Ontopic Foreclosure

Shalimar

Like herpes - just appears
Feb 5, 2007
14,031
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St Pete
www.MingleMixx.com
First off sorry I can't be around that often but it's hard to post from the PE field and at home I just don't have that much time online. and damn, I just feel like you either commit to UF or you don't.. so hope the occasional popins aren't too annoying to the OG's.. i do miss you guys though, in many ways.

but my question: my house seems to be literally falling down around me. a few years ago we had the house painted and the painters convinced us to take the gutters down.. "look around at the other houses in the neighborhood, do you see many gutters?" we didn't so they took them down.

well now my 1940's built bungalow in a historic district is crumbling.. damn near literally, from water damage (water just flows off the side of the house on to the window frames) and probably termites (either old or new damage).. 80% of my windows, and we have around 20, have cracks around the frames, inside and out. spent $1200 (yes, i probably got suckered) a few months ago getting one of them fixed and .. well.. and it sucks. got a side door that the last time i opened it, just came off the hinges from rotted wood. would probably be 20K+ to get it all fixed, which we don't have and would probably put us upside down on the house.. there are probably also mold issues now. mo, over the last month, has developed a pretty nasty mostly-at-night cough.. it's either mold, dust, or the fact that his guinea pig now lives inside the house instead of out on the porch at his mom's old apartment. (we know he's allergic to cats already.)

so i wanna get out of the house. we could put it on the market and POSSIBLY break even, but I doubt it with all this shit wrong with it. it certainly wouldn't pass FHA inspection. it's not a bad house. 3/1, almost 1700 sf.. hardwood floors.. blah blah. but it's falling apart. also just tired of this neighborhood and wondering if the hood is gonna come two streets over and take all my stuff. garage and cars been broken into several times.

do I just stop making payments? and if so, what are the consequences?

we would like to get a house, probably in tampa, but certainly don't have 20% cash to put down.

try and borrow the cash from a relative, buy one, and then just let the bank have this motherfucker?


you folks have always been a great resource. thanks in advance.
 

Coqui

Piccolo Pete
Oct 14, 2004
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Columbus, OH
do I just stop making payments? and if so, what are the consequences?

Your credit score will tank preventing you from being able to get a mortgage.

How long have you owned the house? If you've been there long enough, you should have enough equity to get a loan to pay for the repairs to the house.
 

ZRH

(retired?) Google-F.U.
Mar 5, 2005
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I am in situation relevant to your post. I don't want to put details up on public forum though.

For a foreclosure it is highly dependent on what the exact terms of your mortgage are, and whether or not FL has a judicial foreclosure process or if it is administrative. Your credit will be FUBAR if you stop making payments, you can be sued, and you will probably not be able to get another mortgage for 7 years.

There are options for unloading your house though, you can do a "Deed In Lieu Of Foreclosure" with the bank which essentially means you just turn it over to them which doesnt show up as a deficiency on your credit or you can ask them to take a short sale (sell it for less than it's worth).

Honestly no one is going to be very sympathetic to your situation. You don't have any kind of hardship (that you posted about), you just want out of a deal you made.

I'd start shopping around for a rehab loan if the mortgage isnt underwater.
 
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Shalimar

Like herpes - just appears
Feb 5, 2007
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Believe me I thought long and hard about putting thi up on a public forum. What could happen? Embarrassment? I'm already embarrassed.

There's no equity in the house. Nothing meaningful at least.

Fack. This sucks. Been in the house about 8 years FYI.
 

Casper

Bobbert Cheapstein
Oct 6, 2009
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Foreclosures and short sales stay on your record for ten years. Most lenders won't touch you for two years after a short sale or seven years after a foreclosure. That's the only benefit of a short sale. In both cases, you've defaulted on a contract. Lenders will not trust you.
 

ZRH

(retired?) Google-F.U.
Mar 5, 2005
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Believe me I thought long and hard about putting thi up on a public forum. What could happen? Embarrassment? I'm already embarrassed.

There's no equity in the house. Nothing meaningful at least.

Fack. This sucks. Been in the house about 8 years FYI.
Eh not really embarrassment, evidence in a lawsuit.
 

Casper

Bobbert Cheapstein
Oct 6, 2009
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365
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Your best option may be to go to Lowe's or whatever and buy some DIY gutters that will suffice until you can save enough money to make proper repairs. That is, if you can save any money at all. Tough times.
 

ZRH

(retired?) Google-F.U.
Mar 5, 2005
21,043
642
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Foreclosures and short sales stay on your record for ten years. Most lenders won't touch you for two years after a short sale or seven years after a foreclosure. That's the only benefit of a short sale. In both cases, you've defaulted on a contract. Lenders will not trust you.
DIL's if they will agree to one arent as bad? Chances are you won't get one without much equity though.
 

