So we know we screwed up…

[waterboy]

“I just read SD Realtor’s post and think we will need every penny we have for a downpayment as the market is going up again”

Be careful with the thought that the market is going up again and you are going to be priced out. The market has seen a nice pop in the spring & summer months for homes under $500k in good areas of San Diego, but I think that most agree it won’t continue to skyrocket back up. Greater chance it will fall back on stabilize.

Keep your part time job for a few more years and pay someone $20-$30k yr to help you with the kids. Keep in mind the condo in Tempe could take 5-10 more years to bounce back to a price where you would break even after fees, but if its in a good part of Tempe it should bounce back in 5-10 yrs.

Work harder on renting it. Its hard to believe an ASU student or young professional wouldn’t pay $750 mo. How are you posting the rental? It might not be as easy this year to find someone (especially at $1k mo) but you should still be able to find somebody.

If not…try short sale. If you owe $120k and sell for $80k you will have to come up with approx $6k in closing costs and fees, so you are actually bringing more than $40k to the table and have already lost $20k down payment if you get out now.

Way I see it, you have 3 options if its a non recourse loan.

1. Stop paying now and just lose your down payment and credit ($20k loss)

2. Rent unit for next 5-10 yrs at approx $250 mo loss ($15k-$30k spread over 5-10 yrs)

3. Sell now for $80k. ($65k loss)

If you wouldn’t be able to sleep at night if your credit was bad (or worried about stress of landlord for 5-10 more years), then just sell it now and hopefully you could get a little more than $80k so loss isn’t as bad. Just know you will have to work a few more years to make it up.

[golfproz]

The nugget in TGs advise is to stick with 2 kids! Trust me as a dad of 3. With 3 kids it seems someone always gets left out. Everything from amusement park rides to hotel rooms to airline seats gets WAY more complicated with 3 kids. My kids are great but just having 2 would have made my life so much less stressful. And yes I was trying for the boy….but hit the trifecta of girls instead!

[golfproz]

The nugget in TGs advise is to stick with 2 kids! Trust me as a dad of 3. With 3 kids it seems someone always gets left out. Everything from amusement park rides to hotel rooms to airline seats gets WAY more complicated with 3 kids. My kids are great but just having 2 would have made my life so much less stressful. And yes I was trying for the boy….but hit the trifecta of girls instead!

[golfproz]

The nugget in TGs advise is to stick with 2 kids! Trust me as a dad of 3. With 3 kids it seems someone always gets left out. Everything from amusement park rides to hotel rooms to airline seats gets WAY more complicated with 3 kids. My kids are great but just having 2 would have made my life so much less stressful. And yes I was trying for the boy….but hit the trifecta of girls instead!

[golfproz]

The nugget in TGs advise is to stick with 2 kids! Trust me as a dad of 3. With 3 kids it seems someone always gets left out. Everything from amusement park rides to hotel rooms to airline seats gets WAY more complicated with 3 kids. My kids are great but just having 2 would have made my life so much less stressful. And yes I was trying for the boy….but hit the trifecta of girls instead!

[golfproz]

The nugget in TGs advise is to stick with 2 kids! Trust me as a dad of 3. With 3 kids it seems someone always gets left out. Everything from amusement park rides to hotel rooms to airline seats gets WAY more complicated with 3 kids. My kids are great but just having 2 would have made my life so much less stressful. And yes I was trying for the boy….but hit the trifecta of girls instead!

[bob2007]

I would vote for #1 along with your husband. I am conservative, and don’t want to deal with any of the stress of this type of thing. I’m not the expert, but I read an article somewhere (maybe Time) in the last week that followed up on 3 couples who took the walk away option. They all seem to be living with family because of credit problems. I know your option/plan would be to buy first, so maybe this isn’t a concern. But its always the unexpected that creates the hardship. Who know, credit cards, car loans, etc. Maybe increased rates on loans that will equal or exceed the $40k over the next 10 years.

In your description you seem to have treated the properties as investments. You made $80k by selling one property. You may lost up to $40k on another. So you still gain $40k for taking the risks, which isn’t too bad. So another way to look at this is that you purchased a number of investments, and came out ahead.

I wouldn’t choose to just take a loss first, but try to work with the bank and see if there are any options they will accept.

My opinion will undoubtedly be the most unpopular on this board. In my defense, my behavior/beliefs have worked extremely well for me financially.

[bob2007]

I would vote for #1 along with your husband. I am conservative, and don’t want to deal with any of the stress of this type of thing. I’m not the expert, but I read an article somewhere (maybe Time) in the last week that followed up on 3 couples who took the walk away option. They all seem to be living with family because of credit problems. I know your option/plan would be to buy first, so maybe this isn’t a concern. But its always the unexpected that creates the hardship. Who know, credit cards, car loans, etc. Maybe increased rates on loans that will equal or exceed the $40k over the next 10 years.

