I cant short sell or rent my house and need to move states do i forclouse or bankrupcy?

Question

i currently afford my house but im house poor also, how hard is it to buy a home with a forclousure on your credit

Answer 1

I am actually in the same boat with you, I posted a question earlier this day. I can't tell you what you should do but I can say what we are considering. We were well on our way to do a bankruptcy but it looks like now because of the type of jobs we have that we cant. A foreclosure can cause a huge point loss on our credit(see our question and answer).  Umm. We are considering renting our 3 bedroom home to college students at $650 each and paying the rest ourselves. When we lived out of state and had our house and our apartment we paid much more. We also have wanted to adopt but couldn't afford it, and were considering starting with long term foster care that leads to adoption so they actually help us with the cost (minimal but it will help)instead of us paying up to $10000 or more to adopt a child.

With everything going on in the news there should be a bail out program coming soon, there is one now that Bush may veto but we'll see. With Fannie Mae and Freddie Mac getting bailed out we both may eligible for loan modification, with possible reduced interest rates, lower principle balances, extended loan terms, etc.  Best idea is to keep communication flowing with your lender. They CANNOT help you if you file or let them know that you intend to file bankrutpcy. The electronic projection we received from our Bnktruptcy lawyer  was that our score would actually go up right away by 50 points by doing it.

If it ends up you have no other options and are between a rock and a hard place, like us, keep your credit good long enough to buy another house there then let this one go to foreclosure.  My opinion.

Consider doing a deed in liu of foreclosure. You have to research the terms and conditions for your state but the answer to my own q & a was that it is your only eligible if you owe less on your house than what it is worth.

Answer 2

Have you checked the news lately?  With the downfall of Fannie Mae and Freddie Mac, it may very well be much harder to buy a house, especially with poor credit.  Even if you could, your interest rates would probably be sky high and you will be required to put down a huge down payment.

Don't kill yourself with bankruptcy or foreclosure unless you absolutely have to.  Sacrafice other things if you can.