Advice on living situation - Tilted Forum Project Discussion Community

xxmsaxx · 04-03-2007, 01:33 PM

First off I would like to say hello to everyone, as I am more of a troll than a constant poster but Ive been with the TFP for awhile now and always thought it to be a great site with out the degradation of most forums on the internet.

I guess I am looking for some advice from those of you who either
A. Own your own home or B. Know a thing or two about real estate and loan applications. I will tell you my situation and then would like it if someone could give me an idea of what they see as options I could go with to get myself out of the pickle I am in.

In 2001 I purchased a mobile home from palm harbor on a fixed 30 year loan at a 12.75 % interest rate for roughly 46,000. Last year I caught my wife having an affair on me and we got a divorce and alas I was stuck with the home and my little girl while she ran off to go be with her boyfriend.

Now that I have my finances back in order somewhat, I am looking to get rid of this home for several reasons. I don't own the land it is on so I pay 500 dollars a month for mortgage and 200 dollars a month for a lot fee. I know I could be in a nicer/safer home for less than that but I honestly don't know how to move forward with my financial planning in order to make my ideas come to light.

I know what your saying, "why not just sell it and be done with it?" I wish it were so easy, but alas the house is appraised at 28,000 and I still owe 46,500 in order to get it paid off. The mortgage lender GreenTree does not allow me to transfer payments to another party so my only option to sell is to come up with the 45g to pay it off then I can do with the home as I please.

My credit is not bad, I make about 37g a year and have been working for the same company for almost 7 years now so what I would like to do is get a true blue sticks and stones house and pay this one off so that I can get rid of it somehow. Of course I live check to check and without the help of a loan I cant accomplish such a feat.

I know this a boring problem not as juicy or entertaining as a lot of things on the TFP, but if any of you have an incite as to what someone in my position should do in order to reach my goals I would most grateful. As always, thanks in advance to any one who replies....

Cynthetiq · 04-03-2007, 01:59 PM

It seems to me that you're under water on that loan and under water as far as what you can currently save for a downpayment for actual real estate.

Does your exwife need to pay any child support payments? Is she also on the mortgage?

Have you thought of refinancing to a lower interest rate? (I'm not familiar with what interests rates would be on a mobile home)

My condo in Las Vegas was $65,000 @ 7.25% for 15 year loan (IIRC) and my payments are below $500/mo and it was a $6,000 downpayment so I'm trying to figure out the adjustment from the 15 to 30 year difference in interest.

xxmsaxx · 04-03-2007, 03:12 PM

Thanks for the reply Cynthetiq, My Ex wife doesnt pay child support and she was not on the mortgage , I have actually thought about re-financing but with the end goal of getting out of this house
(its a real downer to live in the house where your dreams were first made and then destroyed)

I have a 401k that I can borrow from to make a downpayment, and one friend suggested that i actually look at new houses I want apply for a loan and when the debt to income ratio comes to play just say that I rent this house out for 100 bucks more than what I pay on it (even if I am not doing so) and if I get the home then move in and call the GreenTree and say hey I cant pay for this come get it,It would trash my credit im sure but then again if I have a house and a car what more do i need credit for? Other than to get more loans that get me deeper in debt

pig · 04-03-2007, 03:49 PM

can you sublet the mobile home?

Cynthetiq · 04-03-2007, 04:32 PM

actually the question piglet is really asking is:

Can you rent your mobile home for at least $700/month?

I don't recommend lying on your mortgage application, it is a federal offense for lying on a financial instrument, but if you could rent your current place for at least $700 then you are at least even. It then would mean that you could get a loan for a new place, but you'd again need to have a down payment. Sub prime loans you can currently read about in the news how people got mortgages with zero down, or interest only, or even adjustable rates with low introductory rates.

If you were to refinance, it would cost you almost $2000 for closing costs, and maybe you could reduce your payments by $100. If you keep the place for 20 more months to recover the $2000 then again you're even.

If you can rent the place for the same $700 you'd be $100 positive and that would be considered income. You could then pick handle a mortgage for $800.

Borrowing against your 401(k) isn't advised, mostly because you are paying back your 401(k) with AFTER tax dollars instead of how you actually got the number as PREtax dollars. This means you're paying tax on that dollar twice, once to pay back the loan and then another time when you actually withdraw the 401(k) money. Also if you were to get laid off or quit your job, you'd have 60 days to repay the loan.

caver · 04-03-2007, 04:36 PM

I am curious how you can make payments for 7 years, and owe more than the original purchase price?
I am sorry I cannot offer any help, but I would like to avoid such a problem in the future myself.

