For those who walk away - Where do you go???

[startover24]

We had our 341 last week. Everything seems to be going good, so far. We're not reaffirming 1st or 2nd. House worth about $315,000. 1st about $272,000, 2nd about $65,000.

We're planning on staying and paying at least another year and then maybe walking away. The job outlook in Michigan for a 61 year old is pretty bleak. But if something comes up, we'll stay as long as I'm able to work.

My question is: For those of you who walked away from your home, where did you end up living? I have a decent amount of IRA money that can either be used to keep funding this house or just walk away to a warmer climate and rent an apartment for a few years. From what I'm reading, it'll take at least 3 years from the foreclosure date before I could even think about buying another home. I'm not sure I even want to.

Will it be hard to rent an apartment?

Any similar experiences?

[HHM]

Most end up renting a similar house down the street for half of what they were paying in mortgage payments.

It will absolutely not be hard to rent.

[espo1357]

Yup. Renting is not a big deal. If you are in a state with high taxes, renting makes more sense.

Why do you want all that responsability for a home that is underwater, with taxes and insurance, and other nonsense? Homes should be for the very rich or for people with a rather large familly imo. I got burnt bad with it all, and now I am seeing the light.

Renting is smarter.

You will be fine.

[ursaminor]

My husband and I changed our entire life after this, intentionally. We were tired of contracts, leases, deposits, sign on the dotted line and swore we want a simpler life and to feel alive...we got an RV instead. You do NOT have to have some $100K deluxe RV to enjoy this life...there are tons of used Class A and Class C motorhomes with plenty of space. The freedom to drive away from our house that last day (we lost our home, too) and never look back was empowering. Once our Chapter 7 is behind us, we feel truly free. Go see the US and enjoy life...you'd be AMAZED how little it costs to do just that.

[daylate]

I went south. Literally-LOL. Our winter here lasted four and 1/2 days or so. Renting an apartment. No maintenance. A few annoyances like barking dogs but all in all I wonder why we didn't do this sooner. Good luck.

[tobee43]

we went south as well......rented the first year...and then did a rent with option to buy...and ended up buying this house about 2 weeks ago...(owner financed)

however, we were at the time in our lives ..we had no kids home, so we didn't worry about up rooting them...although kids are much tougher than WE are...and adjust well...(but much of that is up to us as parents and OUR attitudes).

i never wanted to be in florida....i'm born and raised in san fran......but that was WAY to expensive for us.

i think it does depend on where you are in your lifes journey and what your plans are for your future....i'm happy here...because HE's happy...and for me...happy is when one walks in the front door whether it rented or owned and there is a smile and hug waiting for you.......so HOME is where the HEART is...and you take all your memories with you....they don't stay in the walls of your old house...

best of luck...where ever you chose to go!!

[discouraged]

I needed to re-hear this as much as startover did. This morning I got up and looked at all I have done to this house and became angry at all the folks (Foreclosure Prevention office, Financial counselor they sent me to and the lawyer) for not letting me know I could do a pay & stay because my 1st mortgage is 628.00 per month with insurance and taxes (escrowed). Then I remembered that my old apartment actually had a lot more space and was only 550.00 per month, utilities included.

It then became a no-brainer, except I am still unemployed and life is still uncertain. I'll just save as much as I can and hope to either move to another state or look for work closer to my family. Actually, if I do find a job here, I could probably move back into my old apartment building. They hated my moving as I was one of their best tenants.

[espo1357]

I needed to re-hear this as much as startover did. This morning I got up and looked at all I have done to this house and became angry at all the folks (Foreclosure Prevention office, Financial counselor they sent me to and the lawyer) for not letting me know I could do a pay & stay because my 1st mortgage is 628.00 per month with insurance and taxes (escrowed). Then I remembered that my old apartment actually had a lot more space and was only 550.00 per month, utilities included.

It then became a no-brainer, except I am still unemployed and life is still uncertain. I'll just save as much as I can and hope to either move to another state or look for work closer to my family. Actually, if I do find a job here, I could probably move back into my old apartment building. They hated my moving as I was one of their best tenants.

I am all over the place with this post, but here are some random thoughts:

Its nice having your own place, but when the long term looks uncertain, it is prudent to back off and give yourself more options.

Been in this house for over 5 years, and its 150-200k upside down now. I mean, I can afford it, but its not going to see light for about 20 years.

I like my lifestyle here, but who the hell am I fooling? The economy stinks, and there comes a time when you have to pay the check, and the the check is too dam much.

My next move is to buy a condo cheap or rent cheap.

Renting is the better move if you are single, because it give you flexability to move and find a job.

Owning a house today, is for married folks with stable income and usually with kids. There is too much of a risk when there is only one income.

The good old days are over, and smart people make adjustments OR else they will no longer be smart, and instead stay broke for a lifetime.

Change is painful for a few months, but in the long term, moving is not a big deal.

[tobee43]

I am all over the place with this post, but here are some random thoughts:

Its nice having your own place, but when the long term looks uncertain, it is prudent to back off and give yourself more options.

Been in this house for over 5 years, and its 150-200k upside down now. I mean, I can afford it, but its not going to see light for about 20 years.

