While not a perfect solution, the best way to avoid foreclosure . . .

[luchabee]

How about get another job or a second job, moron!

I just read about a lady that was losing her home because payments increased $600 per month.

Why not just get a second job? Work at Starbucks or be a waitress on the weekends. Sure, it sucks, not seeing friends or family; Not being able to go on-line at night; Not being able to watch your big screen TV at night that you picked up with your HELOC sucks. But grow up and be an adult (not that you were an adult when you took out that toxic loan).

Some cynical people would just say let the home go into foreclosure since the person is underwater.

However, here are my reasons why they should stay in their house and make up the difference with another job:

1. Honor your commitments. It’s a contract and your word.

2. Moving sucks. Renting a small dump sucks, especially when you are leaving your McMansion.

3. It is emotionally crushing to lose your house. It happened to my family when I was a kid. Sucked. Had to live with friends and family for a while.

4. With a foreclosure, your credit is shot . . . for years.

5. Embarassing and humiliating to tell your friends and family that your losing your home.

So, if you know someone who is in this situation, your advice should be: get a job! This is true especially if it’s just a few hundred dollars per month.

(Just my two cents)

Another idea for my next post, hey, stupid, put the credit cards down and stop buying 4 dollar coffes everyday. Hey, maybe sell that $60,000 SUV, too? Do you really need that 300 dollar iphone, also? Do these things, maybe you’ll have a chance at saving your house.

[drunkle]

what happens when the payment jumps again?

getting a roommate/boarder and second job… tough to find reliable people, they already have homes/friends. and lots of the second job type places already have competition for workers, they want you to work 30 hours/week no benefits, conflicting schedules and shitty pay.

pride is obviously the last thing you’re going to keep when facing either losing your home or getting a mcjob.

and really now. they should just pack up and get out of my house anyway.

[drunkle]

what happens when the payment jumps again?

getting a roommate/boarder and second job… tough to find reliable people, they already have homes/friends. and lots of the second job type places already have competition for workers, they want you to work 30 hours/week no benefits, conflicting schedules and shitty pay.

pride is obviously the last thing you’re going to keep when facing either losing your home or getting a mcjob.

and really now. they should just pack up and get out of my house anyway.

[PerryChase]

“1. Honor your commitments. It’s a contract and your word.”

That’s exactly it. Walking is honoring your commitment. By giving the lender your house you’re doing just that — honor your commitment. Foreclosure is written into the contract so you’re simply activating a provision of the contract.

Business is business. Why throw good money after bad? Businesses make that practical decision all the time? Why can’t individuals do the same?

It sucks more to be a slave to your house than it sucks to move. I’ve seen on Craigslist that some people sell all of their appliances and fixture before leaving. Nothing illegal or immoral about that — it’s their house until they have to give it up.

Lenders were stupid for not leaving themselves a cushion. Now they just need to pay the price for their bad decisions. It’s the cost of doing business. Anything else is simply a transfer of wealth from workers to the financial institutions.

[PerryChase]

“1. Honor your commitments. It’s a contract and your word.”

That’s exactly it. Walking is honoring your commitment. By giving the lender your house you’re doing just that — honor your commitment. Foreclosure is written into the contract so you’re simply activating a provision of the contract.

Business is business. Why throw good money after bad? Businesses make that practical decision all the time? Why can’t individuals do the same?

It sucks more to be a slave to your house than it sucks to move. I’ve seen on Craigslist that some people sell all of their appliances and fixture before leaving. Nothing illegal or immoral about that — it’s their house until they have to give it up.

Lenders were stupid for not leaving themselves a cushion. Now they just need to pay the price for their bad decisions. It’s the cost of doing business. Anything else is simply a transfer of wealth from workers to the financial institutions.

[cr]

BEST WAY TO AVOID FORECLOSURE:

Don’t buy a house you can’t afford, with payments that will go up that you won’t be able to afford, a car you can’t afford, a plasma TV you can’t afford, or a lifestyle you can’t afford.

After all of that NET income must be > NET expenses.

-Rocket Scientist/Brain Surgeon

[cr]

BEST WAY TO AVOID FORECLOSURE:

Don’t buy a house you can’t afford, with payments that will go up that you won’t be able to afford, a car you can’t afford, a plasma TV you can’t afford, or a lifestyle you can’t afford.

After all of that NET income must be > NET expenses.

-Rocket Scientist/Brain Surgeon

[what_a_disasta]

A month’s worth of minimum wage at the weekends is going to get you $368 before tax. Fat lot of good that’s going to do you if your interest rate just doubled on a 1/2 million dollar loan… Much better to cut your losses and move on that be a debt slave and still lose your house at a later date when payments go up even more. If 600 bucks is going to break your back then just let the bank take the pain, it’s their fault for lending you the money without due dilligence.

[what_a_disasta]

A month’s worth of minimum wage at the weekends is going to get you $368 before tax. Fat lot of good that’s going to do you if your interest rate just doubled on a 1/2 million dollar loan… Much better to cut your losses and move on that be a debt slave and still lose your house at a later date when payments go up even more. If 600 bucks is going to break your back then just let the bank take the pain, it’s their fault for lending you the money without due dilligence.

[luchabee]

This suggestion was for someone you know. Seriously, if their situation can be remedied by working harder, this is what they have to do. Will it work in all cases? No. Some? Yes.

Of course it is hard, but this is the only cure I can think of for a F/B. Walking away? It will work for some, but for families, it can be very difficult to go through. If this situation can be remedied by the dad getting a night job and the stay-at-home mom working a part-time job, this would be a far better solution than walking away, humiliated, homeless, broke, and defeated. Sure, it will not work for people who are way maxed out, but if they cut down their expenses and just need a $1,000 per month encourage them to get a job and stop eating out every night.

[luchabee]

This suggestion was for someone you know. Seriously, if their situation can be remedied by working harder, this is what they have to do. Will it work in all cases? No. Some? Yes.

Of course it is hard, but this is the only cure I can think of for a F/B. Walking away? It will work for some, but for families, it can be very difficult to go through. If this situation can be remedied by the dad getting a night job and the stay-at-home mom working a part-time job, this would be a far better solution than walking away, humiliated, homeless, broke, and defeated. Sure, it will not work for people who are way maxed out, but if they cut down their expenses and just need a $1,000 per month encourage them to get a job and stop eating out every night.

[bobby]

cooper,
luchabee is talking about people who already committed themselves. Your advice is no good for those folks.

[bobby]

cooper,
luchabee is talking about people who already committed themselves. Your advice is no good for those folks.

[luchabee]

Yes, throwing good money after bad is not a wise business decision.

However, with a $500-1,500 net loss each month that can be decreased with budgeting and one or two of the parents getting off of their butts and working another job, it would be better to work to pay off the reset. This is a fair price to pay for not going undergoing the trauma of foreclosure, especially for a family.

Again, this advice is for someone you know. And, no, it will not work for everyone. For example, if they are making $40,000 a year with a $780,000 mortgage, $40,000 in credit cards, and two new SUVs in the drive way, they should walk.

[luchabee]

Yes, throwing good money after bad is not a wise business decision.

However, with a $500-1,500 net loss each month that can be decreased with budgeting and one or two of the parents getting off of their butts and working another job, it would be better to work to pay off the reset. This is a fair price to pay for not going undergoing the trauma of foreclosure, especially for a family.

Again, this advice is for someone you know. And, no, it will not work for everyone. For example, if they are making $40,000 a year with a $780,000 mortgage, $40,000 in credit cards, and two new SUVs in the drive way, they should walk.

[Author]

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