I sympathize. Good luck.

Cynthetiq · 04-03-2007, 04:59 PM

because for about the first 10 years of the 30 year loan you are only paying for the interest of the loan.

I just used a mortgage calculator and was amazed at the difference if you'd used at 15 year mortgage, your payments would have been $574.47 and you'd have much more equity and almost 1/2 done with the payments. You'd be at equal to the assessment.

I did forget to include the site where I used the mortgage calculator.

they have other calculators like "How Much Can I Afford?" and "Simple Mortgage Refinance Calculator"

pig · 04-03-2007, 06:21 PM

cyn: site still isn't linked.

Cynthetiq · 04-03-2007, 06:22 PM

aah... trying to do too many things at the same time

http://www.mortgage-calc.com/

pig · 04-03-2007, 06:26 PM

damn, you're a quick login-logout kind of guy cyn. i mean, that's like gunslinger fast

eileenbunny · 04-03-2007, 08:37 PM

Quote:

Originally Posted by Cynthetiq

because for about the first 10 years of the 30 year loan you are only paying for the interest of the loan.

I just used a mortgage calculator and was amazed at the difference if you'd used at 15 year mortgage, your payments would have been $574.47 and you'd have much more equity and almost 1/2 done with the payments. You'd be at equal to the assessment.

I did forget to include the site where I used the mortgage calculator.

they have other calculators like "How Much Can I Afford?" and "Simple Mortgage Refinance Calculator"

That isn't really true. The real answer is that MOST of your money goes toward interest instead of principal for much of the loan. In the case of the OP, things won't actually tip into his favor until month # 255 I believe. Every month it gets a little bit better. An amortization table will give you the breakdown.

What I'm curious about is how the OP owes more than the original loan amount and how the property has wound up being worth so much less than what he paid for it. I'm not even sure that refinancing is an option here. I'd say that the only option would be to rent out the current one and purchase another property.

As someone else here pointed out, borrowing against a 401K is never a great idea. It's a terrible risk and a waste of money.

Also, you never know what you might need good credit for. Sometimes you need it to get a job, sometimes you need it to purchase something in an emergency. If your credit is good, try to keep it that way. Perhaps you could wait out this slump in the housing market. Things will get better. Sorry you are having such a rough time. Good luck to you.

shakran · 04-03-2007, 09:09 PM

Quote:

Originally Posted by eileenbunny

What I'm curious about is how the OP owes more than the original loan amount and how the property has wound up being worth so much less than what he paid for it.

Because it probably wasn't worth that when he bought it, but Greentree is known for its predatory lending practices. They love to get some poor sap to take out the biggest loan possible so they can hook him with interest payments for EVER. If they can work it to be an upside down loan, so much the better because now they're guaranteed loan payments (and therefore more interest than if he just paid it off in a lump sum) for a nice long time since he can't even unload the damn thing.

Greentree is also behind such lovely items as in-store credit card. For instance, the Menards Big Card, which is standard prime +15.99-19.99% - in other words, it's possible to pay between 20 and 30% interest on the damn things.

In short, if it says greentree on it, take your wallet and run away fast.

caver · 04-03-2007, 10:02 PM

This is good stuff to know.

I am hoping to buy a place in the country, down the road.
I have been renting forever, although my rent is damn cheap, relatively,
I would like to be building equity. I may have to end up buying in town.
At least the near future should be a good time to buy something you like.
Unloading something, not so nice.

Cynthetiq · 04-04-2007, 03:52 AM

Quote:

Originally Posted by eileenbunny

That isn't really true. The real answer is that MOST of your money goes toward interest instead of principal for much of the loan. In the case of the OP, things won't actually tip into his favor until month # 255 I believe. Every month it gets a little bit better. An amortization table will give you the breakdown.

What I'm curious about is how the OP owes more than the original loan amount and how the property has wound up being worth so much less than what he paid for it. I'm not even sure that refinancing is an option here. I'd say that the only option would be to rent out the current one and purchase another property.

As someone else here pointed out, borrowing against a 401K is never a great idea. It's a terrible risk and a waste of money.

