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I need some advise about a life decision...

My husband and I have pretty much made up our mind that we are filing bankruptcy on our house. We feel there are no other options. We owe 133K and our house is not even worth 110K and it needs about 20K worth of work done to it. We had a masion tell us he wont even work on our house becaues it is that bad and not worth it. Not to mention we have drugies living next to us, a sex offender behind us (both just moved in) and live on a main road. It is our first house and we didnt have our daughter. Now we have a baby and the place is just going down hill all around us. My dad has already gotten himself approved for another mortgage for us to get out of here and we will pay it and when our credit is good enough to buy it back we will. I am just looking to hear what other people have to say...NO bashing please, we feel like this is what is best for our daughter and she needs to come before our credit. What would you do?

 
Anonymous

Asked by Anonymous at 2:23 PM on Mar. 27, 2009 in Money & Work

This question is closed.
Answers (13)
  • But it seems like it's ruined your credit only, really, for this particular house, if you're able to still pay other credit obligations on time in the past and future except for the house. Good for you for talking to a lawyer. And how fantastic that your dad can help you out as he's doing!!!! My town has sex offenders too and weird neighbors but house wise we're ok. Those s o are not on my street and even with my kids as old as they are they're not left home alone. I understand your fear about s o.

    I think too you're doing the right thing and do agree with anony130 to give another call to your bank unless the s o and druggies are as big as a worry as the house. Personally I'd be more concerned about the s o than keeping a house with the way it is and mortgage still owed too.
    Keep your faith mommy. You can do this. You'll become mortgage worthy again. Bless your dad and your family.
    Anonymous

    Answer by Anonymous at 2:38 PM on Mar. 27, 2009

  • Sound like you have already made up your mind. I would probably do the same thing though too. Just make sure to try to keep your credit up whatever you have to do cause it is really going to mess with that. GL
    AK_aries

    Answer by AK_aries at 2:25 PM on Mar. 27, 2009

  • I am in a similar situation. We put 20% down on our house. We have made our mortgage payments on time, yet because of the housing market we now owe about $30K more than it is worth. It is also in a very bad neighborhood. Feel lucky that you have a father willing to do this for you. I wish I did. We are just stuck.


    Before you file bankrupcy though, I might suggest calling up the bank and trying to work something out. If not, just say, "OK. The house is yours," and walk away.

    Anonymous

    Answer by Anonymous at 2:28 PM on Mar. 27, 2009

  • We have already talked to a lawyer and he told us if we are doing it just to put our credit card in too to get away from that. But we are keeping our cards and he has student loans that we will continue to be paying on. So he told us that we will still show that we are credit worthy as long as we continue to pay and pay on time. and that wont be a problem because we have never been late. So he told us that unlike most we will already be rebuilding from day one rather than most who give up everything. i just feel torn like its the best decision, yet i know that it will ruin our credit for years.
    Anonymous

    Answer by Anonymous at 2:30 PM on Mar. 27, 2009

  • If the house is in such bad shape and the neighbor hood is that bad, why would you want to buy it back later? I would just walk away completely, and start over.
    Rebecca7708

    Answer by Rebecca7708 at 2:33 PM on Mar. 27, 2009

  • we are wanting to walk away...my dad got preapproved so that we can move. we have found a BRAND new home that we can get into with our mortgage payments being around the same amount. and when our credit is good we are going to buy whatever house we get. NOT THIS ONE I HATE IT! LOL i wouldnt even sell it to an enemy!
    Anonymous

    Answer by Anonymous at 2:36 PM on Mar. 27, 2009

  • Since it is only the house that you want to get out from under, instead of bankruptcy, just let the bank foreclose on you. Stop paying the payments and live there, saving the money, until you get notice of foreclosure. It's not going to be any bigger of a hit on your credit than the bankruptcy is. Or call the bank and see if they will agree to a short sale or if you can just hand the keys over to them and walk away. I would rather do any of those things than pay an attorney and all the fees for a bankruptcy.
    slw123

    Answer by slw123 at 2:42 PM on Mar. 27, 2009

  • We did talk to the bank already and they wont agree to a short sale, we had our loan remodified but it only dropped the interest by 1% and our payments by 148 which isnt helping us get the house paid down to sell, and we have been told by 2 people that forecloser looks worse on your credit, and whatever the house sells for you will get a 1099 for the difference to be writen off so we will have to pay tax on it, so the $1500.00 lawyer fee will be cheaper for us plus get rid of our credit card payment too, so we can pay off our cars earlier and look better on credit for that.
    Anonymous

    Answer by Anonymous at 2:49 PM on Mar. 27, 2009

  • I would call the bank and see if their is anything they can do to help. If not Tell them you will be out on such and such date and its theirs. But continue to pay your other bills on time so that your credit will continue to build back up. If we were in that situation we would leave as well. We have to do what is best for our children!
    HeartmomX2

    Answer by HeartmomX2 at 2:50 PM on Mar. 27, 2009

  • It does sound like you have made up your mind, and I agree with you 100%. Go ahead and forfeit the house in bankruptsy ( i know it sounds bad) but the sooner you get it over with the sooner you can move on. If you have bad people around you and you can't feel safe in your own home, then it's time to go somewhere else.
    Your blessed that you have a dad willing to do that for you, that's what parents are for. If he's already got the loan go somewhere safer.
    If you are upside down, the banks won't help, they got bailed out not us! I have already been told that by 4 banks.
    southernstyle88

    Answer by southernstyle88 at 4:28 PM on Mar. 27, 2009

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