Mortgage advice

[Tom5572]

I know many of you are much smarter with money than I am.  I need some advise on what programs are available to assist someone who is about to lose 1/4 of their monthly income due to Government orders.  

*edit to correct a spelling error

[Blooz]

I sold my house and moved to one I could afford.

Old fashioned mortgage advice. Free of charge.

[Mano]

You could work two jobs until you find a better one.

[Tom5572]

not an option, active duty military getting stationed in Germany.  I am going to lose the money for housing because all E-6 and below are required to live in government provided housing.

[uptown]

Build a bar in the basement or garage. Stick a pool table, dance floor, bandstand and stripper pole inside. Come up with a catchy name for your new party pad. Invite friends and friends of friends and charge a cover charge.

Don't forget the beer signs either. Chicken wire in front of the bandstand is a nice touch too as it keeps to whiskey bottles from taking out the crappy band members.
If ya have alot of junk cars park them out front by the door so folks going by think you're always busy.

Before you know it, you'll be a honkytonk billionare!

[Melvin]

Build a bar in the basement or garage. Stick a pool table, dance floor, bandstand and stripper pole inside. Come up with a catchy name for your new party pad. Invite friends and friends of friends and charge a cover charge.

Don't forget the beer signs either. Chicken wire in front of the bandstand is a nice touch too as it keeps to whiskey bottles from taking out the crappy band members.
If ya have alot of junk cars park them out front by the door so folks going by think you're always busy.

Before you know it, you'll be a honkytonk billionare! (Image removed from quote.)

BRILLIANT! I'm off to the lumber yard for to get me sum 'o that chikn wire! YEEEEEHAAWWWW!

P.S. Sorry about your situation Tom I hope all works out for you and thanks for your service. 

[uptown]

Yeah Tom I don't mean to make light of your situation man. I've been through some chitty times in my days and it's just become natural for me anymore to just laugh it off and find a way to get things done. I honestly believe that if you live life right and play by the rules the LORD will provide. I just don't sweat the small stuff anymore.

Again, I apologize if it seemed I was laughing at the dilemma you're in. I actually know a guy that did just what I described. And died a very successful man with pockets full of cash.

[uptown]

not an option, active duty military getting stationed in Germany.  I am going to lose the money for housing because all E-6 and below are required to live in government provided housing.

So I take it you lived OFF base before. So if you have to live in base housing now, wouldn't that save you money?

[RTHolmes]

if you're not living in your house sell it or let it. the govt accommodation has to be subsidised so you're quids in. 

[spacer]

Hey Tom
  The only GOOD answer I can give you is this.  Knowing your situation.  Have your wife find a Good Realestate/Rental Company
that will act as a broker for you.   Rent or Lease the house that you have for your current Mortgage + Fees if possible.  IE.  $700/month
+ 100 fees = 800/ month rent or lease.  This way you still own your house, have someone looking after it that is suppose to be professional.
I did this with house I was trying to sell in the 80s.   

[Dadsguns]

Tom,
Your best bet is to contact your CFS (Command Financial Specialist), ask them to if they can sit with you for some 1 on 1 counseling.  I did this many times in the Navy for younger sailors and the results are never as bleak as it may seem.

[guttboy]

Tom,

After countless PCS moves in over 20 years I have not had to experience what you are going through.  I had a MSgt that worked for me,just last year fall into this same predicament.  There is a program by the called the DOD Homeowner's Assistance Program (HAP).  Unfortunately for him it did not work out as it took too much time as his orders were immediate but it is something you could look into.

Here is the website I found on the google search:  http://hap.usace.army.mil/

Things to consider as some have mentioned:

1.  Perhaps you can rent it out while you are stationed in Germany
     a.  If your base has a housing office check with them for listing it for free
2.  There is a possibility that your lender MAY allow you to change your payments (worth a look)
3.  You could sell the house
4.  Check out your Airman & Family Readiness center (If USAF, probably called something diff if you are in another service) and see if they have any advice or assitance

If you are forced to sell and end up in a short sale or foreclosure situation (God forbid), be advised that a foreclosure can have not only serious credit implications (as well as a Short sale) but may also affect your security clearance.  The troop that worked for me made some calls to the security folks and they said that entering into foreclosure would adversely hurt his clearance but a short sale would not.  (Make sure you look into this as things have probably changed over the past 18 months or so).

Best of luck to you buddy and I am sorry to hear of your situation.

Regards....

[eagl]

At the risk of sounding heartless, my advice is to cut your losses even if that means a short sale, and get a place that you can afford with your new income.

My brother was in a bad spot, with $80,000 equity into a house but no salary due to a medical issue.  10 months after his first reduced paycheck, even though his house is still appraised at the previous value, it hasn't sold so he will have to do a short sale losing all of his equity and live with the blemish on his credit report.

The alternative is to gamble on increasing your income later on and trick the bank to give you a second mortgage, and then use the second to make payments on both mortgages, but this is *almost* illegal (it is illegal if you have no intent of paying back both loans and are doing it only to steal from the bank) and the consequences are pretty extreme if your income doesn't go back up.

Better to get out of the house by whatever means necessary, even if it means a short sale, and get on with your life.  Sucks, but that's the best my brother could come up with after nearly a year fighting with the bank and his employer.

[eagl]

And FYI, I nearly found myself in the same circumstances.  A family member died while my wife was still working and we had no kids, and I was very tempted to buy the house from the heirs.  Good thing I didn't, because nearly simultaneously, my wife got pregnant, had to quit her job, and the housing market dropped like a rock in that area.  I would have ended up with a massive loan I couldn't pay off (home values dropped over 50% in the area!) and no options but to give the keys to the bank and take the hit on my credit report.

[Tom5572]

We are trying to find renters but that is no guarantee.  We will have to put the place up for rent below the value of our mortgage as the property values have declined in that area.  I will definitely look into HAP.  Hopefully there will be some good info there.