Also, you never know what you might need good credit for. Sometimes you need it to get a job, sometimes you need it to purchase something in an emergency. If your credit is good, try to keep it that way. Perhaps you could wait out this slump in the housing market. Things will get better. Sorry you are having such a rough time. Good luck to you.

I didn't look at any amortization tables so I couldn't tell you what month the interest/principal changes.

I can say that for the $499.99 payment, only a few cents goes to paying the principal for the beginning of the loan.

Yes, having good credit nowadays is important to employers, clubs, and other groups such as future landlords.

HALJNS · 04-04-2007, 04:29 AM

IF YOU CAN'T RENT.LET GREENTREE FORECLOSE.YOUR UP AGAINST A WALL AND DON'T OWN THE LAND THE WALL IS ON.MOVE ON -RENT,WATCH FOR FORECLOSEUR.THERE ARE MANY HOUSES THAT ARE COMING AVAILABLE---NOTE,DEP-ENDING ON WHERE YOU ARE---EVERYTHING IN THE EASTERN US IS WAY OVER PRICED AND THE FORCE IS BEARING DOWN.

15 YRS AND DEAL WITH A GOOD LENDER.CHECK INTEREST RATES AT VARIOUS PLACES---DAMN MAN--I WAS PAYING 12.75% ON MY HOME---WHEN I BOUGHT IT IN--GET THIS-- 1983.

The_Jazz · 04-04-2007, 04:43 AM

Quote:

Originally Posted by HALJNS

IF YOU CAN'T RENT.LET GREENTREE FORECLOSE.YOUR UP AGAINST A WALL AND DON'T OWN THE LAND THE WALL IS ON.MOVE ON -RENT,WATCH FOR FORECLOSEUR.THERE ARE MANY HOUSES THAT ARE COMING AVAILABLE---NOTE,DEP-ENDING ON WHERE YOU ARE---EVERYTHING IN THE EASTERN US IS WAY OVER PRICED AND THE FORCE IS BEARING DOWN.

15 YRS AND DEAL WITH A GOOD LENDER.CHECK INTEREST RATES AT VARIOUS PLACES---DAMN MAN--I WAS PAYING 12.75% ON MY HOME---WHEN I BOUGHT IT IN--GET THIS-- 1983.

For the record, this is fantastically bad advice and will kill your credit, especially since it sounds a little wobbly to begin with. That's going to keep you from being able to buy a house anytime soon.

Cynthetiq · 04-04-2007, 05:18 AM

agreed Jazz, cutting off your nose to spite your face isn't going to help you.

a foreclosure is not any way to "convince" future lenders to loan you money.

Haljns I'm not sure that you read the whole OP because if the OP had any funds to pay down the morgtage he'd some seed money for a downpayment instead of wanting to borrow against his 401(k).

xxmsaxx · 04-04-2007, 01:37 PM

Quote:

Originally Posted by caver

This is good stuff to know.

I am hoping to buy a place in the country, down the road.
I have been renting forever, although my rent is damn cheap, relatively,
I would like to be building equity. I may have to end up buying in town.
At least the near future should be a good time to buy something you like.
Unloading something, not so nice.

I was incredibly stupid in my finances by letting my ex woman control that aspect of our lives so completely because when she took off I was in the dark holding a fist full of bills with a stupid look on my face, And Short of saving and making lump sum payments as I can It seems like I may be stuck here for a long time (curse her!!!)

I was also perplexed as to why the final payment would be more than what the balance is on my mortgage statement every month, It even has a big astrek saying *Amount shown on principle balance is not the amount needed to pay of loan.

Green Tree does not allow Sub Leasing (I think thats what its called when i rent out property I dont own yet right?) But Im almost to the point of where what greentree dont know dont hurt them.I have no desire to be a landlord, but without the land to put this thing on Im screwed. I am fully vested in my 401k and Had to borrow against it once already to pay the lawyer to ensure i got custody of my daughter and My E.D. Told me it was a dumb idea but approved it none the less since I was in need. I am fully vested so when I leave my money goes with me.

BTW thanks for all the feedback....I do have a good insurance policy

Cynthetiq · 04-04-2007, 01:59 PM

while your money does indeed go with you, if you leave your job, you will probably have to repay the outstanding balance within 30 to 90 days. If you can't make the payment, your loan will be considered in default and the balance will be considered as a taxable withdrawal. If you are under age 59-1/2, you also may have to pay a penalty for early withdrawal.

