JMAG asked:


I’m in my late twenties…interest rates are low…housing prices are falling….

I didn’t plan on buying a home as Southern California is very expensive. But…it’s not looking too bad. Lots of short sales and foreclosures…
The only challenge I have is whether to take a hardship “withdrawl” from my 401k to jump in. I know it’s usually not a good idea for tax reasons and loss of future compounded interested.
However, assuming the housing market rebounds in the next 10 years, I’ll easily make up what I lost in the compounded interest.
For some strange reason, I FEEL inflation will eat away my 401k savings. (Get rid of that cash…)
Buying this early in the year will help add up as much tax savings as possible…
I don’t think a 401k loan will work…it will add to my debt ratio.
What are your answers?

The houses are between 300k-400k…

Also…is PMI now tax deductible?

Ted

irish girl asked:


My husband is a real estate agent and does lost of short sales ect. He tells me that you have to be going through pre-foreclouser to do a short sale. I have been reading online and some people say that you don’t have to be. Why in your right mind would you want to do a short sale then and mess your credit up ect…?? Doesn’t make any sense, and how is it possible to have the bank agree to this,when you can afford to pay for the house? How is it possible if the person is up to date on payments do they owe more than the house is worth? What is the hardship then? Then the bank is saying that any person can do this???

Amiee

Guardian asked:


If you are not working with a realtor and you are unable to supply the lender’s loss mitigation dept w/ requesed short sale documents eg. owners w-2’s, bank statements, hardship letter, pay stubs, etc should you go ahead and submit the offer anyway? And would you submit the offer to someone OTHER then the negotiator. If so, Who?

Jack

cindy D asked:


The 2nd is with a different bank because the 1st sold it how does that work on a short sale . Will they right it off or send a 1099 for the rest and will it still hurt our credit . We are up to date on our payments nothing is late we just feel is would be a hardship really need some aswers. Thanks

King

chicagonly80 asked:


I have a house that I can just barely afford to make payments on but find it financially difficult therefore I have stopped making payments on it now for 8 months and would like to do a short sale. but now the bank wants proof that I can not make the mortgage payment so they can approve the short sale and I am afraid they may think that I can afford the payments and not approve me for the short sale. My questions are can I make it look like I can’t afford the mortgage so that I can get approved for the short sale? Again I can afford the mortgage but just barely. Also is it better to perhaps just go to foreclosure so I don’t have to show proof of my hardship to them (they are asking for my last 2 income statements and last 2 tax return statements)? Can they get me for the difference? What is the worst that can happen? This house has been financially very challenging to make the payments for and I am afraid they may say that I can still technically make the payments and sue me.
the short sale is for 169k when it was purchased for 238k. I have an offer for 169k already. Also since I have not made payments for 8 months now I owe the bank over 17k. I guess my question is can they say I can afford it when to live comfortably I really don’t think I can?

Leontine

ahmed s asked:


Much literature deals with a character’s ability to persevere, in the face of hardship. It is the manner in which the person deals with conflict which illustrates her stamina or lack of it. In the short story, “Brooms for Sale,” Thomas Raddall, unveiled the character Greta, who never gave up no matter how rough things got. Being poor, is never easy and it sure wasn’t easy for Greta. Greta spent hours doing chores around the house and then would spend night after night making brooms for extra income for her son. Even though Greta worked so hard it was never for her, she was always thinking of her son. No matter how tough things got Greta wouldn’t give up, she continued to work hard and kept going. Greta’s willingness to never give up made her sustain herself and her son, and it was that will that made her perform actions, which were only found common amongst the opposite gender as stated “barn needed repair, the fences were falling down….The crops were smaller but Greta would not giv
would not give up” (pg.1).
The manufacturing of these 240 brooms was never easy, and the manufacturing came with the cost of several bruises and sore areas. “What pain she suffered you can guess” (pg.2). Greta’s conquering of this obstacle shows, what strong will with the mixture of hard work can result in.

