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How to get rid of mortgage mess to shun negative proceedings

Posted on: 26th Jun, 2006 12:02 am
Hello All,

I am new here, and feel very fortunate to have found this place. I hope I can get some responses to help me out, as I know NOTHING about forclosure, bankruptcy or anyother thing like that.

Here is my story and problem.

I decided to leave my mother's apartment and buy a house last year. I started looking around September.

I found some nice houses that were in my price range, but none really stuck out to me. A month went by, and I was actually starting to lose interest in moving into a house. Then in late November I found a decent looking house that was in my price range, that was right up the road from my mother's apartment, and it also had special downpayment assistance available for those with qualifying incomes.

I checked it out, liked it, and got pre-approved for a loan. I wemt through the process of trying to get the downpayment assistance, and I found out that I made/make only about 55% of the median income and qualified for $18,000 in downpayment assistance. I was very excited. I went through with the home inspections, etc, and I ended up buying it.

The house was $73,000, and with the downpayment assistance I only needed a $55,000 loan, so my payments were/are low

The conditions of the downpayment assistance is something like:

If I stay in the home less than5 years, I have to pay it all back

If I stay in the home 5 years, I pay 50% of it back

Each year over 5 years knocks off an additional 10%, until it reaches 10 years then I don't have to repay any of it.

Sounds good. I was even thinking of making enough extra payments so when the 10 years is up and I'm forgiven of the assistance I'd have my mortgage paid off too, sell the house for a straight profit, and then put most or all of it ass downpayment for a brand new home built wherever I chose.....Didn't work out like that.

Here are the problems...

Let's sum it up first by saying, the Home Inspecter SCREWED ME BAD.

I moved in. I see that some how the seller had her carpet laid on top of the REAL carpet where it was't noticeable, but now it was taken up and I'm left with stained carpted that ABSOLUTELY must be replaced. Oh yeah, ALL through the house (living room and 3 bedrooms). That will cost me about $1000.

NEXT
I come home from work one day and my front windows are all knocked out. Turns out that the previous owner had problems with someone who thought that she still lived there. Welp, there goes $200 a window for some good replacement windows.

NEXT
I come home from my mother's apartment after a heavy rain, and I see that the property has poor drainage. BIG water puddles ALL OVER the yard. I'm starting to get aggrevated.

NEXT
THe seller's stove, which was left in accordance to our agreement, stopped working. Since it was a gas stove and gas prices are outrageous and gas is dangerous I bought a new electric replacement stove( $750).

NEXT
Since the original stove was gas, I needed an electric line ran from my breaker panel to my stove so that my oven would work. I knew/know a guy that would do the work for just the cost of the supplies. Great! So he comes over and decides that running the line under the house in the crawl space would be the best way. So, I go to unlock the crawlspace to let him in and....BAM! I didn't know my house came with a swimming pool in my crawlspace!? Water ALL OVER the crawlspace from the previous rain when my yard puddled up, about 2 inches deep. The vapor barrier was useless against that much moisture. It was floating in the water. We shine a flash light under there and we see a water line on a couple of the peirs that proves that this has been a recurring problem, AND it has been worse at one time or another. I'm thinking how in the *blank* didn't the home inspector see that this house has water issues. Also one of the peirs had crumbled a bit at the base, probably from so much standing water over a long period of time. But, the inspector never mentioned ANY of this.

NEXT
I call the home inspector and tell him about it. He comes over and pumps the water out and urges me to get a sump pump and a sump pit. He offers to help me do it. So I buy the sump pump, pit, gravel, pipe, and accesories ( $400). We end up only having enough pipe and gravel for the back wall. So, that's all we did. BUT it did/does help get rid of a lot of the water.

NEXT
During the next rain I notice that the pump is cutting on about every 10-15 minutes. So I'm very curious as to how THAT much water can find it's way under my house THAT fast. So I go out in the rain and look at what's going on. Welp, my gutters were leaking. No water coming out of the downspouts, the water just leaked right next to the foundation. But what I noticed next was that on the back of the house the gutters don't go all the way to the edge on the right side, so water was running straight off of the roof and falling right next to my foundation. Turns out that the gutters had little army men and toys lodged right in the way for the water to flow down the downspouts. But even when I unstopped them, they still leak too much. Now I need new gutters. $$$

NEXT
I notice that water sits right next to the foundation on the right side of my home. Not is it only from the gutters not running the length of my roof, or them leaking, but my neighbors house is higher than mine on that side and I'm getting a lot of his runoff. But the real pain is that I have no grade on the sides and the back, my lot is perfectly flat on those points, so the water has nowhere to go but just sit next to my foundation.
So now I need to have some grading done, or atleast a swale...$$$$$$$

NOW
A storm came through while I was at work and damaged my shed. And also, now my car is having problems.

