Should we take the money??

[spdrun]

flu – brokers and salespeople aren’t fucking geniuses. In fact, quite the opposite in 95% of cases. The standard forms are available online and are basically checklists. Most of the heavy lifting is done by the title firm anyway. The OP doesn’t seem to be in a rush to sell, so the house can sit on the MLS for months, taking offers as they come in.

Secondly, one can EASILY find a 2-bedroom condo for the low $200k range in metro San Diego. Not in a “crack area”. Exercise is left to the reader 🙂

You won’t get much floor space, but keep in mind that the average new HOUSE in 1970 was under 1000 sf, and family size was larger. Who needs a palace as long as they have a dry roof over their head and a low monthly payment? I’d rather have a paid-off 2-bedroom condo (even in a “crack” area) for $500/month than a house that costs me $2500 per month.

[FlyerInHi]

I think that spd is correct, at least right now. FSBO could easily work because it’s a hot market.
And yes, the title company does all the paperwork.

But flu is right also… selling and paying off debts results in no place to live.

A quick look at San Marcos shows nothing much but 55+ condos or mobile homes under $200k.

Or maybe this one:
https://www.redfin.com/CA/San-Marcos/3427-Capalina-Rd-92069/unit-24/home/3823527

[spdrun]

I wasn’t speaking specifically to San Marcos. The listing you mention seems risky because of its proximity to Rte. 78. If they decide to widen the highway, it could fall under eminent domain.

The price likely reflects the risk (and is overpriced anyway, since last sale was $57,000 in 2009). I was speaking to more low $200s, where the problem becomes easier.

[paramount]

What’s not being mentioned is the well-being aspect.

Think about the Dave Ramsey approach:

If you can’t buy a house on a 15 year loan @ 25% of your gross income then you can’t afford it.

1. Sell your house
2. Payoff all debt
3. Have a budget and stick to it (I like mint)
4. Establish Emergency Fund
5. Buy what you can afford house wise with a 15 year loan @ 25% of your income.
6. Sleep Easy….

[spdrun]

Rates are still low — why not go with a 30-year loan?

I wouldn’t shoot for 25% of income as a target as much as “as low a percentage as possible while being comfy.” If you can do under 15% and live in a 2-bedroom condo, then do it! It’s like having subsidized housing with a real income — how cool is that?

Basically, given the choice of “nearly free” or “more floor space”, I’ll almost always take the former. Why? Because ta hell with being a slave to a box of ticky-tacky.

[lpjohnso]

Wow. We thank each and every one of you so much for taking your time to share so many excellent thoughts and advice. Many of the issues you guys are going back and forth about are the same details and concerns we were mulling over. I wish I could respond to each post individually.

In regards to renting, we wish that was an option. We have 3 dogs and 3 young boys and someone would probably be out of their mind to rent to us (However, we are borderline OCD and anally retentive so our home sparkles, damn it). Furthermore, we see that we would most likely be paying more rent then we are for the mortgage. We really don’t like the idea of paying someone else’s mortgage again. We did that for long enough!

3 kids, so there you go. Sorry, should’ve stated that from the beginning. We live in Discovery Hills and Discovery Elementary is stellar. Obviously we are thinking what’s best long term and trying to put the kids first. With that said, downsizing and moving to a less desirable school district wouldn’t fly.

To help clarify, the house is a 1400 sqft single family (can’t imagine going much smaller at this point) short sale and we bought for $330,000 with only 3.5% down. We currently owe $310,000. Yes, according to Dave Ramsey we shouldn’t have bought at all. And perhaps we shouldn’t have, because look at us now, posting about hard times. But, we are so happy that we did. We see the timing was pretty incredible, and we would be totally priced out now. So when I mentioned buying something else, I suppose I meant moving somewhere like Colorado (for real, so that’s really funny that Colorado was mentioned). The equity is insane to us. We have never dealt with money like that before, and that should explain some of our fantasies to take the money and run with it.

We love the house, the schools, the neighborhood and town so much that we could happily stay here until the house is paid off. After everyone’s help on this thread and much discussion, we are going to pick up some extra shifts at work, sell a kidney or 2 on the black market, and go with Option #1.

Thank you all so very much 🙂

[scaredyclassic]

wait! lets go to colorado!

[lpjohnso]

Ha! We DID love it there when we lived there for 6 years. Really miss the 4 seasons and the $100,000 home prices. Alas, North County is in our blood. Hate the thought that our boys may never be able to afford their own home here though.

[Coronita]

I’ll give you tough love advice. You will burn right through your equity if you aren’t careful and disciplined. That’s what happens if you suddenly get a windfall and aren’t use to dealing with a large amount.

So I would say definitely pretend it doesn’t exist. And use your mortgage as your way to save. You are solving both your savings concern and your shelter problem at the same time. Your equity will be your savings. San marcos is on the way up. Schools are pretty good.

I would keep your house. And make minimum enhancements to it. Like no maintenance unless its absolutely necessary. Bare bone shelter. That’s it. Best luck to you

[EconProf]

Now that we know you have kids and dogs and a neighborhood you like, it is pretty easy to advise you to stay put. Attack those expenses, question every outlay, and buy a Dave Ramsey book to learn how to budget and save. No need to disrupt your family and suffer the transaction costs, financial and otherwise, of a move.
And start to look at your finances through a balance sheet approach, not just income or cash flow. Compare your personal balance sheet now compared to three years ago. Depending on the car debt and credit card balances you have (presumably) built up, you are likely in good shape thanks to buying before the runup in prices. So again, go back and analyze those expenses.
In a few years, your house debt will be less (adding to your net worth), and your house will likely be worth more. Plug in a conservative assumption of house appreciation between now and then to determine your likely net worth then. That should convince you to tough it out.

[spdrun]

If you’re above water on the car loans, nothing wrong with buying at least one $3000 Craigslist special and trading it for a car with a $300/mo payment. Added bonus: it will bother any prissy-poo neighbors you might have 🙂

[scaredyclassic]

I ran the numbers. I moving to boulder.

[scaredyclassic]

I ran the numbers. I moving to boulder.

[scaredyclassic]

I ran the numbers. I moving to boulder.

[scaredyclassic]

Dupe

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