Most mortgage companies don't allow for subleasing or renting because they have different mortgages for rental properties where the interest rate is generally slightly higher. But it's not like they do bed checks and people can have multiple homes so there is nothing strange if you were to move elsewhere and have them change your address to a new location and still be paying the loan on that property.

Elphaba · 04-04-2007, 04:42 PM

Quote:

Originally Posted by shakran

Because it probably wasn't worth that when he bought it, but Greentree is known for its predatory lending practices. They love to get some poor sap to take out the biggest loan possible so they can hook him with interest payments for EVER. If they can work it to be an upside down loan, so much the better because now they're guaranteed loan payments (and therefore more interest than if he just paid it off in a lump sum) for a nice long time since he can't even unload the damn thing.

Greentree is also behind such lovely items as in-store credit card. For instance, the Menards Big Card, which is standard prime +15.99-19.99% - in other words, it's possible to pay between 20 and 30% interest on the damn things.

In short, if it says greentree on it, take your wallet and run away fast.

Another device is to finance your "downpayment." The 20% or so that is required for a mortgage downpayment is built into the loan. Also, check out what calculation they are using for "simple interest." I bet that it isn't anything like what the understood definition is, which causes little or no reductions to principal.

Subprime lenders are blood suckers at best.

eileenbunny · 04-05-2007, 09:05 PM

Quote:

Originally Posted by Cynthetiq

while your money does indeed go with you, if you leave your job, you will probably have to repay the outstanding balance within 30 to 90 days. If you can't make the payment, your loan will be considered in default and the balance will be considered as a taxable withdrawal. If you are under age 59-1/2, you also may have to pay a penalty for early withdrawal.

Most mortgage companies don't allow for subleasing or renting because they have different mortgages for rental properties where the interest rate is generally slightly higher. But it's not like they do bed checks and people can have multiple homes so there is nothing strange if you were to move elsewhere and have them change your address to a new location and still be paying the loan on that property.

Fortunately for my husband and I, our mortgage company never noticed that we were renting out one of our properties. The only way they really could have noticed was if they bothered to read the changes in our home owners insurance policy. Greentree might do this though and it's too risky not to change the insurance policy if you do decide to rent.

Xazy · 04-13-2007, 11:26 AM

Most banks will not notice or care if you rent as long as you continue to pay on time. If you stop paying your mortgage is the only time they may notice.

vanblah · 04-13-2007, 12:17 PM

My brother-in-law is upside down on his mortgage (owes more on the mortgage than the home is worth). The only advice I can give is to see if you can finance an affordable house that would also pay off the existing mortgage. It's really unlikely, but if you're persistent you might find something.

In the meantime you can build equity by paying extra (make sure you denote that the extra money goes to principle); but only if you plan on being in the home for a few more years. It's amazing what an extra hundred or so dollars a month can do for your equity.

One thing that bothers me: 12.75% for 30 year mortgage is hard for me to believe (even on a relatively small amount). That's an early 80's Reaganomics rate. How did you get that? Was your credit really bad? I'd see if you can get them for predatory lending.

There ARE solutions out there. You may want to talk with these guys: http://www.naca.com/index.jsp. I know they are really geared for first-time home buyers but they may be able to help you find a way out. We bought our first house through them and it was a pretty decent experience.

Good luck.

Doug

04-03-2007, 01:33 PM	#1 (permalink)
xxmsaxx Tilted Location: Home of the First Clone	Advice on living situation First off I would like to say hello to everyone, as I am more of a troll than a constant poster but Ive been with the TFP for awhile now and always thought it to be a great site with out the degradation of most forums on the internet. I guess I am looking for some advice from those of you who either A. Own your own home or B. Know a thing or two about real estate and loan applications. I will tell you my situation and then would like it if someone could give me an idea of what they see as options I could go with to get myself out of the pickle I am in. In 2001 I purchased a mobile home from palm harbor on a fixed 30 year loan at a 12.75 % interest rate for roughly 46,000. Last year I caught my wife having an affair on me and we got a divorce and alas I was stuck with the home and my little girl while she ran off to go be with her boyfriend. Now that I have my finances back in order somewhat, I am looking to get rid of this home for several reasons. I don't own the land it is on so I pay 500 dollars a month for mortgage and 200 dollars a month for a lot fee. I know I could be in a nicer/safer home for less than that but I honestly don't know how to move forward with my financial planning in order to make my ideas come to light. I know what your saying, "why not just sell it and be done with it?" I wish it were so easy, but alas the house is appraised at 28,000 and I still owe 46,500 in order to get it paid off. The mortgage lender GreenTree does not allow me to transfer payments to another party so my only option to sell is to come up with the 45g to pay it off then I can do with the home as I please. My credit is not bad, I make about 37g a year and have been working for the same company for almost 7 years now so what I would like to do is get a true blue sticks and stones house and pay this one off so that I can get rid of it somehow. Of course I live check to check and without the help of a loan I cant accomplish such a feat. I know this a boring problem not as juicy or entertaining as a lot of things on the TFP, but if any of you have an incite as to what someone in my position should do in order to reach my goals I would most grateful. As always, thanks in advance to any one who replies.... __________________ .................. /..../\../\....\ \|.S.\|..V..\|.A.\| \....\..../..../ .................. Work for pay and pay for freedom