I still need the carpet, $1000. The estimates for the work under the house average about $3000. The grading estimates average about $1700. I need new gutters, front, back and downspouts, $400. I don't know what is wrong with my car yet, but that will be money too.

Here is a BIG problem with getting that list^ done. I have a credit card that is $100 from being maxed out ($1900).
AND since my downpayment assistance counts as a Second Mortgage, no lender will give me a loan. They all say that they don't want to be 3rd in line to get their money if something goes wrong. Having a near maxed out credit card didn't help that either.

So, I'm 24, live by myself, have NO WAY of getting these URGENT improvements done to my house, I'm in credit card debt, and all the while with each rain my house is slowly getting more water damage. Eventually I'll have to pay for water damage repairs which will be $1000's if I can't get these things done.

It would take me atleast a year to get the waterproofing done under my house, and that's with all my money focused on THAT and nothing else, except for bills and food. All the while I'm walking on plastic in my house over the horrible carpet.
So lets say a year is passed, I saved up the $3000 for the waterproofing. Ok, NOW I have to focus ALL my available money on the grading, which will take about 6 months, and I'll still be walking on plastic.
As bad as that seems, that is BEST CASE SCENERIO. That's if NOTHING else goes wrong, and if it did, it would take evern longer.

How to get rid of mortgage and house payments?

I don't have the money for all these repairs, and I don't want to sit back and watch my house deteriorate and end up costing me even more. Eventually I would have to fix way too much just to be able to sell the house. It is pointless spending all my money and all my years JUST fixing things. I JUST WANT TO GET OUT OF HERE. This has been a terrible expereince for me. I very much want to get back to my apartment lifestyle, which suited my income much better. No repairs, nothing.

PLEASE, SOMEBODY HELP ME!!

I don't know ANYTHING about what I need to do.
I'm thinking of filing for the chapter7 bankruptcy, if it will keep me from having to pay back anything that the mortgage company or the downpayment assistance people might try to make me pay.

But then, would I be able to get into an apartment?
Should I get an apartment RIGHT BEFORE I file for bankruptcy?

Should I get an apartment, let the house foreclose, and then if they try to get me to pay the remainder of the balance and/or the $18000 back, THEN file bankrupt?

I don't know what to do. All i know is that I wanna GET OUT OF HERE.


Please please please help me!!! :(
Hi garry,

Thanx for your response. That's what I was thinking I should do in that situation :)
Posted on: 30th Jun, 2006 12:40 am
ok, i've thought every thing out, and here is what i'm going to do....

i called the attorney and talked with him. somehow he misunderstood what i was trying to do, so i explained. he said that it would work. so, now i know that i have a way out. but...

i called about an apartment, and i was wrong to think that i could get an apartment before the bankruptcy. they said when they'd check my credit and see a mortgage on there, than they wouldn't let me get an apartment. and if a bankruptcy was on my credit they definately wouldn't either. i don't know how long it takes before the mortgage comes off of the credit, or how long it takes for the bankruptcy to show up on the credit report. but it sounds like i'd have to squeeze in right before the bankruptcy shows up, if the mortgage comes off first.

that being said...

i'm going to take caron's advice from the first page. i'm going to see if my lender will let me do a "cash out refinance". if they will let me do it and get enough for the important repairs, then'll i'll go ahead and stay in my house
but if they will not let me, theni'm outta here. i'm going to spend a few months saving up the $1000 for the attorney fee, file a chapter 7, and get on with my life.
and since i probably won't be able to get an apartment right away, i'd just move back in with my mother until i can get one. and be stacking some money in the mean time.

please let me know if you think this is the way i should handle this. it seems like the right thing to do.

three pages and thirty-one posts, wow, thank you all for all the advice. it is/was really comforting to have people to help me out in a situation like this. especially knowing that none of you were obligated to do or say anything.

so thanx again, and let me know if you think i've made the right decision. and if you think no, please explain.

thanx so much :d
Posted on: 30th Jun, 2006 12:57 am
Hi,

I think that you are going the right way. As I suggested earlier, contact your lender and find out if he will allow you to refinance your mortgage. Try to explain him the problems that you are facing. I hope he will understand your situation and come forward to help you. Then if you can do a cash-out refinance, then you can use the balance amount on your home repairs. Or else, can you shop around for the refinance loan with a different lender and pay off the first lender.