In your description you seem to have treated the properties as investments. You made $80k by selling one property. You may lost up to $40k on another. So you still gain $40k for taking the risks, which isn’t too bad. So another way to look at this is that you purchased a number of investments, and came out ahead.

I wouldn’t choose to just take a loss first, but try to work with the bank and see if there are any options they will accept.

My opinion will undoubtedly be the most unpopular on this board. In my defense, my behavior/beliefs have worked extremely well for me financially.

[bob2007]

I would vote for #1 along with your husband. I am conservative, and don’t want to deal with any of the stress of this type of thing. I’m not the expert, but I read an article somewhere (maybe Time) in the last week that followed up on 3 couples who took the walk away option. They all seem to be living with family because of credit problems. I know your option/plan would be to buy first, so maybe this isn’t a concern. But its always the unexpected that creates the hardship. Who know, credit cards, car loans, etc. Maybe increased rates on loans that will equal or exceed the $40k over the next 10 years.

In your description you seem to have treated the properties as investments. You made $80k by selling one property. You may lost up to $40k on another. So you still gain $40k for taking the risks, which isn’t too bad. So another way to look at this is that you purchased a number of investments, and came out ahead.

I wouldn’t choose to just take a loss first, but try to work with the bank and see if there are any options they will accept.

My opinion will undoubtedly be the most unpopular on this board. In my defense, my behavior/beliefs have worked extremely well for me financially.

[bob2007]

I would vote for #1 along with your husband. I am conservative, and don’t want to deal with any of the stress of this type of thing. I’m not the expert, but I read an article somewhere (maybe Time) in the last week that followed up on 3 couples who took the walk away option. They all seem to be living with family because of credit problems. I know your option/plan would be to buy first, so maybe this isn’t a concern. But its always the unexpected that creates the hardship. Who know, credit cards, car loans, etc. Maybe increased rates on loans that will equal or exceed the $40k over the next 10 years.

In your description you seem to have treated the properties as investments. You made $80k by selling one property. You may lost up to $40k on another. So you still gain $40k for taking the risks, which isn’t too bad. So another way to look at this is that you purchased a number of investments, and came out ahead.

I wouldn’t choose to just take a loss first, but try to work with the bank and see if there are any options they will accept.

My opinion will undoubtedly be the most unpopular on this board. In my defense, my behavior/beliefs have worked extremely well for me financially.

[bob2007]

I would vote for #1 along with your husband. I am conservative, and don’t want to deal with any of the stress of this type of thing. I’m not the expert, but I read an article somewhere (maybe Time) in the last week that followed up on 3 couples who took the walk away option. They all seem to be living with family because of credit problems. I know your option/plan would be to buy first, so maybe this isn’t a concern. But its always the unexpected that creates the hardship. Who know, credit cards, car loans, etc. Maybe increased rates on loans that will equal or exceed the $40k over the next 10 years.

In your description you seem to have treated the properties as investments. You made $80k by selling one property. You may lost up to $40k on another. So you still gain $40k for taking the risks, which isn’t too bad. So another way to look at this is that you purchased a number of investments, and came out ahead.

I wouldn’t choose to just take a loss first, but try to work with the bank and see if there are any options they will accept.

My opinion will undoubtedly be the most unpopular on this board. In my defense, my behavior/beliefs have worked extremely well for me financially.

[trying2balance]

You know, the part that made me cry (only once, I promise – now it’s just time to suck it up and deal with this) is that I really love the rental home we are in and would have been happy staying put, keep saving and wait for the right time to buy and just slowly bleed a few hundred dollars with this “investment” but with the option I am leaning towards and the popular one here (OPTION #4) I feel like we would be forced to buy now even if it is not the “right” long-term family home and I hate feeling like we’re being pushed into another bad decision.

You guys really do give great advice. Effective Demand – I think we could take a 50 pt hit on the FICO and still be OK, do you what we need to look for in the mortgage contract to determine if it is recourse or non?

TemeculaGuy – you have to understand, I’m one of 4 my hubbt one of 5 and it is just so clear in my heart that when I am an 80 yr old granny holding his hand in our rockers I just know I will be happy we decided to go for the brothers and sisters we give our children istead of the bigger house and toys… we’ll have to make do with the current van – both cars are paid off so we’re stuck with them anyway 😉

Svelte, bubble_contagion, deriving drunk and waterboy — you guys spelled out exactly what I think we should do, as uncomfortable as it is to not know if it will be the right thing… and golfproz, my husband smiled the most at your advice. we’re pretty sure we will have 3 girls too and hope that we are just blessed with healthy ones

And then there is bob2007… you echo exactly what my husband is saying. Exactly what he learned from his father who is the most conservative, hard-working, giving man that raised the man now taking care of me and my girls with more integrity than anyone else I know – definitely myself included. And his dad’s name is Bob too…. sigh, now what??

