- Pregnancy
- Baby & Toddler
- Parents
- Getting Pregnant
- Baby Names
- Product Reviews
-
Registry
- Community
-
More
Want a personalized experience?
Download the free app
Toddlers: 12 - 24 Months
Are you in danger of Foreclosure???
A new article in the Washington Post today suggests that the worst surge of foreclosures across the country is still to come. They anticipate that up to 50% of homes for sale in some areas will be foreclosures alone. Are you in a position where you might have to foreclose or short sale??
I have to say that while we thought we would never be in that position, we bought when the market was already down...if we don't appraise in 2 years, we won't be able to refinance...and may face a tough decision. We make good money, work hard...but don't qualify for any relief plans due to our income. Scary stuff to come.
This discussion has been closed.
Re: Are you in danger of Foreclosure???
i saw something on abc about the middle class and how most of them are just trying to stay above water. sad.
but no, we aren't in any danger of foreclosure. i'm so thankful for that b/c i can't imagine how stressful and terrifying that must feel when you have children.
We bought in December 2008. The person we bought from bought in 2006. He sold the house to us for 18k less than what he paid for it. I just got out property tax assessment and our house has fallen in value by 15k since Dec. 2008. It's scary to think how much the market is still dropping, even before then next wave of foreclosures hits.
Even with that said, we should be ok. We have a fixed interest rate and put ~50% down. Because we put so much down our monthly payments are relatively low compared to our income.
If our house value fell more than 80% we might have to take out an unsecured loan to make up the difference between what we have in savings and what we'd need to sell the house. However, I don't anticipate our house falling in value that much.
We're okay as long as we can keep our jobs.
A friend of ours is opting for foreclosure instead of even trying to sell their house. They know it won't sell for what they owe, and they could afford to continue making their payments, but they want to move to another state to be near family. If they were to short-sell, they would still owe ~$40,000, and/or it would take months for the bank to decide whether to allow a short sale. So I wonder how many people are going to OPT for foreclosure in the next few years too.
We would have been if our house didn't sell.
Sequence of events in two years time?
Thankfully DH gets a wonderful raise yearly and is now making almost 75% more than he did initially. I went back to school to pursue a different career and am almost done.
Things are finally looking up and we will (hopefully) be able to buy another house again this summer.
This exactly.
what she did should be freaking illegal. thief is really all i can say.
No. We bought a house well within our means. We made sure we could afford it with plenty of room just with DH's job. We have been lucky he has a secure job.
I'm sorry to those of you in tough spots. I hope it looks up soon.
Yep!
DH did lose his job last year, but we weathered that storm just fine by cutting a lot of our expenses and just staying in. It all worked out, but it was certainly a scary time for us.
My Etsy Store PIGGY'S PLACE
No. But that's probably b/c we live in AL where most people don't want to live and the housing bubble does not effect us the way it does other communities.
However, I do know a married couple who bought their house high, it's now worth about 30% less, & they have no equity in it. they are now in a position where they have to sell, and will either be foreclosed upon or have to do a short sale. Mostly, this is due to the fact that they are really bad w/ their $.
me too
We don't own, but we're in a crappy position because we can afford a starter house/condo in our area (prices are still through the roof in Boston), but we're afraid of being stuck in a too small place. So many of our friends have 2 bedroom condos (the official newly married in Boston starter) and can't get rid of them! A lot of my friends are having their second children and would give anything to sell and get a bigger place, but can't.
In a way I'm thankful we don't own, but it's frustrating to be renting at our age with kids!
my dh (and me to an extent) are the same way. we qualified for $xxxx but we got a nice place for $xx. we didn't want to be house poor.
Timeshare with mulva - woot woot!
Same here. We bought what we truly could afford with $ to spare even though we got approved for a ridiculous amount... it was definitely tempting though. Because we were pretty conservative, I was able to leave work when DS was born and be a SAHM. BUT, if DH were to lose his job one of us would have to find work w/in 6 months to still be comfortable because our home has depreciated so much since we bought it in 2003... got to love Michigan.
So now we live in a house that is a lot smaller than I would have imagined with one child and another on the way as we intended to buy a new house before we had children. But our payments are okay and we aren't in any financial crisis so I just suck it up and make it work. To not be overextended is worth it.
A new article in the Washington Post today suggests that the worst surge of foreclosures across the country is still to come.
My friend, who used to be a mortgage broker warned me about this last year. She said it was because of all the people doing 5 year interest only loans (or ARM's) at the height of the market--which would have been 2006.
if we don't appraise in 2 years, we won't be able to refinance...and may face a tough decision. We make good money, work hard...but don't qualify for any relief plans due to our income. Scary stuff to come.
