What would you do???

When my DH was out of work we had to live off of our credit cards and then when he got another job we had to play catch up, then we had to put a lot of money on the car since that broke, etc. Needless to say that our at the time non existent credit card bill is now extremely high. And now that the job fell through doesn't help. Anyway, the only thing I can come up with to help us pay off at least half the credit card would be to try to sell the house for what we need and rent an apartment for 6 months or so. It's not the ideal situation considering we have to Siberian Huskies and they are used to running around a very large fenced in yard. I can deal with squeezing into an apartment if we had to but the dogs might suffer temporarily. I hate to do it, but then we might be able to pay off some of the credit cards. Also we wanted to sell the house anyway and move to a different area at some point. This way after 6 months we could buy the house we want to (hopefully) without as much debt. I just don't know how I'm going to be able to walk to dogs that pull with 2 little one's? So what would you do? Suck it up for 6 months and be able to pay at least something off or just deal with what we are dealing with and buy another house right away after we sell this one? I'm kind of liking the idea of renting again temporarily just to pay them off somewhat, but going from a house to an apartment is going to suck! What do you think?

Re: What would you do???

I guess my first question is - can you afford the min payments on your cc while still paying your other bills? If so, then I would keep the house, make min payments, while continuing to look for a better paying job. If not, then selling the house might help. Before you do it though, be sure you know how much you can get for it and if the cost savings on paying rent is really worth the hassle of moving.

I know it's been tough on you, but I'm sure it will get better. I know DH and I are proof of it. Last month, DH was a substitute teacher making $97/day and I was unemployed. Before that one or both of us was unemployed for the last two yrs. Today, we both have good jobs making 35K more that what we were making the last time both of us was umployed FT. I hope and pray that your break will come soon. I know how much the financial stress can weight on your spirit and relationship. Good Luck!

Re: What would you do???

I would keep the house.I consider the house an investment & would not sell it unless I was in danger of losing it.

In some states, you can declare bankruptcy & still keep the house.

Can you consolidate your credit cards?

Is the interest you're paying on the credit cards each month equal or more than the monthly rent of an apartment?
Because either way you're flushing money down the toilet, it's only a matter of how much.

Re: What would you do???

I dk if I would want to go from owning something to oweing everyone and renting.
I also dk how it will look when u want to buy.
I have to say--and while it does not sit well with alot of people-people do do it.
Why can't u take out a debt consolidation loan against the house and pay the one payment per month?
it will probably be substancially lower.
Can u imagine if u sell...then something happens and u do not rebuy for a long time..have to use the money and now have no money? (from the house)
also..who knowsd the market when u go to buy.
I was a bill collector for years and years..
You also can do budget and credit counseling..but I think first consider a debt consolidation loan, or personal loan

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i would refinance the house maybe but never sell it..

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I wouldn't sell the house either.

Can you call the CC company and ask about lowering the interest or minimum payment? Even if it's for a term, like a year or something. Enough to help while your DH is out of work.

Re: What would you do???

Thanks so much for your replies/opinions. It really means a lot!

The situation with the house is that we have a 2nd mortgage that's more than the house is worth right now. We originally took that out to pay off our credit card debt from years ago. Well, at the time it was the best decision for us. But then 5 weeks later we were robbed. That alone killed the house appeal to me. Since then I just HATE where I'm living. I don't feel safe. Anyway, what I was thinking was at least trying to sell the house so we can buy something where I want to live in a good school district. If we didn't sell the house this year it's definitely going to be next Spring. I just thought that maybe instead of buying something right away we could live in an apt. for 6 months until next Spring and there will be more on the market and we could pay off some credit card debt in the meantime. Honestly because we had to live off of them we can't afford the min. pymt anymore. We were able to, but not anymore until I find another job which I have no luck with. So if we did that we could save almost $800 with both mortgages vs. rent. And then we'd save with not having to pay a security bill, much smaller utility bills, etc. It just would suck to live in an apt. again. The debt the cc has is 0% until November. We were then going to transfer that balance again at that time hopefully. We could really make a dent in the debt. We already know going into the house that we weren't going to make a profit from it. The next house we buy we want that. Anyway, I understand about keeping the house, but we are not going to make a penny and we will continue to live paycheck to paycheck once again. I'm still waiting for my break as far as a job goes. If that ever works out we will be in an even better situation. Also, moving closer to my mom will be very helpful since she's the one that babysits. She'd also be available for when my DH and I want to go out, help with the dogs, etc. Caiden will also be going to Preschool closer to her so that would be about a 1/2 hour drive for me to take him. I don't know... I guess in my head I know what I want to do it's just seeing if anyone thinks I'm nuts! We can't consolidate considering the loan is over the value of the house. I don't want to it also because it ruins your credit. Having no equity stinks but what can you do. Sorry for rambling but I just wanted you to know more info. Also, if we did it we might be able to buy some things for the house that we need/want. There's no way we could now or in the near future if we stay. We might not even be able to sell the house so we'll have to see about that. It's a hard decision but the way it is now is just not going to work. If there was another way I'd consider it, but I can't seem to come up with one. That job I recently lost out on really hurt me emotionally. It really would of helped us that much. Thanks again for your responses!!!

