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I would like advice about what my best options are. I currently live 750 miles from my family, and for various reasons, I am trying to move back home. I am applying for jobs like crazy, and the job market in my field is currently looking the best it has since I graduated college. It is still extremely competitive, but there are about twice as many openings as there usually are. I am hopeful because of my years of experience. But, I own a house here in NC.
I purchased a foreclosure in November of 2008. I received the $7500 loan from the IRS. I owe $109,000 on my house- when I purchased it, it was appraised at $145,000. I have been watching the market- especially in my neighborhood. Right now, there are 2 houses for sale traditionally- one is about 300 square feet bigger, and they are asking $155,000. The other is about the same size and they are asking $139,000. There are also 2 short sales. One is asking $140,000 and is about 200 sf bigger. The other is directly across the street from me, the same size (maybe a tad smaller), and they are asking $102,000. It has been on the market for 6 months and the price has been reduced several times. Finally, there is a foreclosure. It is about 300 sf bigger, and they are asking $108,000.
I figure I need to sell for $116,000 to cover realtor commissions. The problem is that I still will owe the IRS $6000. The two homes going for under 110K have me very nervous that this might not happen.
There are two (smallish) issues with my house that I am not in the position to fix. The landscaping is not great. I have a few bushes in front of my house. That is it. I am allergic to grass, so yard work is not my forte. I know curb appeal is huge, and there is nothing wrong with my HOUSE, I just feel the yard is blah. Secondly, I tried painting my cupboards and there was a disaster with the doors. They look good from a distance, but a close inspection on the inside will reveal some less than perfect painting.
However, my situation. My house has been foreclosed upon twice before. When I bought it, there was not any flooring (literally the cement slab), and there were several other repairs that had to be done right away. I used up all of my savings and had to finance some things to get it all taken care of. Then, some other costly issues came about and I was forced to put the repairs on a credit card. This put me to where I had too many bills to pay and I was charging as much (or more) on my credit card as I was paying. I have been on a pay freeze for 5 years. I have had to get a 2nd job and I now work 70+ hour work weeks. I have cut my credit card debt in half and I can start to see the light. I had zero credit card debt when I bought my house, and I am not happy about being stuck in it now. I still owe about $4000, my credit score is down to 700 (was 785 when I bought the house) because of my debt load. I really don't want to put the repairs on my credit card, and I have no savings. Plus, I will likely have to come up with cash to pay back that stupid IRS loan.
I just feel very stuck with my situation. I have always paid every bill on time, and now I am worried that I will not be able to sell my house for enough to cover everything. Part of me almost thinks I should just walk away and let it go back to the bank. However, I am not that person and I don't want to wreck my credit score even more.
I am leery of renting because I have zero family here and I will be 750 miles away. Plus my mortgage payment is $880. My house is 1400sf with 3 beds, 2 baths. I don't think I would get enough in rent to cover any potential damages/repairs caused by tenants.
I am fortunate that if I do get a job 'back home', I will just stay with my parents until my house sells (there is NO WAY I could afford rent on top of my mortgage). I plan on leaving almost everything in my house until it sells, because I know an empty house is harder to sell. Plus, if I moved it, I'd have to pay to store it.
I plan on calling the realtor I used to buy my house in a few weeks. I am trying to get the house ready first (I just repainted the front porch, I plan on restaining the deck even though it was just done a year and a half ago, and I have to do some deep cleaning [windows and the fireplace]).
I guess this is mostly a vent. Has anyone been in a similar situation and have advice? Should I really be concerned about the landscaping and cupboards?
An empty house is easier to sell. You have that backwards.
I wouldn't say that is universal. Some buyers like to see a house with stuff in it to help visualize. And some buyers see an empty house and think low ball offer.
However, the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.
It's terrific that you can live rent-free with your parents. That is your ticket to becoming "un-stuck".
Here's what I would do (YMMV). Put your house on the market at a price as low as you can handle, and then while you work at the new job, save as much as you possibly can. Put the savings aside and use it to lower the price of your house more and more while you save. Eventually, somebody will buy it and you will be off the hook, even if you do have to bring money to the table at closing. Right now you ARE stuck, but you don't need to remain stuck forever. In any case, my best wishes and I hope you sell more quickly than you think.
It's terrific that you can live rent-free with your parents. That is your ticket to becoming "un-stuck".
Here's what I would do (YMMV). Put your house on the market at a price as low as you can handle, and then while you work at the new job, save as much as you possibly can. Put the savings aside and use it to lower the price of your house more and more while you save. Eventually, somebody will buy it and you will be off the hook, even if you do have to bring money to the table at closing. Right now you ARE stuck, but you don't need to remain stuck forever. In any case, my best wishes and I hope you sell more quickly than you think.
This!
Its exactly what I was going to say.
NOLA2SGF is a genius!
Another thing to keep in mind is will your new job pay as much or more? If not, I would advise against the move.
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