How To Move When Broke
May 28, 2015 12:58 PM Subscribe
Right now, my husband and I are very broke due to a few factors. One of them is my health. Moving to a more accessible location would be physically and mentally beneficial in that area. I need some help thinking through a strategy to move on limited funds.
I want to move as soon as practical and am interested in hearing what kind of options might be available to me.
I live in the far suburbs, and due to health issues, I can’t drive and it has become extremely isolating. The difficulty seems to be trying to figure out how to make this work financially. My husband and I are also very broke due to a number of factors - expensive medical bills, loss of my income, and then an extended period of my husband being unemployed.
He’s finally working again, though not making as much as he should be. (But any money is better than none, right?). We own our home, but aren’t close to paying it off. But we’re also not underwater and have some equity in the home.
I’m trying to figure out how we can move but every time I think through how we would do it; I run up against the wall of not having enough money to do so. I would rather buy than rent, but I am okay with renting. In fact, ideally would love to downsize a bit and save money on rent. Long term plans are to move out of the city.
One big part of the problem is that I have pets I do not want to give up. I know that makes renting more difficult. I know people who have rented homes with pets, and it took them longer but they were able to do it. Ideally, I want to rent a home, but it can be a small home, or duplex, whatever.
I can’t wrap my head around making it work. We need to secure a residence before selling our house because of the pets and the potential difficulty of finding a place that takes them But that would mean we’d have rent and a mortgage. I suppose we could “walk away” from our home, but that would mean losing the equity we do have in the home. It seems like it would be a mistake.
We can afford our mortgage right now, but not a lot left over. We’ve exhausted our savings as a complication of both my health problems and stopping working, and my husband’s prolonged unemployment. Our credit scores are bad due to outstanding debt from my health issues. All medical bills. We have some credit card debt too, but that is current.
These are the obstacles as I see them.
- No savings left
- Previous DINKS now SINKBDS&LoMB (Single Income No Kids But Disabled Spouse & Lots of Medical Bills)
- Husband’s new job covers the bills, but there isn’t anything left over.
- Poor credit rating, meaning mortgage unlikely. Some medical bills went to collections and there they remain.
- Debt. It’s not a huge debt but it’s enough that it will take us a long time to catch up with my husband’s current pay, if ever.
- House is in an odd state of renovation and disrepair. We were doing a lot of home improvements before I stopped working, but it’s like halfway done. New flooring and updated paint through most but not all of the house. The other half is dated (80s and 90s decor). The worst is a large deck that wasn’t maintained (it just was always on the todo list and never got done.
- The yard is an overgrown mess. At one point I was quite an avid gardener, but haven’t been able to maintain them. Between that and the hilly landscape, we just cannot keep up with the large yard. We did pay someone to clean it up at the end of last year, and they were able to make it look nice for a short while, so that’s an option if selling, but it’s too expensive to do regularly.
- We have pets; cats, dogs, a tortoise and fish, making “staging” while living in the home very difficult. As will renting; though I know enough people who’ve been able to make it work with their pets, that I think I can probably find a place to rent.
- This is a doozy. I don’t want to give up my fish; I have a room dedicated to them and a large multiple tank system. They can be moved, but I would anticipate needing a month to do so.
- My health issues mean moving could take some time. The estimate with the fish was with my health issues, I know many people that moved theirs in less time. But between my husband and myself, moving the rest of the stuff might just be slow. I also need to give us padding in case I have difficulty during the move.
- Don’t have family we could move in with; I’m estranged from my family, and my husband’s family is mostly out of state, with the one close relative being unable to have pets due to their own health health problems. Plus, I can’t see moving the fish twice in a short period of time. Maybe once, but twice will be extremely hard on me.
- We haven’t done our taxes for this year, having taken out an extension. I don’t know how that will impact things, but I suspect we’ll owe taxes this year. I don’t know how much yet. I have no idea of that will have any impact, but it seems important.
I am desperate to get out; I hate living here. I am trapped in suburbia, can’t drive often due to medication or pain (or both!) Being trapped here toll on my mental health. (I am seeing a therapist to help me cope with this and other aspects of my condition.) But I am completely lost as to an exit strategy. I spent two weeks out of state in his city apartment and I felt so much more empowered and just mentally better being in a place where people around and the ability to walk a couple blocks and get some where.
I struggle trying to think through this problem because we “own” a house, which we have been able to pay for, so it feels like we should be able to get another home someplace else. But I know this logic is flawed, because it doesn’t account for moving expenses, paying two mortgages or mortgage plus rent until our house sells or the repair work that needs to be done on our house.
On the other side of the coin, I ask myself if we should be just move out of our house and into a rental, stop paying the mortgage and drop the keys in the mail and send to the bank. But that seems like leaving money on the table. Maybe it’s not, considering there is a lot of work that needs to be done yet. I don’t have any idea what to do about it.
I’m hoping for some suggestions to plan a strategy for moving. Or if there are people that do this kind of thing; who or what should we be looking for. A realtor doesn't seem right since we might end up renting (or would they?)
