Home Buying in Dallas>Question Details

Atljetmech, Home Buyer in Dallas, GA

I have great credit, great job and am in a house that I am upside down on. Should I just let the bank have it back? Please dont give an

Asked by Atljetmech, Dallas, GA Sat Jan 7, 2012

"easy" answer. I know that the quick and easy answer is something like "sell it and take a loss" or "let the bank have it and wait seven years to buy a house".

I wouldn't mind joining the masses in going into foreclosure. I think the mortgage companies catered to this overinflation of housing prices and the responsible people in this country are shouldering the cost. I was thinking about getting another house and just renting out my current home. If all fails with my overpriced home, then the mortgage company can have it.

I'm thinking that I'd like to buy a cheaper home with as little out of pocket as I can. Is there some kind of Obama plan out there that I havent heard of? I don't want to put the metaphorical "handicapped sign on my rearview mirror" to get a better parking place in this economy. But then again, I'm seeing alot of handicapped stickers in my neck of the woods and I'm feeling like a chump. I want be smart about this.

What's a wise course of action?

Help the community by answering this question:

Answers

11
Who put the gun to your head to buy the house? You're seriously assigning blame?

You know the answers, look in the mirror and see what that guy says.

Hank
2 votes Thank Flag Link Sat Jan 7, 2012
Here's a "hard" answer, Atljetmech. First, there are no easy answers. You write you have great credit; that will no longer be the case if you let the bank have it back or go through the short sale process. Many companies are checking their potential employees' credit before hiring, or post-hire prior to promotion. Second, you may have a more difficult time purchasing your next home without having sold or leased your current residence. It will probably result in a higher interest rate and down payment if you don't. And last, chump or not, until this attitude ceases regarding following through on our debt obligations, few of us will ever again be "right side up" with equity on our primary residences. Good luck in whatever you decide.

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com
2 votes Thank Flag Link Sat Jan 7, 2012
You only loose money if you sold your home. For a short sale you need to prove to the bank that you can't afford your home. Can you afford your home? I am underwater on my condo,it is worth 1/3 of what I paid for it, but I haven't lost money since I am not selling.
If you walk away from your home, you will definitely ruin your credit. Are you living in a state where the lender can come after you for the difference? I cannot imagine not looking at your credit if I was a landlord. I would not rent to someone who walked from their home. Also don't look for a new job after a foreclosure since most employers now check applicants creit before offering them the job. Your homeowners insurance may go up since you are considered a risk.
In other words, I don't believe in strategic foreclosures.
1 vote Thank Flag Link Sun Jan 8, 2012
Let's see what you posted -

"I wouldn't mind joining the masses in going into foreclosure. I think the mortgage companies catered to this overinflation of housing prices and the responsible people in this country are shouldering the cost."

"I'm thinking that I'd like to buy a cheaper home with as little out of pocket as I can. Is there some kind of Obama plan out there that I havent heard of?"

So a swipe at the mortgage companies to start and looking for "some kind of Obama plan" for the next home....yeah your right, you sure are assuming responsibility for what you did. So you never said, what forced you to sign for the house?

Very eloquent – and rambling - second post...I can’t imagine how you got into trouble with the home. Nice try at the communism–capitalism analogy, however capitalism rewards effort. The playing field isn’t level and you shouldn’t expect it to be. If someone excels in school and at work then they deserve the rewards, they don’t deserve to have some dead beat anchor like you to drag along.

This isn’t about anything more than you looking for a way out of paying your financial obligation. There are certainly mitigating circumstances that can put people in this situation and they should be helped in every way possible, but those are the exceptions rather than the norm. And based on your post that’s not you, not by a long shot.

Here’s a tip from the bitter old pill – don’t spend dollars when you make dimes. And if you are making dollars then pay your financial obligations. Stop whining, give the occupy gang a call maybe they can help.
1 vote Thank Flag Link Sun Jan 8, 2012
What time of loan is it? You may be eligible for a streamlined refinance of the home that could lower your monthly obligation...

Best plan would be to sit down with a local lender, one you trust, and see what options you have. You seem like a very sensible person, so I would exhaust all options prior to letting them take the property... it takes a long time to fully recover from a foreclosure/bankruptcy situation, especially if you might have alternative options...
0 votes Thank Flag Link Tue Jun 18, 2013
Im a realtor in dallas, ga. Feel free to call me and we can go over your whole stituation, and maybe figure out whats best. Even if its just for information. I list a lot of short sales and work with reos homes all the times.

Let me know if i can help!

