[martinman]

Hi Everyone,

Well, it seems I'm stuck in Michigan (as we all are). My wife and I bought our house 10 years ago for $175k, and it seems now, after talking with many agents around here it will sell for $130k-$140kish (trending down). This give me a stomach ache...

Now, the good. This job offer is in New Jersey and is very secure - a perfect job for me, great environment (both work and family), etc... Out of all the job interviews / offers I've had, this is off the charts in terms of excitement! My wife and I are both ready to go, my daughter is not school age, so now's the time.

Back to the doom and gloom. Any one who is in Michigan is somehow connected to the auto industry - i'm no different, I work for the healthier of the D3. People are leaving here in droves. Although I'm hopeful for the future, and I can kind of see the turn around happening, it's really taken it's toll on the area. So, on to my question: Although the relocation package offers full benefits in relation to the move, and help on closing / real estate costs, they will not buy houses (or even cover losses). Our equity after 10 years is gone, and in fact we are in the red (house worth less than we owe) by about 5-10k in my estimate. Are there any creative ways to get out from under our house to make this move? Of course renting is an option, but we just dumped $20k into the house doing a kitchen / addition gut and redo, and it would kill us if bad renters messed the house up - or even worse, took all of our GE Profile appliances! I've heard about the "short sale", but I don't know how much it would affect our credit. I've also heard about the "mortgage forgiveness debt relief act of 2007" but I'm not sure if I understand it's intent or if it would even apply to our situation.

I really want to take this offer, but all signals point to me declining simply because of the housing issue. Our house has become a boat anchor! Are there any creative options that I can employ - something that I haven't heard about perhaps? Something that will allow me to make this move without 1) ruining my credit, 2) having to moth ball the house, or 3) renting it? My wife and I want to have a clear conscience when leaving - to look toward the future, ya know?

Your thoughts?

Thanks!
Mark

[YAZ]

If your heart is set on moving, then take the hit on the home. Sell it for whatever ya can get. I left MI 4 years ago and enjoyed a 33% "profit" after selling my home after living there for 7 years.

I consider myself "lucky", as I left just in time. But my heart was tellin' me to move, and I would have taken a hit on the home anyway. It just worked out that way.

[Dexterguy]

Originally Posted by YAZ

If your heart is set on moving, then take the hit on the home. Sell it for whatever ya can get. I left MI 4 years ago and enjoyed a 33% "profit" after selling my home after living there for 7 years.

I consider myself "lucky", as I left just in time. But my heart was tellin' me to move, and I would have taken a hit on the home anyway. It just worked out that way.

Your not alone, many people are in this postion, it is your choice really if you want to take the big hit on your house, if I were you I would take the move. From what I have been hearing the Michigan economy is not going to get any better for the next several years, maybe decades.

The only problem that you may encounter is finding a house that you like in New Jersey, you don't get as much house in NJ as you do in Michigan for the money, I learned that this is just something that an average middle classmen must accept when considering a move to the Garden State or really anywhere along the eastern seaboard.

P.S. Which one of the big three do you work for currently, you said the "strong" one, so do you mean Ford?

[YAZ]

I was thinkin' that too...NJ is expensive, even for an apt.

I'd like to buy a cabin with some property right now in northern MI. A summer getaway for now, a retirement home for later...

[Dexterguy]

Originally Posted by YAZ

I was thinkin' that too...NJ is expensive, even for an apt.

I'd like to buy a cabin with some property right now in northern MI. A summer getaway for now, a retirement home for later...

If you really want to, buy it NOW! Property in Northern Michigan is the cheapest it has been in many years, especially with all of the auto workers trying to sell off all of their cabins that they can no longer afford.

[topshop]

Originally Posted by YAZ

If your heart is set on moving, then take the hit on the home. Sell it for whatever ya can get. I left MI 4 years ago and enjoyed a 33% "profit" after selling my home after living there for 7 years.

I consider myself "lucky", as I left just in time. But my heart was tellin' me to move, and I would have taken a hit on the home anyway. It just worked out that way.

