Seeking advice - Should I let me home go?

[ALUMINEX]

I need some advice of my situation because at this point I am thinking of letting the bank foreclose on my home.  My wife and I are lost and don't know what to do.  I have been sick with stress over this..... 

I don't like the location at all, the school system is terrible, and the town is terrible.  More importantly I have lost a lot of equity in my home and owe more than its worth - approximately $13,000 which is significant in a $80,000 mortgage.  My home also needs significant repairs.  My chimney has been settling and there is a gaping hole in the side of my roof due to the seperation.  Bats have roosted in my attic because of the hold and one of them actually made it into my daughters room while she was sleeping.  I do not feel like my children are SAFE in my home, but I don't have the funds to make repairs.  Estimates are as high as $2500 to get this fixed. 

Any ideas or advice I would greatly appreciate.  I know some of my options are:

Take out another loan I can't afford - fix the chimney and bat problem (I can't afford this)

Take out another loan I can't afford - fix the chimney and bat problem - don't pay my mortgage and safe the money in preparation to move

Move now and let the house go into foreclosure

[webhopper]

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@ALUMINEX wrote:

I need some advice of my situation because at this point I am thinking of letting the bank foreclose on my home.  My wife and I are lost and don't know what to do.  I have been sick with stress over this..... 

I don't like the location at all, the school system is terrible, and the town is terrible.  More importantly I have lost a lot of equity in my home and owe more than its worth - approximately $13,000 which is significant in a $80,000 mortgage.  My home also needs significant repairs.  My chimney has been settling and there is a gaping hole in the side of my roof due to the seperation.  Bats have roosted in my attic because of the hold and one of them actually made it into my daughters room while she was sleeping.  I do not feel like my children are SAFE in my home, but I don't have the funds to make repairs.  Estimates are as high as $2500 to get this fixed. 

Any ideas or advice I would greatly appreciate.  I know some of my options are:

Take out another loan I can't afford - fix the chimney and bat problem (I can't afford this)

Take out another loan I can't afford - fix the chimney and bat problem - don't pay my mortgage and safe the money in preparation to move

Move now and let the house go into foreclosure

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DO,  talk to your insurance company about the problem with your home, it may be covered under your insurance policy. If so, have the repairs made using your insurance company.

DO check into doing a HARP refinance or an FHA or VA Streamline Refinance.  If your home is backed by FHA, VA, or Fannie Mae or Freddie Mac, you may qualify to refinance at a lower rate which would lower your payment and give you some room to breathe.

DO continue to pay your mortgage until you have researched the above two options.

DO check into the local rental market and see if it would be worth it for you to have renters living in your home while you look for an apartment in a nicer community / town. This is going to depend on the amount of rent you could expect to receive, as well as what your current mortgage note is.  A lot of places have a strong rental market at this time.   You may also find a tenant who wants to look at a lease to purchase option, or a lease to own scenario.    

DO consider a short sale if the insurance company won't make repairs...  this can be less damaging to your credit than a foreclosure, and would let you rebuild faster.  A foreclosure can drag out for a long time, which would make you ineligible to purchase a home 3 yrs from the date of the actual foreclosure.

[webhopper]

Also, if you have other debts that you could refinance, such as auto loans. it may help.

[djacks]

[QUOTE]

Any ideas or advice I would greatly appreciate.  I know some of my options are:

Take out another loan I can't afford - fix the chimney and bat problem (I can't afford this)

Take out another loan I can't afford - fix the chimney and bat problem - don't pay my mortgage and safe the money in preparation to move

Move now and let the house go into foreclosure[/QUOTE]

Here is an unheard of suggestion. Pay to fix your house. Continue paying on your mortgage.

I can't stand the mentality of bail at the first sign of trouble. These are things that should have been factored in when buying the house, such as;

How's the neighborhood?

How are the schools?

How is the town?

Can I afford to make repairs?

Also, $13,000 underwater is not a big deal, even for an $80,000 mortgage. Many others are far more underwater but still carry on with their commitments.

[ALUMINEX]

[quote]

Here is an unheard of suggestion. Pay to fix your house. Continue paying on your mortgage.

I can't stand the mentality of bail at the first sign of trouble. These are things that should have been factored in when buying the house, such as;

How's the neighborhood?

How are the schools?

How is the town?

Can I afford to make repairs?

Also, $13,000 underwater is not a big deal, even for an $80,000 mortgage. Many others are far more underwater but still carry on with their commitments.

[/quote]

I appreciate your suggestion djacks but I can assure you that I don't have the mentality of bailing at the first sign of trouble.  I would have bailed years ago if that was the case.  

$13,000 underwater is significant for my salary.  Also, I have made repairs on the home and spent a lot of money.  Unfortunately, we have had some gotcha's along the way and I can't afford to repair it. 

