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I rent out houses I used to live in Las Vegas and my taxes and insurance didn't change from the change in status. Your taxes should be lower this year than they have ever been considering this is a 2005 purchase. But if you have done the math and the numbers don't work then time to consider something else.
If you short sale the house though, does the HELOC continue on? What if you allow it to go under foreclosure? Seems to me you shouldn't have to continue worrying about a HELOC since its tied to a house you will no longer have ownership of.
Where I am living now, property taxes are dependent on whether or not the home is owner occupied or a rental. If it is a rental property the taxes go up because you are not eligible for a homeowners exemption. Last time I checked insurance goes up slightly if the house is not owner occupied.
Still have my HELOC from the house in Vegas because it was considered a line of credit, not a mortgage. So my mortgage was foreclosed on, but now my HELOC is considered an unsecured debt that I need to pay back. I've double checked with a real estate attorney and he said that in a foreclosure only the mortgage goes away, you are still stuck with the HELOC.
Reconsidering the BK, my biggest debt is me and my wife's student loan which will not go away in a BK. Think I can get rid of the HELOC and CC in 4-5 years as long as I don't have another curveball thrown at me.
Family moved out of Las Vegas for a new job back in 2005, so we picked about the worst time to move out. Could not sell our house and we carried two mortgages for over a year. Finally let the house in Vegas go into foreclosure, but was still left with a $25,000 HELOC. So between the HELOC and using our credit cards to help pay mortgages we have almost $50,000 in household debt. Luckily no car loans at this point.
The job we moved for was eliminated and have had no luck finding a new job in our field. So our family wants to move to our hometown to be closer to family and friends. But this leaves us with a mortgage where we are upside down by $60,000 and I doubt our house value will rise in the next 2-3 years. This recession has really screwed me over financially. Tempted to just say screw it, do a BK and a short sale or foreclosure and start from scratch again.
I wouldn't blame it all on that. Take some responsibility for your actions. Once you do that you'll make better decisions.
I'd probably let your current house go into foreclosure and file for BK. Note this wont erase your student loans debts, but you just need to start over as much as possible it sounds like. I'd say go find a job in your hometown, rent an apartment, sell off valuables for extra cash (ie; cars, jewelry), and work on paying off your student loans off and getting you life back on track again. 5 years from now you could be a whole new man.
I'd probably let your current house go into foreclosure and file for BK. Note this wont erase your student loans debts, but you just need to start over as much as possible it sounds like. I'd say go find a job in your hometown, rent an apartment, sell off valuables for extra cash (ie; cars, jewelry), and work on paying off your student loans off and getting you life back on track again. 5 years from now you could be a whole new man.
not necessarily true. the question to ask is were these federal student loans or private unsecured student loans? huge difference when it comes to BK. again, i'd consult an experienced BK lawyer if that's the route they choose to go. a lot of misinformation floating around out here. some student loans can be included in a BK.
not necessarily true. the question to ask is were these federal student loans or private unsecured student loans? huge difference when it comes to BK. again, i'd consult an experienced BK lawyer if that's the route they choose to go. a lot of misinformation floating around out here. some student loans can be included in a BK.
I just did some checking, and, the same rules apply for private student loans and regular ones. There have been some proposed bills to change that, as recently as a couple of months ago, but, they have been defeated
Family moved out of Las Vegas for a new job back in 2005, so we picked about the worst time to move out. Could not sell our house and we carried two mortgages for over a year. Finally let the house in Vegas go into foreclosure, but was still left with a $25,000 HELOC. So between the HELOC and using our credit cards to help pay mortgages we have almost $50,000 in household debt. Luckily no car loans at this point.
The job we moved for was eliminated and have had no luck finding a new job in our field. So our family wants to move to our hometown to be closer to family and friends. But this leaves us with a mortgage where we are upside down by $60,000 and I doubt our house value will rise in the next 2-3 years. This recession has really screwed me over financially. Tempted to just say screw it, do a BK and a short sale or foreclosure and start from scratch again.
Unless you can get a really good paying job really soon, I'd say you're a bankruptcy candidate.
The big caveat I see with that is that you may repeat the same mistakes you made in getting into too much debt in the first place.
If you do decided to do a bk, please make a sincere efford to limit future debt. Initially, this won't be a problem. But as your credit gradually improves, you'll really have to be much stricter with yourself.
That means 20% down payment if you buy another house. A mortgage no more than 2.5x your gross income. No credit card debt you don't pay off at the end of the month. No car loans. You'll be a lot happier this way.
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