Because it might be relevant, I currently am not on social security disability. I need to be, I have two doctors that advised me I should, but that seems like an insurmountable problem and why I haven’t pursued it. I will try to soon, but I am told most cases won’t be decided for a minimum of 13 months. In any case, it will not help our finances right now.
----
Ideas I had, but am unsure if they’re workable
- rent small house & sell our house - > wait to recoup some savings, pay off bills and turn credit rating around - > buy house next year. I’m not sure how we’d be sure to sell it in time to not be paying rent and mortgage.
- rent a house -> rent out our house and sell later. Not sure how quickly we could find tenants, nor thrilled with the idea of being a landlord.
- trade houses with someone in the city; can you do that if you still have a mortgage? Do people do that? I was thinking someone might be interested if they are “trading up” and I don’t care about trading down to a smaller home with a small yard, in fact that would be ideal. As long as it’s in moderately good shape (like ours, needs some work, cosmetic issues, but not falling down).
- buy a home in foreclosure; I’ve seen some nice homes in foreclosure in some areas that border gentrifying and poor. The mortgages would theoretically be low enough that we could probably afford our house and the new house for at least a short while. But, I’m not sure we’d qualify for even a small loan.
- Sell the house as is, pets and all, expecting to get a low price due to inability to stage, but stipulate we need 60-90 days to move?
I’m looking for ideas and strategies to exit this house and move to a new place on a virtual non-existent budget. However, if there are professions that help make these decisions, pointing me to them would also be helpful.
I want to move as soon as practical and am interested in hearing what kind of options might be available to me.
I live in the far suburbs, and due to health issues, I can’t drive and it has become extremely isolating. The difficulty seems to be trying to figure out how to make this work financially. My husband and I are also very broke due to a number of factors - expensive medical bills, loss of my income, and then an extended period of my husband being unemployed.
He’s finally working again, though not making as much as he should be. (But any money is better than none, right?). We own our home, but aren’t close to paying it off. But we’re also not underwater and have some equity in the home.
I’m trying to figure out how we can move but every time I think through how we would do it; I run up against the wall of not having enough money to do so. I would rather buy than rent, but I am okay with renting. In fact, ideally would love to downsize a bit and save money on rent. Long term plans are to move out of the city.
One big part of the problem is that I have pets I do not want to give up. I know that makes renting more difficult. I know people who have rented homes with pets, and it took them longer but they were able to do it. Ideally, I want to rent a home, but it can be a small home, or duplex, whatever.
I can’t wrap my head around making it work. We need to secure a residence before selling our house because of the pets and the potential difficulty of finding a place that takes them But that would mean we’d have rent and a mortgage. I suppose we could “walk away” from our home, but that would mean losing the equity we do have in the home. It seems like it would be a mistake.
We can afford our mortgage right now, but not a lot left over. We’ve exhausted our savings as a complication of both my health problems and stopping working, and my husband’s prolonged unemployment. Our credit scores are bad due to outstanding debt from my health issues. All medical bills. We have some credit card debt too, but that is current.
These are the obstacles as I see them.
- No savings left
- Previous DINKS now SINKBDS&LoMB (Single Income No Kids But Disabled Spouse & Lots of Medical Bills)
- Husband’s new job covers the bills, but there isn’t anything left over.
- Poor credit rating, meaning mortgage unlikely. Some medical bills went to collections and there they remain.
- Debt. It’s not a huge debt but it’s enough that it will take us a long time to catch up with my husband’s current pay, if ever.
- House is in an odd state of renovation and disrepair. We were doing a lot of home improvements before I stopped working, but it’s like halfway done. New flooring and updated paint through most but not all of the house. The other half is dated (80s and 90s decor). The worst is a large deck that wasn’t maintained (it just was always on the todo list and never got done.
- The yard is an overgrown mess. At one point I was quite an avid gardener, but haven’t been able to maintain them. Between that and the hilly landscape, we just cannot keep up with the large yard. We did pay someone to clean it up at the end of last year, and they were able to make it look nice for a short while, so that’s an option if selling, but it’s too expensive to do regularly.
- We have pets; cats, dogs, a tortoise and fish, making “staging” while living in the home very difficult. As will renting; though I know enough people who’ve been able to make it work with their pets, that I think I can probably find a place to rent.
- This is a doozy. I don’t want to give up my fish; I have a room dedicated to them and a large multiple tank system. They can be moved, but I would anticipate needing a month to do so.
- My health issues mean moving could take some time. The estimate with the fish was with my health issues, I know many people that moved theirs in less time. But between my husband and myself, moving the rest of the stuff might just be slow. I also need to give us padding in case I have difficulty during the move.
- Don’t have family we could move in with; I’m estranged from my family, and my husband’s family is mostly out of state, with the one close relative being unable to have pets due to their own health health problems. Plus, I can’t see moving the fish twice in a short period of time. Maybe once, but twice will be extremely hard on me.
- We haven’t done our taxes for this year, having taken out an extension. I don’t know how that will impact things, but I suspect we’ll owe taxes this year. I don’t know how much yet. I have no idea of that will have any impact, but it seems important.