Lorita

Matthew B asked:


I have concluded that my best option in getting back up North to be with my fiance and family is to do a short sale on my property. DOes anyone know a good shortsale consultant in the Naples, FL area. I am an honest person and realize that even though i have hardship so do most other Americans at this time and mine may not be as bad as another persons family member passing away, etc. So I am having a ahrd time going through with this process. My dad has diabetes and is in need of a total hip replacement and my grandparents live with my parents so my mom is going to need help taking care of all of them. SInce I am a physical therapist I feel obligated to go back up and help support them. I also know I cant afford to own in FL and rent in NH so I hope the bank would find this situation as a ahrdship. Please let me know if there are any other options since i have negative equity in this property. thanks
I have spoken with my lender and i understand that they will never say you have to be delinquent in order to entertain a short sale but he said that I could submit a package and they will look it over but toi keep making payments which i intend to do if i can afford it.
Real Estate Guy, I am not looking to walk away from my mortgage at all. Is there any helpful info in that article except for letting me know that if i pick the best out the worst options I will still suffer in the future.

Bruce

jamie s asked:


I would like to consider consolidating my student loans $120k with a home equity loan. I paid 120k for my house as a forclosure, and its worth considerably more now. If I get a home equity loan to pay off some high interest student loans, I would owe more on my house, but significantly reduce my monthly payments. Allowing for quicker repayment of all debt.

Now If I needed to sell my house for some reason, and the market still sucked, would I be able to sell for less than the total balance of money borrowed against my house, and still pay on the home equity loan after the sale? Is this something that is unheard of or is it common to be paying on a house after selling it?

I’m not interested in short sales, where the debt is forgiven due to hardship. I’d plan on paying the debt back, but there would be no collateral to take if the house is sold, so im not sure how it would be possible.

Frida

michael g asked:


My wife was robbed in my front yard last week and I’m out of this place, the area has gone to crap. Three years ago is was a nice quiet area now drugs and crime. I owe about 250k and my home maybe worth 185k. I am leaving at the end of the month to rent a place in town .This is not a current financial hardship , but next month it will be and the bank will not recieve another payment from. If I was able I would sell at a huge discount I would but since im upside down I can’t so why hang around here any longer.Can I do a short sale or just give it back in foreclosure.

Frank

SweetGracey asked:


Per an earlier question I posted, we owe $35M on a rental property that we purchased for $40M a few years ago. The area in which the property is located has gone down the toilet for the past few years and the home is now worth around $15-$17M. We received an offer of $15M for the home and we need to take it. We initially contacted our mortgage company to see if we could pay them the $15M from the closing, but then get an unsecured loan from them to continue paying the balance. The immediately sent us to the loss mitigations dept and started talking short sale. We didn’t know what this meant, but now that we do, it sounds like it may be a blessing even if it affects our credit rating for a few years. The form they are asking us to fill out asks questions such as “what is the situation and when did it begin”. What are the hardships you are facing because of it. My question is, what do they really care and not care about?
The truth is, we put the property on the market in late 2005 after we had to evict a tenant for non payment. The property was subsequently broken into and both robbed and vandalized, costing us around $5M in repairs (not payable by insurance). We tried to get a new tenant, but w/no success. Finally, we let someone lived there (a brother of someone we knew) just to keep the property occupied. Although he pays less than the mortgage amount (per an unwritten agreement) and misses payments frequently; we needed him there. He is now moving out because the place has been robbed two more times and there have been gunshots fired through the window. We can’t afford to sink any more money into a declining property and we can’t afford to let it sit vacant and on the market because of the crime situation. What part of this situation (if any) would really help our case in getting short sale approval?
We are seriously scared to death that if we don’t get this property off our hands it’s going to be worth less than $15M. Once that tenant is gone for even one day, the robberies/vandalizations are going to continue. Any advice?

Shawnta