I paid 289.00 for my home with an 80,000.00 down I owe 215,000.00 it is worth 176,00.00 what should I do?

Question

The rate adjusted and the payment is to much, what should I do, I simply cannot afford the home.

Answer 1

Can you get a roommate?  I grew up in a 3 bedroom trailer, with my parents and 3 kids (including me).  When money got tight, my mom moved all the kids into one room, and rented out the "spare".  There was always someone she knew from work, or a friend of a friend who needed a place.  They were never strangers so we felt safe.

It'd be shame to have to sell in this market, especially owing more than the home is worth.

Answer 2

How the h**l did you put $80 grand down, still owe $215,000 but the house is only worth $176,000??! Didnt you get the house appraised before you bought it to make sure it was priced correctly? Wow! Your screwed! Sorry to be so blunt but your in a sticky predicament! UM I'd call your morgage company and talk to them about it but I doubt there's really anything you CAN do but pay it :/

Answer 3

foreclosure is your only choice since it looks like you lost all your equity and more

Answer 4

eww rough predicament...try getting roomates as stated above... and sit and wait for the market to get better if it ever will...good luck

Answer 5

Owell - write it up as 'learning the hard way.'

People shouldn't live beyond their means................

Answer 6

How do you know the payments are too much?  Are you on a budget, and has the increased payment pushed your monthly expenses above your monthly income?

If you are not on a budget you can download a free budget workbook from:  http://www.bills.com/guide/

or use an on-line tool at: http://www.kiplinger.com/tools/budget/

Here are the steps to establishing a budget, in general you will be comparing your monthly income with your monthly expenses;

1. Determine your monthly take home income.  If you work in sales or on some type of commission make a conservative (low) estimate of your average income.  Then remember to save during the high income months for the low income months.

2. List your monthly expenses; Essentials first such as your mortgage, groceries, utilities, car insurance, car payment, car gasoline.

3. Utilities and groceries will vary from month to month so determine a conservative (high) average amount.  I include anything bought at a grocery store in my grocery budget; food, cleaning supplies, kitchen and bathroom supplies.

4. Amortize your car insurance over the period of coverage, for example if you pay $600 for 6 months coverage the monthly expense is $100.  So put $100 each month in savings so you are ready for the next payment when it comes due.  A budget will help you begin to save for future purchases rather than paying for past purchases.

5. Include money in the budget for car maintenance, home repairs and medical needs, these expenses come along and will ruin a budget if you don't have something saved up.  I save $50 per month per vehicle for maintenance.  After some months go by and you have savings in the bank for car maintenance, home repair and medical needs it may be tempting to spend it, but don't.  Eventually you will need the money to repair your car or for some other unexpected expense.

6. You will also need to budget for clothing, activities, gifts and holidays and savings (if possible).

Once you have a written budget you can see if your house payments are too much for your income to handle along with other essentials.  

You may be able to find ways to decrease your expenses by recording your spending for a month or two.  Most people are surprised by how much they are spending for some items; eating out, groceries, snacks and treats are the typical culprits.  Controlling your spending is the other side the budget balancing equation.

Finally, don't use credit cards unless you spend only what you have in your budget and pay the entire balance each month.  A budget takes 3 - 6 months to take effect, some expenses may come along before you have money saved, but stick with it.  Your budget will catch up with any unexpected bills and you will have savings to cover the expenses the next time.

Like any other investment the housing market goes through ups and downs, but a house is unique in that we all need housing.  The housing market will turn around and values will increase.  So rather than losing your investment do what you can to keep it.  Getting on a budget is a first step to understanding your financial situation so that you can make a wise choice.

God bless.

Answer 7

It is absolutely essential that you get in touch with your mortgage company and talk to them about what they can do to keep you in your home.  This has happened to many many people, including myself and my wife.

I'm not sure how you came up with the $176,000 figure, but assuming it's accurate, you if you were to market your house, and sell it for whatever the highest bidder offered, minus costs, you still be stuck owning probably $50,000 and have no place to live.  That isn't acceptable.  If you just walked away from it, the mortgage company would sell the house for a lot less than it's worth, and you would still owe the difference.

If you talk to them, and this is really true, they DO NOT want to see you lose your house and they do not want to have to sell it.  Their costs and losses are really high, so they are probably very willing to try to find a way to keep you in the house.  They might find a way to lower your payments, or maybe interest only payments.

The bottom line is that you have to talk to them and figure it all out.  That really is the best way.