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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.
You are in a difficult situation. Ordinarily we would recommend a Short Sale of your home, where your mortgage company accepts the lower payoff ($160K vs $180K) but Short Sales have a significant impact on your credit and will restrict you from buying a new home for several years. You are so close, only $20K, that it might not be worth doing a Short Sale.
One other option is to borrow money from a friend or family member and pay the thing off, then pay them back later. Or wait a little longer until the market recovers some more and then sell.
I assume you have had a local Realtor provide you with a market analysis of your home? If not you should, as the value may have increased in the last few months. There is no cost for this, but be aware the agent will try to convince you to sell now so have patience.
My suggestion is that you stay in the house and keep making the mortgage payments. Eventually, prices will go back up to the point where you can sell for enough to pay all your mortgage.
Your high credit card debt is already hurting your credit score. I very much doubt that anyone (except maybe your own mother) is going to loan you the money to pay the money needed above a sales price and if you walk away from the house your credit will be completely trashed. You won't be able to buy a new house for several years.
You can't buy another house without a large down payment, which you also do not have. You might have trouble renting a nice house with bad credit.
So, right now, you have a house to live in. Just stay there.
Look into getting your current house refinanced. It might be possible to get your monthly payment lowered. Then if you continue to pay the current payment, your balanced owed will go down faster and it won't take as long to get to teh point where a sale will pay off the mortgage.
Seriously, kiddo, learn something about finance and how to balance your checkbook and work a budget. It is a really bad idea for a wife to rely 100% upon her husband to do all the financial stuff. You need to make yourself learn how money works, even if the hubster actually does it all, you should be understanding what is happening.
Fortunately you 'want' to move, but don't 'need' to move.
You really have only one choice, short of having mom give you a gift, or winning the lottery (don't start buying tickets because I said that--it is just an expression, akin to 'you need a miracle'): Stay where you are.
So...you start working a second job, you tear up the CC's and promise yourself to NEVER use them again, you pay off the CC's, then you start saving until you have enough to make up the shortfall if you sold the existing home, and put down 20% on a new place, if you still wish to move.
It's not easy, but in part, you spent yourself into a hole with the CC's. (How could you possibly do that?). So now you have a good ten years of living close to the line. Basic expenses only, or you will never get your head above water.
If you can't do it on your own, turn your finances over to someone you trust (NOT a credit agency or someone who benefits from your weakness) and have them put you on a budget, and an allowance. You'd be surprised how quickly you can save when you stop charging fast food meals, paying cash for gasoline, buying groceries to make meals, cancelling the cable service, buying used cars for cash, and shedding your life of the financial burdens which rob you of your future.
Seriously, kiddo, learn something about finance and how to balance your checkbook and work a budget. It is a really bad idea for a wife to rely 100% upon her husband to do all the financial stuff. You need to make yourself learn how money works, even if the hubster actually does it all, you should be understanding what is happening.
This is excellent advice. No married couple should rely on one spouse to be in total control of the finances. Even if one of you takes responsibility for actually writing the checks to pay the bills, the other needs to know how much money is coming in and how much is going out.
I suggest reading "The Total Money Makeover" by Dave Ramsey to learn how to live within your income.
This is excellent advice. No married couple should rely on one spouse to be in total control of the finances. Even if one of you takes responsibility for actually writing the checks to pay the bills, the other needs to know how much money is coming in and how much is going out.
I suggest reading "The Total Money Makeover" by Dave Ramsey to learn how to live within your income.
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.
... I think our home is now worth only $160k, and we owe $180k.
I forgot to mention.
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.
Some people don't want to listen. Then wonder why they are in horrible shape financially
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