The Crash is truly coming...A first hand accont

[johnsgonefishin]

I apologize for being harsh in my first post. I just was wondering if one or both children are diagnossed with the allergy? Has the doctor determined what they are hypersensitive to? Has there been a second opinion? I would hate for them to move and take a huge hit financially on credit record especially if they got to a new area of the country and there was no change in the child's reaction(many plant related allergens are similar throughout the country). I know extra doctors appointments can be expensive but it may be worth a second opinion and there may be a less costly more benificial solution for the child. I also understand that the information is none of my business but I am trying to help think outside the box incase they did not think of these things all ready.

[mukoh]

[biliruben]

Just pointing out they may get sued by their next lender is all.

Business being business.

[sniglet]

[perfectfire]

[sniglet]

[The Tim]

[SandyK]

What I find odd is that it sounds like the family is having allergies since they moved into this house. And that there are at least two members of the family suffering from them. The first thing that comes to my mind is mold. Have they investigated to see if mold could be the problem? Normally the Seattle area is pretty good for allergies in general, but in the spring we get ragweed, and mold can be a problem year round but especially in the winter when our houses are are closed up...then spring comes and we go outside and get hit with the ragweed. Ragweed is everywhere, pretty much, but mold is more common in wet climates like ours. However, it can be addressed within the home, in most cases, which would negate the need to move (I assume however, that this possibility has been explored).

If you want to protect your credit, and if you want to be able to buy a home again in the near future, then it's important to at least make a good faith effort to live up to the obligations that you enter into with a lender. I would not recommend to stop making payments before entering into a discussion regarding short sale or other options. Some lenders may not be willing to talk about it but I think it's outdated information to automatically assume that lenders aren't willing to talk. A lot has changed in the last 6 to 12 months and one of the things that has changed is that banks are no longer under the impression that they will get more out of the house by foreclosing than by working out an agreement with a borrower. Some still won't, but it's not universally true that you won't get anywhere. Ask S-Crow if you don't believe me, but short sales ARE happening and are becoming more common.

In a case like this, there are options but it's important to work from a place of good faith if you want future lenders to see you as a good risk. I think how borrowers handle themselves now is going to have a big impact on their ability to buy a home in the future. Yes, if you do a short sale, or any variation on that theme, your credit will take a hit but how big of a hit depends on how you work it out. If the home is able to be sold short (which depending on the loan servicer, this is a possibility), it's possible to work out a payment on the deficiency and maybe rent for a couple of years until that is paid off. As folks on this board are always pointing out, renting is not the end of the world and in some cases is the best option. Two years, or even five years, is not forever.

There are lots of ways to handle this, but almost all of them require talking to your lender about the situation and working from a place of wanting to make good on your obligations. And, I think we would all do well to remember that a mortgage IS an obligation--if you walk away from that obligation, the bank is legally entitled to go after you with all the tools at their disposal.

Also, regarding costs of sale, there are TONS of real estate companies that charge less than 6%. HelpUSell, MLS4Owners and Redfin are just a few. Many agents also take on cases like this to help out homeowners in need. And there is always the straight FSBO route, which, if the house is priced really well, can work.

The main thing is that you can't approach a situation like this from a position of hopelessness or it will always appear that you have fewer options than is the case. I don't mean to say that this is the case here, more that for anyone reading this thread, it's important to explore all the alternatives and not to discount any of them just because you heard somewhere that the option isn't available.

[rose-colored-coolaid]

[biliruben]

He He.

Only on Seattle Bubble:

"The Great Depression? Not so bad."

You rock, RCC!

[rose-colored-coolaid]

Well, just trying to make some perspective. We are so far removed from a true fight for survival now, that sometimes we elevate less serious catastrophies beyond where they belong.

Let me put it this way, I feel like I would have a better chance of living through a 2nd great depression than say a cyclone in Myanmar. If someone is worried they'd have to do without nice clothes because of a depression, they are right. If they say you might have to eat more beans and less meat, they are right. But if they suggest you'll be worried about even finding food, they are probably exaggerating the risks.

[Ubersalad]

YA! Crash and no crash = Living with enough, or lavish living.

[ira s]

Putting aside the victims of tornadoes, hurricanes, monsoons, tsunamis and their little problems , having to live without a tall skinny half caff latte with hazelnut syrup heated to 160 degrees would be true suffering.

[Big Mike 34]

Crow:

1) They may have to rent and will do so if necessary but if they can buy why would they not do so?

2) The remodeling started with Hardwood floors that they hoped would help with the allergies....Still over their two years here they kept getting sicker especially their youngest daughter....who is literally bed ridden cannot go to school. (they home school her...)

They have seen the top Doctors at Children's Hosp and the Best Private Physician in this area and still do not have a full diagnosis (Seattle's version of house)...They are getting worse...and will leave soon the husband just got a job in another state.

[Big Mike 34]

Perfectfire:

Just look at Willow and their Charts on specific Houses for sale....There was a huge bubble in housing prices beginning in 05 and going to the fall of 07....That bubble shows a rise of about 30% and it is across the board in just about everything I have looked at....

We have been very lucky in the past not to have gone through something like this...We have been lucky it has not gotten worse...YET....

I think we will go back to the 05 levels.