When you can't afford your home

[rjundi]

Originally Posted By: Bill in Utah
Originally Posted By: rjundi
Originally Posted By: L_Sludger

It sounds to me like she's an irresponsible member of society and you want to know what options there are to offload some of her liabilities onto taxpayers like me. Frankly, it bothers me a lot.


The bank is also clearly responsible along with the purchaser. The bank will sort it out.



Bank is not part of the blame game IMO. They are not there to hold your hand, they are there to provide a service.



My view is part of the business of loans is default. They cover part of the bases off with folks who pay escrow insurance. Mortgage loans were handed out very easily in those times and bankers realized folks would default. They were simply sold off to other entities(at great profit) to hold the bag.

 

[Clevy]

Originally Posted By: The Critic
In short-term, she should find a way to rent out some rooms. However, selling it is likely the long-term solution.


This is the best option other wise its a total loss and walk away

 

[Clevy]

Originally Posted By: ArrestMeRedZ
I'm not sure of the laws in your state, so don't take my advice without consulting a lawyer. Here in Las Vegas, with a situation like that, I would advise someone in that position to live in the condo as long as possible without making payments. It would take the bank over 2 years to get serious about foreclosure. Then, you could negotiate making a short sale. Add about 6 months until you are out.
Have her save the money she would have paid for the mortgage and use it to get a new place. It would make be enough for a down payment for the same type of condo in the same development. Total payment for the "new" place would be under $1k a month PITI for a 15 year note. You, or another family member would have to cosign, or even take out the loan. If that's not an option, then renting might be.
What hasn't been mentioned is her current financial status. Her income hasn't been enough to support that place for quite some time. If she has a lot of consumer debt (credit cards, signature loans, HELOC or second mortgage) then bankruptcy might be in order.
What I would advise against is selling the home and making up the difference, or her borrowing (even from family) to continue to make those high payments.


That's a dirty but AWESOME trick.

 

[surfstar]

Originally Posted By: FoxS
Originally Posted By: thomasflaherty
Are we missing some thing here $1787 how much did she borrow in 2004 at what rate and what are the taxs??? alot of numbers left out of the story


Seems like me and you are the only ones who spotted this.

$1787 payment on a 30 year mortgage with a balance of $160k with 21 years to go is an interest rate above 12%.



It was mentioned that the $200-250 assoc fees were in that mortgage # given. Which still sounds high to me.
I think a 160k mortgage sounds quite affordable with the income she had.

 

[Win]

Originally Posted By: Trav
Its probably been discussed already but why doesn't she just rent it out.
She could find a decent apartment and hold on to this until its paid off and sell it then for some cash she may need or use it for income.


This.

 

[PandaBear]

Originally Posted By: Clevy
Originally Posted By: ArrestMeRedZ
I'm not sure of the laws in your state, so don't take my advice without consulting a lawyer. Here in Las Vegas, with a situation like that, I would advise someone in that position to live in the condo as long as possible without making payments. It would take the bank over 2 years to get serious about foreclosure. Then, you could negotiate making a short sale. Add about 6 months until you are out.
Have her save the money she would have paid for the mortgage and use it to get a new place. It would make be enough for a down payment for the same type of condo in the same development. Total payment for the "new" place would be under $1k a month PITI for a 15 year note. You, or another family member would have to cosign, or even take out the loan. If that's not an option, then renting might be.
What hasn't been mentioned is her current financial status. Her income hasn't been enough to support that place for quite some time. If she has a lot of consumer debt (credit cards, signature loans, HELOC or second mortgage) then bankruptcy might be in order.
What I would advise against is selling the home and making up the difference, or her borrowing (even from family) to continue to make those high payments.


That's a dirty but AWESOME trick.


But you will not get anybody to loan you money if you default on a loan or get foreclosed on. She can rent but some landlords are picky too.

One of my tenant is in the same situation. He end up having to pay 1 year worth of rent up front for people to consider.

 

[simple_gifts]

http://www.cbsnews.com/video/watch/?id=6470184n

A little story on "walking away"; a bit dated, but still relevant. Don't get mired in the "guilt or responsibility" trap; it is a simple business decision based on $$; banks, developers, businesses do it ALL the time; A bank wouldn't think twice about tossing a person out on the street when they can't afford the mortgage.

 

[Clevy]

Originally Posted By: PandaBear
Originally Posted By: Clevy
Originally Posted By: ArrestMeRedZ
I'm not sure of the laws in your state, so don't take my advice without consulting a lawyer. Here in Las Vegas, with a situation like that, I would advise someone in that position to live in the condo as long as possible without making payments. It would take the bank over 2 years to get serious about foreclosure. Then, you could negotiate making a short sale. Add about 6 months until you are out.
Have her save the money she would have paid for the mortgage and use it to get a new place. It would make be enough for a down payment for the same type of condo in the same development. Total payment for the "new" place would be under $1k a month PITI for a 15 year note. You, or another family member would have to cosign, or even take out the loan. If that's not an option, then renting might be.
What hasn't been mentioned is her current financial status. Her income hasn't been enough to support that place for quite some time. If she has a lot of consumer debt (credit cards, signature loans, HELOC or second mortgage) then bankruptcy might be in order.
What I would advise against is selling the home and making up the difference, or her borrowing (even from family) to continue to make those high payments.


That's a dirty but AWESOME trick.


But you will not get anybody to loan you money if you default on a loan or get foreclosed on. She can rent but some landlords are picky too.

One of my tenant is in the same situation. He end up having to pay 1 year worth of rent up front for people to consider.


She's 66. And smokes. How much longer does she really have left anyways.

 

[Cutehumor]

I think the OP has left the building.

 

[threeputtpar]

Originally Posted By: Cutehumor
I think the OP has left the building.


I think it was a troll from the get go. I actually started reading this post with the intention of helping if I could, and am upset that I even wasted the time. It seems like this is happening way too much here lately.