04-03-2007, 01:59 PM	#2 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	It seems to me that you're under water on that loan and under water as far as what you can currently save for a downpayment for actual real estate. Does your exwife need to pay any child support payments? Is she also on the mortgage? Have you thought of refinancing to a lower interest rate? (I'm not familiar with what interests rates would be on a mobile home) My condo in Las Vegas was $65,000 @ 7.25% for 15 year loan (IIRC) and my payments are below $500/mo and it was a $6,000 downpayment so I'm trying to figure out the adjustment from the 15 to 30 year difference in interest. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-03-2007, 03:12 PM	#3 (permalink)
xxmsaxx Tilted Location: Home of the First Clone	Thanks for the reply Cynthetiq, My Ex wife doesnt pay child support and she was not on the mortgage , I have actually thought about re-financing but with the end goal of getting out of this house (its a real downer to live in the house where your dreams were first made and then destroyed) I have a 401k that I can borrow from to make a downpayment, and one friend suggested that i actually look at new houses I want apply for a loan and when the debt to income ratio comes to play just say that I rent this house out for 100 bucks more than what I pay on it (even if I am not doing so) and if I get the home then move in and call the GreenTree and say hey I cant pay for this come get it,It would trash my credit im sure but then again if I have a house and a car what more do i need credit for? Other than to get more loans that get me deeper in debt __________________ .................. /..../\../\....\ \|.S.\|..V..\|.A.\| \....\..../..../ .................. Work for pay and pay for freedom

04-03-2007, 03:49 PM	#4 (permalink)
pig pigglet pigglet Location: Locash	can you sublet the mobile home? __________________ You don't love me, you just love my piggy style

04-03-2007, 04:32 PM	#5 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	actually the question piglet is really asking is: Can you rent your mobile home for at least $700/month? I don't recommend lying on your mortgage application, it is a federal offense for lying on a financial instrument, but if you could rent your current place for at least $700 then you are at least even. It then would mean that you could get a loan for a new place, but you'd again need to have a down payment. Sub prime loans you can currently read about in the news how people got mortgages with zero down, or interest only, or even adjustable rates with low introductory rates. If you were to refinance, it would cost you almost $2000 for closing costs, and maybe you could reduce your payments by $100. If you keep the place for 20 more months to recover the $2000 then again you're even. If you can rent the place for the same $700 you'd be $100 positive and that would be considered income. You could then pick handle a mortgage for $800. Borrowing against your 401(k) isn't advised, mostly because you are paying back your 401(k) with AFTER tax dollars instead of how you actually got the number as PREtax dollars. This means you're paying tax on that dollar twice, once to pay back the loan and then another time when you actually withdraw the 401(k) money. Also if you were to get laid off or quit your job, you'd have 60 days to repay the loan. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-03-2007, 04:36 PM	#6 (permalink)
caver Tilted Location: Texas, Lbk	I am curious how you can make payments for 7 years, and owe more than the original purchase price? I am sorry I cannot offer any help, but I would like to avoid such a problem in the future myself. I sympathize. Good luck. __________________ "They misunderestimated me." "You never let the crack whore tie you up on the first date." (The_Jazz)

