Anyone got a solution?

**jIM_Ohio** · 10-13-2008, 10:30 AM

Assign a larger portion of budget to house payment and cut back on other expenses.

This situation came about because the mortgage was probably too expensive, so the way to fix that is to throw more money at the mortgage and cut back on other expenses. If mortgage payment is $1400 he should be looking for a way to send $2k.

**KGeary** · 10-13-2008, 12:41 PM

Originally posted by hmsmomof6 View Post

Ok my bf and I have been together for 2 yrs now we plan on eventualy marrying. Between us we have 10 kids (yes 10) not all live with us some are grown and on their own on a regular basis there are 4 around daily, 2 more visit in the summer. The problem is my bf had the current house we live in when I meet him. It's only a 2 bedroom 2 bathroom home. Currently we have 2 kids sleeping in the living room. We knew we needed a bigger home and had planned on paying of the debt (he owed way more than me)then buying a bigger home. Here is the money problem we are upside down in te loan and he's adding to it because he can't afford the full payment he currently pays $600 a month but the total would be around $1400 so in reality they just tack the rest to the principle (I just found this out a few months ago) He also has an adjustable rate. I know he made mistakes with this loan but I don't know how to fix it. I have no idea how to fix this. We are still trying to get the debt paid down because I know this will help not only current loan but a future one if we can ever figure out how to buy another home. On top of all this I was laid off so money is tight and we are just getting by right now. I am drawing UE and looking for more work though. Just wondering how to fix this loan problem and evntually get what we need.

1. Sell the house. You guys should be renters, not owners. Get out of this house before you get foreclosed on and add to the current market crisis everyone is experiencing because of deals like this.

2. Stop having children. You can't support them as is. You know how they are made, let's use some self control.

3. Get your income up. Do whatever you can to bring in cash.

4. After you sell the house and get your income up, save up some cash in an emergency fund and then start attacking your debt.

**Scanner** · 10-13-2008, 12:54 PM

Yeah, there's a solution. . .

1. Sell the house. I betcha there are dozens of buyers just lining up.

2. Be renters. I am sure there are a lot of places that you can find for $600/month.

3. Whether they sell the house or get foreclosed on. . .the contribute to teh supply side of the housing crisis.

: rolleyes :

Anyway. . .

My advice echoes JimOhio's. . .work on paying down the house you are in. . .perhaps if you can look to add onto the living space you have rather than trying to be upwardly mobile in a couple of years if circumstances improve.

Everyone of all walks of life are buckling down in the house they have. We are no different.

**disneysteve** · 10-13-2008, 01:39 PM

Originally posted by hmsmomof6 View Post

we are upside down in te loan and he's adding to it because he can't afford the full payment he currently pays $600 a month but the total would be around $1400

Question for the board: How long can you only send in 40% of the required payment before the foreclosure process gets started? Surely, the lender won't put up with that for very long.

I'd want to know the big picture here: total income, total debt, fixed living expenses, etc. How long has he not been paying the mortgage? FICO scores are probably trashed at this point for being delinquent on the mortgage which could make renting very difficult. How upside down are you on the loan?

**KGeary** · 10-13-2008, 01:42 PM

Originally posted by Scanner View Post

Yeah, there's a solution. . .

1. Sell the house. I betcha there are dozens of buyers just lining up.

It's a buyer's market. What's the problem?

2. Be renters. I am sure there are a lot of places that you can find for $600/month.

He's not paying the full mortgage payment. He's going to get foreclosed on. Do you suggest getting foreclosed on over selling the house? Certainly you can justify this?

3. Whether they sell the house or get foreclosed on. . .the contribute to teh supply side of the housing crisis.

If he sells the house and doesn't get foreclosed on, how is he contributing to the housing crisis?

My advice echoes JimOhio's. . .work on paying down the house you are in. . .perhaps if you can look to add onto the living space you have rather than trying to be upwardly mobile in a couple of years if circumstances improve.

So he's going to "pay off" a house he's not making full payments on and find money to add on to the house?

You're going to have to add some more details; we must be missing something here.

**maat55** · 10-13-2008, 04:11 PM

Best you can do is cut your budget to the bone. No christmas, cigarettes or anything that is nonessential. Prioritize your spending by necessity, such as: Food, utilities, house and auto expenses.

Someone needs two jobs. Sell everything that is not useful. You should start looking for a place to rent that you can afford. As Steve said, we need a budget and income for more specifices.

**momof1in150** · 10-14-2008, 02:11 AM

Originally posted by disneysteve View Post

Question for the board: How long can you only send in 40% of the required payment before the foreclosure process gets started? Surely, the lender won't put up with that for very long.

Usually up to 6 months. With the current economic situation they are going to go after those not paying and those paying some will come after.

**jIM_Ohio** · 10-14-2008, 03:53 AM

It should be noted that some of the bailout specifics may help people still in their homes. If you forclose, the only one getting help in your situation will be the bank.

**hmsmomof6** · 10-14-2008, 04:20 AM

While I think it's great that this site allows people to help each other out I think some of you are concentrating on entirely the wrong issues.

"Stop having children. You can't support them as is. You know how they are made, let's use some self control."

We had these kids before we meet with other relationships and we are not going to be having any more kids. We have pleanty of self control so your comment was a bit igh minded and a bit out of control in itself.

