Thinking about letting my house go *update post 39*

[BirdBrain]

Sounds like a very stressful, sticky situation. I think I would be inclined to still talk to an agent. If they listed it at 142,000 then the agent must think that is a fair price based on a current market analysis. Who knows where that 126,000 came from...what is a zillow estimate? It costs nothing to consult an agent. And tax valuation can vary greatly from sale valuation. I sure hope you can come to a decision that works well for you. This certainly is a stressful time.

 

[violet1816]

Before you let your bank take the house, you really do need to understand the impact that it will have on your credit. Sure, you might not need to buy a car, another house, etc. right now but you NEVER know down the line. Your credit score will drop at least 200-300 points and it will take years to recover. I know you said you wanted to be a stay at home mom but should you in the future try to get a job it is possible that they will do a credit check. Also, insurance companies will do credit checks to determine how much your premium is. Especially in this day and age, your credit score is a huge, vital part of your financial life. There might be a lot of events that you may not foresee right now that will be negatively affected because of this decision.

I understand that you're between a rock and hard place, and I'm sorry you're in this position. I just, with good intention, wanted to make you aware of the repercussions should you have the bank possess your home.

 

[Livinzoo]

I know there are a lot of issues with credit dropping. I believe I'm in the high 600 low 700's now, which is good. But to me taking a gamble and paying out $7500 more and probably having to walk away after spending that much money, time, and energy that we don't have compared to walking away now and saving my sanity and paying down some of my credit card debt prior to the birth of our daughter is a big thing. With the market like it is now, I seriously doubt that I could sell the house before December at $126,000. (that is the 115,000 that I owe + 3500 repairs + 7% for fees) To get the $3500 I would have to charge it to my credit card or get a loan from my 401K.

I personally would not buy the house as is. It stinks! I didn't notice it as much when I lived there but now eww. I fear there is subfloor that also needs replaced.

As far as future jobs etc. I will try to repair my credit as soon as I can. But I plan to be a stay at home mom and have about 3 farm kids that I home school and we will grow most of our own food and sell the excess.

 

[the lemon tree]

Like another poster suggested, I would talk to a trusted, experienced real estate agent (ask around to see if your friends or family can recommend someone) and talk to them about your options. You never know, they might have some good, viable ideas.

I can only imagine the stress that this is causing. Remember to take care of yourself for your baby! Good luck.

 

[arabianequine]

Sometimes renters will fix things too so maybe you can work out an arrangement that way in trade. Make sure you know they know how to do it though. That way you save a bit on labor and time.

 

[Cetawin]

*sigh* you do realize that "just letting it go" does not remove your obligation for the mortage amount left owed to the bank? They can and most likely will still foreclose the mortgage, get a judgment against you (that will total more than you owe because it will include their attorney fees, costs and accrue interest until paid). It will seriously trash your credit rating. Judgments can be collected by means of asset seizures, wage garnishments and a host of other avenues.

I would suggest speaking to a loan specialist at the mortgage company about your options...there are other options out there and especially if you have a good history with them on the 10 years you've owned the home.

Good luck in your decision.

 

[Sjisty]

Here's a thought - If you are going to let the house go, which will trash your credit rating, have you thought about filing bankruptcy? That will get the house off your back plus your other debt. You could even wait until the baby is born and include your medical bills. It might be something to look into.

 

[Mattemma]

I would rip out the carpet and soak the subfloor in pet stain enzyme liquids. Clean the home as best you can and put it on the market.Price it just above what you need to cut even.Some opt for short sale.I don't know anything about that. Our area houses are sold around 80k by realtors,but a house a few doors down was sold by the owner for 123k! When I saw his flier I laughed at his priced thinking *good luck buddy*,but they did sell it in a few months for the asking price.Realtors here post a price and just keep dropping until a house get sold or their time for listing it is over.

Some people will love a home that needs flooring and paint since they can do what they want.I always saw the potential in ugly homes.Try selling it before you let it go.There will be someone that LOVES your house.

I like Clark howard too.

 

[sonew123]

I fell for yah. were in the same boat-sorta-we are "letting" a house go because we cant afford it and we are tired of being landlords-its been on the market off and on for 2 years-It's listed for what I owe on it-I dont want a penny for it. Im doing the "turning in the Deed in luei of forclosure. " They offered that I accepted now its alot of paperwork-I dont have a renter in it either so There is no way to afford the house I dont even live in...look inot that but you have to prove youve tried everything to get rid of it the right way-selling on the market and such for at least 90 days

 

[TyrannosaurusChix]

im no expert but why not just rip up the carpet and see what the situation is, Buy an ionizer air thingy and let it run for a week or two and recheck.

If you only need a certain amount of flooring and its absolutely imperative that it has to be done, can you check craigslist? is everything else sound?( foundation, roof, structure, plumbing, electrical)? If so, i really would put in a last distch effort to get the stinky carpet and smell out of there and such.


another question. How important is your credit to you? If its high on the list in the situation, consider selling for a certain amount under what you owe.. When things go through with a buyer, be prepared to pay the few extra thousand(s) to get it off your hand and not have to deal with the debt any longer.



I hope everything works out to the best!!! i know what its like to have to make hard decisions like this!