Posted on 03/19/2011 12:43:17 PM PDT by Dubya-M-DeesWent2SyriaStupid!
What I do for a living is coming to a stand still; of existing jobs. It worsens by the day. I've been laid off then got a job and have been at this job less than a month the hours are becoming less than 40 and my paycheck was the only one that didn't bounce last week. I am beyond shocked. Next week it will be mine possibly that bounces. I am the top money maker at this company but I know it is coming.
I have VERY LITTLE equity on my home as I bought it 3 years ago. Putting it up for sale is barely an option no one is buying there are 4 foreclosures in my neighborhood and I would lose big time. I need to move before I am under. How long should I wait to try to possibly rent my home or just go?
I may have no other choice. I am serious and please do not flame me with long winded speeches on how responsible YOU are and you would never leave a mortgage.
If I get out while I can will the same thing follow me?
Where do you live?
So, where do you live?
what is your trade?
I relocated from Kentucky to NC 9 years ago originally in Winston Salem then several other NC locations for jobs.It was booming then. I am seriously considering the VA Tidewater area as they are doing well I hear.
I knew many who were in similar situations in the mid-80s recession.
Numerous factors to consider:
Your occupation. Any secondary occupations, skills in case you need to take a lesser position?
Your location. Any restrictions on relocating?
Your family situation. Is it just you, or other family members. Is schooling involved?
==
If you walk away (foreclosure) on your current mortgage, that will follow you for years.
You have to go where the work is. I am working 5 hours from our home and will be moving my family this summer. Work will not come to you, you must go to where the work is.
Good advice I realize but if I get a good job offer I have to take it. I will end up sitting in my home jobless anyway the way things are going.I will try to rent but then I am hearing a lot of horror stories of otherwise good credit people renting then losing their jobs then I am stuck with two payments.
That's where I live. :-)
The only advice I will give is that if your region is economically depressed, it is probably best to get out of there. You could change jobs/vocations there, but who knows which industry will be the next domino to fall in your area.
This is anecdotal: A census taker, relayed to my friend, that the area she was working had so many empty houses, the census supervisors had her work the same area a second time.
She returned the exact totals the second time.
This is in an attractive area in Arizona to Californians fleeing their state, because the homes a lower priced, and a good deal for someone with iffy finances.
IMHO if this area is abandoned, it’s a frightening indicator of what’s happening in more expensive,but less desirable areas. I think it’s becoming a survival mentality,and making your decision based on what you do to keep food on the table.
These houses are not on the market, no for sale signs...empty! Looks like walking away was their best option. But where did they go?
I know in our dinky, middle of nothing, dying town, ramshackle houses on a little ground are selling.
You need to first change your state of mind in relationship to the liability that is the asset you call your residence.
You have to enter into a combative mindset against your mortgage holder.
You want to extract as much money as possible from your liability before you jinglemail.
You have to calculate your “Owners’ Equivalent Rent” and compare it to your possible income stream from renting the house minus the cost of you renting another residence.
Make sure to budget for moving expenses.
You are looking at the other option of delaying mortgage payments until such time as you can get started on a capital and interest rate cram down process, which successful or not, will keep you in your home for many more months, rent free. If you are willing to enter the maze of paperwork and frustrations, you can drag this out for well over a year and a half of free rent, during which time you MUST save as much money as possible because you’ll be looking at 5 years of bad credit scores.
There are web forums better suited and specializing in this, FR is not really the place to look for help, other Freepers will be along to post links to those websites. I am not endorsing the links below, though loansafe is a pretty good community forum...
http://www.loansafe.org/forum/#foreclosure-help
http://www.bkforum.com/forumdisplay.php?5-Foreclosure
And most importantly, don’t be sad over the home, for the next 20 years the liabilities of homeownership will far outweigh the ephemeral benefits for a large portion of the American population, take pride in shafting the banking industry that co-opted and corrupted our government and built this corrupt system.
I understand.
I had to relocate several times during my work career.
My sis & her hubby tried to rent their home in one state and relocate for work in another state. That turned into a sink hole that put them in family financial crisis for years.
Times are rough.
All you can do is what you think is best, and hope it works out.
5 hours? I had a co-worker once who’s drive time to work was 3 hours...to AND from work. Wake up at 5, out by 6 and arrive barely by 9. Would be found on the desk sleeping when the superv wasn’t around and finally gave up when he found another job in the same city. Everytime payday came which means happy hour, he had no choice but crash one of our apartments and drive out the Saturday morning.
I relocated from Canada to L.A. for work. How’s that?