Great advice. Just sell it for what you can get. Yes, you will have the equivalent of a car loan (but no car) that you will have to work off over a few years.

Do NOT overprice the house. Price it competitively and move it ASAP.

[martinman]

Originally Posted by Dexterguy

P.S. Which one of the big three do you work for currently, you said the "strong" one, so do you mean Ford?

Yeah, i'm at Ford. Believe me, it's still a very difficult decision. I'm one of the lucky ones in that I'm not worried about layoffs or anything like that. In fact, I've got lots of upward mobility in terms of career. Despite the press, I think Mulally is doing the right thing, and a great job. European models will be here soon, and our quality is on par with Japanese competitors - so, things look good. I can see things in the process of turning around even in this difficult climate. GM could swallow up Chrysler - I can't imagine the government giving loans to a private company. All those that are domestic loyal will flock to Ford and GM - so market share goes up.

Besides, Ford will never file for bankruptcy. If they do, the Ford family looses all of it's voting rights with the shares they have. Their 'special' shares convert to 'regular' shares upon bankruptcy, which means they loose controlling interest in the company.

I joke with my wife that if we stay, we should pickup an "up north" like everyone else has! Prices have to be rock bottom - perhaps next year it'll be even lower... Lots of doom and gloom out there.

[uswith6]

We will lose more than that on our house we bought 16 years ago....and while it sickens us too

We need to do what's right for the family.

Good Luck and the loss isn't really too bad.

[ImaMichigander]

We moved in July to Findlay, Oh and have our house still for sale in Brownstown. Another family in our sub put their house up for sale the week we did. They priced lower than us and just kept dropping. We have stayed steady- as if we get what we are asking we bring $46,000 to closing and $20,000 for the nitwit realtor. Just a few weeks ago, the family that got down to about $80,000 less than we owe --who's wife and child had already moved out of state-- gave up took it off the market and wife and child moved back to MI. Can't tell you what a sigh of relief I breathed! I just kept hoping thiers would sell, so I wouldn't have to drop my price more and more....

We are in the looking to find leasees mode now. We'll still be losing more than a $1000 per month, but thanks better than what we're losing each month now with it empty. And a whole lot better than bringing $65,000 to closing!

Our realtor keeps suggesting short sale, but that will tank our credit and we've worked hard to make it good! She said short sale isn't as bad as just walking away, but it's still bad.

We have had people looking at our house and talked to our neighbors and said that it's a pity that we just walked away from it. We didn't. We pay our bills, lawncare and I'm even going to put out Christmas lights tomorrow-- because that's what we do in our neighborhood. But people just assume that since it's empty people had to leave. It's pretty sad...

I wish you luck, whatever you decide! I was very hesitant to move and it turned out really well for us! I hope that same happens for you!

[Dwatted Wabbit]

Such are the ways of a fickle market.

I think back to various home deals my parents made when I was young. We left New England in the 60s, the market was poor, a great, huge house that had been in the family for almost 100 years sold for about 14 thousand. It's probably worth 300-500 now.
We ended up in Dearborn and bought when the market was still fairly low. About 10 years later when my parents retired, they sold our $25,000 house for $50,000 or more. That grubstaked them to a cash payment on their last house which was down south where the market was much lower and slower.

They had a long distance rental house in New York. The renter was an SOB and they lost money, good after bad, until they finally sold it.

My wife had the long distance landlord bit, too. Only today instead of just flakes and idiots, you get druggies and other useless losers for renters. She lost about 10 grand on that house, it about equaled the 10 grand I made on my house which I sold after we got married. My renters, even though I was local and used a "property manager" who was actually just the well-paid girlfriend of a real estate agent, disposed of my washer and dryer and got themselves new, which they took with them.

Some renters, as when my wife and I or earlier when my parents rented, are responsible and take seriously the boy scout motto of leaving it better than you found it. The other 90+% are probably flakes and losers who I would not care to do business with. Long range rental is a road to heartbreak, stress, aggravation, bad thoughts about others, and financial ruin.

Take your loss, pay it off, move on. Better days ahead!