I have a 2yr prepayment penalty and we did 100% financing when we bought the house. My husband commutes over 50 miles oneway to work and I am looking for work and his paycheck barely pays the mortgage and we don't have enough left over for the other bills. Should we sell the house or rent it out. Our mortgage payment is $4100/month we have a 5br 4ba house with 3300sqft.
The best answer is by :
tearsofthemoon00 :
Sell it.You will not be able to afford the taxes at the end of the year.
September 18th, 2006 at 2:14 pm
Sell it.You will not be able to afford the taxes at the end of the year.
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September 18th, 2006 at 2:14 pm
Have you thought about renting rooms? Is that an option?
If not, I would think about renting rather than selling, if you can get a renter to pay the mortgage amount..
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September 18th, 2006 at 2:15 pm
Well I think if you rent it you get paid for each month!
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September 18th, 2006 at 2:17 pm
if you sell, where will you go? If you can't afford this mortgage - where will you get the downpayment for the next house? Or the security deposit for an apartment?
however, if you can't pay the bills… and you get behind on your mortgage, the bank can foreclose and evict you.
Sounds like a big house - can you a room or two to roommates until you find a job? But it sounds like a good solution might be to buy a smaller house, with a conventional mortgage in a neighborhood close to your husband's job. You got in over your head on those stupid loans that do exactly what they are doing to you - making you go bankrupt because they enticed you into a house you can't afford.
IF YOU SELL THIS HOUSE - you WILL lose money on it - it is a buyer's market right now, and you will NOT recoup any of the money you put in.
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September 18th, 2006 at 2:19 pm
That is a tough one.
I was in the same situation 5 years ago. We didn't make the necessary adjustments and it cost me my marriage. So please for your sake don't procrastinate.
I would first see what the rental market looks like. Ask around and check newspapers for your area. Secondly, you should think about what type of potential renters you would like to have. You don't want to have to weasel the rent out of someone every month. Also, repairs and damage are considerations. Are you prepared to be a landlord?
If any of those questions seem to frighten you I would discuss it with my husband and propose selling the place.
Good luck and be mindful to love each other while dealing with this financial crisis.!
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September 18th, 2006 at 2:19 pm
Why dont you rent out a room or something to help pay the mortgage.
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September 18th, 2006 at 2:23 pm
I would rent out some or all of it.
If need be I would live in a caravan till finances pick up.
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September 18th, 2006 at 2:24 pm
Why dont you rent out a room or two? That would bring in extra income. Or take in day care, there are a lot of big bucks in that. If you don't want to do either of these things, then I suggest selling and moving closer to your husband's work. Hope it all works out for you.
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September 18th, 2006 at 2:48 pm
might want to refinance. your payment leads me to believe that your loan amount was at or around a cool million? you can get onto an MTA or option arm that will reduce your monthly payments for awhile until things pick up again. not sure what you're on now but this would be a more efficient plan rather than deciding whether to sell and move someplace else.
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September 18th, 2006 at 2:50 pm
You should check your state laws. In California, you can give the house back to the mortgage holder and walk away. Does not affect your credit.
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September 18th, 2006 at 3:03 pm
Why dont you search for a roomate? With 5 bedrooms and 4 bathrooms you can have anouther person living in the house and never have to worry about it. Charge 800 a month (Thats your morgage divided by the 5bdrms) plus utilities.
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September 18th, 2006 at 3:10 pm
I just do not understand when people have to have the 'big' house etc. so much so that they can't take care of basic needs. I could never see myself in your shoes, but if I did end up in a similar situation I would contact a CFP (certified financial planner) and an attorney.. preferably an attorney who is a CFP? Good Luck.
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September 18th, 2006 at 4:04 pm
Cost Analysis—
I would get a loan officer or financial planner to do a cost analysis of all the scenarios your contemplating. This way you and your husband can really make an informative/objective decision to answer your dilemma.
Short Term Solution–
Other suggestions I'd have for an initial solution would be to get a job and possibly rent out 1 or 2 rooms in your house. This will hopefully keep you from missing any mortgage payment and save you from ruining your credit.
If you can quickly adapt to this solution you might be able to keep your home until the market picks up again.
Selling Property–
If you can't apply this short term solution and just want to completely get out of the situation, then I'd suggest to start interviewing local real estate agents and find out your homes marketablity if you placed it in the market right now. Have them create a "Sellers Net Sheet" for you. This will determine an approximate cost of selling your home. Depending on comps pulled from the agents your interviewing will determine you initial selling price for your home. You will know right away if you're in a situation of selling your property as a "Short Sale" or if you are able to come out of it even. If you're in the Short Sale scenario I'd suggest to get an agent that specializes in this type of transaction.
Real Estate Investors–
I'd also see if you or your realtor can seek out real estate investors that are willing to purchase your home and you rent it back from them for a pre-determined timeframe. But because your husband work is too far this would not be my first choose.
Renting Property–
More than likely you won't be able to find renters that will cover your entire monthly mortgage, so if you completely rent out your home you'll have to cover the difference. With this said you'll still have to find a rental of your own that you can afford plus the diff not covered by your tenants.
It won't be easy but think by simply asking for advice on how best to handle your situation is a good first step. Good luck and carefully think out your next steps.
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September 18th, 2006 at 6:13 pm
hey i'm a realtor in new jersey .your best bet is to rent it .
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September 18th, 2006 at 10:25 pm
sorry to hear that… it looks like the loan agent and realtor screwed your finance.
you might need to find a job fast; the market is good.
Good luck!
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