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We were in a similar situation, with smaller numbers all around, but doing some things right to begin with has saved us in the long run. We bought just before the crazy boom and put 20% down. We'd lose the money we put down if we sold right now, so we decided to rent it out for less than our mortgage payment. We refinanced the house at a lower rate, pulled some out of the equity, and did interest only for five years with a fixed rate after that. Our hope is that the market goes back up a little in a year or two when the renters move out and that we can sell. If you know you'll sell within five years (don't know how much value your house has to gain before you can not be upside-down), why don't you refinance at interest only ARM for five or ten years? That should significantly drop your payment as long as you didn't get an ARM to begin with. We're making the sacrifice and renting for awhile so that we can save up for another down payment, let the market drop a little more, and have a cushion in case the renters default and we're left with a house payment. If you decide to refinance, I learned that calling a broker is the best way to go.
We are already on an interest only loan. We knew when we bought (right before the drop) that we would only be here a few years. We bought for $455,000. We owe $405,000 and right now our house is listed at $399,900 and we cannot even get a showing. We can't even re-fi right now. It would only make our payment go up. My husband made a stupid decision to take a new job with the housing situation as it is. But, nothing I can do to change that, but I want to get out of here the easiest way possible. I feel like I will be stuck here for years on my own with 3 kids. Not fair to me or the kids.
How do YOU feel about Texas? Was the move more for him than you and the kids? Why Texas? Do you have family there? Do you have family or any ties to Reno?
I'm just trying to find out the "background" stuff so I can give an answer that would be best IMO for you and the kids.
Well, it sounds like you can foreclose and rent for seven years, rent and pay the difference and get a smaller rental in TX until the market goes back up, or really lower the price and just pay the difference. Knowing that you rent an awfully nice house for under 1,600 a month, perhaps it's possible to pay a good 50k a year towards the balance of what you're left with after drastically reducing the price. I'm not sure how much you're upside-down in the Reno house, but even selling for 100k less than you owe can be paid off in 2-3 years. Faced with renting for at least that long with the other options, it would probably be the path I'd choose.
Either way, I know it's hard to be by yourself with three kids! Add to it that you didn't make the choice, and you're in a real tough spot. I hope you and your husband make it through this alright!
I been told by many that you can buy in two years if you do a short sale or deed in lieu if you keep your credit in other areas, esp your rent payments in good standing, is this not true?!
How do YOU feel about Texas? Was the move more for him than you and the kids? Why Texas? Do you have family there? Do you have family or any ties to Reno?
I am fine with Texas. Looking forward to it acutally. We are from Chicago, so I have no family in Reno at all. Texas is much closer to Chicago, so that will be nice. I also have an uncle in Texas. I am not mad that he made the decision to move, just that it was not the right time. He maybe should have not taken the job for now. Tried to move someplace later.
How do YOU feel about Texas? Was the move more for him than you and the kids? Why Texas? Do you have family there? Do you have family or any ties to Reno?
I am fine with Texas. Looking forward to it acutally. We are from Chicago, so I have no family in Reno at all. Texas is much closer to Chicago, so that will be nice. I also have an uncle in Texas. I am not mad that he made the decision to move, just that it was not the right time. He maybe should have not taken the job for now. Tried to move someplace later.
There might be more of a reason why your husband changed jobs.We were doing great in CA for 25 years.Hubby changed jobs a few times but we stayed in CA. He got a job in the late 80's and ended up being President of that CO.The money was great but hubby's mental state was way down. The ceo was a real jerk and for hubby's sanity he had to look for another job. He was 60 then and flew to FL for his first interview and got the job. A good job also but without the stress that was unbearable. Sometimes you just have to leave one job for another. That is why we are again moving to NC from FL.When we moved to FL (we could have stayed in Ca) he worked in the main office three days a weeks and two days from our home office.He got drawn into the office politics and was always asked by others what to do.He was getting sucked in again so we are going to NC and he will work from home and visit the FL factory every 4 - 6 weeks. This might not be your husbands reason for getting a new job but it just might be something like it.
There are leaders and then there are followers and my hubby has always been a leader not by choice but that is his nature. Yours could be also.
He switched jobs because he was at a standstill here. No future growth for him. I totally understand his reasoning, but just not a good time for a change.
We were also in a similar situation...it is seldom ever a good time to move and uproot your life, but it can be done...he must of been very unhappy here...i wish him well and you well to mom, sorry i could not help you here.
I know someone who was in almost the exact same situation down to all the numbers and heading to Texas. The only difference was it was a job transfer. I can tell you how it ended 20 months later, but it's not good news. They had to foreclose on their 1st house and they are renting in the new place. Their 1st place was on the market for 20 months with little interest. They were upside down. They lost their down payment (this was their 2nd home). House prices went down in their area by about $80k. They lived apart the first 8 months. The employer paid for one of the places for 12 months as part as their relocation package, but it wasn't enough. They had excellent credit prior to this incident. They figure so many folks are going to experience a foreclosure during this housing crisis it's going to essentially become meaningless.
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