Sam_2.0
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Stuck
Jul 17, 2012 20:29:30 GMT -5
Post by Sam_2.0 on Jul 17, 2012 20:29:30 GMT -5
2nd realtor came today after we've gotten no real hits/showings from the first one. She pretty much confirmed what we had suspected - we are more than $20k upside down on the house & its just getting worse. She had a list that was two pages long of houses about to go into foreclosure in our neighborhood. Within the entire city, there have been FOUR sales in the last six months, nothing higher than $40,000.
I signed up for this, I understand. And rent on an apartment would have been the same or slightly more than my mortgage has been (although maintenance eats up the difference there) - I mean, I have to pay to live somewhere. What kills me is the $20,000 penalty I get to come up with in order to move. To some people that's not a lot of money. But to me, that's more than 1/3rd of what we make in a year.
So now we sit, and wait, and save. And hope that by the time we can put away the $20,000 that the value of our house at least stays where its at now and does not plummet further.
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milee
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Jul 17, 2012 20:32:23 GMT -5
Post by milee on Jul 17, 2012 20:32:23 GMT -5
That stinks. I'm so sorry this happened to you. $20k is a lot of money to everyone.
Do you need to move for work? I may have missed a post where you explained why you are moving.
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Sam_2.0
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Jul 17, 2012 20:38:42 GMT -5
Post by Sam_2.0 on Jul 17, 2012 20:38:42 GMT -5
We are moving because of violence in the neighborhood. I actually work 2 miles away, so I will miss the commute, but I won't miss having to stay inside all the time. No sidewalks, no kids for DD to play with, no parks safe enough to go to. Several recent home invasions where the residents were held at gunpoint or severely beat up. Nice old man out for a jog on a Sunday morning shot and killed. Would be nice to live somewhere we could relax and feel safe.
It really just stinks to not even have the option to go anywhere. I hate feeling like I don't really have a choice!! Grrrr.
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constanz22
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Post by constanz22 on Jul 17, 2012 20:43:42 GMT -5
I think you've said before that you don't want to be a landlord, but, if it were me, I'd seriously consider it if you can cover the mortgage by a renter, and then even rent a place in a better neighborhood for you and your family. I wouldn't stay there, especially with a little one...
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Sam_2.0
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Jul 17, 2012 20:53:47 GMT -5
Post by Sam_2.0 on Jul 17, 2012 20:53:47 GMT -5
The thing that kills us about a renter is that we can't afford a bad one that will stop paying (or worse, trash the house), but in the neighborhood we live in now, that's probably the only kind of people that will want to move in. I know this sounds bad, but I work for the power company, and I deal with a lot of complaints from this area. If you can't pay your power bill....that's not the only bill you are not paying. MIL and FIL will let us live with them until we find a new place (or 6-ish months). They have a basement apartment that's not much smaller than our current house, so that will work out fine. We can't even refinance right now because our loan started as a Fannie Mae loan, but it was sold off and is now not a Fannie Mae loan. And with as upside down as we are (about 25%, its 40% lower than the appraisal when I bought it six years ago), there's no way a traditional refinance would work. For the landlords out there - what would be the best way to find a renter? I don't want calls at 2am about a water heater. I would be willing to pay for a management company to deal with the hassle. We also talked with a realtor & we are looking into new home trades. To roll $20k into a new house (through trade) would work, if we can get the right deal. She seemed to think that was a viable option, especially in some neighborhoods we had already looked at and liked. Sorry this is so scattered...I just can't even think straight right now. And I have not even started drinking yet (don't worry, about to open the first beer in a second )
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raeoflyte
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Jul 17, 2012 21:13:21 GMT -5
Post by raeoflyte on Jul 17, 2012 21:13:21 GMT -5
Sam--maybe you could do a rent to own on your house? I haven't done this yet so do more research of course, but if you are marketing to people who want to own a home you are more likely to get a higher caliber of tenant.
I feel for you. Our neighborhood is less than ideal for raising babies. We always intended to keep this as a rental, but didn't realize how stuck we'd be when the market bottom'd out.
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Plain Old Petunia
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bloom where you are planted
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Jul 19, 2012 12:26:03 GMT -5
Post by Plain Old Petunia on Jul 19, 2012 12:26:03 GMT -5
Sam, I remember you talking about doing a trade with a builder, some months back. If that will work out for you, do it. I feel for you on needing to cough up money to get out from under your house. I'd need to cough up 70k or so to get out from under mine. Best of luck to you, and please keep us updated.
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taz157
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Jul 19, 2012 14:34:33 GMT -5
Post by taz157 on Jul 19, 2012 14:34:33 GMT -5
I'm sorry sam.
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Sam_2.0
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Jul 19, 2012 15:21:29 GMT -5
Post by Sam_2.0 on Jul 19, 2012 15:21:29 GMT -5
Well, having a couple of drinks & sleeping on it has helped some. I realized I suck at math when I am pissed, because its $40,000 that we would have to bring to get out of this house right now. We are screwed. Our viable options at the moment are: 1. Rent out 2. Get a trade (either builder trade or owner trade). Both are risky, but we will see what we can do. The realtor is looking into builders that do trades still (not many, but there are a few around here, mainly out on the KS side). There's also the option of doing an owner trade, but not sure anyone would want our house in that case (not necessarily to live in, but maybe as an investment property?). On the positive side, we are all healthy, we can well afford our living situation now, we just will have to postpone having kiddo #2 for a bit longer than we had wanted to. We still have 4 more years until we need to look at school options for DD, and we can drive to safe parks to play at. Staying in the little house will save us a lot on utilities, property taxes, etc. Just trying to drum up any sliver of positive news I can find
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Sam_2.0
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Jul 19, 2012 15:22:20 GMT -5
Post by Sam_2.0 on Jul 19, 2012 15:22:20 GMT -5
Oh, if anyone has tips on trades, I am all ears!!
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Bob Ross
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Jul 19, 2012 15:30:52 GMT -5
Post by Bob Ross on Jul 19, 2012 15:30:52 GMT -5
$20k would buy a lot of guns, ammo, and ninja throwing stars.
Take your neighborhood back!
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milee
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Jul 19, 2012 18:51:56 GMT -5
Post by milee on Jul 19, 2012 18:51:56 GMT -5
Do you have a first and second mortgage or just a first?
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Deleted
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Jul 19, 2012 21:29:41 GMT -5
Post by Deleted on Jul 19, 2012 21:29:41 GMT -5
While I know Bob Ross was being sarcastic, I think there is a bit of truth to the whole "take back your neighborhood" thought line. However, here everyone is armed, based upon simply were we live. So, it is a bit more of a battle than neighborhood watch. The movement here seems to be tall, electrified fence with a pack of large dogs behind it... As long as you post the significant number of required "No Trespassing" signs, then you can legally shot to defend yourself. It's kinda borderline redneck and self-sufficiency with a new bit of hood rat included. I know in my area the tax provided services have been shrinking and the more adventurous poor have moved into our area. Prior to recently, hauling water wasn't a reasonable thing and it kept people out. Now they find themselves with a need for cheaper living and find it more tolerable. I could honestly care less if people would have respect for other people's property and for the roads that we all pay to maintain. If you want to act like trailer trash - stay in the trailer park! Talking with some others from the area today I found out their area is having the same problems but most of their new neighbors are squatters on other people's land. The elderly woman I was speaking with said they called the code enforcement folks and complained. They flat out told her that they will not come into our area without a sheriff and since there is no funding and they are fighting active crime, there is nothing they can or will do. Our county sheriff went on the local news the other day and announced that the budget for prosecuting and investigating crimes in our county is already going to be over budget and it doesn't even account for any more crimes this year. This is essentially an open invitation to crime because it is well known they won't prosecute you and provide you with your free attorney unless it is well worth their time. It's kind of ironic to me that those of us in rural american areas have the same issue as those in the inner cities. We just don't hide our guns. God bless America!
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Sam_2.0
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Jul 20, 2012 1:55:22 GMT -5
Post by Sam_2.0 on Jul 20, 2012 1:55:22 GMT -5
Bob Ross - lol Milee - just one mortgage! Goldpanninggirl - yep, sounds like my city. Although they set up a million speed traps. Easy revenue, huh?
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milee
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Jul 20, 2012 6:18:04 GMT -5
Post by milee on Jul 20, 2012 6:18:04 GMT -5
Darn. Too bad you don't have a 2nd. In many areas, the owners of the 2nd are realizing they're likely to get nothing anyway and will jump if you offer them a nominal amount to buy them out.
Again, sorry this is happening.
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