Anyone else trapped? (real estate, housing, condo)

[bubbagirl]

Originally Posted by tcb

I was thinking of moving out of state where I can get a job that doesn't rely on the auto industry. I made an appointment with an real estate agent. It doesn't look like I'm going anywhere for a while since I would owe somewhere around $13,000 in closing. Anyone else trapped? My house value just keeps dropping, I'm scared it's not going to bounce back. I don't know if I should get another job and work until I can get the money and get rid of the house and the $1500/month payment (with taxes and insurance in escrow) or try to stick it out. I paid $150k for the house about a year ago.

Rest assured... it is possible to move out of state while maintaining 2 housing expenses.... we moved out before selling and are still paying the mortgage on the property in MI that still hasn't sold. Fortunate for our situation... our mortgage is under $500/mth and we just own property with no home... hopefully this makes it more marketable as it is more versitile. We also reduced as much as we could for monthly expenses.. including credit cards, car payments, and "frills" we didn't need around the home.

But, to do this.. you have to have the extra money to pay for the expense of moving. You also have to reduce your standard of living - no luxery apartment, no lattes every day, no eating out every night. You live conservatively and realistically... and this will protect your credit and investment. And hopefully, homes will start selling again.... If only the taxes weren't so high....

My opinion is.. if you want out, start working towards getting out. Take on an extra job (if you can get one) to bank up some money, start applying to jobs of interest, and make the move.

[trmaoy]

Originally Posted by Adieoz

To "give the house back" to the bank is called a deed in lieu of foreclosure. And these can be very tricky to do. The bank often does not want to take the deed back without doing the foreclosure because there may be junior liens on the property that are only cleared by completing the entire foreclosure process. Either way your credit will suffer. They only way to save your credit is to pay the money that you owe.

As far as you question to "do you have to have a buyer to negotiate a short sale" The answer is yes. You need a patient buyer and a written purchase agreement. These banks are very much overwhelmed with the amount of property they are trying to handle right now.

Thanks. I have heard of these tools before. I guess my only thought was, what if you still need to move (job relocation etc.) but you have no buyer. But I suppose if it was that easy tons of people would be trying to give the bank the house to get out of it.

One other question, if you have a HELOC, would you need to refinance it into one loan first if you wanted to negotiate a short sale? Thanks for the info.

[snow4461]

I live in the South west corner of Michigan, ( by the Indiana line and lake Mich ) Our housing is the same way here. My husband also has trouble finding a job, he was in tool and die,smae job for 8 yrs. he decided at 42 to go to school and prusu his dream of airplains, so he is in Indy, he is school full time and working there too, no promblems finding a jon there either. His resume was great though. We are planning on moving when he is done with school in 2 yrs. OUT of Michigan, my kids have all graduated and we have one left in school I feel that she could get a better education somewhere else as our school is having major issues. We too have our home up for sale, although I dont excpect anyone soon.It is a beautifull place to live but we have been really checking the rest of the country and there are areas like ours but more that are not, better jobs, homes and education. I hate to leave but we have stuggled too long. by the way most of our friends husbands work out of state, and come home on weekends.

[ntchanga]

I'm trapped, but in the opposite direction!!!

I would love to come home to Michigan and buy one of your homes from you, but there aren't any jobs there! My husband and I both have master's degrees and have been trying for the past few years without luck. (We'd move if even ONE of us could get a job) I'm originally from northern Michigan and miss the fresh air, the lakes, nature, and most importantly my family!!! While the economy and job scene are definitely better in other places, there's no place like home...

[Bydand]

Same here ntchanga about being trapped in the opposite direction. Except we are trapped due to job contracts for the next year. After that, we are headed home to Michigan. Difference being, both my wife and I have jobs that we can go anyplace we want and get work. That is a huge benefit.

[ntchanga]

I'm jealous, Bydand! My hubby and I gave up our Michigan job search for a while and just moved to the Raleigh-Durham area. While we do like it here, I definitely want to go home someday.

[tcb]

Thanks everyone for your comments, It's interesting to think that a few of you are trapped in the opposite direction. I'm going to start looking into part time jobs to bank up some money.

[Bydand]

Originally Posted by ntchanga

I'm jealous, Bydand! My hubby and I gave up our Michigan job search for a while and just moved to the Raleigh-Durham area. While we do like it here, I definitely want to go home someday.

My sister and her hubby live down that direction. Little place named Clayton. Quite nice, but they are waiting to get a transfer for his job back to Michigan as well. He is originally from Chicago area, but fell in love with Michigan. They took the transfer to NC just to get out of the rat-race that is Chicago.

[walidm]

Originally Posted by Adieoz

To "give the house back" to the bank is called a deed in lieu of foreclosure. And these can be very tricky to do. The bank often does not want to take the deed back without doing the foreclosure because there may be junior liens on the property that are only cleared by completing the entire foreclosure process. Either way your credit will suffer. They only way to save your credit is to pay the money that you owe.

As far as you question to "do you have to have a buyer to negotiate a short sale" The answer is yes. You need a patient buyer and a written purchase agreement. These banks are very much overwhelmed with the amount of property they are trying to handle right now.

Typically you do not need to have a buyer in order to do a short sale. You will need to have the property listed with a real estate agent and be able to certify to the bank via financial documents the reasons why you cannot pay the mortgage.

The bank has final approval once they have agreed to the short sale and an offer is received. This is because it is no longer up to the seller to decide how much money they will take for the home. The bank will rely upon the market to determine the cost of the home.

Sometimes it is better to pay off a 30k note vs. damaged credit via foreclosure. Also keep in mind the seller will have to file a 1099 in order to pay the taxes on the sale.

[walidm]

Originally Posted by snow4461

I live in the South west corner of Michigan, ( by the Indiana line and lake Mich ) Our housing is the same way here. My husband also has trouble finding a job, he was in tool and die,smae job for 8 yrs. he decided at 42 to go to school and prusu his dream of airplains, so he is in Indy, he is school full time and working there too, no promblems finding a jon there either. His resume was great though. We are planning on moving when he is done with school in 2 yrs. OUT of Michigan, my kids have all graduated and we have one left in school I feel that she could get a better education somewhere else as our school is having major issues. We too have our home up for sale, although I dont excpect anyone soon.It is a beautifull place to live but we have been really checking the rest of the country and there are areas like ours but more that are not, better jobs, homes and education. I hate to leave but we have stuggled too long. by the way most of our friends husbands work out of state, and come home on weekends.

We left and moved to NC because we saw the writing on the wall....no jobs and an economy that was going nowhere fast....best of luck with the move and career change