When does it make financial sense to just dump your house???

[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[SD Realtor]

I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.

[SD Realtor]

I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.

[SD Realtor]

I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.

[SD Realtor]

I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.

[SD Realtor]

I have dealt with USAA on a previous short sale and they were quite challenging to deal with. Fortunately my clients had a small balance with them on the second and actually ended up converting the second to a non secured loan at a fixed low rate to complete the sale. That client also had several other services with USAA and had moved all of them out of the USAA umbrella so to speak prior to undertaking the short sale.

It is a tough call for you VC. One thing I would say though, if you do walk away, which indeed may be more financially prudent, it is not likely you will be buying a home soon no matter how well it is priced. So for those saying you instantly make 150k in equity, they are wrong. Now you may somehow be able to pull a rabbit out of your house and buy a new home now and then let your other home go into foreclosure and short sell it. That is another issue altogether.

[(former)FormerSanDiegan]

23109VC –
I think you and your wife have made the best choice, both personally and financially to stay in the house. You are effectively living in a place permanently at roughly the cost of rent today. There are others in much worse predicaments.

As for having any aggravation over those getting big houses for less … Why not compute the cash value of the break you got on your first mortgage and thank your lucky stars. The bank actually gave you a gift that’s likely worth 6 figures.

If the initial rate was 7% and they have permanently reduced it to 5%, that’s about $140 K in savings over a 30-year loan.

Good for you.

[(former)FormerSanDiegan]

23109VC –
I think you and your wife have made the best choice, both personally and financially to stay in the house. You are effectively living in a place permanently at roughly the cost of rent today. There are others in much worse predicaments.

As for having any aggravation over those getting big houses for less … Why not compute the cash value of the break you got on your first mortgage and thank your lucky stars. The bank actually gave you a gift that’s likely worth 6 figures.

If the initial rate was 7% and they have permanently reduced it to 5%, that’s about $140 K in savings over a 30-year loan.

Good for you.

[(former)FormerSanDiegan]

23109VC –
I think you and your wife have made the best choice, both personally and financially to stay in the house. You are effectively living in a place permanently at roughly the cost of rent today. There are others in much worse predicaments.

As for having any aggravation over those getting big houses for less … Why not compute the cash value of the break you got on your first mortgage and thank your lucky stars. The bank actually gave you a gift that’s likely worth 6 figures.

If the initial rate was 7% and they have permanently reduced it to 5%, that’s about $140 K in savings over a 30-year loan.

Good for you.

[(former)FormerSanDiegan]

23109VC –
I think you and your wife have made the best choice, both personally and financially to stay in the house. You are effectively living in a place permanently at roughly the cost of rent today. There are others in much worse predicaments.

As for having any aggravation over those getting big houses for less … Why not compute the cash value of the break you got on your first mortgage and thank your lucky stars. The bank actually gave you a gift that’s likely worth 6 figures.

If the initial rate was 7% and they have permanently reduced it to 5%, that’s about $140 K in savings over a 30-year loan.

Good for you.

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