Job loss, foreclosure, debt. What do we do?

  • Thread starter Thread starter FLmom24
  • Start date Start date
Status
Not open for further replies.
F

FLmom24

Guest
Hi, I’m new here. I am totally at a loss on what to do about our financial situation, and it seems that we are constantly making choices that hurt us.

We’re a homeschooling family with three at home and one in college on scholarships. Husband found out this week that he will be losing his current job within the next few months and the company says they are willing to hire him in another position and relocate him out of the area. We don’t know what this “new position” will be, where it will be (could be anywhere) or if the salary will be comparable.

We are in a high foreclosure area with high unemployment and are underwater on our house (with two mortgages) probably by about $50,000. (A few years ago we had over $150,000 in equity that evaporated with the economy.) We already went through a period of unemployment and underemployment that lasted 2 1/2 yrs and put us in a whole lot of credit card debt. We lived off the credit cards for a while and the banks start foreclosure proceedings, but we were able to have the mortgages modified when husband found a new job with a higher salary and we thought things would improve. We’ve been tackling the credit card debt and trying to climb out of the hole we’re in, because we really thought things were getting better.

Well, it looks like that won’t be happening anymore. 😦 What do we do about our house, our debt, and possibly having to move? Our house won’t sell for what we owe, I’m concerned that the banks won’t work with us AGAIN. Will we have to walk away from the house? Is that ever OK? 😦 I don’t know where to look for help and advice.
 
Is there no way you could enroll your kids in public school so you can take a job as well, even just parttime? As for avoiding foreclosure, perhaps it’s time to consult a bankrupcty lawyer. If you’re in the northeast Florida area, I can provide you a great referral - consultations are free.
 
Yes… quite traumatic. I will pray for you. You are not alone. Many ae in this boat. Many are just holding on.

In the meantime advise your friends not to vote for the people that are in Power now - The Democrats - to help the economy as well.
 
teresadeavila said:
Is there no way you could enroll your kids in public school so you can take a job as well, even just parttime? As for avoiding foreclosure, perhaps it’s time to consult a bankrupcty lawyer. If you’re in the northeast Florida area, I can provide you a great referral - consultations are free.
Click to expand...
We’re in southwest Florida. Jobs are very hard to get here right now, and even if I could find something - the new position for my husband will be taking us out of the area probably in about 3 months so that wouldn’t give us much time to save any money that way.
 
Sister…I feel your pain!

I was in the same boat. Bankruptcy saved me! In only 3 years since, I have just purchased a great house for low interest. I got a good (decent anyway) car 2 years ago which re-established my credit well enough to buy the house.

And yes…I also questioned the moral implications of walking away from a mortgage. If your original intent was not to defraud then you are clear. It is a tough decision, but really a fair decision. My advice is to file ASAp and move forward with a clear concience.
 
Please know that you and your family and your situation will be in my prayers. I would like to say, as someone who has moved quite a bit, I always have felt that when God shuts one door He opens another. Whatever is waiting for you with this new job I hope that you will find that if God is behind the decision to go, then all will be well. Go in faith and trust in the Lord. God bless you.
 
FLmom24 said:
We’re in southwest Florida. Jobs are very hard to get here right now, and even if I could find something - the new position for my husband will be taking us out of the area probably in about 3 months so that wouldn’t give us much time to save any money that way.
Click to expand...
Focus on the positive, not the negative. If I was you, I’d be applying for any job vacancies I qualify for just in case. Perhaps you’ll need to wait and find out where exactly your hubby’s job takes all of you but if you haven’t been doing these already, here are some suggestions we’ve done to cut down on expenses when my hubby was laid off few years back:
  1. cancel anything that you don’t need, ie cable or satellite, go barebones cell phone service 2) change from regular phone landline service to VOIP (saves some dough each month), 3) have a garage sale, 4) start doing some serious coupon cutting, Sunday papers, online, checking sales catalogs, get your kids involved to help out with that, 5) buy generic goods at grocery, 6) shop consignment or used kids clothing - I’d also meet with a realtor to see if selling your home is an option - market has gone through some changes so it can’t hurt to get a realtor’s analysis. We did on our house, but we found out we are not under water, we’re lucky in that we’re above water and we don’t need to sell since we both work. Have gold jewelry? Sell it - gold at alltime high. Hope these tips help! Try not to go the credit card route - that’s a very deep hole for your family to be in.
 