[trying2balance]

You know, the part that made me cry (only once, I promise – now it’s just time to suck it up and deal with this) is that I really love the rental home we are in and would have been happy staying put, keep saving and wait for the right time to buy and just slowly bleed a few hundred dollars with this “investment” but with the option I am leaning towards and the popular one here (OPTION #4) I feel like we would be forced to buy now even if it is not the “right” long-term family home and I hate feeling like we’re being pushed into another bad decision.

You guys really do give great advice. Effective Demand – I think we could take a 50 pt hit on the FICO and still be OK, do you what we need to look for in the mortgage contract to determine if it is recourse or non?

TemeculaGuy – you have to understand, I’m one of 4 my hubbt one of 5 and it is just so clear in my heart that when I am an 80 yr old granny holding his hand in our rockers I just know I will be happy we decided to go for the brothers and sisters we give our children istead of the bigger house and toys… we’ll have to make do with the current van – both cars are paid off so we’re stuck with them anyway 😉

Svelte, bubble_contagion, deriving drunk and waterboy — you guys spelled out exactly what I think we should do, as uncomfortable as it is to not know if it will be the right thing… and golfproz, my husband smiled the most at your advice. we’re pretty sure we will have 3 girls too and hope that we are just blessed with healthy ones

And then there is bob2007… you echo exactly what my husband is saying. Exactly what he learned from his father who is the most conservative, hard-working, giving man that raised the man now taking care of me and my girls with more integrity than anyone else I know – definitely myself included. And his dad’s name is Bob too…. sigh, now what??

[trying2balance]

You know, the part that made me cry (only once, I promise – now it’s just time to suck it up and deal with this) is that I really love the rental home we are in and would have been happy staying put, keep saving and wait for the right time to buy and just slowly bleed a few hundred dollars with this “investment” but with the option I am leaning towards and the popular one here (OPTION #4) I feel like we would be forced to buy now even if it is not the “right” long-term family home and I hate feeling like we’re being pushed into another bad decision.

You guys really do give great advice. Effective Demand – I think we could take a 50 pt hit on the FICO and still be OK, do you what we need to look for in the mortgage contract to determine if it is recourse or non?

TemeculaGuy – you have to understand, I’m one of 4 my hubbt one of 5 and it is just so clear in my heart that when I am an 80 yr old granny holding his hand in our rockers I just know I will be happy we decided to go for the brothers and sisters we give our children istead of the bigger house and toys… we’ll have to make do with the current van – both cars are paid off so we’re stuck with them anyway 😉

Svelte, bubble_contagion, deriving drunk and waterboy — you guys spelled out exactly what I think we should do, as uncomfortable as it is to not know if it will be the right thing… and golfproz, my husband smiled the most at your advice. we’re pretty sure we will have 3 girls too and hope that we are just blessed with healthy ones

And then there is bob2007… you echo exactly what my husband is saying. Exactly what he learned from his father who is the most conservative, hard-working, giving man that raised the man now taking care of me and my girls with more integrity than anyone else I know – definitely myself included. And his dad’s name is Bob too…. sigh, now what??

[trying2balance]

You know, the part that made me cry (only once, I promise – now it’s just time to suck it up and deal with this) is that I really love the rental home we are in and would have been happy staying put, keep saving and wait for the right time to buy and just slowly bleed a few hundred dollars with this “investment” but with the option I am leaning towards and the popular one here (OPTION #4) I feel like we would be forced to buy now even if it is not the “right” long-term family home and I hate feeling like we’re being pushed into another bad decision.

You guys really do give great advice. Effective Demand – I think we could take a 50 pt hit on the FICO and still be OK, do you what we need to look for in the mortgage contract to determine if it is recourse or non?

TemeculaGuy – you have to understand, I’m one of 4 my hubbt one of 5 and it is just so clear in my heart that when I am an 80 yr old granny holding his hand in our rockers I just know I will be happy we decided to go for the brothers and sisters we give our children istead of the bigger house and toys… we’ll have to make do with the current van – both cars are paid off so we’re stuck with them anyway 😉

Svelte, bubble_contagion, deriving drunk and waterboy — you guys spelled out exactly what I think we should do, as uncomfortable as it is to not know if it will be the right thing… and golfproz, my husband smiled the most at your advice. we’re pretty sure we will have 3 girls too and hope that we are just blessed with healthy ones

And then there is bob2007… you echo exactly what my husband is saying. Exactly what he learned from his father who is the most conservative, hard-working, giving man that raised the man now taking care of me and my girls with more integrity than anyone else I know – definitely myself included. And his dad’s name is Bob too…. sigh, now what??

[Author]

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