What we are facing

So my wife and I decided that we were going to pack up our home and move into an apartment that my parents own about a month ago. Nicole and I don’t make rash decisions as a team, we tend to pray, discuss, sleep-on, and contemplate ideas like this fully. The truth is that Nicole and I both fully felt that God was leading us to pack up and move to get out of the house. The idea has been to sell our inexpensive (less than 100K) home and get back into renting so that we are more flexible and aren’t faced with a 45 minute commute two times a day with multiple vehicles.

Needless to say, we’ve already moved out and are plugged into my parents’ apartment. We have known this whole time that the market for real estate is extremely poor and folks everywhere are upside down on their mortgages, but we figured we couldn’t be, because we purchased the home for so little 6 years ago.  This week came with some harsh realities. After speaking with some friends from church who have been in local realty for quite a while, we found that our home would most likely appraise for MAYBE 55K less that we owe on it. Wow. Didn’t really expect that one coming. We knew it would be a miracle but we thought that the only properties that were losing value were the ones that were inflated to begin with.

So, we have a few choices:

1) We can put the house on the market for way more than it’s worth. If by some miracle it did get  a buyer, they would have to get an appraisal and they would face the same harsh reality we have and the sale would be lost.

2) Short Sale. This really would be almost impossible for us. we’ve worked hard at keeping current on our mortgage, which in a short sale is a minus…the bank wants to see that you really cannot afford squat.

3) Deed in lieu of foreclosure. This one is tough because I feel we need to make good on our debt. This would entail just giving the bank our home back. We would get a major hit to our credit (credit=crap anyways, plus we don’t use credit to buy anymore, thanks Ramsey) and not be able to buy a home for at least 18 months.

4) Move back into the house and stay there for however long it takes to get the economy back up and real estate climbing. This is the least risky, and yet the most bothersome to me. Somehow we felt like God was getting us ready for something and I feel that moving back in would just be a lack of faith. I rarely if ever see God using people who play it safe and are afraid to take risks. Jesus told people to sell or leave their possessions. I cannot think of a time in scripture where He said to play it safe, can you?

That’s it. That’s what we are facing. Your thoughts, comments, prayers…

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About Andrew Latulippe

Obsessed with Jesus.

Posted on September 11, 2010, in christian life, family and tagged , , . Bookmark the permalink. 4 Comments.

  1. I totally hear ya on the housing front. We are having the same issues with our house losing value and wanting to sell. We may have to wait it out and are looking at the possibility’s of renting it out. Is that an option for you guys? You should check into what it could rent for. Check with some rental companies to see what it could rent for and they will usually handle all the legal paperwork for you as well. It will all work out for you guys.

    • yeah, it’s a pretty tough situations for lots of people right now. unfortunately, according to our govmt assistance for downpayment (a program they had when we bought), we are not supposed to rent it out at any point unless we repay them…it will all work out 🙂

  2. Andrew, I have known you guys for a LONG TIME! Just know that if you do the #3 option, it will be longer than 18 months before you can buy again. Lar and I had struggled with that back ’03 when we had to file for bankruptcy over Grif’s $1.2 Million in medical bills and foreclose on our first house together and we still had trouble getting a loan for our new house – 6-1/2 years later.

    Our new house – we purchased for 80% of the value too… and the last owners still owned about $400K on it, but since it went up on auction, and our bid won, there was nothing that they could do – Good for us, Bad for them… But, we still had to have my parents sign for our loan because our loan wouldn’t cover what we ended up closing the new house for- not the first option that I wanted.

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