Should we walk away from our mortgage?
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Should we walk away from our mortgage?
| Thu, 05-26-2011 - 11:50am |
Hello-
My husband and I are in a major dilema and can't seem to get any concrete answer, so I'm hoping to find one here.
I just graduated college and over the last couple of years I haven't worked very much because school got so demanding. In the meantime, we were using credit cards to pay bills. My husband is a teacher so he doesn't make very much and I have not yet found a job in my field so I am still waiting tables. We bought a modular home just over 10 years ago. It was a repo when we got it and we bought it immediately after seeing it because we were so excited and it was much better and bigger than where we were living. Since it was a repo, the interest rate was 10%. This was an incredibly stupid thing to do, but we were young.
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If you were to move (assuming you've walked away) what kind of rent are you looking at to spend?
Our mortgage payment is $445 plus we have lot rent which is $290. I think we would like to stay around $600 a month, whether it be apartment or house.
Oh, and I think we owe about $45,000
Also, I am not sure I understand the reason to sell/move/walk away. Is $735 to hard to meet? Do you need to move closer to your H's job?
So until I learn more about why you have to move, I'd say refinance the $45k so you get lower payments.
"We used to have a credit score of about 800 and the last time I checked, it was in the 600s."
Were you not making payments/mortgages in the past year? What caused the drop?
All of our combined bills exceed our monthly income at the moment, which is why we have been using the credit card to make bill payments. And the growing debt on our cards is the reason for our credit rating dropping. We want to move because my degree has no jobs in this towwn and we want to move closer to a city an hour away in order for me to find a job.
The $45,000 isn't our yearly income, it's how much we owe on the house.