I feel screwed.....HELP.

[emilyB1595]

I bought my small condo in 2007 for $200,000. I was 25, single, and feeling a lot of pressure from my mother to BUY BUY BUY and stop renting so I did. I never intended to stay here very long, just a couple of years and maybe sell this place for a small profit?

Now I'm 28, I've gotten married, and have a son. My condo is worth HALF of what I originally paid for it. Its small and cramped in here, and we want to build our family soon...there is no way we will fit comfortably in this small condo. I feel like I've failed in life....

The thing is, we CAN afford to make the mortgage payments. We live paycheck to paycheck...but we make it work.

However, we've been offered by my mother-in-law to rent her very large second home with 4 bedrooms and a YARD AND in her neighborhood, etc etc....for much much cheaper than our current mortage payment. She's suggesting I walk away from my mortgage, take the ding on my credit....and live a happier life.

I really want to go for it. I don't want to live this way for however many years I have to in order to sell this place for even CLOSE to what I purchased it for.....and WHO KNOWS how long that will take. The thought of having 2-3 school age children living here in cramped condo living makes me feel AWFUL. I'd rather give them a home, and live with bad credit until I'm 35...


What do I do?!?!?!?!

[MiSSMaGoo]

Can you rent your condo out? My sister ran into a similar situation with a one bedroom condo and has been able to easily rent it out for the past 3-4 yrs. I know renting can be a hassle but for her b/c her husbands income put her over bk would not have been an option and she has perfect credit so she didn't want the foreclosure.

[justplaintired]

Can you rent your condo out? My sister ran into a similar situation with a one bedroom condo and has been able to easily rent it out for the past 3-4 yrs. I know renting can be a hassle but for her b/c her husbands income put her over bk would not have been an option and she has perfect credit so she didn't want the foreclosure.

I agree and was going to suggest the same thing. If your payment could be met with a renter in there, then you have nothing to lose. The option of BK will be there if you need it down the road, but why not try renting it out. Who knows maybe the economy will turn around and you can eventually sell it for enough to pay it off.

I totally agree with the offer MIL has given you for your growing family, you might as well take her up on it, it sounds perfect.

[emilyB1595]

we thought of that....but no. my mortgage payment is $1500 plus $200 HOA. The complex is renting out the unowned condos here for $800.month...

[jacko]

Walk away..Unless you can afford to pay the difference. Remember, the mortgage and association fees do not cover maint costs which will happen at some point.

I am walking away from my condo to. I can rent for half for similar place.

we thought of that....but no. my mortgage payment is $1500 plus $200 HOA. The complex is renting out the unowned condos here for $800.month...

[MiSSMaGoo]

Oh my goodness, yeah then renting is not an option. So are you planning on walking from the mortgage and not filing bky? If so remember to pay the HOA until the house is out of your name. HOA gets crazy when you don't pay them, lol I literally had someone follow a friend who left my house and then tried to serve them at a store. If you're gonna file bky then don't pay HOA just the insurance until the deed is out of your name.

[bankruptsee]

I'd walk away.

Will having a good credit score make your condo bigger? no

My house is IIB and we didn't sign a reaffirmation agreement. We're 99% sure we're going to stop making payments next month.

Save then move.

[justplaintired]

I would walk away. No sense in keeping that condo at that kind of payment and that kind of loss. Just take the MIL up on her offer, it sounds like this will fit you better now. Unforunately there is no telling when things might turn around in this economy.

[imoverit]

run don't walk!! We were in somewhat of a similar situation and its all done now and I have NO regrets, other than not doing it sooner...

[moonbeam9209]

What about trying to get a loan modification to lower your payments until the market gets better enough to sell and renting it in the meantime?

[HakunaMatata]

I bought my small condo in 2007 for $200,000. I was 25, single, and feeling a lot of pressure from my mother to BUY BUY BUY and stop renting so I did. I never intended to stay here very long, just a couple of years and maybe sell this place for a small profit?

Now I'm 28, I've gotten married, and have a son. My condo is worth HALF of what I originally paid for it. Its small and cramped in here, and we want to build our family soon...there is no way we will fit comfortably in this small condo. I feel like I've failed in life....

The thing is, we CAN afford to make the mortgage payments. We live paycheck to paycheck...but we make it work.

However, we've been offered by my mother-in-law to rent her very large second home with 4 bedrooms and a YARD AND in her neighborhood, etc etc....for much much cheaper than our current mortage payment. She's suggesting I walk away from my mortgage, take the ding on my credit....and live a happier life.

I really want to go for it. I don't want to live this way for however many years I have to in order to sell this place for even CLOSE to what I purchased it for.....and WHO KNOWS how long that will take. The thought of having 2-3 school age children living here in cramped condo living makes me feel AWFUL. I'd rather give them a home, and live with bad credit until I'm 35...


What do I do?!?!?!?!

I purchased a house at the age of 25 as well. Like you, I thought I would only be in it for a few years, sell, profit, and upgrade. Unfortunately, I purchased a money pit that detoured me from my original plan. Fast forward to modern times...I'm still battling my house and the market has made my position even worse. After careful assessment, I've decided to free myself of this house. I, too, can afford my mortgage payments. I have costly imminent repairs and I'm not willing to further invest in a losing investment (plus, I don't have the financial means). I stopped paying my mortgage payment and I intend to file for bankruptcy in the near future. I pondered strict foreclose as my debt load isn't too intense. I've been encouraged by attorneys, CPAs, and mortgage bankers to pursue bankruptcy. There are numerous reasons cited...the main ones are: I will be relieved of any potential deficiency judgment, my credit score is going to plummet with either option (so I might as well secure a "fresh start"), and I will be able to purchase another property in the future more quickly with a BK rather than with a strict foreclosure.

I've taken the leap and, unlike you, I don't have a clear-cut future path or husband/children to consider. If I were in your position, I'd strongly consider foreclosure or BK. You've already secured future housing which appears to better suit your financial and familial needs. Most of us don't know if/when the housing market is going to adjust. We all indirectly or directly participated in the housing mess. You didn't solely create it. You're not a failure. You have legal options and the use of these will likely permit your life to move forward in a positive direction. You don't have to throw good money after bad money and you don't have to put your family on hold because of our economy. Credit can be rebuilt. Time, however, doesn't offer this opportunity.