I am desperate to get out; I hate living here. I am trapped in suburbia, can’t drive often due to medication or pain (or both!) Being trapped here toll on my mental health. (I am seeing a therapist to help me cope with this and other aspects of my condition.) But I am completely lost as to an exit strategy. I spent two weeks out of state in his city apartment and I felt so much more empowered and just mentally better being in a place where people around and the ability to walk a couple blocks and get some where.
I struggle trying to think through this problem because we “own” a house, which we have been able to pay for, so it feels like we should be able to get another home someplace else. But I know this logic is flawed, because it doesn’t account for moving expenses, paying two mortgages or mortgage plus rent until our house sells or the repair work that needs to be done on our house.
On the other side of the coin, I ask myself if we should be just move out of our house and into a rental, stop paying the mortgage and drop the keys in the mail and send to the bank. But that seems like leaving money on the table. Maybe it’s not, considering there is a lot of work that needs to be done yet. I don’t have any idea what to do about it.
I’m hoping for some suggestions to plan a strategy for moving. Or if there are people that do this kind of thing; who or what should we be looking for. A realtor doesn't seem right since we might end up renting (or would they?)
Because it might be relevant, I currently am not on social security disability. I need to be, I have two doctors that advised me I should, but that seems like an insurmountable problem and why I haven’t pursued it. I will try to soon, but I am told most cases won’t be decided for a minimum of 13 months. In any case, it will not help our finances right now.
----
Ideas I had, but am unsure if they’re workable
- rent small house & sell our house - > wait to recoup some savings, pay off bills and turn credit rating around - > buy house next year. I’m not sure how we’d be sure to sell it in time to not be paying rent and mortgage.
- rent a house -> rent out our house and sell later. Not sure how quickly we could find tenants, nor thrilled with the idea of being a landlord.
- trade houses with someone in the city; can you do that if you still have a mortgage? Do people do that? I was thinking someone might be interested if they are “trading up” and I don’t care about trading down to a smaller home with a small yard, in fact that would be ideal. As long as it’s in moderately good shape (like ours, needs some work, cosmetic issues, but not falling down).
- buy a home in foreclosure; I’ve seen some nice homes in foreclosure in some areas that border gentrifying and poor. The mortgages would theoretically be low enough that we could probably afford our house and the new house for at least a short while. But, I’m not sure we’d qualify for even a small loan.
- Sell the house as is, pets and all, expecting to get a low price due to inability to stage, but stipulate we need 60-90 days to move?
I’m looking for ideas and strategies to exit this house and move to a new place on a virtual non-existent budget. However, if there are professions that help make these decisions, pointing me to them would also be helpful.
Sell the house as is, pets and all, expecting to get a low price due to inability to stage, but stipulate we need 60-90 days to move?
This entirely depends on where you live. Sometimes, houses can sell just by being clean on the inside; we bought our house and it was entirely un-staged (and not even on the market, really). Talk to your real estate agent to gauge your expectations on staging and selling the house. Your location, and your desired area to move to are pretty important to evaluating some of your options.
But really, this seems like the best option. If I were in your shoes, with the dings you've had to your credit with medical bills and the like, I'd consider going back to renting, even just for a few years. You can use some of that equity to pay of medical bills and get back afloat. There's nothing saying you have to own your home, and this seems like one of those instances where it might be a good, solid financial choice to let homeownership go by the wayside.
posted by furnace.heart at 1:06 PM on May 28, 2015 [3 favorites]
This entirely depends on where you live. Sometimes, houses can sell just by being clean on the inside; we bought our house and it was entirely un-staged (and not even on the market, really). Talk to your real estate agent to gauge your expectations on staging and selling the house. Your location, and your desired area to move to are pretty important to evaluating some of your options.
But really, this seems like the best option. If I were in your shoes, with the dings you've had to your credit with medical bills and the like, I'd consider going back to renting, even just for a few years. You can use some of that equity to pay of medical bills and get back afloat. There's nothing saying you have to own your home, and this seems like one of those instances where it might be a good, solid financial choice to let homeownership go by the wayside.
posted by furnace.heart at 1:06 PM on May 28, 2015 [3 favorites]
How long term are the long-term plans? Because I do think it makes a difference whether you plan to be in the area for a year vs. five years vs. ten years, in terms of both finances and timing.
posted by decathecting at 1:12 PM on May 28, 2015
posted by decathecting at 1:12 PM on May 28, 2015
I once found a really nice little houselet with a fenced yard to rent *because* I had a (non-small) dog. The woman I rented from was a dog person and knew from personal experience that it was harder to rent a place in our city with a dog (especially over 25 pounds), so when she became a landlord, she rented her properties preferentially to dog people.
