I'm a little upset... looks like I'm not going to have enough money to keep my home. Mom had taken out a HUGE balloon mortgage before she died. I could keep it by using all the life insurance money, but then I'd have nothing left over for investing or living.... and I have a sucky job right now. I don't think I'd be able to keep up on all the bills... and my brother thinks of the house as dead weight so he wants out... I seriously doubt I can do this by myself. Posted by quidscribis (Member # 5124) on :
That sucks. Posted by Anna (Member # 2582) on :
(((Telp)))
Posted by KarlEd (Member # 571) on :
Is the house more than you need? The market is still pretty good (in many areas). Depending on your mortgage, you might be able to sell and come away with enough to make a down payment on something smaller, or maybe even a condo or something.
It sucks to have to move, and I feel for you. Just trying to look on a possible bright side.
(((Telp))) ~~~Telp~~~
Posted by beverly (Member # 6246) on :
I like KarlEd's outlook on this one. This could be a really good thing for you, depending on your situation.
But I imagine it is hard to let go of the house with all the memories.
I've been thinking of you, lately, Telp.
Posted by Jim-Me (Member # 6426) on :
((Telp))
Posted by Narnia (Member # 1071) on :
(((Telp))) Posted by Olivet (Member # 1104) on :
Could you refinance before the balloon comes due?
Posted by Dagonee (Member # 5818) on :
I'm sorry, Telp.
The only advice I can offer is to second looking into refinancing, but, if you can't (or if it takes up a ridiculous amount of your income), then to get out on your terms, not the bank's.
That means selling it well before the balloon is due. Your cost basis in the house is likely the day you inherited it, so taxes should be minimal.
I'm sorry you can't keep your house. Posted by Storm Saxon (Member # 3101) on :
Sorry you might lose your house, Telperion.
Posted by Theaca (Member # 8325) on :
I'm sorry too. I do agree that your brother has a point. Spending time, energy to keep up a house you don't need for one or two single guys will remain a stressor in your life until you sell it.
Posted by ludosti (Member # 1772) on :
I'm sorry that you can't keep your mom's home. As much as she loves you, I don't think she'd want for something of hers to be such a burden for you and your brother. Sometimes things that seem really upsetting turn out to good ends (like my recent car accident). I hope you find a great end. Posted by TomDavidson (Member # 124) on :
Actually, Telp, with the market the way it is right now, selling immediately might be the best way to go.
Posted by OlavMah (Member # 756) on :
Or renting. Being a landlord is a pain, but if you want to hang onto the house, can't afford to pay for it yourself, and can find a good property management company or a decently priced lawyer to draw up the lease, this is another option. In any case, if you do keep it, you'll probably want to refinance rather than pay the balloon payment, and do it soon before interest rates go up.
Posted by Olivet (Member # 1104) on :
Renting won't help with the balloon payment, unless he can refinance first, though.
Posted by Miriya (Member # 7822) on :
Sorry Telp. I don't have any suggestions to add to what's above.
Posted by Telperion the Silver (Member # 6074) on :
I was told that it's not good to sell right now because the market is crap in the winter. Wait till spring.
I was really upset earlier... had a meeting with our finacial advisor and ended up almost crying through half of it. I've been spending all past week talking to banks and mortgage people to see how much I can get.
Part of the thing is that I really took ownership of this place the past few years. Mom was still devestated from the divorce and had a bunch of medical issues so I'd do most of the chores and cleaning and stuff. And when she died this summer I was the one to transfer all the bills to my name. I don't think my brother has thought of this place as home for some time...so he doesn't really chip in on food or cleaning. So I've been the one doing that. Which is fine. It's my home.
But it's more than that because it's also my childhood home. But for five years, I've lived here my whole life. There are layers and layers of memories in each corner. I really hate that it won't be mine anymore.
Anyway... I think I'm over the first shock and depression... and I'm trying to see what I can do. I was afraid I'd be living in a box or something. But I guess I can get a local condo for $50k. I guess I can move anywhere I want to after this... but it's tempting just to stay here in Detroit because I know where everything is and know everybody. But I guess that's part of the reason to move out... like going off to college for the first time. Scary as hell but so worth it in the long run.
