop on over to youtube and watch some Mr. Mortgage videos. That caters more to people in your situation than this blog does. He frequently recommends taking a look at getgreencredit.com.
 
[quote author="LoudRoar" date=1235396126]The most hilarious part is that you think all this was caused by the "credit crisis." Credit expansion and war are 2 sides of the same coin.

The mortgage thing is only 30% of the reason for our economic woes.



Ford once was faced with a dilemma. They had this car, the Pinto, and had already made a ton of them, then realized that if it gets hit in the back it will cause the gas tank to blow and injure and probably kill occupants in the back seat. They did a cost benefit analysis and decided that it would be better to deal with the law suits later than to replace all the fuel tanks. But in the end they got burned.



The same reckless moral hazard is at work with the war, and instead of a itty bitty fuel tank they loaded tons of tnt into the fuel tank, so instead of the occupants being screwed, everyone at the intersection is. They just dont give a shit because no matter what they can hide behind these invisible walls.</blockquote>


I'm not sure I get your point. In any of your multiple posts. Either way, your handle is appropriate. And how does it help the FVO2 person? I dunno...



FVO2: My opinion, not knowing anything, is to cut your losses. Save what you can, and get out. If you've read anything on this blog, you'll realize that the housing situation will continue to at BEST stagnate. More likely than not, it'll fall some more (option ARM wave?). Prices won't turn around quickly if they do, so you're drawing out the pain with your indecision.



I'm going to guess the other income was substantial (given the gap between the mortgage and your stated income). Unless that comes back, I don't see how you can maintain what you have.



The advice about obtaining a BK lawyer is probably the best, if you can afford it.
 
[quote author="LoudRoar" date=1235396126]The most hilarious part is that you think all this was caused by the "credit crisis." Credit expansion and war are 2 sides of the same coin.

The mortgage thing is only 30% of the reason for our economic woes.



Ford once was faced with a dilemma. They had this car, the Pinto, and had already made a ton of them, then realized that if it gets hit in the back it will cause the gas tank to blow and injure and probably kill occupants in the back seat. They did a cost benefit analysis and decided that it would be better to deal with the law suits later than to replace all the fuel tanks. But in the end they got burned.



The same reckless moral hazard is at work with the war, and instead of a itty bitty fuel tank they loaded tons of tnt into the fuel tank, so instead of the occupants being screwed, everyone at the intersection is. They just dont give a shit because no matter what they can hide behind these invisible walls.</blockquote>


You lost me at Pinto...



This is a cool sentance though.

"The same reckless moral hazard is at work with the war, and instead of a itty bitty fuel tank they loaded tons of tnt into the fuel tank, so instead of the occupants being screwed, everyone at the intersection is."



Are you saying?

Moral hazard is reckless same war. Fuel into itty bitty tanks, instead with big tnt into fuel tank, so it went BOOM! BOOM! and screwed occupants were and interesection with people.
 
[quote author="tmare" date=1235393915] Your post baffles me.</blockquote>


Really? Seems like the classic troll/retroll/re-retroll to me.
 
With your income being less than your mortgage, I assume you are using up your savings. You must look at your assets versus liabilities.

If you have over 100K in personal equity, I propose you try to sell the home or modify the loan. If you have less than 10K in personal equity,

I suggest you stop making payments, ask for a short sale or loan modification, or go through with foreclosure.



The point is, if you have some significant wealth left, you don't want to proceed with a bk.

Whereas if you don't have any, then just do the whole non-payment, bad credit, loan mod, foreclosure route.



But yeah, with your income, you really can't afford to make mortgage payments much longer.

Personally, I have a lot of debt, but I can manage it with my income.

However, should I be out of work for over a year, I would file for bk too.

I guess it depends on how much you're worth. I know some friends who won't need to file for bk even if they were

not working for 2-3 years. Others even have enough saved up to last them for 5 years.



My question is, with your current financial situation, how long can you manage your payments for?

That is, how long will it take you before you go broke? If it's under 6 months, then you need to make some important

decisions now. If it's over a year, then perhaps the dual income might come back by then and you'll be fine.
 
Umm... Mortgage payment is $1500 more than total monthly income. You either mail the keys or hire someone to toss a match; there is zero way to save that situation.



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