1.20.2010

Walking?

It's times like this that I wish my blog was private. Private so that I could just vent and be able to just say what is going on to complete strangers so that they can give me their honest opinion. So since people in real life do read my blog (I think) I won't go into too much detail, but still need to organize the info to help myself.

Gabe and I are contemplating walking away from our home. First off let me just say that we have spent almost a year now trying to modify our mortgage and even hired someone to help us all with no success. I have faxed and emailed countless documents, and spent hours on the phone all for nothing. We keep getting pushed around asking for document after document. I have now sent them Gabe's paycheck stubs 10 times. How many more could they want? Every time I call, they just ask for something else.

Why would we do this? Reason #1: We bought our house in July of 2007 from my Father-In-Law and at this time house prices were still pretty high and we got an interest only loan for five years. We are approaching three years this Summer and I fear we might end up losing the house anyways once the five years hits. If we could get it modified as a fixed loan, we would gladly stay as long as the monthly payment wasn't any higher. Reason #2: We owe more than the house is worth. Reason #3: I would like to continue on my 28 hour per week work schedule. Reason #4: Our expenses are higher and income is lower. We now have two babies to support. Diapers, formula, clothes, health insurance for them, a $4,000 health insurance deductible, and daycare. My income is obviously lower because I am working less and my last raise was 2% back in January of 2008. Thank goodness Gabe continues to get decent cost of living raises every six months. Reason #5: We could save A LOT of money renting, and even save enough for a down payment on something else once our credit was restored years down the road. Reason #6: We could rent a larger house with TWO bathrooms, our house is only 1,000 square ft. and we are not too crazy about the neighborhood.

Why wouldn't we do this? Reason #1: Gabe's Dad raised him in this house and it has a lot of memories for him. Reason #2: We put blood, sweat, and tears into remodeling this house and making it just the way we want it. Reason #3: This house has so many special memories for us, it is the house we brought our boys home to. Reason #4: Most rentals don't allow pets and we have two cats and two dogs. Reason #5: I take a huge amount of pride in being a home owner and will be sad to no longer be one and have the freedom to do to it as we please. Reason #6: The tax write offs we would lose. Reason #7: The hit we would take on our credit. Reason #8: The low property tax rate we would lose, since we bought the house from my Father-In-Law we were Grandfathered into his lower tax rate. Reason # 9: I really do love our house!

So it seems we have more reasons not to, but some of the reasons to do it are rather large. I am glad I was able to get this all down, it helps me to better organize my thoughts. For now, I will call Wells Fargo yet again and see if we have gotten any further. Thanks for letting me vent. I think we will give it another few months now that we are starting to see what my income is like and what the boys expenses are and then re-evaluate.

12 comments:

Fullers1006 said...

I'm a lurker I guess you would say and your boys are adorable. Let me tell you a little bit about my experiance. Right when we found out we were pregnant two years ago we decided it was time to move from our home. We bought in 05 and paid $177,000 for our house in Jan of 08 we listed it on the market and sold it in Sept for $88,000 as a short sale. We were in a bad neighborhood, the mortgage was only in my name, we were having a baby my income was being cut in half, and we needed to be closer to family. So we consulted with a lawyer and he encouraged us to do so. Honestly short selling our home was very easy the mortgage was in my name alone not my husbands so he wasn ot affected. But honestly it has ruined any chance for me to get a credit card and I just got denied for a car loan. Even though my credit score is still in the high 600's cause I have never been late on anything else I am still affected negativly. But on the brightside we life close to my family and save over $700 a month renting a place. Personally it has helped us tremendously and honestly i would never go back. The bank released us from our lein. If you are considering walking away try a short sale first cause I think the long run it is not as bad as a foreclosure. Well good luck. I hope it all works out its a scary decision.

Meant to be a mom said...

Bless your heart. I am sorry to hear about the house troubles. I hope someone can work something out for you guys. I know its not always a good thing to walk away but you will have to do what is best for your family in the end.
I hope you guys are able to figure it all out.

Angelwingsbaby said...

