Take this house and -----

[polarjim]

I purchased my house in Wolverine Lake,MI just over a year
ago. I had paid $186,000 with no down and closing costs wrapped in.
Currently Zillow has the appraised value at $162,000.
Not to mention that the roof needs replacement and the
water softener is down(community well) and the garage door
opener stopped working.
I can barely afford to keep up with the mortgage with my
pensions. My son lives with me and without his donations
I could not pay the monthly mortgage and related bills.
I can't see replacing the roof and other repairs,I figure about
$15,000. worth with the upside mortgage.
Any advice would be greatly appreciated.
Oh, I did write the bank,Fifth Third, to consider a loan
modification. No answer in three months.

[helpinNE]

I do believe that MI allows for deficency judgements, meaning the bank can sue for the difference between sale price and loan balance after a foreclosure is complete.
That being said, because you receive a pension, you may be what is called judgement proof, but I am not sure, I know they cannot garnish wages against Social Security but am not sure if there are same protections against pensions. I would recommend contacting an attorney who specializes in real estate and debt collection, they can advise you on MI foreclosure laws and debt collection laws.
That being said, in your specific situation, it would make sense to try and short sell or foreclosue on the house since your income is not sufficient to make the payment and meet your other needs. It is great that your son lives with you and helps out but that arrangement may not last forever.
Best of luck.

[polarjim]

Thanks for taking the time to reply with your good advice.
A local real estate agent informed me of some scenarios.
The fee seemed very reasonable compared to some
of the Loan Modification sites requesting a few thousand $.
The son helps, but the price I'm paying for that is a little
too much. Lets just say I should have got on his case when
he was younger about cleaning up after himself !

[helpinNE]

I am not sure what fee you are talking about. You should not have to pay a realtor an up front fee for listing your house, even if it is listed as a short sale, they will receive their commission at the close of any sale. If you are talking with a realtor who wants you to pay money up front, go to another one.
Also, please do not pay anyone for a loan modification unless it is a reputable attorney. There are just too many scam artists out there who will take your money and do nothing.
I have 2 kids also, niether who care much about cleaning up after themselves, I also have a husband who fits in that category too!

[polarjim]

Thanks for your input,I appreciate it.

Thank you.

[helpinNE]

I looked at the site and what bothers me is the fees they are charing you. Both the upfront and closing fees.
Realtors are PAID a commission for the listing and sale of a house and it shuld not cost you anthing out of pocket and upfront to list your house.
My sister recently did a short sale of her home and both realtors, the listing agent and the closing agent, were paid out of the proceeds from the sale of the house, it did not cost them anything out of pocket. At the last minute one of the lenders had to made a change to the loan payoff and to make the closing happen both realtors even took a smaller cut of their fees.
BEFORE siging anything with this realtor I would enourage you to contact a few other realestate agents in your area, you should be able to find several listed in your local phone book. Explain to them you are looking for an agent who has experience in short sales and see what they have to say. I would bet that you can find a different real estate agent who will not charge any upfront fees and extra closing fees like this company is doing.
Please, call around before paying anymoney to this company.

[polarjim]

Thanks again, I will take your advice and contact a few agents.
Jim

[snapple candy]

I would agree, it is not proper you should have to pay a realtor a fee to list your house. Seeing a BK attorney whom knows alot about debts, judgments,etc so you know you worst case scenario liabilities would be very wise. Not sure about pension and whether judgment proof but probably safe. An experienced attorney is worth the advice you need. Your state might have a low fee option thru the State Bar. I got a consult for $35 in my state.
Kids, in general are not too helpful in their early years. If he cant get off his butt and help, it may be better to give him the boot at some point in the future. MI is not best place to find a job. My nephew is one of those lazy who lives in MI. He cant even manage to go to college on someone elses dime and improve himself. My brother has done him a diservice by enabling his lazy behavior. Kids these days....I still have 3 teens at home. Dont get me going (he-he)

[polarjim]

Thank you for your reply.
I'm currently seeking real estate agents dealing in Short Sales.
I'm still current on my mortgage,but not for long.
Jr. is 39 going on 6 !
I have a bi-level and I asked him to just clean his room, I would
do the rest.
I have seen people living in vans down by the river that have a cleaner space than him.
Also, I have a motor-home and a little land to park it on so I might hang out there for a while and save some moo la.
Hopefully, I can get an owner financed in a few years after I
have saved for a decent down.

[helpinNE]

Jim,

I hope you can find a good agent to work for you. I would follow the advice on this forum and stay in the property as long as possible. Whether you decided to list the house and stop paying or not is your decision. But if you do stop paying your mortgage, stay 'rent free' until the short sale is complete or the foclosure is complete. This should give you a chance to save up some some.
The motor home sounds nice. This is kind of my retirement dream.
Good luck and keep us posted.

[polarjim]

I believe that I will stay here as long as possible and start saving.
At least, I don't have to live in a van,down by the river !
Loved that line from SNL.
Jim

[eevee]

Love that line too! Sometimes feel like switching spots with my 3 teens. Whose biggest worries are mom can I have gas money, can I go here or there, and what time do I need to be home! I would stay as long as possible, and save$!! Best of luck!

[polarjim]

I remember the kids and those "teen" years !
Glad that phase is over.
I'll check out the book.
Thanks,
Jim