Same here. Although a friend of mine talked with a loan modification person, and was told that this area isn't eligible becasue it's coming back faster than the average. I'm praying to God this isn't a joke/misinformation.
Another article suggest that DC has a falsely high recovery value. What a cosmic joke.
Breastfeeding Counselor with Breastfeeding USA
Babywearing Guide ** Newborn Carriers
Cloth Diaper Guide
Safe Bed Sharing Info
Funny, my husband just sent me this article:
Great Time to Buy (Famous Last Words)
If DH lost his job, we would have a hard time. We have about 9 months of savings, but his loan is through his employer, and we would have to refinance with a new bank in 60 days. Not sure how easy that is to do with no income coming in. Plus we would lose the low rate, which would mean our payments would go up.
Ugh, I don't even want to think about it.
We rent and honestly are not in any hurry to buy. We live in NJ and the property taxes is rediculous. Not to mention the COL. I'd much rather move to another state and buy there.
Friends of ours bought more than they could afford & than her DH got laid off. He can't keep a job to save his life either. That or he gets one but finds a reason to quit. So they applied for assistance with there mortgage. Than they got pregnant again. On purpose. Talk about a walking disaster. When she complains about money to me it's all I can do to not flip out on her.
I also know of someone who thinks it'd be easier to just forclose than try to sell 1st. All while TTC.
I honestly wonder where these people get off bringing children into the world when they can't afford to take care of themselves let alone another person.
No. This house was a "handyman special" (read: DUMP) when H bought it, so he got it really cheap. We could still afford to live here if one of us lost our job, but we'd have to put the remaining improvement projects on hold. Fortunately, everything in this house is in decent shape, it's just very ugly (I'm talking to you, circa 1983 gold swirly cultured marble tub surrounds).
We will need a new roof soon but since we just paid income tax, that's on hold for a few months.
Well if it didn't take the banks so gosh darn long to approve a short sales (which are 80% of the homes on the market now) then there wouldn't be so many foreclosures. You would think a bank would want to get something for a house with a good buyer, but they seem to take there jolly old time approving people. My poor coworker is in limbo right now, approaching 30 days with no answer from the bank. I mean really....
We are faced with a similar situation. We have renters in our house in MD right now and our house just appraised for $100k less then we bought it.We can't refi becasue, one we don't live there anymore, and two because it won't appraise for enough. Sucks all the way around.
In the meantime we are trying to buy a house now in NJ with some assistance from my IL's but it's looking grim...
Me as well.
The Mouse ~ 06.12.08 | The Froggy ~ 02.23.11
same here
woof!
We WERE in danger of foreclosure, but not anymore. Long story short, DH closed on our TH in April 2006, his condo never sold. We rented it out... but still had to pay the difference in condo fees & mortgage every month. DH had a LOT of money in savings, but this situation ate it away over a period of 2.5 years. So in August 2008, he stopped paying on both properties, as we were filing hardship and seeing which bank would work with us. At that point, we had already evicted our tenant, as she had stopped paying rent in May 2008. Thank GOD the bank on the TH (Indymac) came back to us with a loan modification offer, as we were in a 5 year ARM and ineligible to refi- as our house plummeted in value.
CFO, I don't think how much you make is as much of a factor. DH & I make good money as a household income & the bank still worked with us. Chances are the bank will work with you & modify your loan if you are currently in an ARM. They will lose a lot more money if you leave & they are forced to sell at current value or less.
The bank that held the title to the condo initially said we could short-sell, but then decided to foreclose. It sucks & DH's credit is in the crapper for the time being (my name is not on anything thankfully), but it was a huge relief to have that property off our shoulders.
As for recouping our value, we are over $300,000 underwater on our TH. I feel sick just typing it. I have yet to see our property value go up at all
Having been there myself, I truely feel for people in this situation. I had terrible anxiety during that time. But even when things look bleak, just hold on to some hope that the bank will work with you...
And JuneMommy2B, I don't know if your friend was talking directly with the bank or an outside loan mod program, but I really do not believe that to be true based upon my experience... as you know, I live in NoVA & was able to get a loan mod. I believe the banks are trying to get people completely off ARMs before they go into arrears or foreclosure status, no matter where you reside.
Sorry this is so long, but hopefully I can be somewhat helpful to those who may need the information by offering my own experience.
Nope. I already went into foreclosure on the house I owned before getting married. It sucked, but what can you do?
I hope the situation gets better fro you.