Foreclosing in CA, Moving to OR-help (Salem, Beaverton: foreclose, rental, bad credit)

[jojonow]

There are reasonable answers to all your questions, but I won't go into it all now. But you seem not to grasp one simple fact: We cannot afford to stay in our home currently without incurring additional debt. Therefore we are leaving. It's no use looking backwards at the mistakes we made and whining about them, other than to learn from them, which we have been doing. At the time we bought, we were not ready to leave California, and our mortgage was not at all expensive for the area. Remember, we expected to cash out our appreciation in 3-5 years.
Just let me respond to 2 things: We are not trying to avoid the consequences of our bad decision--we will be paying for it one way or the other for the next ten years.
Secondly, I do resent you equating us with drug dealers and criminals--No one's perfect, but our mistakes hardly fall into that category.
I am aware that some, maybe most, of the landlords/homeowners may be wary. But in the 2 areas that they need to be concerned about--prompt payment and property maintenance--they need have no concerns, as our previous landlord and documented income can attest.
Whomever does have the good sense to rent to us will be doing themselves a favor--we've always left a property in better shape then we found it.

[scone]

Originally Posted by jojonow

But you seem not to grasp one simple fact: We cannot afford to stay in our home currently without incurring additional debt. Therefore we are leaving.

That was the risk you took when you signed the papers, and promised, in good faith, to repay. If you are willing to walk away from a mortgage, why wouldn't you walk away from a lease?

Remember, we expected to cash out our appreciation in 3-5 years.
Just let me respond to 2 things: We are not trying to avoid the consequences of our bad decision--we will be paying for it one way or the other for the next ten years.

You speculated with other people's money, and you lost. Therefore, by the rules of the business game, you should pay the price. A home loan is not a financial futures contract.

Secondly, I do resent you equating us with drug dealers and criminals--No one's perfect, but our mistakes hardly fall into that category.
I am aware that some, maybe most, of the landlords/homeowners may be wary. But in the 2 areas that they need to be concerned about--prompt payment and property maintenance--they need have no concerns, as our previous landlord and documented income can attest.

I am not equating you with anyone. That is your spin. But you may well find that you are not going to be able to spin your story well enough to convince a respectable -- and smart-- landlord, and you may therefore find yourself forced to rent in a bad area, with some nasty characters. There is no "equating" here, that's just the probable reality.

Whomever does have the good sense to rent to us will be doing themselves a favor--we've always left a property in better shape then we found it.

That may be your opinion, but the landlord will have no concrete proof of that, only your say-so and perhaps some references from people who are out of state and hard to check.

The "spin" here just doesn't work, you see. Trying to make yourself sound "responsible" when you are essentially walking away from a serious financial responsibility just can't be done. It's a glaring, obvious contradiction. A smart landlord is going to see through any spin you put out there. I mean, if you can't convince me, are you really likely to convince some hardened guy who's been around the block a few times and heard every story there is?

[Nina-in-Ashland]

Originally Posted by jojonow

Secondly, I do resent you equating us with drug dealers and criminals--No one's perfect, but our mistakes hardly fall into that category.

Actually, no one equated you with that group at all. But Scone made a very good and valid point that you may find yourself in housing neighboring that crew because a reputable landlord may turn you away based on your poor credit.

My husband and I rented 2 properties in Oregon in '06 - one from a rental co. and the other from an individual homeowner. They both ran credit and background checks on us, so for you to hedge bets that the latter won't do so is very risky.

You're reaction is defensive to some sound and sage advice that has been given to you, and I'm curious as to why. Is it what you didn't want to hear? Would you rather that posters told to you "jump into the cesspool of financial ruin, the water's fine"?

There are a number of folks earnestly trying to give you help, and you don't earnestly seem interested in receiving it. Yet, you were the OP, asking for help ...

[delta07]

Do you have the option of living with your ailing relative while you take care of them? This is probably not the most ideal situation, but it may be better than some of the rentals out there. It may also give you time to establish your business in Oregon and start to build your ruined credit back up. Unfortunately, the advice given on this forum is not what you want to hear, but is probably closer to the truth. I was amazed at how difficult it was for me to rent when I relocated to Bend from out of state. The leasing agencies would not even consider renting to me without me actually looking at the house even though I have been a homeowner for 5 years, have perfect credit, both husband and I are professionals, and husband had well paying job lined up in Bend. I cannot even imagine the response you will get with a forclosure on your credit report. Sorry, but that's the reality. I did find a house to rent sight unseen, but it was with a private landlord. I applied for several houses and all asked me to fill out a credit check. Good luck to you and I hope you can recover from this.

