Advice-selling home from Acworth & getting out of debt?! (Commerce: short sale, apartment)

[gabaseballmom]

Hello, we are below equity in our home bought for $230k 8 years or so ago in Acworth, now because of market our house is worth at least $20k less than what we owe in equity (if I am saying this right-husband told me). We will have to put a downpayment down he said, in order to move - money we don't have. Is it possible now a days to borrow from bank (I hear no loans given out as easy and we do have credit card debt as well $30-40K). I think our home is now worth only $160k, and we owe $180k.

Any advice? Also what is a short sale of selling your home? Is renting our only option?

We want to move to where school district is better and actually buy home owing less on our house, to help us pay off debt and have a backyard with fence for our dog and child. I would like to move to Forsyth county schools/cumming area, closer to family and school systems pretty good.

Thanks for anyone's help!!

[fzx]

If you know how to do that, I would like to know, although I am skeptical.

Letting the bank forclose your property is one option but how about the credit debt? And will 20K worth the effort? I guess not.

[gabaseballmom]

Originally Posted by fzx

If you know how to do that, I would like to know, although I am skeptical.

Letting the bank forclose your property is one option but how about the credit debt? And will 20K worth the effort? I guess not.

Well, I don't know that is why I was seeking advice from professionals or someone with helpful advice on what to do in our situation and dilemma.

[belleislerunner]

Why do you want to move? Did someone lose a job? If your house is worth 160K - that will bounce back up to 180K-200K within the next 5-10 years. And each year as you make payments (e.g. mortgage of $1,000/month) - in two years from now - you won't be upside down on your mortgage. That's assuming worse case scenario of no market improvement (i.e. house still worth 160). Then every month after that you'll be building equity/wealth. Moving right now would only put you more underwater, as there's no downpayment saved, your credit would get hit with the short saleetc. The schools in Acworth aren't bad enough to justify a move. You just need to spend more time with your child after dinner etc being a parent and it will be perfectly fine.

[lorilove]

The best advice regarding finances and selling of a home is from Ilyce Glink

Blog | ThinkGlink

She also has a radio show on Sunday's - they discuss short selling etc quite a bit.

[gabaseballmom]

Originally Posted by lorilove

The best advice regarding finances and selling of a home is from Ilyce Glink

Blog | ThinkGlink

She also has a radio show on Sunday's - they discuss short selling etc quite a bit.

Thanks! I will check it out!

[gabaseballmom]

Originally Posted by belleislerunner

Why do you want to move? Did someone lose a job? If your house is worth 160K - that will bounce back up to 180K-200K within the next 5-10 years. And each year as you make payments (e.g. mortgage of $1,000/month) - in two years from now - you won't be upside down on your mortgage. That's assuming worse case scenario of no market improvement (i.e. house still worth 160). Then every month after that you'll be building equity/wealth. Moving right now would only put you more underwater, as there's no downpayment saved, your credit would get hit with the short saleetc. The schools in Acworth aren't bad enough to justify a move. You just need to spend more time with your child after dinner etc being a parent and it will be perfectly fine.

Well, it's a combination of things of why I want to move. I don't like where the area/neighborhood has gone (tons of renters that don't take care of homes), we pay way too much for HOA for what is offered because of people upside down that don't pay HOA we suffer to pay it! And, my parents moved north of here so we wanted to move closer to Commerce which is where they are close to. That way, we won't be so far away from them to see each other and my mother had major surgery so needs help. Also, I feel my family just needs a fresh outlook and new start with new friends, etc. It's a long story to not go into details. But, I see your point, but I don't want to just wait another 5-10 years. I mean, now my son is young needs room to run play in a backyard with a fence, not wait until his much older. I just want to move I know there are lots of other people probably in similar predicament. I just know there's got to be a way to move, because I have seen people in our neighborhood selling houses lately so it's possible.

[vince217]

you can also try renting out your home, like what others have done in your neighborhood. then you can rent an apartment for a year or so, while building both equity in the property and building up credit to possibly buying another home in your desired area.

[davebarnes]

Dear OP,
1. You need to reduce your credit card debt to zero$.
2. You need to start saving money. Put it in a Roth IRA if you can. You can always remove your contributions without penalty, but the extra effort will help you to think twice before making a withdrawal.
3. You need to expect live in your current house for at least another 2-5 years. Add another $10 a month to the mortgage payment to start.

There are no magic answers. You are in over your head and only hard work will get you out.

[brianjb]

Looks like you don't want to believe anyone that is giving you advice.


YOu are asking the same thing in a different thread, https://www.city-data.com/forum/real-...e-ga-debt.html

Here is what I said there:

I agree with those that said you need to learn to do the finances as well.

What if something happened to the hubby? Would you be able to do it on your own?

But to answer your question, you are living way above your means already. You have so much in credit card debt.

How much do you make a year?

My suggestion is to pay the debt off and then start paying extra towards the house.

What is your credit score?

So even if all things worked out, would you get approved for another house?

If you really want to move, and you have the credit score to purchase another house, then get extra jobs and cut your budget and put all of the extra money towards your current home. Get it below what you need so that you can sell.

Then you will also need a downpayment for the next place.

Honestly, it sounds like your financial house is such rough shape. You need to stay put and pay off the debt before you start to even think of incurring any extra debt. Maybe cut cable bill. Get rid of cell phones, etc.

Before you assume what your house is worth. Get your payoff for current mortgage. Do you have a second mortgage?

Then have 2-3 realtors give you the price it would sell for. Then you have a real idea as to what it's worth and what you may have to come out of pocket to cover.