We had a different realtor come out, but they gave us the same news as the realtor from last year. Basically we could list our house for $50,000. We currently owe $83,000. With paying commission and all the other things we are looking at almost $40,000 needed just to get out of this house. Although several other cities around here are picking up, our little suburb has been severely hurt by losing several large businesses and failing to attract others. The new city manager is trying to help turn that around but I am afraid it may be too late. The realtor also said this area has been hit HARD by foreclosures and there does not seem to be an end in sight, with several more about to come onto the market and more distressed owners on the brink.
Needless to say, we are not listing the house. At least it's clean now, though. Right?
So the plan is still to stay put until we can pay off the difference or our incomes rise enough to qualify for both mortgages so we can get another house and rent this one out until we can sell it. I really have no desire to rent out this house though. I've heard too many horror stories of what can happen. And our living expenses are low enough in this small house that it does not make sense to rent this place out only to go somewhere else and rent. At least, not for now.
So here's the plan for tackling the debt:
1. Finish paying off the credit cards. Currently back up to $21,769 but will be back under $20,000 as soon as DH gets paid. Taxes were more than we had saved for, and we had to pay to clean up the mess from the garage flooding.
2. Pay off the car. Currently sitting at $12,800 with monthly payments of $367.
3. Not sure if we should pre-pay the mortgage or start socking the money into savings. Either way is about the same difference, but savings gives us a few more options.
4. Student loans. Last on the list for many reasons (low interest rate, higher balances, doesn't really count "against" us when trying to get a new mortgage).
We also have $5,000 in medical bills that are starting to roll in now. We've paid $200 so far. My Dr's office set up a payment plan for $2,400 of it. Right now we've been able to juggle things around and pay from my normal paychecks. Probably going to use DH's checks to pay the Dr bill first and then get back to the CCs since that has to be paid off before August in case I go into labor early.
4 comments:
Sorry to hear you can't sell! I thought you had mentioned some neighborhood you could get into where they'd buy your old house?
Some new builders are doing trades, but the realtor said we are too far upside down for that and would still have to take money to closing, possibly even more than we would if we just sold it outright.
I'm sorry to hear this. I know you don't want to rent out your house but if you are able to do so and cover your current mortgage, I would consider it when you're able to qualify for both mortgages.
We are in the same boat, and it stinks this little boat when we want to be on a yacht! lol We did get approved for both mortgages, but we'd still have to pay money for the first one as rent won't cover the mortgage. But we'd still pay less for a new mortgage, plus a few hundred to make up the cost of the first mortgage...so we'd be saving money leaving...but we both don't want to rent it out either (horror stories), so who knows...looks like we're stuck where we are...boo!
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