So, maybe part of your issue could be addressed by joining various pet-related groups and networking with animal people about your need for a pet-friendly rental.
posted by mysterious_stranger at 1:22 PM on May 28, 2015 [1 favorite]
So, maybe part of your issue could be addressed by joining various pet-related groups and networking with animal people about your need for a pet-friendly rental.
posted by mysterious_stranger at 1:22 PM on May 28, 2015 [1 favorite]
If finances are the problem and you do have some equity in the house, perhaps you could get a home equity line of credit to help you with the costs of moving and preparing your current home for sale or for renting out? Having that cash might make things easier, particularly if you are able to sell and pay it off relatively quickly.
posted by procrastination at 1:27 PM on May 28, 2015 [2 favorites]
posted by procrastination at 1:27 PM on May 28, 2015 [2 favorites]
Response by poster: Long term moving out of state - Unsure, we need some financial stability first. But no sooner than 5 years. Hopefully less than 10, but we'll see.
I agree on the disability, it's just the reason why I've allowed to go this long, even though I know it's flawed reasoning. I started my application again right after posting this.
I agree about the fish theoretically, but they are essentially a lifetime of work. I'm not ready to give up on that yet. It may become inevitable, but I hope not. One thing that might make it seem less crazy is that most people who are involved in the type of fishkeeping I do, either do it in spare space in a basement or garage in warm climates. Our house has a finished basement but is too far north, thus the room.
posted by [insert clever name here] at 1:53 PM on May 28, 2015 [1 favorite]
I agree on the disability, it's just the reason why I've allowed to go this long, even though I know it's flawed reasoning. I started my application again right after posting this.
I agree about the fish theoretically, but they are essentially a lifetime of work. I'm not ready to give up on that yet. It may become inevitable, but I hope not. One thing that might make it seem less crazy is that most people who are involved in the type of fishkeeping I do, either do it in spare space in a basement or garage in warm climates. Our house has a finished basement but is too far north, thus the room.
posted by [insert clever name here] at 1:53 PM on May 28, 2015 [1 favorite]
Start by yardsaling/Craig's listing/donating anything and everything you can. Consider selling the pets as well. Everything consumes something. Even furniture consumes time, energy and cleaning supplies. It may put a little money in your pocket, reduce your monthly overhead and reduce some of your maintenance burden. If there was less stuff to take care of, it might allow you to work on the yard and things like that, in spite of your disability. I find that feeling trapped really messes up my mental health. Working on something do-able that gives me forward progress, even slowly, does my mental health a lot of good.
Good luck.
posted by Michele in California at 2:14 PM on May 28, 2015 [2 favorites]
Good luck.
posted by Michele in California at 2:14 PM on May 28, 2015 [2 favorites]
You can absolutely sell your house with a 60-90 day possession clause in the contract. Then you just rent the house back from the buyers while you find a new place. You'll have a smaller number of interested buyers that way, but it can be done.
You need to find a real estate agent who can come look at your house and tell you how much you could get for it if you don't put any more work into it.
posted by rabbitrabbit at 2:33 PM on May 28, 2015 [2 favorites]
You need to find a real estate agent who can come look at your house and tell you how much you could get for it if you don't put any more work into it.
posted by rabbitrabbit at 2:33 PM on May 28, 2015 [2 favorites]
Talk to your bank -- a line of credit is a good idea; a line of credit may not be something you can get with low equity, debt, and low income.
I agree that it's hard to weigh in here without knowing the numbers and the housing market for your area.
I am in a bit of a comparable situation myself, and feel your pain on this stuff. There are certain expectations of homeowners, and "broke" isn't one of them... Can you barter for the landscaping issues and maybe a bit of other fixing up stuff?
Probably not an idea with immediate appeal, but: would you be willing to take in a boarder, for now? Would you be willing to give somebody free rent in exchange for light yard work and driving you places sometimes?
posted by kmennie at 4:20 PM on May 28, 2015 [2 favorites]
I agree that it's hard to weigh in here without knowing the numbers and the housing market for your area.
I am in a bit of a comparable situation myself, and feel your pain on this stuff. There are certain expectations of homeowners, and "broke" isn't one of them... Can you barter for the landscaping issues and maybe a bit of other fixing up stuff?
Probably not an idea with immediate appeal, but: would you be willing to take in a boarder, for now? Would you be willing to give somebody free rent in exchange for light yard work and driving you places sometimes?
posted by kmennie at 4:20 PM on May 28, 2015 [2 favorites]
As far as renting with pets is concerned - I think it really depends on the market where you want to live. I've rented with multiple cats, but that was before the Bay Area housing market got insanely tight - I doubt I could do that now. Some places that say "no pets" or only one, can be negotiated with, but, again, in a tight market, I doubt they'd want to budge. In a tight rental market sometimes you are better off buying - sometimes mortgages are lower than rents.
Do your fish need a dedicated room? They might be the hardest pets to relocate if they need lots of room and/or climate control - cats and dogs are quite adaptable.
Since you are disabled, have you tried contacting your local area's department of disability services? (AKA department of aging and disability services, or adult disability services.) There might be someone there who can help in some way, even if just providing information you might not have thought of.
posted by Rosie M. Banks at 4:28 PM on May 28, 2015 [1 favorite]
Do your fish need a dedicated room? They might be the hardest pets to relocate if they need lots of room and/or climate control - cats and dogs are quite adaptable.
