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

NEW -> Contingent Buyer Assistance Program
Um... why is everyone wasting their time on someone who is not responding? I would rather Panda be posting, because at least he would respond. This thread is not worth my time. Mail the keys, and have a beer, game over.
 
Start paying your mortage, save the money, and move after the bank takes possession of the home (you'll get 9+ free months of rent). You'll take a hit to your credit, but in a few years of being good that credit will be back. No sense in paying for something that you are underwater on. I'd bet that you would be able to rent a comparable place for around 50% of what you are paying now.
 
[quote author="no_vaseline" date=1235401258][quote author="tmare" date=1235393915] Your post baffles me.</blockquote>


Really? Seems like the classic troll/retroll/re-retroll to me.</blockquote>


Maybe Panda is back for revenge.
 
<blockquote>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. </blockquote>


I think me smells a troll.



Whose responsibility is it to live beyond ones means? This non responsibility stuff pi$$es me off.



Unless the lender or broker pointed a gun to the buyer/borrowers head then it is the ultimate responsibility of the buyer to make the right decision.



If they did use a gun then the contract is voidable. ;-) So it is still their fault.



Enjoy!
 
[quote author="graphrix" date=1235410798]Um... why is everyone wasting their time on someone who is not responding? I would rather Panda be posting, because at least he would respond. This thread is not worth my time. Mail the keys, and have a beer, game over.</blockquote>




Maybe he ran out of money to pay for his Cable Internet Connection. LOL...



It's a troll...Come on, $5500 a month for his mortgage. I mean, that must be like a 800-900k loan. And you make 48k a year. Come on, please.



If it isn't a troll, and this is the truth. Then, it is people like you that have brought this financial and housing crisis upon everyone else.
 
this thread and some of the responses remind me of adam sandlers speech in billy madison. i feel stupider for having read it.
 
[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>


Are you for real? The only reason is if your this clueless why did you even buy?

SELL (What if the market turns around) BWHAHAHAHA LOL
 
Quick question, since this is the active thread of the day.



If a household is suppose to have mortgage payments no more than 25-30% of household income, does that include everything like property taxes/mello roos, HOAs, insurance and utilities? Or, assuming one loan/mortgage payment, that amount should not be above 25-30% of net pay?
 
in most cases i've heard the mortgage-to-income ratio of 30% based on gross. although conservatively speaking, if it's gross, then you're probably spending 50% of our pay on housing.

and keep in mind, the old guideline that was thrown around used to be 28-30% as the MAXIMUM. and in my opinion, yes it should include everything.



i've always found those ratios dangerous because they allowed buyers and lender to rationalize/justify the purchase. everyone should consider what is affordable based on their own situation. DTI doesn't answer questions like: whats your financial situation? your spouse's? what's your family situation - are you about to have children? what neighborhood? hoas? mello roos? maintenance - old or new home? list goes on and on.
 
Completely agree. The 28-30% was a number thrown around by companies that were doing the lending, the profits from which were tied to the size of the loan. It answers the question of "What's the most we can squeeze from this ____ before he/she runs dry?" Plus that number doesn't seem to change by zip code, which would seem odd, especially living in this state. State tax? Who cares?
 
[quote author="Daedalus" date=1235455700]Completely agree. The 28-30% was a number thrown around by companies that were doing the lending, the profits from which were tied to the size of the loan. It answers the question of "What's the most we can squeeze from this ____ before he/she runs dry?" Plus that number doesn't seem to change by zip code, which would seem odd, especially living in this state. State tax? Who cares?</blockquote>


Isn't that how we got these "affordabilty products" in the first place?
 
Hey everyone thanks for the advice. I did go and get a BK lawyer and if I sell the house I leave with 75,000 in my pocket. I don't see any other route because I honestly don't know when the second income will come back; plus I don't want to depend on that happening. I also worked out the numbers for tapping into my savings. If I used my savings I could last about 1year and a half before going broke. THANKS EVERYONE MUCH APPRECIATED!
 
[quote author="Fvo2" date=1235556301]Hey everyone thanks for the advice. I did go and get a BK lawyer and if I sell the house I leave with 75,000 in my pocket. I don't see any other route because I honestly don't know when the second income will come back; plus I don't want to depend on that happening. I also worked out the numbers for tapping into my savings. If I used my savings I could last about 1year and a half before going broke. THANKS EVERYONE MUCH APPRECIATED!</blockquote>


uh ya. how do you get 75k in your pocket. you sure you aren't a troll?
 
When we bought the house back in 2002, the mortgage was only about 1/3 of the total house income. However, do to the housing market; we lost the bigger paycheck in our 2 income household. We had no problem for 7 years until now. The only reason I would still want to keep the house because it is our HOME, this is for sentimental values.
 
[quote author="Fvo2" date=1235556588]When we bought the house back in 2002, the mortgage was only about 1/3 of the total house income. However, do to the housing market; we lost the bigger paycheck in our 2 income household. We had no problem for 7 years until now. The only reason I would still want to keep the house because it is our HOME, this is for sentimental values.</blockquote>


Well sounds good, try to preserve as much liquidity as you can. In the coming days that will be a huge boon....

good luck

-bix
 
Just hold out until late June or early July



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[quote author="Fvo2" date=1235556588]The only reason I would still want to keep the house because it is our HOME, this is for sentimental values.</blockquote>


Being sentimental can be very costly and typically clouds judgment when trying to make sound financial choices. As for the $75K, that's if you can get someone to consider buying the house at your price correct? Anyhow, good luck.
 
[quote author="LoudRoar" date=1235394326]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"</blockquote>


I know... the quoted is a little old... but LR...in your attempts to sound smart, remember... CAVEAT EMPTOR means..."Let the buyer beware". For all those people that used their homes as ATMS, or to those individuals that should have continued to save and not buy based on speculation... the writing was on the contract... (as small as it may have been at times - get a magnifying glass)... (or perhaps a little confusing - should've lined up some time with a accountant and/or lawyer to review the contract)... and they did sign on the dotted line.



CAVEAT EMPTOR doesn't mean let the buyer beware in plain and simple language!
 
[quote author="Fvo2" date=1235556588]When we bought the house back in 2002, the mortgage was only about 1/3 of the total house income. However, do to the housing market; we lost the bigger paycheck in our 2 income household. We had no problem for 7 years until now. The only reason I would still want to keep the house because it is our HOME, this is for sentimental values.</blockquote>


Thank you for clarifying that. This is info that we needed. It sounds like you are taking advantage of the advice and will come out just fine. I wish you luck!
 
This seems to be a rare California example of a person in trouble simply because of the economy (which I know is tied to the housing market) but not because he/she got a mortgage she couldn't afford or took out too much from the home ATM. Unfortunately, a lot of her equity has been lost. At least she can walk away with money (hopefully) and without ruined credit.
 
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