Help In Sc

[confusedsc]

Last year I took a job that made me move to the other side of the state. My wife stayed to finish her education in our home. Now she has graduated and we are looking for her to move to my location. We are trying to rent our home out currently but we are still eating $500 a month on the current rental rate. Plus we have to rent a place to live where I work. The house was built for $290k and we owe $265 the probelem is a new home similar models are getting built for $200k. What are some of our options for short sales etc...? We are going to really struggle each month to make the payment since we will be paying for two places. Thanks for your time.

[walkin]

My house is in SC also, and I had to relocate to keep my job. I was out of pocket approx. $700/month to make up the difference between what I was receiving in rent, and what my mortgages were. Combine that with the house not having a renter for 3 months, wife unemployed for 2 months, and a higher cost of living where we moved, I blew through every bit of cash savings I had, cashed out wife's 401k (stupidest thing I've ever done) to pay off other debts (to try to make it easier to absorb the $700/month out of pocket), then started stealing from the grocery, recreation, and miscellaneous budgets to keep the mortgage current. Unfortunately, it took me a full year to realize that I had made a big mistake (I'm a slow learner, lol). I had to stop paying my mortgages at the end of last year. At the time, I had $0 in savings, hungry kids, a few checks floating around, and a soon to be crappy Christmas for the kids...I had to pull the plug. And Santa was good to my kids :-)

In the spirit of "trying to do the right thing" (silly me), I attempted a short sale. That didn't work out because of the junior lien holder blocking the sale.

If I could do it all over again, I would have stopped paying a dime after we moved out. To add to it, I contacted both of my banks 2 months before I was moving, explained what was getting ready to happen, and asked for any help I could get. They didn't offer a GD thing.

It might be worth your time to read the thread below. I wish I found this site, and that thread, before flushing over $20k down the toilet.

SS vs DIL vs FC Comparison

I haven't paid my mortgage in about 7 months or so, and I haven't been served with FC papers yet. SC is one of the hardest hit states, and the FC seems to be a slower process there, probably due to the fact that it is a Judicial FC state, and also the amount of Foreclosures on the list...not sure. I won't advise you on what is best for you, I just know what I did, and I know what I SHOULD have done....

[confusedsc]

Thank you so much for the response. I guess I am trying to get clarity because the business side of me just thinks losing money each month is a bad idea. The spirit of the "right thing" keeps talking lol.

I am still unsure of the while short sale thing because I thought I heard a reason for short sale was moving for a job. I appreciate any help on the matter. The unfortunate side is I think the bank might be like the govt and tell us we make too much but i dont live in two bedroom apartment anymore

[walkin]

There are different reasons for "hardship", and yes, job relocation is one of them. With that being said, it is still up to the bank to decide if they will accept the Short Sale offer or not. In my situation, the 1st mortgage quickly accepted the SS, and were willing to forgive the entire remaining deficiency (~$45,000). Unfortunately, the 2nd mortgage didn't want to play ball, and wanted something like 20% just to release the lien (money from me, that I didn't have, and money the 1st was offering), then they wanted me to sign a note for the remaining balance...LOL, nah, I'm good, but thanks. Perhaps the 1st was well aware of the Real Estate troubles in SC, and understood my hardship, and thought the SS offer was a good exit strategy for them? But the 2nd was out of touch with the realities of the SC Real Estate market? I don't know, don't even care anymore. The 2nd is now charged off, and their lien will be wiped out if/when the 1st forecloses them out. They may eventually come after me, but since I have nothing, they will get nothing. And it's too bad, because they had their chance to at least get something.

If you don't have any 2nd mortgages or HELOC's, you might have a better chance of successfully completing a Short Sale. Most of us with 2nd/3rd liens, HELOC's, etc, have had problems getting one done.

Like I said, spend a little time reading the thread above, and maybe you will get a feel for what might be right for you. Having now read that thread (some of it), I now know what I should have done from day #1. If you decide to pursue a SS, you might want to either call your bank(s), or a realtor, and see what needs to be done to get your house on the market. I personally wouldn't cut back on groceries and entertainment, just to pay for a house that I wasn't living in...but I can say that now, because I already made that mistake once before.

Of course, there are other ways of dealing with it, which may be more lucrative. Browse the site some, you'll see some creative ideas that others are doing....

Oh, and to correct something from my previous post (too late to edit it):

In the spirit of "trying to do the right thing" (silly me), I attempted a short sale. That didn't work out because of the junior lien holder blocking the sale.

Should read "In the spirit of 'trying to do the right thing' (silly me), I offered to bring money to the table from a 401k loan, in order to get a short sale done...."

The beginning of my failure (due to trying to do the right thing) was when I payed for the empty house for 3 months....