Aces High Bulletin Board

General Forums => The O' Club => Topic started by: Tom5572 on December 13, 2010, 01:24:05 PM

Title: Mortgage advice
Post by: Tom5572 on December 13, 2010, 01:24:05 PM
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
Title: Re: Mortgage advice
Post by: Blooz on December 13, 2010, 02:50:24 PM
I sold my house and moved to one I could afford.

Old fashioned mortgage advice. Free of charge.
Title: Re: Mortgage advice
Post by: Mano on December 13, 2010, 03:12:08 PM
You could work two jobs until you find a better one.
Title: Re: Mortgage advice
Post by: Tom5572 on December 13, 2010, 03:13:59 PM
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.
Title: Re: Mortgage advice
Post by: uptown on December 13, 2010, 03:20:07 PM
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! (http://i279.photobucket.com/albums/kk121/TheAmish/drunkhilbilly.gif)
Title: Re: Mortgage advice
Post by: Melvin on December 13, 2010, 03:26:45 PM
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! (http://i279.photobucket.com/albums/kk121/TheAmish/drunkhilbilly.gif)

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.  :salute
Title: Re: Mortgage advice
Post by: uptown on December 13, 2010, 03:38:42 PM
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.
Title: Re: Mortgage advice
Post by: uptown on December 13, 2010, 03:43:50 PM
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?
Title: Re: Mortgage advice
Post by: RTHolmes on December 13, 2010, 03:46:22 PM
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.  :headscratch:
Title: Re: Mortgage advice
Post by: spacer on December 13, 2010, 04:02:25 PM
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.   
Title: Re: Mortgage advice
Post by: Dadsguns on December 13, 2010, 04:10:58 PM
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.
Title: Re: Mortgage advice
Post by: guttboy on December 13, 2010, 04:13:16 PM
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/ (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....
Title: Re: Mortgage advice
Post by: eagl on December 13, 2010, 04:16:55 PM
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.
Title: Re: Mortgage advice
Post by: eagl on December 13, 2010, 04:26:11 PM
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.
Title: Re: Mortgage advice
Post by: Tom5572 on December 13, 2010, 04:37:00 PM
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.

 
Title: Re: Mortgage advice
Post by: DREDIOCK on December 13, 2010, 04:40:50 PM
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.   

Thats what I was going to suggest. Renting it out
Title: Re: Mortgage advice
Post by: sluggish on December 13, 2010, 04:43:50 PM
Even if you rent it at a slight loss you'll be better of than selling right now.  When I was in I knew a senior NCO that bought a new house at every duty station and turned it into  a rental when he was re-asigned.  By the time he retired he had rentals all over the country. Try to only rent to military so you know they'll take care of it or at least if they don't there'll be reprocussions.
Title: Re: Mortgage advice
Post by: Dadsguns on December 13, 2010, 05:20:01 PM
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.

 

Also, check with Family Services on base they should also direct you to a program that will cover the difference in loss in the event you have to sell. 
Title: Re: Mortgage advice
Post by: Penguin on December 13, 2010, 10:02:12 PM
Why do we still have troops in Germany for crying out loud?  Its been seventy years!   :headscratch:

-Penguin
Title: Re: Mortgage advice
Post by: eagl on December 13, 2010, 10:18:39 PM
Why do we still have troops in Germany for crying out loud?  Its been seventy years!   :headscratch:

Because we have agreements with NATO to provide forces for the defense of NATO members.  You know, adult stuff   :aok

 :lol  :old:  :neener:
Title: Re: Mortgage advice
Post by: BGB the 3RD on December 13, 2010, 10:47:47 PM
I'm a real estate broker
Big difference between foreclosure and shortsale.
Shortsales were made for death /divorce /deportation ie'new baseof operations
They have been done for decades,  they are now being used mostly for dolts who wanted free money

There are a few very important questions to be answered.  Feel free to call me anytime nine one six five two four seven seven one six

Good luck,  do not let the stress ruin the family let fun stuff like cancer ect do that: )

Title: Re: Mortgage advice
Post by: Penguin on December 14, 2010, 04:40:15 PM
Because we have agreements with NATO to provide forces for the defense of NATO members.  You know, adult stuff   :aok

 :lol  :old:  :neener:

I guess, but who's got beef with the guys who made this

(http://www.volkswagenautosinfo.com/wp-content/uploads/2010/07/Volkswagen-Van-2.jpg)

I'm sure all you  :old: can remember this one

You know, adult stuff   :aok


 :salute
-Penguin

Yes, I do understand, I was only trying to make a point about old grudges
Title: Re: Mortgage advice
Post by: eagl on December 15, 2010, 06:37:11 AM
The troops in Germany aren't there for anything the Germans might do, they are there to defend Germany and other NATO countries.
Title: Re: Mortgage advice
Post by: Lusche on December 15, 2010, 08:41:26 AM
Why do we still have troops in Germany for crying out loud?  Its been seventy years!   :headscratch:

-Penguin


Because you can never trust a German  :noid
Title: Re: Mortgage advice
Post by: morfiend on December 16, 2010, 01:04:54 AM
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.

 
Tom

  If you can cover the rest of the mortgage payments,since the rent wont cover it all,this might be a wise choice.

    You hang on to your asset,it builds equity and depending on laws it might not be subject to capital gains as it would be now rental property.This would allow you to sell at a better time in the market and not be a panic sale.

   Now I have no idea of your situation and if it's even possible for you to do this,but it beats selling at a cut rate just to get rid of th house.

     :salute
Title: Re: Mortgage advice
Post by: dirtdart on December 16, 2010, 07:09:42 AM
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.

 

Hey tom, one of my NCOs was stuck with a house in Campbell when he moved out to NTC.  Until he rented it or sold it, he was sucking.  I would look at renting it an a rate lower than your mortgage if that is what it takes to just get the right sort of people into it.  Better to eat a couple of hundred bucks than a grand.  PM if you need some "inside stuff".