The house will not go into forecloser as it is the way the loan set up in other words he has one of those stupid loans with 4 different levels of payments he is not behind in the banks eyes. Hes on time. We are not going to be contributing to the current crisis.

If we sell the house it will NOT even cover the loan amount. So not only will we not have a place to live that we own we will still be paying on a home that we no longer own.

His FICO is in the 700's I am still trying to figure outhow he got such a bad loan with his credit score. He I will admit made a bad loan judgement but we have all at one time o another made bad money discissions. He has also made the mistake of credit card debt which I am trying to get him out of it.

As for the job thing I am currently looking for a job as I was laid off. We are doing the best we can in the job debt. with the current market. It is however very hard to find jobs when each job is getting more than 200 applicants thats a whole lot f compitition.

We live in one of the hardest hot areas of the country. We are trying the best we can under the circumstances so the attitudes about us being lazy breeders is uncalled for.

For those of you who are truly trying to help rather than sit in judgement, I thank you

**disneysteve** · 10-14-2008, 05:04 AM

Originally posted by hmsmomof6 View Post

The house will not go into forecloser as it is the way the loan set up in other words he has one of those stupid loans with 4 different levels of payments he is not behind in the banks eyes. Hes on time.

If we sell the house it will NOT even cover the loan amount. So not only will we not have a place to live that we own we will still be paying on a home that we no longer own.

His FICO is in the 700's

So this is like an interest-only deal or something like that. That explains why he is able to make what sounds like a partial payment without getting into trouble. Thanks for clearing that up. Of course, that means the principal is growing each month.

The fact that you are upside down on the loan does not mean selling the house isn't an option. It might be the most sensible way to go. How upside down are you? What is the home worth in today's market and what is the balance on the loan?

With a FICO in the 700s, can you refinance, or is that not an option because you are upside down?

Again, I think we could give more specific and useful advice if you posted income and expense info.

**hmsmomof6** · 10-14-2008, 05:41 AM

We owe 148,000 total and the value is currently 120,000. Last year it was valued at 175,00 so we have lost alot.

I have thought about refinancing but was unsure they would do it due to the balance versus the owed amount.

I'll post budget later today as it is on another computer.

**LivingAlmostLarge** · 10-14-2008, 06:29 AM

What is your BF earning? How can you not afford $1400/month? We used to gross $4k/month so about $2500 after taxes my DH and I when we weren't married and could afford $1400/month for a 1 bedroom apartment.

If you aren't earning at least $3k/month you need more income. It's not a HOUSING problem it's an INCOME problem.

There is no way you can survive and live even renting an apartment if you are bringing home something like $2k/month. Ridiculous!

You need more money. Why isn't your boyfriend working 2 jobs? And if his money is going to child support did he lose income? If so he needs to go back and rework his child support payments.

And worse, he needs to get working more. So do you if you can. Anything.

$148k is not an expensive home. It's doable for a family making $4k/month. But it's not if you aren't earning.

Good luck.

**disneysteve** · 10-14-2008, 06:33 AM

Originally posted by LivingAlmostLarge View Post

It's not a HOUSING problem it's an INCOME problem.

$148k is not an expensive home.

I agree. Tell us this. Prior to losing your job were you making the full mortgage payments? If this problem is due to the loss of your income, that makes sense and should correct itself as soon as you get working again. If, however, even when you were working you couldn't afford the mortgage, that's a bigger problem.

**hmsmomof6** · 10-14-2008, 08:37 AM

Ok I went back the $1400 a month is what I want to pay to get caught up to where he should be, and the real total fully amortized would be $932.79 per month.

He makes 585.00 per week take home
Curently on unemployment I make $350.00 every 2 weeks
So total monthly income stands at $3040.00 per month
CC 1 min payment $255.00
CC 2 min payment $165.00
CC 3 min payment $60.00
CC 4 min payment $30.00
CC4 min payment $50.00
CC5 min payment $50.00
Car Payment $350.00
Cable,Internet, home phone $140.00
electric $175.00
personal loan $180.00
Water, sewage, garbage $120.00
Cell Phone (cant cut out because used for his job) $200.00 (when contract up in Jan will be changin company for more affordable plan)
Car Insurance $300.00 (will drop in Jan or Feb)
Child Care $200.00
Gas $160.00
Grocerys/incidentals - $600.00 (remember there are 6 of us full time we do what we can to cut this when ever possible)

Which leaves about $205.00 extra each month but this we have been appling to cc debt. I know the common advice is to pay high intrest rates first and to a certain extend we do this however, I am changing a person's spending habits here so to make him feel like we are making progress I have been paying the lowest balances first then on after that which ever is highest interest rate. Currently no money is being spent on outside entertainment (internet and cable only money being spent on that) Also no money going to eating out. Secondly bf getting a second job is almost impossible as he is a construction plumber and often works out of town but he does on occasion does side jobs in plumbing any money made by that is going to debt reduction. Other issues are arising just unsure of where we stand with those at this moment (son he didnt know got introuble with law just moved in with us and is going to have pay restitution at some point just dont know how much yet also mother of said child is looking for Child support of other kid they have together also do not know how much that will be until courts decide)

Also bear in mind his property taxes and his home insurance are not in the payment of the house those usually run about $3000.00 between the 2 of them.

I know it seems like alot of CC's but we are working to reduce those but we have that many because we are just begining to merge our 2 finances together so there were mine and then there were his. (also both of us have this stuff left over from divorces)

Anyone got a solution?