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My story is NOT that of the commonly believed scenario of a greedy homeowner who, through creative financing, purchased much more house than could be afforded. On the contrary.
During the real estate hot market frenzy, I bought a house to relocate from one area of Florida to another. I listened to the advice of the builder, "when the drywall goes on in the new house, put your current house on the market." There was no reason to think I'd have any trouble selling my house as it is beautiful, and resales at the time were flying off the market within days of being listed. But (I'm sure you've guessed it) I missed the market, began "chasing" it, and my house never sold.
I've beat myself up for not selling sooner, or for not dropping the price quickly enough. But I had no way of knowing what was going on with the mortgage companies and the banks. I have been through normal ups and downs of the real estate market in my life, but never, ever have I seen nor could have imagined anything like this current market. Never.
For over 2 years, I took a very proactive role in trying to sell my house. I listed both houses out of desperation. I spent countless hours researching, listing, calling, and seeking adviced of attorneys, real estate professionals, financial advisers, auction companies, and anyone else I could find including the "buy your home for cash" companies. Yes, I dropped the price to rock bottom. I eventually considered renting but by then it was too little, too late.
My credit is excellent and has been so all of my life. I am a very responsible person who always tries to do the right thing. Now, after over two years of owning two homes, paying two mortgages, (NOTE: each of these mortgages has a great rate, and both are 30 year FIXED. Each mortgage alone is very affordable to me.) and paying two sets of expenses, including taxes, insurance, utilities, maintenance, and HOA's, I have had it. I have depleted my savings and am living month to month just barely making it. The stress has been enormous. My bank has refused to talk to me about this because my payments are all current.
So, I am about to sell short, or if that fails, to walk away. Yes I will be destroying my own credit, but I have no choice anymore. To continue this way will be an even worse financial disaster.
So you see, not all of us are irresponsible, greedy consumers. I was just minding my own business trying to buy and sell, when the playing field was suddenly changed and all of the customers were driven away. Now, the same banks who made a ton of money during the hot market are dumping their bank-owned properties for sale in my neighborhood at unbelievably low prices. I just can't compete with that, and I am not wealthy enough to ride it out as the cost of living continues to rise.
Thanks, Dave. I am absolutely considering deed in lieu of, but I hear that there is also a hassle getting a bank to accept this. If the short sale doesn't happen within a month or so, I think that will be the next approach. After that, I guess the only thing left is foreclosure. Unbelievable, but I don't see any other way out.
most banks are taking them at this point. but be forewarned, i am not an attorney, but even with deed in lieu, the bank has every right to come after you for the difference in money's from the sale of that home, most likely they would attach a judgment to the title of your current home.
but after a couple of years the market may be back and you could get a wash on it.
don't stress it. I think I spoke to you before. With the way thing are, you will be living payment free in your home for at least a YEAR before you are evicted. Save up for the rental market...try to get a deed in lieu of foreclosure if you can.....rent for a couple of years, your credit will go up and you will be fine. Life goes on ! It's happening to millions of people and will keep happening. Keep your head up and move forward and stop beating yourself up over it. YOU WILL BE OK..
most banks are taking them at this point. but be forewarned, i am not an attorney, but even with deed in lieu, the bank has every right to come after you for the difference in money's from the sale of that home, most likely they would attach a judgment to the title of your current home.
but after a couple of years the market may be back and you could get a wash on it.
Thanks again for that advice. I do have a company helping me, they are going to try to get the bank to accept the short sale with no judgment on me, and have it put in writing. I thought the deed in lieu was the same as a foreclosure with respect to the judgment, that it cannot be done any longer because the house is the collateral for the loan.
don't stress it. I think I spoke to you before. With the way thing are, you will be living payment free in your home for at least a YEAR before you are evicted. Save up for the rental market...try to get a deed in lieu of foreclosure if you can.....rent for a couple of years, your credit will go up and you will be fine. Life goes on ! It's happening to millions of people and will keep happening. Keep your head up and move forward and stop beating yourself up over it. YOU WILL BE OK..
Thanks for the encouragement! I dont need the rent money, because remember I have the 2 homes, so at least I dont have that worry. I am just worried about the repercussions of the bad credit, just can't get used to the idea that my credit will be bad after all this time. It sort of makes you feel like a failure. But I appreciate your comments.
Thanks for the encouragement! I dont need the rent money, because remember I have the 2 homes, so at least I dont have that worry. I am just worried about the repercussions of the bad credit, just can't get used to the idea that my credit will be bad after all this time. It sort of makes you feel like a failure. But I appreciate your comments.
One thing you'll need to watch out for is Universal Default on your credit cards. I would highly advise a balance transfer to get all your CC debt in one place so you can start paying it down in one payment.
As long as you have a house, and a car, and a job, and lines of credit open, you don't have much to fear by walking away.
I hear stores like yours everyday and trust me when I say you are not along. You simply do what you have to do in times like this. You are simply one of thousands who just missed out on a great market.
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