I like my lifestyle here, but who the hell am I fooling? The economy stinks, and there comes a time when you have to pay the check, and the the check is too dam much.

My next move is to buy a condo cheap or rent cheap.

Renting is the better move if you are single, because it give you flexability to move and find a job.

Owning a house today, is for married folks with stable income and usually with kids. There is too much of a risk when there is only one income.

The good old days are over, and smart people make adjustments OR else they will no longer be smart, and instead stay broke for a lifetime.

Change is painful for a few months, but in the long term, moving is not a big deal.

just to add to your comment...if you don't mind........even people with kids are beginning to change their minds.

example...our daughter could not sell her house up north....so...we had to a land contract ( it's really an option to buy but the new owner actually wraps around the existing mortgage....thereby...those that can't quaify for a mortgage get a house...my daughter gets her mortgage pd and the people have a few years to assume the existing mortgage)....anyway..........she and her husband move with their kids to another state......and i'm like...(of "old" mind)...hurry hurry hurry buy another house...and she says in all her wisdom................NO way.......when the roof goes...let the landlord deal with.......when the stove goes.....NOT my problem....... she says where she moved..she can rent a mini mansion for what it cost up north to live and there are plenty of rentals.......ok....then..makes some sense....makes some GOOD sense.

what stable job........no tenure for the teachers and she a q & a admin...with a phd......(she is NOT a doctor with patients she does health care mandates...and so what??? she making as much as she did when she was in under grad school....hehehehe...so what then...she's on a contract...so i think that's what the youth of the future is going to have to do...rent and do their best...oh...and pay those terrible student loans..

[dontburnthep]

We are renting after walking away. We were homeowners for 11 years and it was painful to make the leap but life on the rental side is oh so much better. Eventually we might like to buy again but for now we're happy to not have all of the financial problems that came with owning a home. We are in our 30's, dual income, and have 2 kids. We just found something in the same school district.

EDIT: Tobee, my father really resisted our renting, for the same reason, of 'old' mind, and he still believes that we did the wrong thing. You make a great point that today's world is simply not the same as the one that he came up in. Owning a home was the best thing you could do then. Now, it's caused us nothing but trouble.

[ValleYum]

We are renting after walking away. We were homeowners for 11 years and it was painful to make the leap but life on the rental side is oh so much better. Eventually we might like to buy again but for now we're happy to not have all of the financial problems that came with owning a home. We are in our 30's, dual income, and have 2 kids. We just found something in the same school district.

EDIT: Tobee, my father really resisted our renting, for the same reason, of 'old' mind, and he still believes that we did the wrong thing. You make a great point that today's world is simply not the same as the one that he came up in. Owning a home was the best thing you could do then. Now, it's caused us nothing but trouble.

And dontburn, we were also told "Buy as much house as you can afford", too, remember?

Ugh. Times have really changed.

[dontburnthep]

And dontburn, we were also told "Buy as much house as you can afford", too, remember?

Ugh. Times have really changed.

Indeed! And that a "home is the best investment you will make."

We've owned 2 and both were disasters.

Our rental is much nicer than either of the houses we owned AND cheaper. Sure, we're not building equity. But we built none in the 11 years we owned either, and the second house left us bankrupt so... Not much of a return on our investment.

[discouraged]

That is so true. I've had mine for 8 years and it has been one thing after another. Now, as I am finally giving it up there are still so many things wrong. The oven doesn't work, the dryer and dishwasher died, it needs new stairs, the kitchen sink drips and I have replaced the washers and am not willing to spend one more dime on plumbers. I put in new insulation and wallboard but that needs sanding and painting and I am not doing anymore work on this house! I have done enough. Let someone else sand and paint the thing.

Oh, and when I bought, I did stay within my budget and 6 years later lost my job. So much for buying what you can afford - when the economy is shot to heck.

[rpraver]

The mistake I see many people make is to leave the house before they have to. In Florida foreclosures are taking a year to two years, sometimes more. People leave their home and the house sits empty. Remember, Chapter 7 relieves you of liability on the mortgage(s) but does not take title out of your name. The house remains yours, until the foreclosure is finalized. I have people who have stayed in their homes 3 years without making payments before they had to surrender. Again, I'm talking Florida, can't speak to other states, YMMV. Staying in possession as long as possible (without making payments) allows you to save up some money to get in a new place. Don't rush to move out, just because you've filed a Chapter 7.

[espo1357]

The mistake I see many people make is to leave the house before they have to. In Florida foreclosures are taking a year to two years, sometimes more. People leave their home and the house sits empty. Remember, Chapter 7 relieves you of liability on the mortgage(s) but does not take title out of your name. The house remains yours, until the foreclosure is finalized. I have people who have stayed in their homes 3 years without making payments before they had to surrender. Again, I'm talking Florida, can't speak to other states, YMMV. Staying in possession as long as possible (without making payments) allows you to save up some money to get in a new place. Don't rush to move out, just because you've filed a Chapter 7.

What about a Chapter 13?

My guess is that the process would even take longer!

Thanks for the insight. I completely agree with you. People need to stop being intimidated by the foreclosure process and instead, see this as an opportunity to save money and start over.