In case things don't work out this way, then you can go for the second option that you have mentioned. And, yes I agree with you, it is always better to accumulate some savings before you get involved in legal matters.

Thanks,

Caron.
Posted on: 30th Jun, 2006 01:24 am
If your house is in that bad of condition and has that manny problems that wernt mentioned to you from the seller then contact your realstate agent and go into Medeation and if you get no were with that then sue the seller!
Posted on: 10th Feb, 2008 04:29 pm
I would hang in there and try and get the things done when you can. Throwing it away doesn't seem like the best solution. Have you tried to apply for a personal loan? There may be some other assistance in your area for fixing up your home. Try to contact the department that gave you your down payment and see if they have options for home repair. Many cities that do offer down payment assistance also offer assistance for home repairs. I would just do a little more research before giving up.
Posted on: 14th Feb, 2008 08:39 pm
You should sell your house. There's a place that buys houses in any condition its (We Buy Ugly Houses ). Try There...
Posted on: 15th Aug, 2009 01:01 am
I am new to this site; I actually found it looking for fixer uppers. I've read several mortgage woes and many reminded me of my sister-in-law. She owned 3 properties and she was renting out 2 of them and living in the other. 2 of them were Jumbo Mortgages and she lost her job and her mortgage rate seemed huge compared to what was now being offered. She met this guy that worked with lenders that he said got refinances and purchases done quickly and with a lower rate as long as they were Jumbo Loans. I told her not to do it but she did anyway and she said she's glad she didn't listen to me. I am too because I used them as well and that is why I am on this site, looking to network as I buy fixer-uppers and rehab them.

[Email address deleted as per forum rules. Thanks.]
Posted on: 17th Aug, 2009 11:12 am
nw01, i can't say i quite understand what you're driving at with that post. "this guy" is some sort of miracle worker, i guess??? and you are networking in what fashion?
if you're working with someone like Jesus, who can heal the sick and raise the dead, please let us know...we've all been looking desperately for our Savior; and if He has come, we want to know why He didn't take us back with Him.
Posted on: 18th Aug, 2009 08:41 am
Hi.. Im trying to get out because the morgage is to high for the both of us,but she still stays there today,we split half the morgage. As you know the market not doing well and right know i want out!!! My exwife is willing to stay if you can reduce the payments where she can afford it. Please help me get out of it!!!
Posted on: 25th Jan, 2010 04:10 pm
Hi Dennis,

If you want to remove your name from the mortgage, your ex-wife will have to refinance the loan in her name. She will be able to refinance the loan provided the property has equity and she satisfies the required criteria of the lender.

Thanks
Posted on: 26th Jan, 2010 10:30 pm
We live in a two-story house in a flood zone where you can't even get insurance. We owe $37,000 and the house only appraises for around $15,000. We want out quickly as we can no longer afford this house. PLEASE HELP!!!!!!





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Posted on: 09th May, 2010 12:28 pm
Welcome Annis,

You can contact your lender and apply for a deed in lieu of foreclosure. If the lender is convinced that you are facing a bad financial situation, then he will accept your request. You will be able to get rid of the property and you won't be liable for the deficient balance resulting from the sale of the property.
Posted on: 10th May, 2010 12:02 am
Can I get out of my mortgage of $132,000 when my house is (now) only worth about $50,000? I make approximately $70,000/year and my credit is okay (and improving). I desperately don't want to foreclose or "walk away" but I have to get out of here.
Posted on: 17th Jul, 2010 06:25 pm
Posted on: 19th Jul, 2010 03:56 am
Pressured into buying. Property belonged to reailtors son. been in house 2 months. we both hate being here.
Posted on: 22nd Mar, 2011 05:16 pm
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