04-03-2007, 04:59 PM	#7 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	because for about the first 10 years of the 30 year loan you are only paying for the interest of the loan. I just used a mortgage calculator and was amazed at the difference if you'd used at 15 year mortgage, your payments would have been $574.47 and you'd have much more equity and almost 1/2 done with the payments. You'd be at equal to the assessment. I did forget to include the site where I used the mortgage calculator. they have other calculators like "How Much Can I Afford?" and "Simple Mortgage Refinance Calculator" __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION! Last edited by Cynthetiq; 04-03-2007 at 06:16 PM.. Reason: Automerged Doublepost

04-03-2007, 06:21 PM	#8 (permalink)
pig pigglet pigglet Location: Locash	cyn: site still isn't linked. __________________ You don't love me, you just love my piggy style

04-03-2007, 06:22 PM	#9 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	aah... trying to do too many things at the same time http://www.mortgage-calc.com/ __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-03-2007, 06:26 PM	#10 (permalink)
pig pigglet pigglet Location: Locash	damn, you're a quick login-logout kind of guy cyn. i mean, that's like gunslinger fast __________________ You don't love me, you just love my piggy style

04-03-2007, 10:02 PM	#13 (permalink)
caver Tilted Location: Texas, Lbk	This is good stuff to know. I am hoping to buy a place in the country, down the road. I have been renting forever, although my rent is damn cheap, relatively, I would like to be building equity. I may have to end up buying in town. At least the near future should be a good time to buy something you like. Unloading something, not so nice. __________________ "They misunderestimated me." "You never let the crack whore tie you up on the first date." (The_Jazz)

04-04-2007, 04:29 AM	#15 (permalink)
HALJNS Upright	IF YOU CAN'T RENT.LET GREENTREE FORECLOSE.YOUR UP AGAINST A WALL AND DON'T OWN THE LAND THE WALL IS ON.MOVE ON -RENT,WATCH FOR FORECLOSEUR.THERE ARE MANY HOUSES THAT ARE COMING AVAILABLE---NOTE,DEP-ENDING ON WHERE YOU ARE---EVERYTHING IN THE EASTERN US IS WAY OVER PRICED AND THE FORCE IS BEARING DOWN. 15 YRS AND DEAL WITH A GOOD LENDER.CHECK INTEREST RATES AT VARIOUS PLACES---DAMN MAN--I WAS PAYING 12.75% ON MY HOME---WHEN I BOUGHT IT IN--GET THIS-- 1983.

04-04-2007, 05:18 AM	#17 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	agreed Jazz, cutting off your nose to spite your face isn't going to help you. a foreclosure is not any way to "convince" future lenders to loan you money. Haljns I'm not sure that you read the whole OP because if the OP had any funds to pay down the morgtage he'd some seed money for a downpayment instead of wanting to borrow against his 401(k). __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-04-2007, 01:59 PM	#19 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	while your money does indeed go with you, if you leave your job, you will probably have to repay the outstanding balance within 30 to 90 days. If you can't make the payment, your loan will be considered in default and the balance will be considered as a taxable withdrawal. If you are under age 59-1/2, you also may have to pay a penalty for early withdrawal. Most mortgage companies don't allow for subleasing or renting because they have different mortgages for rental properties where the interest rate is generally slightly higher. But it's not like they do bed checks and people can have multiple homes so there is nothing strange if you were to move elsewhere and have them change your address to a new location and still be paying the loan on that property. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

04-13-2007, 11:26 AM	#22 (permalink)
Xazy People in masks cannot be trusted Location: NYC	Most banks will not notice or care if you rent as long as you continue to pay on time. If you stop paying your mortgage is the only time they may notice.

04-13-2007, 12:17 PM	#23 (permalink)
vanblah Junkie	My brother-in-law is upside down on his mortgage (owes more on the mortgage than the home is worth). The only advice I can give is to see if you can finance an affordable house that would also pay off the existing mortgage. It's really unlikely, but if you're persistent you might find something. In the meantime you can build equity by paying extra (make sure you denote that the extra money goes to principle); but only if you plan on being in the home for a few more years. It's amazing what an extra hundred or so dollars a month can do for your equity. One thing that bothers me: 12.75% for 30 year mortgage is hard for me to believe (even on a relatively small amount). That's an early 80's Reaganomics rate. How did you get that? Was your credit really bad? I'd see if you can get them for predatory lending. There ARE solutions out there. You may want to talk with these guys: http://www.naca.com/index.jsp. I know they are really geared for first-time home buyers but they may be able to help you find a way out. We bought our first house through them and it was a pretty decent experience. Good luck. Doug