Since you are disabled, have you tried contacting your local area's department of disability services? (AKA department of aging and disability services, or adult disability services.) There might be someone there who can help in some way, even if just providing information you might not have thought of.
posted by Rosie M. Banks at 4:28 PM on May 28, 2015 [1 favorite]
You may have already done this, but in order to choose, you need some information behind the options. Again, apologies if you've already done these things. But if you haven't, start with the following:
Make an appointment with a real estate agent to find out how practical it would be to either sell or rent your house. What is the average time to sell and how much do they think you can realistically get for the place? What are the costs for smaller houses in the city center of your area? The same agent should be able to give you a kind of rough price per square foot for both buying and rental. How much would you be eligible for if you are granted disability and what are your chances of it being granted?
When you know all these things, then you will have a better idea which of the options you listed above are realistic. And then I'm afraid you need to weight your priorities and get an idea where you are willing to trade off. Is it fish or is it moving? Is it size or is it location? etc.
Finally, I would advise you to leave "stay but spend the money to make it bearable" on the list. It may not be possible, but sometimes I find I get so fixated on a solution that I miss the solution, if you know what I mean.
Good luck and a lot of sympathy. I would completely lose it if I was stuck in the suburbs and I couldn't get around on my own.
posted by frumiousb at 5:02 PM on May 28, 2015 [1 favorite]
Make an appointment with a real estate agent to find out how practical it would be to either sell or rent your house. What is the average time to sell and how much do they think you can realistically get for the place? What are the costs for smaller houses in the city center of your area? The same agent should be able to give you a kind of rough price per square foot for both buying and rental. How much would you be eligible for if you are granted disability and what are your chances of it being granted?
When you know all these things, then you will have a better idea which of the options you listed above are realistic. And then I'm afraid you need to weight your priorities and get an idea where you are willing to trade off. Is it fish or is it moving? Is it size or is it location? etc.
Finally, I would advise you to leave "stay but spend the money to make it bearable" on the list. It may not be possible, but sometimes I find I get so fixated on a solution that I miss the solution, if you know what I mean.
Good luck and a lot of sympathy. I would completely lose it if I was stuck in the suburbs and I couldn't get around on my own.
posted by frumiousb at 5:02 PM on May 28, 2015 [1 favorite]
Response by poster: Sorry to babysite this thread, hopefully this will clarify some things. I'm located in New Berlin, WI, one of the suburbs just outside of Milwaukee, WI. Wisconsin has some "interesting" dynamics with the city and suburbs, that affects home ownership and rent. There is still significant white flight in the suburbs, and a strong us vs. them mentality, and this has kept city prices lower. Some areas are gentrifying and going up in value, but not the way it is in other cities.
The suburbs are hard red and the city is blue. Depending on where I would choose to live, I could quite easily find a place in the city to both buy or rent for less than here. A friend of mine even joked about "swapping houses" because he can't find any in this area. He said he's been looking and there isn't much house stock right now out this way. I haven't verified it, but he used to work for a mortgage brokerage, so is familiar with the market from that perspective, which has lead me to trust him on this. So that might actually work to our advantage.
I have always assumed until I get social security disability that I cannot take advantage of disabled services. Is that incorrect?
We've actually rehomed a couple pets already, and are considering rehoming the dogs. Even if we weren't to move, they are just too much to handle for me; and it's really apparent now that my husband has gone back to work. But the cats stay, and as I mentioned, I'm not ready to part with the fish if there is any way to make it work.
I am totally okay with downsizing, in fact I desire to, other than gaining a real basement. And I dream of a postage stamp yard. I could have one pot of flowers instead of a yard that is quickly becoming a jungle again.
My husband and I have talked about having a renter; I didn't consider a boarder. When we've talked about a renter, I'm on the fence but my husband doesn't like the idea. Perhaps we need to rethink this. I worry about all the ways this could go poorly, or about this being exploitive.
We have a mortgage that we refinanced via HARP and a Home Equity Loan. We probably never should have been approved for the HEL, but it was right before the housing bubble burst, and Countrywide was more than happy to fudge the numbers (it was only a couple years later that we really realized some of the things the did were the exact things being described on the news). Still, I think we have about 20k in equity (the difference between what we owe vs what the house is valued at, that's correct?).
I just checked my credit score, which is actually better than I thought it would be, at 640. I realize that's still pretty poor, but it also is less bad than I assumed it was. When we bought our first home, and then refinanced, banks were fast and lose with giving out loans. I know we refinanced once before with my credit score was around there and the mortgage brokerage was like "no, that's a great credit score." But obviously times have changed.
I haven't talked to a real estate agent. Reading this over, I realized what an obvious thing we missed, but I honestly didn't think of talking to a real estate agent yet. Should we be looking for a certain type of agent? I.e. someone that works with fixer-uppers; or should we just get some recommendations and find one that doesn't think we're too much work?
My fear of renting is twofold - one, lack of stability, should the landlord sell, or decide after the lease is up to not allow us to live there. I realize this is probably overblown as plenty of people rent, including those with similar setups to me. And then there is losing that asset. That we may never have the security of owning again; especially if interest rates go up, and home ownership gets out of reach of the every day person (as frequently predicted via places like Metafilter.) The other fear is that I won't be able to find a place that will take the pets in the timeframe needed. It seems like taking a huge risk to sell the house, even if we build in some temporal cushioning, and then be all like oops, we haven't found a place to live.
