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Ok, so here's the scoop.
First,
Hubby is trying to buy a short sale. We put offer in February, still waiting. We're doing FHA with 3.5% down if we get the short sale approved.
Yes, I know, we're not putting 20% down which is a "no no". But our mortgage is going to be $450 dollars a month or LESS for a nearly 2,000 square foot home. We could not RENT for that cheap in this area. We'd be lucky to rent something for less than $900.
It makes sense for us to try and get this home.
But, my financial mistakes of my past are coming to haunt me. I voluntarily gave my car back last year because hubby got his hours cut, we could not make ends meet with our $1100 house payment and the car was nearly $500 a month. (Yes, huge mistake)
So, of course, Chrysler is suing me for the difference of what they sold the car for. I was summoned to court but have been in talk with the attorneys office about how we can settle this outside of court. I do NOT want a judgment on my credit report for 10 years! My husband will never be able to get this house (it's a community property state, my debts are his debts).
But, in order for it to stay out of court, they said they'd settle for $7,000 (which i owe them like 11 or 12k plus interest) and I have to give them $4000 now, and we'll do a payment plan for the remainder with no interest added on.
That sounds great, but $4k is ALL we have in our savings and we were going to use that for the house down payment & fees.
We are putting $800 a month away in savings, so it's growing every month.
Basically, if we avoid court... there goes the money for the house =(
But we know the house is such a good deal it would save us a ton of money every month.
So, I am thinking we should take out a loan for $3500 to give to chrysler, and then do a small payment plan each month.
That way we keep money in our savings for the house when/if it comes up.
What do you think? I am against debt but I am trying to figure out what's best for the long haul.
Sorry this is so long.
First,
Hubby is trying to buy a short sale. We put offer in February, still waiting. We're doing FHA with 3.5% down if we get the short sale approved.
Yes, I know, we're not putting 20% down which is a "no no". But our mortgage is going to be $450 dollars a month or LESS for a nearly 2,000 square foot home. We could not RENT for that cheap in this area. We'd be lucky to rent something for less than $900.
It makes sense for us to try and get this home.
But, my financial mistakes of my past are coming to haunt me. I voluntarily gave my car back last year because hubby got his hours cut, we could not make ends meet with our $1100 house payment and the car was nearly $500 a month. (Yes, huge mistake)
So, of course, Chrysler is suing me for the difference of what they sold the car for. I was summoned to court but have been in talk with the attorneys office about how we can settle this outside of court. I do NOT want a judgment on my credit report for 10 years! My husband will never be able to get this house (it's a community property state, my debts are his debts).
But, in order for it to stay out of court, they said they'd settle for $7,000 (which i owe them like 11 or 12k plus interest) and I have to give them $4000 now, and we'll do a payment plan for the remainder with no interest added on.
That sounds great, but $4k is ALL we have in our savings and we were going to use that for the house down payment & fees.
We are putting $800 a month away in savings, so it's growing every month.
Basically, if we avoid court... there goes the money for the house =(
But we know the house is such a good deal it would save us a ton of money every month.
So, I am thinking we should take out a loan for $3500 to give to chrysler, and then do a small payment plan each month.
That way we keep money in our savings for the house when/if it comes up.
What do you think? I am against debt but I am trying to figure out what's best for the long haul.
Sorry this is so long.
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