Sell House to Pay Debt?

[jpg7n16]

Originally Posted by wincrasher

I'll be a contrary voice in this crowd.

I doubt you will find a decent place for you and your young boys to live for less than the $700 that your mortgage is. They will also probably run a credit check that you will not impress them.

Also, it sounds like everyone is a higher priority than your boys. In the end, everyone will get their money plus lots of interest and you'll have nothing saved for their futures.

I'd consider defaulting on the loans to relatives and business assoicates. They chose to invest in your business, but have borne no risk. If not default, I would defer until you get your other affairs in order.

Bankruptcy is also an option. You would have to go Chapter 11 since you have income, but you'd get a re-org plan with payment to most. The damage is great, but it's not forever - you can go FHA on a new home in about 3 years.

Whoa what??? bankruptcy for this? they have a good income, are making more than the minimum payments - so are nowhere near in need of debt relief, and have assets to spare. Bankruptcy would be foolish and uncalled for.

And a chapter 11 will just put you on a repayment plan - which is what they're on now without the trashing their credit part.

Applying $30k to these 20% and up loans and credit cards would save over 6000-8500 per year - in just interest. If they move to a place even for $900, that only raises the living expense by 2400 for the year, for a net gain of at least 3600/year on the switch alone (aka 300 a month). They'd have to move up in rent to $1200/month before break even on the switch.


I disagree with just oh so much of what you've written in this post.

[GiantRobo]

Originally Posted by wincrasher

I'll be a contrary voice in this crowd.

I doubt you will find a decent place for you and your young boys to live for less than the $700 that your mortgage is. They will also probably run a credit check that you will not impress them.

Also, it sounds like everyone is a higher priority than your boys. In the end, everyone will get their money plus lots of interest and you'll have nothing saved for their futures.

My boys are my #1 priority. Fortunately, they are pretty young, 2 and 4, so I have time to save up for their futures. However, I can't do that until I get out from under this debt. I am not willing to default or file bankruptcy at this time. I believe I can get it paid off, just trying to find the best way to do it.

You are right that the one issue we haven't really figured out is whether I can find a place I can afford. I think I can but I obviously don't know that for sure. I am doing what research I can but who knows how long it will take to sell the house if we go that route.

[Lindahfx]

Are you able to find cheaper daycare? Is there anyway to get your parents or neighbours to care for the children, at least part time? You are paying over $1000 a month towards care that you could use to pay off debts.

[GiantRobo]

Yeah, daycare is a real killer but I don't know what to do about it. We only send them to day care twice a week during the summer and 3 times a week during the rest of the year. The other 2-3 days we have family watch them but we don't have anyone else available on the days we have to send them. The place we send them is average for this area.

[jIM_Ohio]

Originally Posted by Lindahfx

Are you able to find cheaper daycare? Is there anyway to get your parents or neighbours to care for the children, at least part time? You are paying over $1000 a month towards care that you could use to pay off debts.

If family stuck them with debt, would you really want those people helping to raise your children? LOL

[GiantRobo]

Haha, well luckily we do have some family we can rely on for sitters, just not enough to cover the whole week.