What about renting your house out when you move? Not sure what the rental market is like there but that might be an option.
 
FLmom24 said:
Our house won’t sell for what we owe, I’m concerned that the banks won’t work with us AGAIN. Will we have to walk away from the house? Is that ever OK? 😦 I don’t know where to look for help and advice.
Click to expand...
The moral thing will answer itself if you flip things around; if you were owed the money by someone else who was having problems repaying, what would you prefer? The more you can do to do this in an orderly fashion (e.g. short sale) the better it will be for everyone in the long run. You’ll also be less likely to be chased for any difference between what the house can bring and what you owe.

Keep in mind that the money you are underwater is legally and morally your responsibility. However the bank also did a deal and took a risk with you in hopes of making money. They might well lose money here and there is also nothing immoral about a business losing money in the course of legitimate business operations.

In short your responsibility is to do all you are capable of doing to keep from walking away. But if what you are capable of doing is still not enough, you have done all you can do and that is enough.

I wish as much peace in this situation as possible and remember to hold onto your spouse and children in the process. They are what matters and the rest is a big Monopoly game in comparison.
 
It’s a very uncomfortable situation to be in.

You and your family will be in my prayers.
 
I feel for you…I’m in a similar situation. Recently widowed, underwater on the mortgage, credit cards maxed out, savings all gone. I’m not sure what to do, either, and am considering bankruptcy, but the shame is just too great so I’m holding off.

I’ll keep you in my prayers.
 
teresadeavila said:
Focus on the positive, not the negative. If I was you, I’d be applying for any job vacancies I qualify for just in case. Perhaps you’ll need to wait and find out where exactly your hubby’s job takes all of you but if you haven’t been doing these already, here are some suggestions we’ve done to cut down on expenses when my hubby was laid off few years back:
  1. cancel anything that you don’t need, ie cable or satellite, go barebones cell phone service 2) change from regular phone landline service to VOIP (saves some dough each month), 3) have a garage sale, 4) start doing some serious coupon cutting, Sunday papers, online, checking sales catalogs, get your kids involved to help out with that, 5) buy generic goods at grocery, 6) shop consignment or used kids clothing - I’d also meet with a realtor to see if selling your home is an option - market has gone through some changes so it can’t hurt to get a realtor’s analysis. We did on our house, but we found out we are not under water, we’re lucky in that we’re above water and we don’t need to sell since we both work. Have gold jewelry? Sell it - gold at alltime high. Hope these tips help! Try not to go the credit card route - that’s a very deep hole for your family to be in.
Click to expand...
I would add a couple more things. Last week there was a story on the news that said the average American family wastes 40%, that’s 40% of its food. You might want to monitor how much you are wasting and try to get it down if you are. Are you buying convenience foods? See if this is an area you can cut back on and cook fresh foods instead.
 
creole54 said:
I feel for you…I’m in a similar situation. Recently widowed, underwater on the mortgage, credit cards maxed out, savings all gone. I’m not sure what to do, either, and am considering bankruptcy, but the shame is just too great so I’m holding off.

I’ll keep you in my prayers.
Click to expand...
Oh please do not feel shamed! Both my parents and in-laws had to file bankruptcy, and it’s been an absolute blessing! It’s a business decision - many people are in the same predicament as you in this economy. Go schedule an appointment with a good, reputable bankruptcy attorney, most consults are free. You may discover other solutions as well.
 
I was a financial adviser for 12 years and at a high profile event a president of one of the world’s biggest mutual funds said that because of cheap credit there had not been enough bankruptcies and so the economy had become very unbalanced. Bankruptcy is a way of bringing balance back.

In a way it’s like the Jubilee Year in the Old Testament.
 
Status
Not open for further replies.
Back
Top