Tell me why we SHOULDNT foreclose.

Question

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 fucked. 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. &#xD;&#xA; &#xD;&#xA;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 fucking 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!

FatherFeelMeUp · Answer

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 fucked. 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. &#xD;&#xA; &#xD;&#xA;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 fucking 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!

rockstar8920 · Answer

YOU HAVE A VERY VALID POINT. WHY NOT ASK YOUR MORTGAGE COMPANY TO DO A REMOD AND HAVE THEM DO A NEW APPRAISAL. I CAN TELL YOU THEY WOULD RATHER WRITE OFF 150K THEN YOU FORECLOSE. THEN YOU CAN KEEP HER CREDIT RENT THE PROPERTY AND STILL BUY YOUR NEW HOME.

Cavs_Lover · Answer

I understand your frustration but I wouldn't foreclose if I were in your shoes.

You can afford the monthly mortgage. Be grateful for that. You were obviously happy with the price when you bought it. Real estate is an investment. It's not a right or guarantee that it will bring you a profit.

You can afford the payment. You both have well paying jobs. Own up to your purchase and don't dump your bad investment onto others.

Just my 2 cents.

3rdpig · Answer

My understanding is buy another house if  you can, than short sale your other one...I  was  told the short sale will only be on  your credit for 2 or 3 years

richardtonsj · Answer

Agree with 3rdpig there, buy another home and short sale your current home, but make sure that you can short sale your current home if you buy another home. If you cannot carry 2 mortgages base on your income, then ask someone to cosign the new home for you. Yes it is true that you should be gratefull that you can still afford to pay your current mortgage but it's much tougher to accept such a big loss. Just consider it as a bad investment and move on to a bigger home, then you can consider yourself as a wise investor.

BOL

richardtonsj · Answer

[Quote: Originally Posted by FatherFeelMeUp]  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 fucked. 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. &#xD;&#xA; &#xD;&#xA;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 fucking 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!  [/Quote]Some lenders still have stated income program, at least in California, but it has to be 70% LTV for stated income wage earners.

Cavs_Lover · Answer

That&#x27;s the problem these days. Nobody takes responsibility for shit. Go ahead. Just let the bank deal with it.Don&#x27;t be thankful you can afford the home and have jobs.Bunch of greedy bastards.

FriedShrimp · Answer

Are you a Republican?..... sounds like it.

FriedShrimp · Answer

Republicans love buying shit they cannot afford and picking fights they cannot win.

FriedShrimp · Answer

I take that back, you are trying to make a "smart" business decision in the current economic situation.

Kudos to you for thinking about it. Number one, I see the motivation for moving..... trading up, which is a great idea. There are good buying opportunities right now. Call a "reliable" lender and see if you can qualify/afford the trade up though. "Stated" is gone by the way and down payment is mandatory in this market. The banking system is fucked up...... and people will blame you for this but you are in the aftershock of it. It was fucked up by Wall Street.

I'm in the business and will help you later if you really want advice.

FriedShrimp · Answer

Not to be Debbie Downer but a "short sale" is not an in and out on your credit history.

Cavs_Lover · Answer

The difference here is that he can afford it. He's just pissed the housing market tanked and the value of his home dropped. So I guess that means he's entitled to a bigger better house and just let the bank lose on his current home.

This economy collapse has really changed things and people need to change their ways. Not the time to be greedy. I would think people in Vegas would already know that by now but I guess not.

FriedShrimp · Answer

He&#x27;s in the same situation as a lot of people.  Not his fault.

FriedShrimp · Answer

Basically the banks fucked up.  Problem is that they are too understaffed to fix it.&#xD;&#xA; &#xD;&#xA;It&#x27;s a mess.

FriedShrimp · Answer

Two reasons.......&#xD;&#xA; &#xD;&#xA;The did not properly underwrite the loans to begin with.  And had NO plan for declining market values.&#xD;&#xA; &#xD;&#xA;Newspaper says they have to lay people off, now they get keys instead of money.  &#xD;&#xA; &#xD;&#xA;It&#x27;s messed up.

