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Old 07-03-2009, 09:42 AM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,092,212 times
Reputation: 2661

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Quote:
Originally Posted by airics View Post
Buying a home and then walking away from another will be considered mortgage fraud!
By whom Airics?

I will leave the morality to the priests and ethicists. The thing has been played out over many threads...there are those that believe it is a personal obligation and those that believe it a simple business arrangement bound to the terms of the contract.

The mechanics are something else. Depending on whether or not the credit can be maintained separate something may be possible. Note though you need to get this all straightened out with a mortgage lender before you walk away. You probably need to be able to buy the second house before you walk away from the first.

You should also try to short the first house. You can do that now. I am not sure you will get very far if you are not three months late on your payments but you can try for free. And even three months late the lender may balk. But you should try.

Do I know you? Christa and Bill ring any bells?
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Old 07-03-2009, 10:35 AM
 
149 posts, read 346,449 times
Reputation: 72
Default Don't walk away from the house

Run away from it. It would be foolish to keep paying down a mortgage on a house worth 40% what you paid for it. Be sure to close on the other house first. Financing might be problematic regardless of whose name the other home is in. Whatever you do, don't lie/commit fraud to get that other mortgage; you don't need legal troubles to go along with your house troubles. Good luck.

Quote:
Originally Posted by Joe3788 View Post
Here is the situation in a nutshell. We bought this house here in Vegas in 04 for $318,000. It is 1480 sq. ft. and out mortgage is 2k a month. The same exact house next door to us just sold for $121,000. Needless to say we are ****ed. We have been house hunting lately and have found houses THREE times the size in better neighborhoods for around 240-260K. These same houses sold for $600K three years ago. Now I gotta believe that these houses will show equity in the next year or 2 if they dont already and my house may take 10-15 years to get back to 318K.

Problem is we bought the house 4 years ago on stated income program. We are bartenders who only make 17K a year on paper but in reality make 150K a year combined. Not sure if they even offer a stated income anymore. We are spinning our wheels here. The house is 100%in her name. So the next house would be in my name. Besides ****ing up her near perfect credit for the next 7 years can someone please tell me why financially we souldnt foreclose on this 1st money pit. I am a bit green when it comes to this stuff but I am doing my research so if anyone has any words of advice I would appreciate them. Thanks!
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Old 07-03-2009, 11:07 AM
 
21 posts, read 44,036 times
Reputation: 31
Quote:
Originally Posted by Joe3788 View Post
Here is the situation in a nutshell. We bought this house here in Vegas in 04 for $318,000. It is 1480 sq. ft. and out mortgage is 2k a month. The same exact house next door to us just sold for $121,000. Needless to say we are ****ed. We have been house hunting lately and have found houses THREE times the size in better neighborhoods for around 240-260K. These same houses sold for $600K three years ago. Now I gotta believe that these houses will show equity in the next year or 2 if they dont already and my house may take 10-15 years to get back to 318K.

Problem is we bought the house 4 years ago on stated income program. We are bartenders who only make 17K a year on paper but in reality make 150K a year combined. Not sure if they even offer a stated income anymore. We are spinning our wheels here. The house is 100%in her name. So the next house would be in my name. Besides ****ing up her near perfect credit for the next 7 years can someone please tell me why financially we souldnt foreclose on this 1st money pit. I am a bit green when it comes to this stuff but I am doing my research so if anyone has any words of advice I would appreciate them. Thanks!

First of all, I cannot believe that anyone would pay 318K for a 1400+ square foot house. Good God! That is not much bigger than a 2 bedroom apt. Have you tried to refinance the house? It is so sad that Vegas has come to this because of people like you. You are part of the problem and that is why there is no solutions right now. Why don't you take some responsibility and deal with it, instead of walking away?

Just remember, this move you want to make will bite you in the butt big time in the future. Especially if you need any other kind of loan you would like to acquire. Once you get married, you take on your spouses issues as well.

