33 answers

Should I Foreclose on My Home?

My husband and I have been living in our home for almost 6 years. We love our home and we have done alot of work to since we bought it. I'm grateful that we both have jobs and can afford our home every month (well almost). But the situation of ours is similar to that of everyone elses, we cant sell our home because we owe more on it than it is worth.

The next situation is this. I have 2 boys. 1 will be starting elementary school next fall. Since the housing crisis, many homes in my area are selling at a foreclosed rate of under 100,000$ and with that the neighborhood is going down hill. I see things everyday and say to myself "is this were and who I want my children to grow up with?"
My neighbors next door are slobs. The people next to them fight and beat each other up all hours of the night. The people next to them have children who my no question will probably end up in juvie sometime in their life. Across the street from them is a single mother who doesn't work and seems to either be drunk everyday or medicated one of the two. These are all people that have just moved in within the year mind you. It's getting more and more frustrating to see this everyday.

I would love to move but obviously cant sell my home. I would consider a short sale, but I undertand that you have to have special circumstances to qualify for that. My husband refuses to consider foreclosure because he has a bond with this home, and doesn't want to screw up our credit report either. sometimes I feel like our credit score isn't as important as our boys. The way I look at it is that we can probably live in our home mortgage free for at least a year before we have to leave. Save all that money and just rent in a better neighborhood with better schools for a few years until we can buy a home again. ya it's gonna suck but we'll get by.

Has anyone done this before and if so, how did it turn out for you?
Does anyone have any advice or suggestions?

3 moms found this helpful

What can I do next?

So What Happened?™

Thanks everyone for your advice. The only thing I can say is this...if all of you that feel that being in a neighborhood that you didn't approve of for your children to grow up in and that all you needed in life was just great family values then everyone would move to were it was cheapest even if it meant next to drug dealers and gangs. Lets face it people, we move to areas to raise a family in neighborhoods that we approve. If life was that easy then we'd all live in cheaper neighborhoods in cheaper houses with cheaper taxes. Truth is, thats not how it works. Not by a long shot. Please dont tell me that you would move to inner city detroit with a high crime rate next door to a crack house and all you need is family values. I'm sorry but thats just naive. I guess I would've thought from mom to mom that I would've gotten much more kindness and support but I guess not. Some of you are just flat out mean. I've read responses in the past about foreclosure and many of the same rude mean comments were made then. Shame on you ladies. Were here to give advice and support to one another. It's hard enough to raise kids in today's society let alone pay for a home, utilities, clothing, food etc.... And by the way ladies, please dont give me the "well if you weren't prepared for responses then dont ask the question" bit. If I would've known some of the nasty responses I would've gotten, I would've never asked the question. Even if i disagreed with someones question or idea or situation, I would never be so rude...never.

More Answers

Hey N., I haven't read all of the responses you got, but I did read a couple.... between those and reading your update I can see you didn't really get advice. What you got was the cold shoulders of people who are too cynical to see straight. I raised 4 kids...3 from my first marriage and then a fourth in a doomed relationship after my divorce....and I so totally agree with you; raising your kids in a neighborhood that's filled with "trash" is an uphill battle~ to say the LEAST. I would do just about anything to get my family to a decent neighborhood. I worked 60 hrs. a week (while I was a single mom) just so I could live in an apartment that was in a decent area.... yeah, I sacrificed some time with my kids... but at least I didn't have to fear them running into druggies and derelicts everyday. I have been reading a lot about people who want to move, but cannot, for similar reasons to yours. The solution for many is to rent out your home(to respectable people)while you either buy or rent another place~ 'till the housing market bounces back. I've read that there are already signs that the market will be creeping back up(slowly)so you may be able to sell your home in a couple of years without losing equity. I would do some serious searching online for someone who's got a little expertise in this area.... but by all means honey.... don't give up. There's always an answer when you're willing to work for one. Your kids are worth it.... so is your family life.

Good luck sweetie, msg. me anytime!
Deb

1 mom found this helpful

Just a thought...I don't know if this is possible for you, but if it does get very bad in your neighborhood and you have no choice but to move, have you considered possibly renting out your house while you live elsewhere? You could hire a property manager to act as a landlord; they usually take first months rent and 10% of the monthly rental fee. That way, you could earn income from your home, paying mortgage still, but maybe making a little extra. I've heard rentals are big business now.