Martha Crew
Allen & Assoc Realty
678-978-9931
marthacrew@gmail.com
0 votes Thank Flag Link Mon Mar 5, 2012
I really appreciate what you all have told me. Well, mostly all. Some posters seem to think it’s cool to solicit advice that borders on juvenile. What’s more is that they totally missed the point. I don’t see where that Hank guy got that “I am trying to assign blame”. Thanks Dr. Phil but please take the time to read what was written before you spew your bile.

I’m not trying to shirk my responsibilities but I try to make the best decision I can in everything I do. For example, I shop insurance companies every time it’s time for renewal. Not because I am trying to undermine the system, rather I’m trying to stay current on the best deal out there. It keeps the playing field level and honest. That’s the reason that the free market system is better than communism. It responds immediately, fairly and self corrects. If the housing market is imbalanced, the free market will correct that. And if people get screwed in the process, then that’s how the cookie crumbles.

Id like to take a poll of how many guys out there have stayed with a woman that has turned out to be a complete psycho after a year of marriage. Chances are good that they are worried about what their friends may think. So they stay with them for years and years until they become bitter old pills (like Hank). They just get old and regret the day he met her. Sometimes in life you get a bad tooth. Things happen. Get a root canal, have it capped or even get an implant. Sometimes the best thing to do is “cut your losses rip that sucker out”! You have options you know. You don’t have to live your life like a moron thinking that you are stuck in your predicament. Things change, people change and laws change. If you sit back and take it: You deserve what you get. I’m just making a post and thinking out loud to see what might be out there that I don’t know about. That’s how you find things out. You just ask. Chances are that you will find it when you ask. I guess you can say that I’m throwing some Hank against the wall to see what will stick.

I digress. I want to thank the others that have chimed in. I appreciate your input. I just wanted everyone to know that I have contacted the ones that offer something other than the obvious things.
0 votes Thank Flag Link Sat Jan 7, 2012
As Michael mentioned, a short sale or a foreclosure could result in you losing your job or possibly getting a new one. Many employers look at an applicant's credit history. This is especially true for someone working in the financial services industry or someone with a security clearance.

It will likely hinder your ability to get credit in the future. For any credit you are able to get, expect to pay higher interest rates on that too.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Sat Jan 7, 2012
Atljetmech,

Something tells me you are in the airline industry or work at Dobbins. :)

Your challenge is one faced by many homeowners. The ones I have worked with do one of two things: a) buy a new home and then "short sell" their current home or b) buy a new home and rent their current home. In both cases, you will need to qualify with both mortgages (current one and new one). If this is a possibility, you would likely want an FHA mortgage with 3.5% down unless your current mortgage is an FHA loan. As other respondents have mentioned, short selling or allowing the home to go into foreclosure first will preclude you from buying for at least two years in the case of the short sale and 3 years for a foreclosure.

One other very important point you need to know. Lenders have caught on to the "buy and bail" phenomenon as it is often called. If you leave your current primary residence for another primary residence, the lenders will require you to have three months of mortgage payments for both properties as cash reserves in addition to your down payment. So for example if you are buying a $200,000 property with an FHA loan and your curent mortgage payment is $2000 and your new mortgage payment is $1400 you would be required to have assets equal to $17,200, which includes a $7000 down payment, $6000 for reserves on your current mortgage and $4200 for reserves on your new mortgage. The reserves will remain yours, they are just additional assets that let the lender know you can continue to pay both mortgages for a period of time.

I have guided many homeowners through this process and would be happy to discuss this further if you would like more details. Email me if you are interested discussing this further.

Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
tbrown@getevolved.com
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
0 votes Thank Flag Link Sat Jan 7, 2012
You could do a short sale on your current home. Or if you qualify with both mortgage purchase a new home and then do a short sale on your current residence.

This bad news is if you do let it go into foreclosure or do a short sale it will be tough to get a mortgage for some time. There really is not an easy answer on this situation and tons of homeowners are going through it.

If you want to get in touch with a good real estate agent or talk offline about your situation in more detail just give me a call on my cell below.

Justin Herring
Atlanta's #1 Most Trust Loan Officer
Southeast Mortgage
justin.herring@southeastmortgage.com
404-312-3459
0 votes Thank Flag Link Sat Jan 7, 2012
Before considering anything, in order to best protect yourself, do consult with an attorney who specializes in real estate and see what option is best for you; rather than foreclosure a short sale could be one of the options.....
0 votes Thank Flag Link Sat Jan 7, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer