Sunday, 29. August 2010
My mother made a personal loan to m 6 years ago for ,000 from an equity line of credit. I used it for school and to purchase a condo. Now that the market has crashed, my homes’ value has fallen 50% and I will likely opt to liquidate the property for a loss. (I am a licensed real estate agent.)
A financial planner told her that it is in her best interest that I pay off this loan ASAP because the the bank could demand immediate payment in full at any time and if I didn’t have the money then she would have to pay it from her own savings.
As a result she has rallied all my brothers and sisters to pressure me into returning home to live there until I can pay off the ,000 by basically giving her all my earnings until the loan is paid down.
As much as I want to pay the loan off fast, I am 29 years old and I do not want to move home with my 2 younger brothers and parents. In a 2 bedroom house, I would basically be living in a tool shed until I’m in my early 30s.
I do not think it is fair that I should be made to feel guilty for what has happened to me due to the economy, or what could potentially happen to her for making this loan to me. She tells me, "I feel I will never get that money back" It saddens me to think that she doesn’t trust me but I do not think it is fair for her to put such a huge responsibility on me and expect me, a single, 29 year old, to move home for a few years and give her most of my earnings.
What should I do?
The reason I haven’t paid the loan down is because I have paid off my high interest credit cards first, and then real estate market has crashed leaving me with just enough money to make interest payments and live on. Now I intend to find a stable job in the next two months unless I can start to make money.
She is trying to accelerate the loan. There was never any agreement to do this. If a bank tried to do this it would be called "loan sharking."
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Friday, 27. August 2010
So, I am in a situation where I had a good job for years w/o a degree, bought a condo, got laid off and now working again, but I think the real solution is to go back and finish my bachelor’s degree. In order to do this, I would like to quit my job this fall or sometime next year to finish my junior and senior year full time instead of just going part time. One thing is for sure and that is I start my junior year of college this fall, I just don’t know if it will be full time or part time. The college is night classes which makes it good for the part time option. The problem with not working and going to school full time is making my mortgage payment. My condo is worth 240K from the bad economy and have a 190K loan against it. (I had a good down payment from a previous house sale). My current APR on the condo is 5.875%. I got a GFE on a basic refinance (5.125% w/o points or fees) and it came back I would pay 10 per month w/ taxes instead of the 15 per month I’m paying now. I’m also considering not refinancing because it is only a 5 savings per month and I plan to sell in 3 years after I get my degree. If I don’t refinance, I am thinking of going with a line of credit (home equity loan) with the bank I have the home loan with and then quit my job when school starts. I would then use the money from the line of credit to pay my mortgage while I’m in school. I think the percentage rate was around 6.5%. I wouldn’t need to use the home equity loan until my senior year of college though. I currently have ,000 severance from the lay off I plan to use during my junior year to pay my mortgage. Then when that money is gone, I would plan to use the line of credit during my senior year. I like the line of credit because I only pay interest on what has been taking out. Second option instead of the line of credit: Instead of the home equity loan for my senior year of college, I could refinance the condo and "take cash out". I have not looked into this option. If I take ,000 out, I could put it in a CD for a year and then it would be used for my senior year of college to pay my mortgage. I know it is not a good situation for me, but I’m trying to make the best of it. Does the home equity loan sound better or the refinance?
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Sunday, 8. August 2010
I have been divorced for 2 years. As part of the settlement agreement, my ex received 2 rental houses. Both of our names were and still are on the mortgages. Settlement agreement stated that she must refinance or sell properties within 24 months to remove my name from mortgages. This has not happened and she is saying that she can not qualify to refinance the loans. After expressing dissatifaction with situation many times, she has offered to sign the deeds of 2 rental houses over to me at no cost and will give me 6 months to either sell or refinance out of her name.
Neither house has very much, if any, equity in it. One is vacant and one is currently rented. I think both will rent pretty easily, even in this economy. I do not really want to be a landlord again. One mortgage has a balance of k and the other is k. Since our divorce she has taken a k 2nd mortgage on the k house. This is in her name only.
What should I do? I just want my name off the mortgages!
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Friday, 9. July 2010
My husband and I got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. We live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. But after adding up all the extra costs we would have, the income we’d be getting from rent would only make us break even and wouldn’t be worth it.
There is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. And I was looking into maybe purchasing a vacation rental there. I found a property there we can afford. I called around to places that manage rentals of similar vacation homes. It seems comparable properties make between ,000 – ,000 a year — this has the potential of being more profitable for us than a rental home, where there is month-to-month rent.
Even after using all the funds remaining in our equity LOC, we’d still have over 50,000 of equity in our home. But I’m afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. We may soon get a notice, as others have that the bank won’t let us have the funds they loaned to us from our home’s equity. And with mortgage rates so low, it seems like now is a good time to jump on this opportunity.
Yet, with a vacation rental, there’s not a steady income like there would be in a rental home. And with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future.
So, what do you think? Should we do it? Or let this opportunity pass us by, for now?
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Monday, 21. June 2010
Home mortgage rates and equity loans to be more exact. They seem to have gone up almost a full percent in the last week. I thought the fed res was supposed to lower the rate to boost the economy.
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Saturday, 22. May 2010
I bought a home for 169000 cash in full 12/2005.In 4/2007 I got a small equity loan on home for 55000 for a small Business I started.Economy so bad in 08 the Business failed and I’m behind in all bills and equity payments.I contacted a agent to list my home for sale before I get for closed and we went over info and I made a time to see him Monday.
Today I come home and find a piece of paper taped to my door saying my property will be for closed 4/26/09.Two hours later I get mail and 1 is from a lawyer explaining he can help me with filing chapter 13 and saving my home and utility shut offs and also do not contact a real estate agent or deal with any if contacted.The other letter was from a company real estate favors for closure specialist who says do not file chapter 13 or any type bankruptcy that they can help me stop a sheriff ale lower all my bills etc…How these people knew my home was about to be for closed I’m unsure and is weired I get their mail same day I get paper taped to my door.I truly do want to sell home and move but with a sheriff sale that paper said would happen quickly 4/29.I was told a real estate agent can not help stop for closure so I don’t know what to do.If I save the house we will stay jobless no family my son is mentally ill I’m disabled my boyfriend is illegal so he can’t get any type temp jobs.What would you do and you have deadline of loosing your home in 28 days?
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Friday, 21. May 2010
I bought a home for 169000 cash in full 12/2005.In 4/2007 I got a small equity loan on home for 55000 for a small Business I started.Economy so bad in 08 the Business failed and I’m behind in all bills and equity payments.I contacted a agent to list my home for sale before I get for closed and we went over info and I made a time to see him Monday.
Today I come home and find a piece of paper taped to my door saying my property will be for closed 4/26/09.Two hours later I get mail and 1 is from a lawyer explaining he can help me with filing chapter 13 and saving my home and utility shut offs and also do not contact a real estate agent or deal with any if contacted.The other letter was from a company real estate favors for closure specialist who says do not file chapter 13 or any type bankruptcy that they can help me stop a sheriff ale lower all my bills etc…How these people knew my home was about to be for closed I’m unsure and is weired I get their mail same day I get paper taped to my door.I truly do want to sell home and move but with a sheriff sale that paper said would happen quickly 4/29.I was told a real estate agent can not help stop for closure so I don’t know what to do.If I save the house we will stay jobless no family my son is mentally ill I’m disabled my boyfriend is illegal so he can’t get any type temp jobs.What would you do and you have deadline of loosing your home in 28 days?
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Monday, 17. May 2010
I bought my home with cash 1699000 and two years later I applied and got a equity loan for a small amount.I was offered 85000 and I only tok 55000.I was thinking a buissness I started would help pay that off.I live in MICH and 2008 was worst ever and I did not do well at all it doubly sucks just being a person just starting hard for anyone.I’m currently behind in equity payments and taxes 5000 a yr is alot.So I am running out of time no one will refi me and I’m facing tax and equity payments I’m late on to forclose my home.I can’t afford the taxes so I want to sell and move out of MI . Can I list my home 4sale with a realator and stop tax and equity loan forclosure ?So I can sell my home and pay the 55000 loan and taxes owed?Because of economy and real estate is bad I paid 169 thou and made some repairs I have 3 acres 3 bdrm single fam home should I try listing for 150000 any ideas or info?I wished I could save it but no one will refi or and I know no one that can co-sign what should I do?
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