FriedShrimp · Answer

The reason for my initial hostile post earlier is becuase it is IMPOSSIBLE to regulate ourselves.  Need to have some "safe" hands on the money.&#xD;&#xA; &#xD;&#xA;Wall Street can&#x27;t do it and is incapable of self regulation.  Nobody is trustworthy today.  In that case, HAVE to have the Government monitor it, otherwise it will be screwed up.&#xD;&#xA; &#xD;&#xA;It&#x27;s sad but true.  We have no morals or ethics anymore

TyDarius · Answer

[Quote: Originally Posted by Cavs_Lover] That&#x27;s the problem these days. Nobody takes responsibility for shit. Go ahead. Just let the bank deal with it.Don&#x27;t be thankful you can afford the home and have jobs.Bunch of greedy bastards.&#xD;&#xA;[/Quote] I respect your words really I do, but you know why should he not get a better house. What owning up to his purchase get you in this country nowadays.If this were a perfect world I would agree, but we are far from that. True he was happy about his investment before, but don&#x27;t think for one moment he never wanted that 600 k house that he can now get for 240 from jump street. This country is fucked, so him owning up to his purchase isn&#x27;t gonna make a bit of difference. At the end of the day do whatever is gonna make you happy and whatever you can live with. Don&#x27;t pay 2 grand a month while wishing you were living somewhere else. And as long as you have money don&#x27;t trip on your credit, you&#x27;ll get it back.

FriedShrimp · Answer

This is the large picture.......&#xD;&#xA; &#xD;&#xA;1)  We regulate our selves, or&#xD;&#xA; &#xD;&#xA;2)  We get regulated&#xD;&#xA; &#xD;&#xA;Banking business, stock market business, box business, spreading democracy business, you name it.

FriedShrimp · Answer

&#xD;&#xA;....... I&#x27;d do it

TyDarius · Answer

And another 2 cents, a 1400 sqaure foot home in Vegas for 300, forget abot it. And my guess is you&#x27;ll never see the day when that house reaches 300 again, and if you do, we&#x27;ll be right back to where we were. The prices are where they should be now. Get out of that 1400 sq ft home and get what you deserve.

FriedShrimp · Answer

But, that short sale will stick for more than a couple years.  My drunken guess is at least 7 years but it still "may" be worth it.

TyDarius · Answer

My guess is if thereever gonnafix this country they&#x27;re gonna have to give relief to people who have foreclosures. There will be a window where foeclosures aren&#x27;t gona be looked at like they used to, otherwise a grip of people are gonna be screwed and how is that gonn hel the country.

TyDarius · Answer

And anothe thing, you&#x27;re gonna obviously be in this next house for at last 7 years. So what else are you realy gonna need your girl&#x27;s credit for? Nada. A car maybe, but you guys make god money just come with a bigger down payment. Money talks. You should already have all the credit cards you need, which people really don&#x27;t need anyway. And besides all credit is used for i to establish more debt.

FriedShrimp · Answer

Ty has very good advice..... Basically, if you can get your ass in a house you WANT to be in for a while, go ahead and camp down.  Your credit WILL be fucked but if you are IN a house what diff does it make?

FriedShrimp · Answer

[Quote: Originally Posted by TyDarius] &#xD;&#xA;My guess is if thereever gonnafix this country they&#x27;re gonna have to give relief to people who have foreclosures. There will be a window where foeclosures aren&#x27;t gona be looked at like they used to, otherwise a grip of people are gonna be screwed and how is that gonn hel the country.&#xD;&#xA;[/Quote]&#xD;&#xA;It&#x27;s all based on bank underwriteing guidelines.  They undercapped the situation and are taking it in the shorts right now.  According to the hardore Republicans, they lose and should go home but the problem with that is that banks are like a "public utility" and it fucks up other things..... then the dominos fall which is happening in post 1 of this thread.

Tell me why we SHOULDNT foreclose.

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