With all that said, it also seems like a way of recouping financially before we decide what the next move is.
I hadn't considered trying to take out another HEL, which with some research I now understand is possible. The downside was I had hoped we could sell the house, and any equity could be saved for a down payment on a house in the future. If we take out 2nd HEL and that eats up the last of our money, then it makes home ownership again that much further out of our grasp. That's still better than my fear we'd only be able to get rid of the house by abandoning it (clearly I've made it much worse in my head than it is).
posted by [insert clever name here] at 5:50 PM on May 28, 2015 [1 favorite]
The suburbs are hard red and the city is blue. Depending on where I would choose to live, I could quite easily find a place in the city to both buy or rent for less than here. A friend of mine even joked about "swapping houses" because he can't find any in this area. He said he's been looking and there isn't much house stock right now out this way. I haven't verified it, but he used to work for a mortgage brokerage, so is familiar with the market from that perspective, which has lead me to trust him on this. So that might actually work to our advantage.
I have always assumed until I get social security disability that I cannot take advantage of disabled services. Is that incorrect?
We've actually rehomed a couple pets already, and are considering rehoming the dogs. Even if we weren't to move, they are just too much to handle for me; and it's really apparent now that my husband has gone back to work. But the cats stay, and as I mentioned, I'm not ready to part with the fish if there is any way to make it work.
I am totally okay with downsizing, in fact I desire to, other than gaining a real basement. And I dream of a postage stamp yard. I could have one pot of flowers instead of a yard that is quickly becoming a jungle again.
My husband and I have talked about having a renter; I didn't consider a boarder. When we've talked about a renter, I'm on the fence but my husband doesn't like the idea. Perhaps we need to rethink this. I worry about all the ways this could go poorly, or about this being exploitive.
We have a mortgage that we refinanced via HARP and a Home Equity Loan. We probably never should have been approved for the HEL, but it was right before the housing bubble burst, and Countrywide was more than happy to fudge the numbers (it was only a couple years later that we really realized some of the things the did were the exact things being described on the news). Still, I think we have about 20k in equity (the difference between what we owe vs what the house is valued at, that's correct?).
I just checked my credit score, which is actually better than I thought it would be, at 640. I realize that's still pretty poor, but it also is less bad than I assumed it was. When we bought our first home, and then refinanced, banks were fast and lose with giving out loans. I know we refinanced once before with my credit score was around there and the mortgage brokerage was like "no, that's a great credit score." But obviously times have changed.
I haven't talked to a real estate agent. Reading this over, I realized what an obvious thing we missed, but I honestly didn't think of talking to a real estate agent yet. Should we be looking for a certain type of agent? I.e. someone that works with fixer-uppers; or should we just get some recommendations and find one that doesn't think we're too much work?
My fear of renting is twofold - one, lack of stability, should the landlord sell, or decide after the lease is up to not allow us to live there. I realize this is probably overblown as plenty of people rent, including those with similar setups to me. And then there is losing that asset. That we may never have the security of owning again; especially if interest rates go up, and home ownership gets out of reach of the every day person (as frequently predicted via places like Metafilter.) The other fear is that I won't be able to find a place that will take the pets in the timeframe needed. It seems like taking a huge risk to sell the house, even if we build in some temporal cushioning, and then be all like oops, we haven't found a place to live.
With all that said, it also seems like a way of recouping financially before we decide what the next move is.
I hadn't considered trying to take out another HEL, which with some research I now understand is possible. The downside was I had hoped we could sell the house, and any equity could be saved for a down payment on a house in the future. If we take out 2nd HEL and that eats up the last of our money, then it makes home ownership again that much further out of our grasp. That's still better than my fear we'd only be able to get rid of the house by abandoning it (clearly I've made it much worse in my head than it is).
posted by [insert clever name here] at 5:50 PM on May 28, 2015 [1 favorite]
In my experience with services for the disabled: if you are under 65 and do not require assistance with self care, there is balls all. Really nothing. However, in my (admittedly non-US) experience, the services that do exist do not care what your source of income is (as long as it doesn't meet a certain threshold, for means-tested help). The only thing I found, after pushing to see a social worker and trying to get her to help me find some resources, was a make-work program for people interested in wasting the time of the disabled so they could bill the province for -- I am not making this up -- referring disabled people to home help providers. Which the disabled would then pay. That was it, after a great deal of wasted time. So while I don't want to totally discourage you from asking around (ask your doctor, first, if s/he knows what resources might exist in your area) -- don't waste a lot of time or effort looking for help.
A HELOC might not be possible in your situation. If your income = "just paying the bills, not a penny extra," there's debt, and your credit isn't great... I have good credit but when I applied I had an ex on title and he had terrible credit, and was in a lot of debt, and the answer was just, "no," even though before the nice lady at the bank run the numbers she was pretty "Sure, based on this it looks like we could probably give you at least [large sum], would that be enough?"
