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Lost my job, so we can no longer afford our house payments. Our credit is still good since we haven't defaulted on anything yet. Question is should I find an apartment to live in now while our credit is still good or live in our house as long as we can until they kick us out? I listed plus/minuses of each. Please contribute anything else I'm missing or give me your opinions.
Get an Apartment Now
Plus: We can choose where we want to live such as a better neighborhood. Location to me is very important since we have a child. The home we currently live in now does not have a good neighborhood anymore.
Minus: We won’t save as much money since we’ll be renting right away. We can live rent free in our home until foreclosure. We would be saving about $900 a month.
Stay In Our Home Until Foreclosure (basically the opposite of above):
Plus: The chance to live rent free and save that money. Who knows how long foreclosure will take these days. If it takes 6 months to a year, we would be able to save $6-12K total. We can use that money to negotiate with new landlord to prepay rent for 6 months if they aren’t willing to accept us due to our credit.
Minus: Once our credit is shot, we can’t afford to apply to any place we want and get approved. This means we will have to settle for bad locations or anyone who would take us. We would have to keep moving until we are happy with our new location. We do not like to move around too much.
Get an Apartment Now
Plus: We can choose where we want to live such as a better neighborhood. Location to me is very important since we have a child. The home we currently live in now does not have a good neighborhood anymore.
Minus: We won’t save as much money since we’ll be renting right away. We can live rent free in our home until foreclosure. We would be saving about $900 a month.
Stay In Our Home Until Foreclosure (basically the opposite of above):
Plus: The chance to live rent free and save that money. Who knows how long foreclosure will take these days. If it takes 6 months to a year, we would be able to save $6-12K total. We can use that money to negotiate with new landlord to prepay rent for 6 months if they aren’t willing to accept us due to our credit.
Minus: Once our credit is shot, we can’t afford to apply to any place we want and get approved. This means we will have to settle for bad locations or anyone who would take us. We would have to keep moving until we are happy with our new location. We do not like to move around too much.
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