1 mom found this helpful

Hello N., Stick with your hubby on this one. Once you forclose on a home, buying a new one isn't going to happen!! No bank is going to lend to either of you again. Do you think you will get better neighbors renting? Good luck with that. People are falling on hard times right now. Maybe the single mother is on overload as a single parent facing forcloser herself(not by choice). Report the domestic violence every time it happens, there is a woman who needs your help! The slobs, well, there are city laws, report them also if there are health risks involved, otherwise look away. As far as the bad kids on the block, you will find that in most neighborhoods, even upscale ones. Try reaching out to these kids and being a good role model in their lives. The only people we can change is ourselves. Your children are watching how you live your life, so model love and compation, not hate and pregiduce. And if you are tight on the budget right now, you could join all of the others who are financially over their heads and end up with nothing in the end. Children need stability, harmony(disagreeing with hubby), and predictability. I hope this has been more helpful than harsh. Good luck.

1 mom found this helpful

We ran into a similar situation, and we rented out our other home and got a $360.000 home in Shelby Twp for $240.000 3 years ago before the housing crisis. We have successfully kept our other house rented. Since so many people are forclosing they cannot get loans to buy a house, so they need to rent. That is an idea for you. Good luck.

1 mom found this helpful

I agree with your husband, don't foreclose. Here is the thing, it takes a year before a finance company/bank forelcoses on a home.

Have you considered renting? That is taking a chance but might be an option for you.

The other thing is PRAY. Pray that your neighbors' lives will change in a positive direction. The power of pray is amazing! Also, I truly believe things will get better. Continue to be grateful for your family and your home. Again, it is amazing with these thoughts, what can and will happen for you.

Peace and blessings,

M.

1 mom found this helpful

N.,

If you let your house go into foreclosure it will go on your credit report and follow you for a long time. When you rent you need to fill out a credit application and the foreclosure will be on it, which will make most landlords think twice about signing a lease with you.

I say stick it out and who knows in a year or two the housing market may rebound. Keep paying off your debt and when the economy finally turns around you will be in a good position. Neighbors come and go, the bad ones may move on soon, you never know.

If your not happy with the school system you can drive your children to a different district through the Schools Of Choice Program. I do it, my children go to a neighboring district that is much better than the one we live in, and its not that big a sacrifice for us, especially with the piece of mind that comes with knowing that your doing it for your kids.

Hang in there and think very carefully about what your next step is, you don't want to do anything that you may regret later.

1 mom found this helpful

A couple things, both require listening to experts over rumors:

-------
Short Sale -- Talk to an expert relator.
I know two of them, personally, that have studied the laws of, and performed, short sales extensively. That is something you want... not someone who just knows what someone else says, but actually have gone thru the process. Both are Keller Williams Agents.

Teri Gunn -- She sold me my house, and always checks in on me (good way)
http://terigunn.yourkwagent.com/home

Steve McConkie -- Business colleague, and all around good guy
http://mihomesearch.yourkwagent.com/

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Choose Bankruptcy over Foreclosure:
If you have a secondary mortgage, you can have the extra mortgages removed (poof vanished) if you file Chapter 13. And even if you do not have a secondary mortgage, a BK could eliminate your other debt that will keep you afloat. Use this option if you are truly under water. And again, talk to an expert.

Charlie Schneider is an ACCREDITED bankruptcy attorney. That means he puts the extra time in to pass extra tests to prove his knowledge grows with the law. (In Michigan, the only test you have to pass is the Bar, and it doesn't matter if you took that Bar in 1882, 1926 or 2000. Once you're a lawyer, no more test -- and oddly enough laws change everyday).

Charles Schneider
http://www.a-new-start.com/

Good luck!

1 mom found this helpful

If you want to move so badly then try and sell your house..even if you have to take a HUGE loss on it, it is WAY better then foreclosing! That is the worst idea I have ever heard...I agree with what others are saying. Or try and rent your house and then rent some other place for a while.

Good luck!

1 mom found this helpful

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