Lots of things suggest moving right now would be more stress than just staying put? If you can make the mortgage payments on time and the house hasn't got any maintenance issues that make it unsafe, finding a way to adjust to being trapped in the crummy part of town until you can get on better financial footing would seem to make a lot of sense. Apply for disability, hope your husband can get his wages back up, sit tight, do what you can to pretty up the house, and move when things improve for moving?
I kind of want to move right now, because of a nearby house which I love and which is a good % cheaper than my own. But I just can't do it, for a variety of reasons. So I am sucking it up and staying put and being content with the knowledge that there are houses that cost less than mine that I really like out there, and when I can move I will get one of them.
Especially with the pets. It really sounds like a "sacrifices must be made!" temporarily lousy situation, and just not moving could also be the sacrifice, instead of selling the fish etc.
posted by kmennie at 7:49 PM on May 28, 2015 [4 favorites]
A HELOC might not be possible in your situation. If your income = "just paying the bills, not a penny extra," there's debt, and your credit isn't great... I have good credit but when I applied I had an ex on title and he had terrible credit, and was in a lot of debt, and the answer was just, "no," even though before the nice lady at the bank run the numbers she was pretty "Sure, based on this it looks like we could probably give you at least [large sum], would that be enough?"
Lots of things suggest moving right now would be more stress than just staying put? If you can make the mortgage payments on time and the house hasn't got any maintenance issues that make it unsafe, finding a way to adjust to being trapped in the crummy part of town until you can get on better financial footing would seem to make a lot of sense. Apply for disability, hope your husband can get his wages back up, sit tight, do what you can to pretty up the house, and move when things improve for moving?
I kind of want to move right now, because of a nearby house which I love and which is a good % cheaper than my own. But I just can't do it, for a variety of reasons. So I am sucking it up and staying put and being content with the knowledge that there are houses that cost less than mine that I really like out there, and when I can move I will get one of them.
Especially with the pets. It really sounds like a "sacrifices must be made!" temporarily lousy situation, and just not moving could also be the sacrifice, instead of selling the fish etc.
posted by kmennie at 7:49 PM on May 28, 2015 [4 favorites]
I have always assumed until I get social security disability that I cannot take advantage of disabled services. Is that incorrect?
Most likely yes. You can contact a local legal aid organization about any questions you may have about SSDI or other benefits that you may qualify for, your rights to have pets in rental housing and whether bankruptcy may be a good option for you.
A bankruptcy attorney can explain why bankruptcy may be the most protective option for your long-term financial security, and the National Association of Consumer Bankruptcy Attorneys has an online directory of bankruptcy attorneys that can be searched by location.
Information about how to find a lawyer is available at the MeFi Wiki Get a lawyer page, including free and low-cost legal assistance options.
posted by Little Dawn at 8:46 PM on May 28, 2015
Most likely yes. You can contact a local legal aid organization about any questions you may have about SSDI or other benefits that you may qualify for, your rights to have pets in rental housing and whether bankruptcy may be a good option for you.
A bankruptcy attorney can explain why bankruptcy may be the most protective option for your long-term financial security, and the National Association of Consumer Bankruptcy Attorneys has an online directory of bankruptcy attorneys that can be searched by location.
Information about how to find a lawyer is available at the MeFi Wiki Get a lawyer page, including free and low-cost legal assistance options.
posted by Little Dawn at 8:46 PM on May 28, 2015
Two things worth considering are a) moving is expensive, even when everything is perfect, and b) selling a house is expensive.
I just went through a series of short term moves for work and it was startling how expensive it all was. Renting means first/last/deposit, and if you are moving out of one rental into another, that means waiting months for your deposit back. Unless you are lucky or really skilled at scheduling, you will likely be paying for rent/mortgage on two places for at least one month. Then my new utilities all required a deposit -- one was $200, and another was a bit less; there was a connection fee from the ISP, too. None of it was huge on its own, but it all adds up to serious money. Oh, and a non-refundable pet deposit, too.
For selling the house, you will want to see what your local numbers are, but when I sold a house it was six percent for the agent fees, and then another few percent in county taxes and various other fees. That can erase equity in a hurry if your situation is somewhat marginal, as yours sounds like.
I don't mean to sound discouraging, just that it is important to be realistic rather than thinking that you can walk away with the entire equity, for example. Honestly, in your situation, the smartest thing might be to solve a number of immediate problems while working towards the long term solution of moving, but recognizing that solving the immediate problems is what will allow the moving to take place successfully. Getting the disability claim through, rebuilding some savings, and so on are more immediate issues that have concrete steps that can be taken to resolve them, and getting them resolved will make moving much more viable.
posted by Dip Flash at 9:17 PM on May 28, 2015 [1 favorite]
I just went through a series of short term moves for work and it was startling how expensive it all was. Renting means first/last/deposit, and if you are moving out of one rental into another, that means waiting months for your deposit back. Unless you are lucky or really skilled at scheduling, you will likely be paying for rent/mortgage on two places for at least one month. Then my new utilities all required a deposit -- one was $200, and another was a bit less; there was a connection fee from the ISP, too. None of it was huge on its own, but it all adds up to serious money. Oh, and a non-refundable pet deposit, too.
