Posted on: 09th Apr, 2008 05:51 am
hi i have a 1st mortgage at 120 kand a 2nd for 62k,i live in mi times are tough,in my nieghborhood houses that were worth 100k 2 yrs ago are selling for 40k,mine is probably around 70k..do the mortgage companys work with you or is bank ruptsy the only way?
Welcome jlynch000.
Can't you make your make mortgage payments? If you want to sale or go for foreclosure that will be scary options as the home prices in your neighboring areas got very low. If you can make the payments, Keep making it as the home price will raise again.
Let me know if you have any further queries.
Can't you make your make mortgage payments? If you want to sale or go for foreclosure that will be scary options as the home prices in your neighboring areas got very low. If you can make the payments, Keep making it as the home price will raise again.
Let me know if you have any further queries.
how did you ever get a 180k loan on 100k house?
may be the appraisal was inflated or perhaps he got a no equity loan or something like that.
if you are able to continue to make your mortgage payments, you ought to do so. simply because the value on the property has dropped, that should not affect your repayment habits.
of course, if you are struggling with making the payments, your first best move is to contact your mortgage company to see what arrangements you can make to best serve both of you.
bankruptcy, though an option, is not the best option. if you wish to remain in the home and can work through the hardship, that is your best bet. by all means, discuss your options with the mortgage company before you decide to make any fast decisions that will adversely affect your credit standing for years to come.
of course, if you are struggling with making the payments, your first best move is to contact your mortgage company to see what arrangements you can make to best serve both of you.
bankruptcy, though an option, is not the best option. if you wish to remain in the home and can work through the hardship, that is your best bet. by all means, discuss your options with the mortgage company before you decide to make any fast decisions that will adversely affect your credit standing for years to come.
I owe over 78,000 (and a 15,000 second loan) on my house in Detroit where property values have dropped to record lows. There are houses around me being sold at auction for less than 5,000. Should I start keeping my house notes and try to buy it later for cash? I do want to keep it, I just think its stupid to pay way more than its worth now.
Hi Keena
Have you listed the property for sale? If you haven't then, you should try making the payments. If you do not have any financial problem or other debts, it's better to pay the mortgage dues. Keeping in mind the market situation, I don't think it will be a good option to sell off the property now.
Thanks.
Have you listed the property for sale? If you haven't then, you should try making the payments. If you do not have any financial problem or other debts, it's better to pay the mortgage dues. Keeping in mind the market situation, I don't think it will be a good option to sell off the property now.
Thanks.
keena, you need to look at what one thing is more "stupid" than another.
let's say you stop making payments - you lose your house and you begin to find a rent. landlords aren't going to be predisposed to renting to you as quickly as before because you have lousy credit now, due to a foreclosure. you'll pay first and last months' rents, plus security deposit; own nothing and pay someone else's mortgage. of course, you could always go to a homeless shelter and pay no rent or mortgage.
if you think that the value of the homes in the area will remain at $5000 or less for the rest of your life, then perhaps neglecting the mortgage payments would be sensible.
otherwise, i don't see any scenario in which it makes sense for you to just let the property go (unless you truly cannot afford to stay).
let's say you stop making payments - you lose your house and you begin to find a rent. landlords aren't going to be predisposed to renting to you as quickly as before because you have lousy credit now, due to a foreclosure. you'll pay first and last months' rents, plus security deposit; own nothing and pay someone else's mortgage. of course, you could always go to a homeless shelter and pay no rent or mortgage.
if you think that the value of the homes in the area will remain at $5000 or less for the rest of your life, then perhaps neglecting the mortgage payments would be sensible.
otherwise, i don't see any scenario in which it makes sense for you to just let the property go (unless you truly cannot afford to stay).
Unless your having trouble making your payments or need to move, then this isn't a huge problem - home values wont be going down forever.
I hear you guys and what you say makes good sense the problem I have is my neighbor just bought a house similar to mine for 5k so what if I did the same with my withheld mortgage payments. (not rent). And that shelter idea is looking pretty good right now, George:-)
Hi keena
If you do not pay the mortgage dues, your property will go into foreclosure. This will badly affect your credit and you will have a tough time when you try purchasing a property later on. So if you can afford, try paying off the mortgage dues. If you cannot, then you can check out the following link to know various ways to avoid foreclosure:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Thanks.
If you do not pay the mortgage dues, your property will go into foreclosure. This will badly affect your credit and you will have a tough time when you try purchasing a property later on. So if you can afford, try paying off the mortgage dues. If you cannot, then you can check out the following link to know various ways to avoid foreclosure:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Thanks.
As for rent, as long as you are working, you will be able to find an apartment. You just need to pay 1.5-2 months in advance. Which, if you stop paying on your mortgage, you should be able to save up.
How much can you rent one of those $5k homes for? If you can get the money together to buy one and rent it out, then you will probably offset some of the costs on the home you are living in as well. Then, you will own two properties without harming your credit.