Casper

Bobbert Cheapstein
Oct 6, 2009
8,299
365
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DIL's if they will agree to one arent as bad? Chances are you won't get one without much equity though.

Depends on who you ask. I know a ton of realtors who think DILs are preferable and no lenders that do. Makes sense because realtors are looking for the commissions. A DIL will show up on your credit score.
 

Coqui

Piccolo Pete
Oct 14, 2004
35,593
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Columbus, OH
DIL's if they will agree to one arent as bad? Chances are you won't get one without much equity though.

Unless he refinanced other things into it recently, I find it hard to believe 8 years worth of payments won't yield equity.
 

Floptical

Doesnt Read Thread Titles
Sep 1, 2006
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Rockies
Unless he refinanced other things into it recently, I find it hard to believe 8 years worth of payments won't yield equity.


The values in FL have dropped so much there that is very possible. The townhouse my wife had prior to us getting married dropped 200k from what she paid for it. The bank instructed her to short sell it based on the numbers. Given the standard increase in home values each year it was targeted to take 20 years to get back to what she paid for it. Unfortunately when values drop that far there isn't much you can do. Also one negative thing is so many people did a short sale since the crash that it's not easy to do anymore. Also banks are going after folks for the difference now.

If it's really something you want to do then you really have 3 options.

1. If the house isn't in both you and your wife's name then try to get the loan in the others name.
2. Let the house go and accept that you'll be renting for awhile. Also remember you might have issues getting approval to rent due to your credit score.
3. Stay
 
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JAXvillain

Curly_Sue
Oct 13, 2004
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how about renting the house and moving elsewhere? a rental house, apt, whatever.
is there no possibility of renting to at least break even?
 

Coqui

Piccolo Pete
Oct 14, 2004
35,593
4,667
673
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Columbus, OH
how about renting the house and moving elsewhere? a rental house, apt, whatever.
is there no possibility of renting to at least break even?

If the house is in as bad of a condition as he says, he's going to have an issue finding someone to sign a lease on it.
 

JAXvillain

Curly_Sue
Oct 13, 2004
68,542
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923
I've lived in houses that sound similar when I was younger and always paid my rent on time. the location has got to be desirable to someone looking for the area and they might even put some work into it.
just a thought.
 

Floptical

Doesnt Read Thread Titles
Sep 1, 2006
23,575
14,691
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Rockies
how about renting the house and moving elsewhere? a rental house, apt, whatever.
is there no possibility of renting to at least break even?

In the Tampa/St. Pete area there are so many rentals available renters can be very picky. Plus with so many out there you have to drop the rental amount well below your mortgage payment. We rented our townhouse for awhile but to meet the current rental market we lost 1000 a month.
 

plot

Morning Boehner
Oct 16, 2006
20,031
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kansas city
Another option: you could find someone with shit credit and owner finance it to them. basically, they move in and make your mortgage payments, you report it to a credit agency every month they're on time so their credit rating goes up high enough for them to take out their own loan and pay off your current mortgage for the deed.

you take on the risk of them not paying then you have two mortgage payments or your credit goes to shit, but you'd already be into a second mortgage hopefully so who cares if house #1 goes back right? for this to work you'd have to qualify for another loan with your current credit.


... just did my siding & replaced all my windows, including trim, for like 7k. me and my brother did the work, cousin helped out too. stop getting raped on house repairs, and put some dirt around your foundation if you have water damage. also vinyl gutters are cheap and while they may not be ideal, they're good enough and you can buy & install them yourself for a few hundred bucks probably. Aluminum aren't that much more... only gets expensive when you get seamless ones done (and that's just because you have to pay the installer who has the press to stamp out the roll aluminum into proper length gutters), or I've seen some high dollar copper ones put in.
 

ZRH

(retired?) Google-F.U.
Mar 5, 2005
21,043
642
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... just did my siding & replaced all my windows, including trim, for like 7k. me and my brother did the work, cousin helped out too. stop getting raped on house repairs, and put some dirt around your foundation if you have water damage. also vinyl gutters are cheap and while they may not be ideal, they're good enough and you can buy & install them yourself for a few hundred bucks probably. Aluminum aren't that much more... only gets expensive when you get seamless ones done (and that's just because you have to pay the installer who has the press to stamp out the roll aluminum into proper length gutters), or I've seen some high dollar copper ones put in.
Mad cheap if you have the tools and time. If it's in REALLY rough shape you might be able to qualify for a USDA Rehab loan. Im not sure if they are offered in cities though and you have to earn less than 40k.