Part of it is... I don't want things to pass... especially if they were important to me. I want there to be suffering and pain to prove that this was important. To just move on feels like a total betrayle to what went before.
Posted by Anna (Member # 2582) on :
It probably sounds as a real cliche, but what's important don't pass in your heart, and that's the important place, Telp. Extra hugs for you.
Posted by romanylass (Member # 6306) on :
((((I'm sorry))))
Posted by KarlEd (Member # 571) on :
Telp, if moving to the Baltimore/PA/DC area is remotely in your interest, email me. Address is in my profile.
Karl
Posted by Sopwith (Member # 4640) on :
Telp, when you spoke of using the insurance money to pay it off, did you mean paying off the house or paying off the balloon payment?
If you could pay off the house, I would suggest doing it. The property itself is an investment and real estate has a good track record.
If it is just in making the balloon payment, I might still suggest doing that. You could recoup the money by selling at a later date just the same. Of course it all depends on how big the balloon payment is.
Posted by Telperion the Silver (Member # 6074) on :
Thanks everyone for your sympathy. Yeah, as a friend of mine said, home has to be in yourself, not in a place you live. (I think the Jerusalem problem could be solved with that thinking) As for paying off stuff... the Trust that my Mom and Dad set up when we were young has to pay off the balloon mortgage, $91k, and I have to buy the house from the Trust at fair market value, $170k. Thanks for the offer Karl. I have another meeting with my finacial advisor and his mortgage buddy in about 7 hours... I'll let you all know what comes of that.
Peace.
Posted by El JT de Spang (Member # 7742) on :
Yeah, it's not necessarily over yet. Talk to several people about refinancing, and about selling before the balloon payment is due. Someone smarter than me with all the info can figure out a solution. That I feel sure off.
Good luck.
Posted by LadyDove (Member # 3000) on :
I avoided opening this thread because it sounded so sad. I'm sorry you're having to deal with this Telp. I know it won't help with the bulk of the money, but could you bring in someone as a border to defer some of the costs in the meantime? A student maybe?
Posted by Telperion the Silver (Member # 6074) on :
Yeah, the only way to make this work at all is to have at least two roomates. While my brother doesn't want to have ownership he might want to rent... then I'd just need one more roomate.
Posted by human_2.0 (Member # 6006) on :
I still live in my childhood home. I don't know if I could ever see it leaving the family.
Posted by Telperion the Silver (Member # 6074) on :
Well.. had my meeting with my advisor and his mortgage buddy. Went well. I think they have a good deal for me, considering I'm a poor boy.
So looks like it'll be about 40k down and $750 a month... so I can do it if I have two roomates.
I'm more of a right mind about it now... what happens happens I guess... If I keep it that's great... but if I'm forced to sell I can go back to college all the more easier.
Posted by Morbo (Member # 5309) on :
quote:Originally posted by Telperion the Silver: I was told that it's not good to sell right now because the market is crap in the winter. Wait till spring.
As for paying off stuff... the Trust that my Mom and Dad set up when we were young has to pay off the balloon mortgage, $91k, and I have to buy the house from the Trust at fair market value, $170k.
It's very true that the market can be better in the spring, both for renting and selling. When I did surveying, it was very dead in the winter, very few sales. Mostly refinances. The same thing goes for leasing apartments. Something in the human psyche says to hunker down for the winter. I suspect that that effect is worse in Detroit, with it's colder winters. You might be well advised to wait until the spring to sell...HOWEVER, your balloon payment is the important issue now. That might tilt towards an earlier sale, if you can get a satisfactory price. A refinance would push these decisions down the road, but with the trust involvement, I dunno...
Hmmm. Do the trustee(s) have any options? Have you talked or negotiated with them? That could be another avenue, although it sounds like the trust was spelled out in detail.
Also, perhaps you could rent from the trust?? For a period, till you make up your mind. Or some other unorthodox solution. How's the Detroit real estate market? Is now a good time to get out?
I know it's hard to let go of a family house. Several years ago my grandmother sold the house that was the "family home", as my mother moved several times while I was growing up. I still cherish a dream of buying it back someday.
Telp, I hope things work out for the best for you and your brother. Ask yourself if you need roots like your namesake, or would be better off letting go...
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