Home owners dilemma question (wood floors, bank owned, for sale)

[icapri]

I am having some trouble figuring out what to do, mainly because there are so many weighing factors. So I will start off with main facts. A few years back, with the help of this site as well as lots and lots of determination and hard work I got a mortgage loan modification making it 4% for duration of loan. I also have 2nd mortgage that is less than 18k.

Couple years ago I was out of work for just enough time to make me delinquent on my 2nd mortgage and due to a mix of bounced auto-payments and missed promised payments caused it to default and go to collections. However, within a couple months I was making auto-payments out of my checking to collection agency that it was sent to.
I switched jobs and lost health insurance and didn't qualify for state Medicaid so medical bills for myself and daughter became overwhelming and I no longer could save money for home maintenance and emergencies. So when roof started leaking I had to put off repair. Water leaked into one of bedroom walls and also caused those nasty water stained ceilings in one of the bedrooms making it unusable. I have since fixed the leak but not the internal damage yet. Also add broken toilet in master bathroom, heater that needs service, wood floors that need to be replaced and broken sprinkler to the list of things that need attention. I also am trying to catch up with HOA balance. It is definitely overwhelming, especially listing it all out like that. I do have steady income that is decent. My position is an at home one which is handy since my car is broke.

My preteen just expressed hate for the house and said it was crap. I worked so hard to get this house and get modification that is awesome to just give in and walk away but I'm afraid I'm not allowing myself to see realistically because of all my hard work. I sort of wish there was a way to trade my house, keep loan % for a different one that is bank owned or for sale.

Should I consider selling or even a short sale? My monthly mortgage payment is way less than any monthly rental would be. OR have I just hit a bump in the road and need to stay focused and keep going down my list of fixes? Any constructive input is greatly appreciated.

[sandy6879]

In all likelihood...you will probably not be able to sell the house in the condition that you describe. At least not for the price you would probably want for it. If you didn't do the repairs, then you may need to sell for lower than it's worth as someone else would need to come in and do all that.

If you short sell, you won't be able to purchase again for a few years. So you would need to rent, and as you posted, that would be higher than your mortgage.

My personal gut reaction is to say to move forward on the repairs that you listed. Even if you move slowly on them, get the items repaired. Start with the most important ones first (probably the indoor leak repair so you don't end up with mold issues) and move down the list. Once they are totally fixed, I'd recommend sitting down with a mortgage professional and find out just what your situation is and what you can get approved for should you still want to sell. But I honestly think you need to make those repairs first, before walking away. You'd probably be able to sell for much more if those items were fixed, rather than if they weren't.

[fluffythewondercat]

The likely buyer for your house in its current condition would want to take it down to the studs and completely redo the interior. That means they wouldn't be willing to pay much for it.

If you stick with it and work through the repairs, you'll be showing your child that you fix things when they're broken, not walk away from the mess. That's a valuable lesson.

[azdr0710]

sounds like good advice above.....keep plugging away.....stay in the house....keep a budget.....make a checklist and prioritize.....

and I hope you're preteen isn't TOO grumpy!!.....does he/she understand the situation?.....

[Bummer]

Being a QUITTER will get you nowhere, Icapri . . .

As FluffyTheWonderCat has already stated / recommended . . . set a very positive example by sticking with your commitment and forget about running away.

There's lots to be said for determination and self-respect.

[YAZ]

One project at a time.

Make a list and it doesn't have to be in any order.

So, write down the first ten things that need to be done. I'll bet there will be three or four on there that won't cost any money or just a little that's manageable.

Cross 'em off the list as you complete them.

This will give you a sense of accomplishment and some much needed confidence.

And hey!


They're done!

The larger projects that take more time & cash......you can budget for. Much of this stuff you can do on your own, and there's all kinds of info on the interwebby for tutorial purposes.

Google is your friend.

There will be some trials & tribulations as you'll make mistakes along the way, but that's life, eh?

Learning by doing.

And get your child involved.

[cactusland]

You're not going to get much for the house in its current state. But I suggest you figure out how to really DIY and DIY well, really fast.
You should tear out the water damaged materials I think instead of leaving them, in case of mold.

How badly broken is the toilet? Is the porcelain cracked? Not something that can be fixed 100%, but I have seen 'ghetto' repairs done with caulking. Wood flooring that needs replacing or resanding? Because if the floors are real wood, they can probably be sanded and refinished yourself.

I agree with the comment on getting your kid involved. Your kid is young and they don't understand what is going on. Of course its crap to them, but maybe if you told them they might actually have an idea of whats going on at home. Kids can understand quite a bit.
Try to get rid of one loan more than the other if you can and get rid of them as soon as possible. You need to have that extra cash so you can catch up.

I wish you luck.

[YAZ]

Toilets are relatively cheap. And they're really not that hard to replace. A strong back helps.

Just make sure that you replace the wax ring too.

Water damaged drywall:

Kinda tough as it's on the ceiling. You can rent jacks at one of those chain hardware stores to install the new stuff. Taking it down is a piece of cake. And every homeowner should own a reciprocating saw.

I replaced ceiling drywall in our rental property with the help of a friend and two step ladders. Beer & pizza after.......

Your child can assist with drywall sanding & painting. It's kinda fun......

Many things in your home aren't like the weeds we get here in AZ. It means that once they're complete, you won't have to deal with it again.

[cactusland]

Yeah toilets are easy to replace...but they often require a friend to help. You don't want to lift that yourself. You only get one back, take care of it!

Oh also: you can often find scrap drywall and carpeting on craigslist for dirt cheap! Learn to DIY yourself on an extreme budget. Think of it like a challenge or a game, and it won't seem that bad. Good luck, OP

[Colt AZ]

My advice would be the same as the others on here: Hang in there!

Stay the course, and slowly but surely it will all come together for you. You'll eventually get these items of concern taken care of -- by taking one item at a time. You'll thank yourself later as you look back on what you've accomplished, and your tenacity for sticking with things will become a major strength for you.

Your daughter will eventually come to realize what you did, and what you're all about.