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I've been there in 1989 when I was laid off in New Orleans and took a job here for 30% less.
All depends on what the bank will do if they lose money (very likely) selling the foreclosed home. If they will sue you or will file a write off report with IRS, you might need to file a Chapter 7 bankruptcy as we needed to do after moving here.
Try to get the bank to accept a deed in lieu of foreclosure which might save them some money.
Bankruptcy attorneys will give a free consultation. Worth exploring to see if you can qualify for Chapter 7.
The filing will stay on your credit profile for 10 years, but a foreclosure will hit you for 7 years.
In normal times, a few years of fiscal responsibility will start to restore your access to credit. Might be harder now.
My FICO score is now 838.
Good luck.
P.S. A good bankruptcy firm in Raleigh is the Brewer Law Firm.
Just wondering why you won't rent. Isn't that better than having a foreclosure on your record?
Hey! We are facing foreclosure as well. Our mortgage payment ( thanks to the county raising our property tax by over 200%) is $997a month. The most we could rent this place out for is about $450, and even THEN it would be by luck that someone would rent it. So YOU do the math. It doesn't make sense.
Hey! We are facing foreclosure as well. Our mortgage payment ( thanks to the county raising our property tax by over 200%) is $997a month. The most we could rent this place out for is about $450, and even THEN it would be by luck that someone would rent it. So YOU do the math. It doesn't make sense.
Plus, a bad tenant could destroy the place.
Bankruptcy is the only clean way out for many folks.
Hey! We are facing foreclosure as well. Our mortgage payment ( thanks to the county raising our property tax by over 200%) is $997a month. The most we could rent this place out for is about $450, and even THEN it would be by luck that someone would rent it. So YOU do the math. It doesn't make sense.
Just wondering what state you are in that would do that,
same problem I faced in Oregon.
I can not sell my house in Ohio and it will not rent either so with me relocating at the end of the month I have come to except the harsh reality that my home will probably be foreclosed on. I have run through scenarios and I know that I can not give up this govt. job that I have lined up in NC. So I believe in my heart that this is the right move for my family and I. It has been bothering me lately that my credit is about to be shot and the only way to save it is to just stay put. I don't know why all of a sudden I got cold feet but I do. I think it is just natural and eveeryone that I talk to about it says it is. Just want some advice thats all.
Contact your lender and explain the situation. If you want to keep the home they may be able to do a loan modiification which will lower your interest rate and therefore your payments. You may be able to get a moratorium and not make payments at all for 3-6 months.
If you aren't interested in keeping the home you can do a short sale or deed in lieu. In that case you would sell the home for less than is owed on it or just give it back to the lender. This would negatively impact your credit somewhat but not as much as if you wait and let them take it back.
OP, this reply is meant to add different perspective than what is listed so far.
While I feel your pain and understand you wanting to better your life for you and your family, I see you have a tough decision to make. I don't know that I agree with the reasoning that it's a govt job - meaning you will be secure. Those days have gone..this is a new economy in the making, and with rising taxes, at some point govt jobs will be more affected like private sector jobs. I have friends who work in govt jobs that are doing the work of 2 ppl as their dept won't replace ppl who leave. One of them took a paycut this yr as she works for the state (of NC) and her health benefits stink...the worst I've seen. She pays so much out of pocket if an "event" occurs, she's stuck w/paying a lot of upfront $$. A govt job is not what it used to be. I think you should consider how secure your govt job is..if you are confident in it based on what you've discovered present day, rather than what you assumed it will be, then good. I wouldn't take for granted it will always be there.
The advice on these posts is good - consult an attny and/or do what businessman suggests. Post like this sadden me for various reasons, what the posters are going thru but also, the shift we've seen in how people view their obligations. I don't understand the mindset of walking away from a contractual obligation like this. No matter what the banks will or won't do, when they gave you the loan you happily agreed to pay them the money you borrowed (against your house). When the bank gets stiffed, it trickles down and we all pay. Now if you had no job there, no way for the family to bring in an income, and had tried EVERYTHING to stop this from happening, I could better understand it. And maybe you have, but have not shared it with us. Please don't take this the wrong way, I hope it all works out for you and your family.
Something to consider..a realtor told me that if someone has a foreclosure on their credit file, they will have a problem renting an apartment as they do credit checks & don't like to rent to folks with this on their file. If this is true, then you'll be in your rental house in Dunn for some yrs...right?
If you live paycheck to paycheck, then moving to this area is a risk. People in that income bracket are the hardest hit, especially with gas prices rising ($2.56 yesterday). If you have a cushion in case anything unforeseen happens, then good. I recently worked for an area non profit that serves low income individuals and they've seen a surge in the past year of clients needing help who had decent paying jobs but were living paycheck to paycheck and when an event occured, they couldn't make ends meet. The stories I've heard of are heartbreaking. Just know, this place is wonderful if you are financially able to survive here, for folks living on the edge, it is not.
The OP started this thread in December of 2008, so I'm pretty sure whatever financial issues existed at the time have been settled -- one way or another -- by now.
OP, this reply is meant to add different perspective than what is listed so far.
While I feel your pain and understand you wanting to better your life for you and your family, I see you have a tough decision to make. I don't know that I agree with the reasoning that it's a govt job - meaning you will be secure. Those days have gone..this is a new economy in the making, and with rising taxes, at some point govt jobs will be more affected like private sector jobs. I have friends who work in govt jobs that are doing the work of 2 ppl as their dept won't replace ppl who leave. One of them took a paycut this yr as she works for the state (of NC) and her health benefits stink...the worst I've seen. She pays so much out of pocket if an "event" occurs, she's stuck w/paying a lot of upfront $$. A govt job is not what it used to be. I think you should consider how secure your govt job is..if you are confident in it based on what you've discovered present day, rather than what you assumed it will be, then good. I wouldn't take for granted it will always be there.
The advice on these posts is good - consult an attny and/or do what businessman suggests. Post like this sadden me for various reasons, what the posters are going thru but also, the shift we've seen in how people view their obligations. I don't understand the mindset of walking away from a contractual obligation like this. No matter what the banks will or won't do, when they gave you the loan you happily agreed to pay them the money you borrowed (against your house). When the bank gets stiffed, it trickles down and we all pay. Now if you had no job there, no way for the family to bring in an income, and had tried EVERYTHING to stop this from happening, I could better understand it. And maybe you have, but have not shared it with us. Please don't take this the wrong way, I hope it all works out for you and your family.
Something to consider..a realtor told me that if someone has a foreclosure on their credit file, they will have a problem renting an apartment as they do credit checks & don't like to rent to folks with this on their file. If this is true, then you'll be in your rental house in Dunn for some yrs...right?
If you live paycheck to paycheck, then moving to this area is a risk. People in that income bracket are the hardest hit, especially with gas prices rising ($2.56 yesterday). If you have a cushion in case anything unforeseen happens, then good. I recently worked for an area non profit that serves low income individuals and they've seen a surge in the past year of clients needing help who had decent paying jobs but were living paycheck to paycheck and when an event occured, they couldn't make ends meet. The stories I've heard of are heartbreaking. Just know, this place is wonderful if you are financially able to survive here, for folks living on the edge, it is not.
Some landlords will understand if there's a solid job and a good rental history.
Worst might be a higher deposit.
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