I also cannot believe that your fiance would be willing to lose her good credit rating over this. What a joke. Entitlementitis. If you guys don't live up to your commitments now, I would hate to see the both of you in 10 years. Jeez
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Old 07-03-2009, 11:09 AM
 
Location: southern california
61,289 posts, read 87,169,949 times
Reputation: 55550
you need a lawyer not a CD poster.
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Old 07-03-2009, 11:10 AM
 
Location: Here and there, you decide.
12,908 posts, read 27,900,760 times
Reputation: 5051
Quote:
Originally Posted by olecapt View Post
By whom Airics?
I believe it was in one of your posts or daddys.. that you cannot just walk down the street buy a house and let yours foreclose
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Old 07-03-2009, 11:12 AM
 
Location: Here and there, you decide.
12,908 posts, read 27,900,760 times
Reputation: 5051
Quote:
Originally Posted by Barbwire View Post

I also cannot believe that your fiance would be willing to lose her good credit rating over this. What a joke. Entitlementitis. If you guys don't live up to your commitments now, I would hate to see the both of you in 10 years. Jeez
When my wife and i first got married, our credit reports joined.. probably because of a few joint and authorized accounts..

Your not even married yet, and you want to trash her credit.. Nice guy you are .. It's not a business decision when you want to trash HER business....
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Old 07-03-2009, 11:21 AM
 
815 posts, read 2,046,565 times
Reputation: 540
The "garbage agreement" is the one you signed. Why should the bank take it on the chin for you? BTW, how smart is it to state that you cheat the Federal Government on a public forum? You need a lawyer (or two, now) to extract some more money from you as you try to wiggle out of your agreements AND destroy your gf's credit. Better make it a slimy lawyer (one that doesn't really care for 'ethics'). Jeez!
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Old 07-03-2009, 11:31 AM
 
366 posts, read 1,210,304 times
Reputation: 229
It is a simple business decision. If you were getting crushed on your current situation would you not try to better yourself and your family. I have a 7 month old daughter who I would like to raise in a nicer neighboorhood. This one has gone down a bit since the housing market went down. Now we have the people who CAN afford 700 a month for rent or the 125k houses here and they are not the kind of people I want to live next to for the next 10 years waiting for my house to get back to close to even. Talk morals all you want. Morals dont pay your bills or put your kid through college. Anyone that will sit here and tell me that they would continue to put $ into a losing cause is just blowing smoke up my ass.
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Old 07-03-2009, 11:40 AM
 
1,408 posts, read 3,308,000 times
Reputation: 952
Sea2LV2Hou, the OP did not enter into a "garbage agreement," he and his fiance signed a good faith contract. His part of the contract supposedly stated that the two of them earned "x" amount of dollars and would be borrowing "x" amount to be remitted every month against the agreed upon price of the house. Since integrity does not seem to be an issue here, I'm wondering if he claimed the tips that make up the majority of his income on his income taxes because if he did not, now he will not be able to prove his income in order to get another loan.
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Old 07-03-2009, 11:41 AM
 
Location: Salem, OR
15,513 posts, read 40,248,020 times
Reputation: 17383
Quote:
Originally Posted by Joe3788 View Post
Here is the situation in a nutshell. We bought this house here in Vegas in 04 for $318,000. It is 1480 sq. ft. and out mortgage is 2k a month. The same exact house next door to us just sold for $121,000. Needless to say we are ****ed. We have been house hunting lately and have found houses THREE times the size in better neighborhoods for around 240-260K. These same houses sold for $600K three years ago. Now I gotta believe that these houses will show equity in the next year or 2 if they dont already and my house may take 10-15 years to get back to 318K.

Problem is we bought the house 4 years ago on stated income program. We are bartenders who only make 17K a year on paper but in reality make 150K a year combined. Not sure if they even offer a stated income anymore. We are spinning our wheels here. The house is 100%in her name. So the next house would be in my name. Besides ****ing up her near perfect credit for the next 7 years can someone please tell me why financially we souldnt foreclose on this 1st money pit. I am a bit green when it comes to this stuff but I am doing my research so if anyone has any words of advice I would appreciate them. Thanks!
Folks that do stated income loans, which are very difficult to do these days, will need to provide a minimum of two years of tax returns. If you aren't even close to reporting your true income, then how do you think you will qualify?

I mean if your tax return says you made $17k last year, you won't qualify for a loan. It seems to me you are struggling with an ethical decision that may be moot. Also don't you think that the underwriter will question how you came up with a $25k down payment when you make $17k a year? Please understand that your finances will be ripped apart by an underwriter to even consider giving you a loan because you are self-employed. If you can't qualify for a loan, why even ask the question? Go talk to a lender and see what they say. From what you have written here, I don't think you would get anyone to give you a loan in this environment.


As for airics concerns about mortgage fraud that refers to the buy and bail folks that told lenders they were renting out the first property in order to get the second loan, then bailed with no intentions of renting it. There was some talk about lenders going after consumers for mortgage fraud, but now you have to have 30% equity in the home just do qualify to rent the first home to buy the second.
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