I am not going to make excuses for poor planning on my part though... I should have researched this entire process and really completed due diligence.

[PRC]

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@ALUMINEX wrote:

[quote]

Here is an unheard of suggestion. Pay to fix your house. Continue paying on your mortgage.

I can't stand the mentality of bail at the first sign of trouble. These are things that should have been factored in when buying the house, such as;

How's the neighborhood?

How are the schools?

How is the town?

Can I afford to make repairs?

Also, $13,000 underwater is not a big deal, even for an $80,000 mortgage. Many others are far more underwater but still carry on with their commitments.

[/quote]

I appreciate your suggestion djacks but I can assure you that I don't have the mentality of bailing at the first sign of trouble.  I would have bailed years ago if that was the case.  

$13,000 underwater is significant for my salary.  Also, I have made repairs on the home and spent a lot of money.  Unfortunately, we have had some gotcha's along the way and I can't afford to repair it. 

I am not going to make excuses for poor planning on my part though... I should have researched this entire process and really completed due diligence.

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No need to make excuses or explain your actions.  We have ALL made mistakes in our lives.  What counts is what we do after the mistake ( do we learn from it and move on or do we continue making the same mistakes).  In your case, I would agree with "webhopper" if all else fails go for the short sale and move on.  It will work it self out in the end. 

[ALUMINEX]

Thanks for all of the advice.

I will seek out these options.  I don't really want to keep the house though o a refi probably isn't the best.  I really feel like I got a "lemon" when it comes to houses.

I will talk to my insurance company about repairs and also check on the short sale.  However, without repairs I don't know if I will be able to sell it at all.  The major issue for me and MY WIFE is the bat issues - We will be back in town next week (out of town for work) and I don't feel like the home is safe for my kids.  

[webhopper]

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@ALUMINEX wrote:

Thanks for all of the advice.

I will seek out these options.  I don't really want to keep the house though o a refi probably isn't the best.  I really feel like I got a "lemon" when it comes to houses.

I will talk to my insurance company about repairs and also check on the short sale.  However, without repairs I don't know if I will be able to sell it at all.  The major issue for me and MY WIFE is the bat issues - We will be back in town next week (out of town for work) and I don't feel like the home is safe for my kids.  

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Bats are not really that dangerous, they are just freaky looking.  We had bats growing up, but they stayed outside and kept the mosquito population down.  A lot of people think that every bat is carrying rabies, but this isn't true.  Less than 1% of bats carry this disease. 

If there were problems with the house that were not properly disclosed by the seller, you may be entitled to some sort of compensation if you bring them to court.  I do think that a short sale will probably be your best bet. It will be hard to sell the house with the roof issue, so you may have to fix the roof before you try to short sale.  

If you walk away, you could be waiting 1 yr to 18 months for them to actually foreclose. How long ago did you buy the house?

[Booner72]

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@djacks wrote:

[QUOTE]

Any ideas or advice I would greatly appreciate.  I know some of my options are:

Take out another loan I can't afford - fix the chimney and bat problem (I can't afford this)

Take out another loan I can't afford - fix the chimney and bat problem - don't pay my mortgage and safe the money in preparation to move

Move now and let the house go into foreclosure[/QUOTE]

Here is an unheard of suggestion. Pay to fix your house. Continue paying on your mortgage.

I can't stand the mentality of bail at the first sign of trouble. These are things that should have been factored in when buying the house, such as;

How's the neighborhood?

How are the schools?

How is the town?

Can I afford to make repairs?

Also, $13,000 underwater is not a big deal, even for an $80,000 mortgage. Many others are far more underwater but still carry on with their commitments.

---

+1

Most of the people on this mortgage board are DYING to own a house.  You aren't going to get much support to just walk away here.  You bought the house in that town, in that neighborhood, with the school district.  Sell it or fix it.  You are hurting other people when you 'just walk away.'  It drives down the prices of homes in your neighborhood.  13K underwater isn't much compared to others out there underwater and hanging in there.  Just because your salary is low doesn't make 13K any different.

[germaine47]

When you have researched and tried every avenue to correct your situation and home repairs, I dont consider it a failure because you have tried.  I commend you on being brave in trying to deal the mounting repair bills and the bat infestation.  I am from the South and I know of a gentlemen who is living in a home with a rattlesnake infestation, there is no way that this man can rest or sleep at night.  Whether its bats, snakes, or any other creepy crawlers and I  cant remedy the situation and get rid of them,  where I can actually call this place home (my sanctuary) you better beleive I will abandon ship.  I pray and hope that the insurance will see that the home has shifted and received structual damage.  I am saving for an emergency fund, but I dont know if I would be prepared anything other than a puppy or fish.  God Bless