[Venusian_Artist]

A couple of things:

1. Just because a landlord does a credit check does not mean you'll be disqualified because you have bad credit. It may seem so, but you have to remember that those with discretionary decision making power (DDMP,) will make it on a case-by-case basis.

Dating, getting offered a job, and being accepted as a tenant in a DDMP situation are all handled the same way: someone either likes you or they don't, and they look for logical reasons to back up their feelings about you--otherwise known as retroactive rationalization (RR.)

If the landlord you talk to likes you as a person, and they identify with your hardship story, they will take a chance on you.

2. Some of you people have gone past the "just giving advice" stage, and have decided that you're going to slam the poster under the guise of giving them a dose of reality. Hint: they don't need it. You got a problem with people walking away from their houses? Suck it.

[jojonow]

Venusian Artist, Thank you so much for understanding. I don't mind advice, such as "talk to a few realtors and tell them your situation," or "it may be hard, but if you offer more money..."
But personal attacks or moral judgments are not what I requested nor needed in an emotionally fragile state.
I appreciate very much your voice of reason, compassion and insight. My husband and I are actually very likable and sincere, so I will just approach this situation with the truth and hope for the best.
Having grown up in L.A., lived 10 years in S.F., I have a hard time imagining any part of Oregon that can be worse than what I've lived in the past! Ha ha.
Many thanks again, and I'm done with this thread.

[Venusian_Artist]

Originally Posted by jojonow

Venusian Artist, Thank you so much for understanding. I don't mind advice, such as "talk to a few realtors and tell them your situation," or "it may be hard, but if you offer more money..."
But personal attacks or moral judgments are not what I requested nor needed in an emotionally fragile state.

No problem. What some people don't realize is that this is not a theoretical situation. This is your life. Now is not the time for armchair quarterbacks to unload all their garbage, or to play a game of rhetorical one-upmanship, to make themselves feel better about their own inadequacies.

Having grown up in L.A., lived 10 years in S.F., I have a hard time imagining any part of Oregon that can be worse than what I've lived in the past!

Oregonians are mean on the Internet, rarely in-person. Even the alleged anti-Californian attitude, I've never seen it offline. I moved here from the S.F. Bay Area six plus years ago and ran around with California plates for over a year on my car; never had a problem with anyone.

I was just in California this past week, as a matter of fact, and there's no comparison: Oregon is a much more benevolent place.

[scone]

Originally Posted by jojonow

But personal attacks or moral judgments are not what I requested nor needed in an emotionally fragile state.

As previous posters have pointed out, there have been no personal attacks on you. That is your spin. Personal attacks are not allowed on this forum.

At the same time, when virtually everyone is telling you one thing, and only one person is telling you something else, which are you going to believe? Think about it. The only person who is telling you what you want to hear is a person who is also foreclosing and walking away. There is a certain "weight of the evidence" here. You can choose to ignore it, but in that case why bother to post here at all? You'll only get more advice that you don't want to hear.

[Silverfall]

You should not have a problem finding a rental out here. Many builders are in dire straights and are renting out their new construction homes. Just set one up for someone relocating last week.

Walking away from a house is obviously a hot button issue. Yes you will have landlords turn you down because of it, but most landlords want good tenants and if the only blight you have on your credit report is your mortgage that looks a lot better.

You won't be living in the "nasty" parts of town. You just need to decide where you want to live. I would also expect a month to month lease from landlords so they can terminate easier. There wouldn't be a lease to break in that situation since 30 day notice is all that is required.

Bend is a long drive from Portland. The mid-valley (Salem, Keizer, Newberg, McMinnville) would be easier. Depending on where he is in Portland you could also consider the east side.

[scone]

Originally Posted by Silverfall

You should not have a problem finding a rental out here. Many builders are in dire straights and are renting out their new construction homes. Just set one up for someone relocating last week.

Walking away from a house is obviously a hot button issue. Yes you will have landlords turn you down because of it, but most landlords want good tenants and if the only blight you have on your credit report is your mortgage that looks a lot better.

You won't be living in the "nasty" parts of town. You just need to decide where you want to live. I would also expect a month to month lease from landlords so they can terminate easier. There wouldn't be a lease to break in that situation since 30 day notice is all that is required.

Bend is a long drive from Portland. The mid-valley (Salem, Keizer, Newberg, McMinnville) would be easier. Depending on where he is in Portland you could also consider the east side.

I don't agree with Silverfall's assessment, but since she or he is a real estate agent who works in the Salem area and charges by the hour, you might be able to get a rental from a distressed builder through him or her. Just make sure the builder isn't in foreclosure too, otherwise the house could be auctioned off right from under you.