The jobs situation in NC has actually improved in the past year. What industry are you in or what skills do you have? There may be opportunities that are less disruptive that pulling up stakes completely.
As far as selling your house, we didn’t have a real estate bubble here, other than oceanfront, lakefront and mountain resort second home markets. Houses certainly aren’t appreciating, and they’re moving very slowly, taking over a year or more for many, but if you need to sell it will get sold eventually.
Unless you’re in the Hickory-Morganton-Lenoir area with 15% unemployment, I’m wondering if maybe the fear has gotten the best of you for now, and you’re viewing everything through that?
Of course, if your employer is not making payroll and there really is no other employment near you, you have to go where the opportunity is. Renting to cover the mortgage cost is one possible answer. There are people, almost all men, who have taken to living in campgrounds because of family and mortgage back home.
Where there’s a will, there’s a way. Good luck, either way. I went through a scary time myself in 2008.
“Putting it up for sale is barely an option no one is buying there are 4 foreclosures in my neighborhood and I would lose big time’
If you lose equity, that is still the better option — try to sell it even if you lose your whatever little equity you have, far better, than a foreclosure. If it’s worth less than the mortgage, talk to your lender, many times they accept a “short sale”, i.e. if you sell it for a price less than the mortgage, they will still accept it. Far better, than to try to hang on and wait for a foreclosure, where you will lose your equity anyway and your credit is destroyed for many years to come. I would recommend that since you don’t think you could really keep your current job and keep making your mortgage, to put your house up for sale ASAP. But you might try to find another job in your area for a couple of months, and see, then if there are no good prospects, definitely put your house up for sale.
I would suggest to start looking for another job immediately, very proactively, including outside of your area, that you seem to be willing to do. Try to get a job first, before just picking up and moving somewhere else, where you still aren’t sure whether or not you would find a job.
In summary:
1. Start proactively looking for another job, locally and everywhere else.
2. If you find a reasonable one in your area, keep the house, if not, then put it up for sale, even if it’s a short sale, keep looking for a job everywhere else.
3. If possible, try to find another job, before moving, the grass may not be greener in another place.
Times are tough, but you are tougher. Things happen, it’s not your fault. You are smart and responsible that you are looking into your options and want to do something, before the bottom falls out.
Best of luck to you.
You want to extract as much money as possible from your liability before you jinglemail.”
That is bad advice. You should do what you can to pay debts you have incurred; that's what honorable people do.
There are times when it is impossible (major illness, extreme financial hardship) and you have to cut things loose. But it doesn't sound like you are there.
Life happens and we have to play the hand we are dealt. Each of us has a different load to carry.
The questions asked so far are valid in order to give you advice:
Where do you live?
What is your trade and skill set?
Also: Do you have a family, wife and children?
Do you have any other obligations that would prevent you from moving?
What is your age (approximately) and health?
Based on personal experience and not idle, arm chair speculation I have found that before moving you need to find where the economic hot spots in the nation are in your profession. It varies depending upon your line of work.
Generally from what I have seen it is active in the SE, Ohio, Phoenix, Nashville, some FL, some PA, Atlanta, all of TX Dallas especially, NC Charlotte and the Triangle, DC (for Gov't jobs) and lately I have seen some activity in WA.
Go to Career Builder or Indeed.com. Put in the name of the type of work you do or some key words and search "all of US". Then see where the jobs come up.
You need to ask yourself: Am I willing to move there? Very importantly, Can I move there? Moving is hard work. Especially if you don't have the money and do it yourself. But being out of work is even harder.
As far as your house. I would find a good property manager and have him manage it for the long term, if you can carry the mortgage. Find a real property manager who handles properties over the long term. Not some realtor who is renting his inventory until he can sell it.
That is my advice and my opinion based on real life experience in three minutes. I have to run but I have been where you are for sure. Good luck and God Bless you.
Regards,
Mr Sol
If you for a moment think there is any “honor” in the original poster’s counterparty mortgage holder, you are a naive fool who is to be reamed when the time comes.
The residential real estate sector is made up of three sections, the predators, the apologists, and the prey.
Dubya-M-DeesWent2SyriaStupid! , short sale first!
If you have any friends/family that are licensed real estate agents, ask them to help you with just the contracts, then go online and find a service that will list you on your local MLS for a minimum one time fee of $50 to $150.
You can get some photos of the place and write up a listing yourself, then aggressively market it on every RRE website you can find, reposting every 2 or 3 days.
At the same time, as above mentioned, go to bank and ask for short sale approval...
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