Re: What would you do???

I'm sorry that you are going through this but I def. would not sell the house to rent. You never know what can happen in the market and you may see an increase in value in your home.

If your credit cards are that bad I would talk to someone about consolidating them so that you have manageable payments each month.

It is also extremely hard to go from being a homeowner to then dealing with a landlord. I have a friend who had to sell her house bc of a divorce - she found a great house (or so she thought) and she has two little kids. Just last week she found out the house was in foreclosure, bought by the bank, and she is getting evicted. She has been dealing with these nightmare landlords the entire time.

Only you and your DH know what is right for you and your family but I would really try to keep the house if possible.

Good luck!

Re: What would you do???

If your second mortgage is more than your house is worth, how are you going to sell and pay off the mortgages? Do you plan to do a short sale?

Re: What would you do???

Thanks again ladies!

Well, the house has appreciated a little bit and we've been in the house for almost 3 years so we've paid off a little bit of the mortgages. We added a fence and are doing some updates inside the house. So right now we have some equity, but it's a little bit short. We're trying to do things to make it worth a little bit more. We also haven't had it officially appraised. We'll be doing that towards the end of the summer. It's hard because it's an older house so it doesn't appreciate fast. Just an FYI, we're in NC so it's not like LI houses. Down here I'm learing that the newer the house and the location the faster it appreciates. What stinks is that the rate that we're paying on the 2nd mortgage is 12.8 % since it's a Loan over the value. I don't think we can do anything with this rate. It's such a hard decision.

Re: What would you do???

I'm sorry you are going through such a rough patch. I agree with others that you should try to hold onto the house if you are able to make the payments.

Seems you have to make some other adjustments - cut back on other things - cable, internet, etc. I hope this doesn't sound horrible but don't you have a trip to Disney planned? I wouldn't have planned that in order to save some much needed $$. I know it's a great vacation and EVERYONE needs one, but there are plenty of other things you can do with your family. Your kids are still young, there is plenty of time for Disney!

HUGS! I hope everything works out!

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Re: What would you do???

Go to creditboards.com. Seriously, they will be able to help you a lot!

Re: What would you do???

I would stay in your house. If you have cable, cancel it. Turn off the air. It would be so worth it to live a solid year of hard knocks in order not to have to pay rent. Eat pasta a lot. Sounds harsh, but once you are in an apt, its hard to get money together again to buy a home.

Re: What would you do???

Re: What would you do???

First thing I would do is consolidate credit cards with a free credit counseling service.

Then I would cut back on everything but the necessities. Even down to the grocery bill. Buy the knock off cereals, etc. (Apple Dapples taste just like Apple Jacks!

Don't sell the house unless you absolutely have to becasue the cost of moving, closing fees on a new home, realtor fees will kill you.

I personally would stay put and work on the credit card debt. Once that is taken care of it will free up your money to start saving for a move. You can then take the time you want to find the perfect house and not rush into it. Becasue rushing into it without any cash to pay for the expenses of moving is going to make your situation even worse and your debt greater.

It will be so refreshing to get rid of the credit cards and then save for some time. Then moving to a new house, in a great location with great schools will be such a pleasant experience. You don;t want to move and have that added stress and financial burden.

Good luck!