We have been trying to modify our mortgage for over 8 months actually since a few months after DH got laid off.We tried going for the making home affordable plan that obama put in place but everytime we think it is moving forward we get a call or a letter requesting more info, statements etc even though we already sent it all in.We feel like they are dragging this whole thing out.So I completely understand your frustration as we are in the same boat kinda.I sure hope it works out for you hun.((hugs))

Peta-maree said...

I wish that there was something I could do to help you out with this.

You have both been through so much and this sucks. I have everything crossed for you that things work out. I would love to keep following when you go private.

Hugs
P

wannabmomma said...

I too am right there with you! We are trying to modify our loan, but since our debt to income ratio is bad nobody will refinance us. We are talking about quiting our payments, since that seems to be the only way to get any help is if you are already behind. It sucks because we've never missed or even been late on a payment.

Anyway I feel your pain, and we are in the same boat...except our twins are on the way and due in May.

Good luck in whatever you decide to do!

Anonymous said...

you named 6 reasons to let go and 9 reasons not too.......you just decided yourself and you did'nt even know it!!!

Kami said...

I rent honey so I have no clue what to say. I'll offer up prayers for you. I will pray everything goes the way you intend them too so you guys can take care of your family.

Hugs,
Kami

Baby Wanted said...

We are also in the same boat. We are trying to get our loan modified and the only people who call are from India and hardly know English and if they do know English...I can't understand them through their thick ass accent!

I will pray that you find the answers you are seeking. Only you two can make this decision. If the house wasn't so important to you all, I would say walk but it seems as though you have a deep love for that house.

Kara said...

Yes, I tap into your blog probably once a month and it has been exciting to see the road that has led me to be the babysitter to those wonderful boys. Anyhow, I was content to just being a lurker, but I wanted to let you know that we are in the same boat re our house.

When I abruptly decided to be a SAHM, our income was cut by 2/3. I was the breadwinner and just figured we would make it somehow bc Jack was more important than any house. Like Gabe, I bought this house from my parents and are reaping the tax benefits and would be disappointed to lose the house I spent so many years in.

The first thing I did was call both mortgage companies (yes, we have a first and second) and tell them that our income was cut by 2/3 and that we were unable to make a mortgage payment at this time. After we skipped a payment on the first mortgage, and called and called, we forwarded an insane amount of paperwork and got a modification. Is it great? No (interest only for 5 yrs - increasing every year 2.5% to 6.5%; 40 yr term). But,right now, it is cheaper than renting an apt here in Napa and they reduced our principal by $60,000 (just saved a year's worth of work right there). Now, our second mortgage hasn't been that easy. Like you, I've called and faxed sooo many times since May. We tried to modify, but no. We tried to settle for 10% (with a loan from MIL), but no. It is now in Collections and we're trying to settle with them.

Our credit took a huge hit. Like you, I took some pride in knowing that we had a GREAT, almost perfect, credit score. However, now that baby Jack Thomas is here, that credit score doesn't seem as important.

Our options remain: try to settle second mortgage, bankruptcy (chapter 13), or walk away from our house (strategic foreclosure).

On one hand...I hate that my credit is taking a hit and am embarrassed that we are facing such humiliation such as bankruptcy or foreclosure. However, would it be that bad? Is it more important to be home than to work to pay for a house that isn't worth what it used to be? Would it be better for me to have to save for things rather than have a good credit score that allows me to borrow?

Remember, mortgages are calculated risks on the borrowers AND the lenders part.

My parents filed bankruptcy when I was young. I don't remember it and by the time I was in high school their credit had been restored.

Do what's best for you and your family. Sometimes that means changing what's important. If you decided to walk away from your house, I would understand and so would all the others out there who strategically walked away from their homes.

CJ said...

Hi, I found your blog through someone else's i forget.! Beautiful babies! I have my 2 cents.

I heard from a friend that they had a HUGE problem with Wells Fargo and getting their loan on their home! She had to send the info in like 4 times. They quit them and ended up going with someone else and they only sent their paperwork in 1 time and everything was so much smoother. I would look into changing banks.

CJ said...
This comment has been removed by the author.
kanishk said...

I hope it all works out its a scary decision.

Work from home India