Re: What would you do???

I wouldn't sell either....
but like others said- I would cut EVERYTHING- i would only have prepaid cell phones that way you pay for what you use and that is that.
I would also be a on a firm budget w/ the shopping I would cut out cable (TV is still a luxury, not a necessity) and anything else that isn't in the clothing/food/shelter category (when I say clothing- I mean not going around naked)..

Re: What would you do???

Call your CC companies and talk to someone...you'd be amazed at what they can do. They would much rather work with you than anything...they may be able to lower your min. payment until you are more caught up, you'd be surprised at what one phone call can do! It's a start!

And i agree with the others..don't sell and go to an apartment....the rent may end up being close to your mortgage and then you just get stuck again instead of saving. We are renting and looking to own within the next year...I wouldn't want to backtrack! good luck to you!!!!

Re: What would you do???

I agree with all of the posters before me, you shuold try to keep the house if possible. Selling your house with double mortgages, closing and moving costs would probably put you even further in debt. I understand from an emotional and financial standpoint, you want to get rid of the house, but it probably isn't the wisest decision unless you absolutely have to. Since you say you are only there 3 yrs, I doubt you have much equity since what you have been paying has only been applied to the interest on the mortgage and not the actual principal.

At this point, I would cut out all and I mean ALL luxuries. Cable, cellphones, gifts, dinners out. Anything you need for the house that is cosmetic dont buy. I read that you are planning a trip and I know people need vacations, but honestly that isn't the best idea for someone in as much debt as you say you are. Your kids are young, Disney is expensive and can wait. Also, you say you have two dogs? Isn't the cost of feeding/caring for them expensive? I know this sounds horrible, but have you thought about giving them away? Seriously, you need to start making better financial decisions. Perhaps you should consider speaking to a financial professional and think about getting a night job. Good luck.

Re: What would you do???

Re: What would you do???

We did have a Disney trip planned and we already went a couple of weeks ago, but that trip was planned back in January and completely paid for by my sister. She paid for the plane tickets and food and she works at Disney so we got in for FREE the whole time and she has a Disney resort time share so we stayed there for free as well. The trip didn't cost us anything that's why we still went.

I do appreciate everyone's input so thank you!!! We were getting back on track as far as money goes until he lost his job, etc. But he's working now and we could probably be ok if I can bring in a little more money so that's why I was so upset about the job for me. I was just thinking that we would be able to pay off a lot of the credit card if we rented since we will not be able to do that now. It is 0% right now so I thought it would be great to do that and get it down as much as possible. Like I said we are planning on trying to sell soon anyway, I just thought that renting would be a good option. I could be wrong. The sound of it sounded good that's all. Of course I would like to sell it and buy something else in a neighborhood I want to live in but if something is not available anyway no matter when we sell our's, wouldn't we have to rent anyway?

Message edited 6/14/2007 5:17:49 PM.

Re: What would you do???

Seriously, do you know how much rent is running these days? i know we are not in the south, but the cost of our rent for a 2 bedroom apartment in an apartment complex in Rhode Island is MORE than people pay for mortgages out here.

Really look into thta first.. I would think with qa family of 4 and 2 big dogs, you would at least want 3 bedrooms...

Weigh out all options first before jumping to quick decisions. Can you get a job at a retail store or somewhere to have some income? If your mom can watch your kids, or your husband can watch them at a time when you are workign? Its not ideal, but tis some money. I would work at wal martif I needed to even if it was 6.00 an hour.

Re: What would you do???

Since you owe more on the house then it's worth I don't see how selling would help you out since you will be paying back more then you get from the sale.

I would just cut out every single extra and sell things you don't need/use/want to get some extra cash and pay down the debt.

Good luck!

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MY husband and I found ourselves in a lot of debt after rebuilding our house, and having a baby who prompted me to leave my fulltime work for parttime work. We have been able to pay down some of our debt by moving it to cards with 0% financing. ONe of our cards is for the lifetime of the loan, conditional. Selling our house is not an option...so we will survive this way. I do not think I would want to go back to renting. How about win the lottery?

Re: What would you do???

don't sell the house

write down everything you spend money on for 1 week and I bet you can find places to cut money from

there is a great book- Total Money Makerover- I suggest you read it