For selling the house, you will want to see what your local numbers are, but when I sold a house it was six percent for the agent fees, and then another few percent in county taxes and various other fees. That can erase equity in a hurry if your situation is somewhat marginal, as yours sounds like.
I don't mean to sound discouraging, just that it is important to be realistic rather than thinking that you can walk away with the entire equity, for example. Honestly, in your situation, the smartest thing might be to solve a number of immediate problems while working towards the long term solution of moving, but recognizing that solving the immediate problems is what will allow the moving to take place successfully. Getting the disability claim through, rebuilding some savings, and so on are more immediate issues that have concrete steps that can be taken to resolve them, and getting them resolved will make moving much more viable.
posted by Dip Flash at 9:17 PM on May 28, 2015 [1 favorite]
it is important to be realistic rather than thinking that you can walk away with the entire equity
A bankruptcy attorney can explain how homestead exemptions [Nolo] can help protect the equity in your home. Medical debt is often a factor in bankruptcy [e.g. BusinessWeek], and an attorney can review your debts and assets to provide specific advice about your options.
According to the Administrative Office of the U.S. Courts:
A bankruptcy attorney can explain how homestead exemptions [Nolo] can help protect the equity in your home. Medical debt is often a factor in bankruptcy [e.g. BusinessWeek], and an attorney can review your debts and assets to provide specific advice about your options.
According to the Administrative Office of the U.S. Courts:
One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start."posted by Little Dawn at 10:11 PM on May 28, 2015
Yup, renter or boarder. Your house is your major asset - make it work for you.
posted by kjs4 at 10:39 PM on May 28, 2015
posted by kjs4 at 10:39 PM on May 28, 2015
Response by poster: We are considering waiting another year. But gods, I do not want to. There is nothing really quite so terrible as being stuck in the deep suburbs. We're a couple blocks from rural. I asked google maps to find me any place within walking distance and it shrugged. There is a roadside bar that Google lists as a 45 minute walk. Even if I could go that far, I wouldn't anyway because no, I'm not going to hang out in a bar all day.
posted by [insert clever name here] at 6:14 AM on May 29, 2015
posted by [insert clever name here] at 6:14 AM on May 29, 2015
You may have looked into this already, but to make the interim time more bearable, are there any government or charity organisations near you that specialize in providing companionship to homebound/isolated people? It won't fix the very real challenge of not being able to drive while trapped in the deep suburbs, but there may be orgs who can either help you join group/bus shopping trips, or even just have a volunteer come by to go for a walk with you, so it all seems a bit less pointless.
posted by jennyweed at 6:27 AM on May 29, 2015
posted by jennyweed at 6:27 AM on May 29, 2015
Renting means first/last/deposit, and if you are moving out of one rental into another, that means waiting months for your deposit back. Unless you are lucky or really skilled at scheduling, you will likely be paying for rent/mortgage on two places for at least one month. Then my new utilities all required a deposit -- one was $200, and another was a bit less; there was a connection fee from the ISP, too. None of it was huge on its own, but it all adds up to serious money. Oh, and a non-refundable pet deposit, too.
As a renter in the same metro area as the OP, almost none of this is true. (I'm commenting to reassure the OP in case this further dissuades them from renting.) In this area, it's common to pay first month's & deposit up front (but not last). I've never had to put a deposit for utilities and you certainly won't, because you are not changing utility companies. I didn't pay a connection fee for my ISP (Time Warner) but I was a new customer so it may have been a promo. Finally, not all places have pet deposits (mine didn't, I have 2 cats) but it's likely you would with a dog.
I totally feel you wrt being stuck in the suburbs, especially that one. On preview, I was going to suggest something similar to jennyweed. If you can find some way to deal with the isolation, you may be able to ride this out until you're in better financial shape.
posted by desjardins at 6:30 AM on May 29, 2015 [1 favorite]
As a renter in the same metro area as the OP, almost none of this is true. (I'm commenting to reassure the OP in case this further dissuades them from renting.) In this area, it's common to pay first month's & deposit up front (but not last). I've never had to put a deposit for utilities and you certainly won't, because you are not changing utility companies. I didn't pay a connection fee for my ISP (Time Warner) but I was a new customer so it may have been a promo. Finally, not all places have pet deposits (mine didn't, I have 2 cats) but it's likely you would with a dog.
I totally feel you wrt being stuck in the suburbs, especially that one. On preview, I was going to suggest something similar to jennyweed. If you can find some way to deal with the isolation, you may be able to ride this out until you're in better financial shape.
posted by desjardins at 6:30 AM on May 29, 2015 [1 favorite]
Also, I'm not sure if you're aware but if you apply for SSDI and are approved some months down the road, it's retroactive to the time you applied, so you could get a lump sum which then might help with moving expenses.
posted by desjardins at 6:40 AM on May 29, 2015 [1 favorite]
posted by desjardins at 6:40 AM on May 29, 2015 [1 favorite]
rent out our house and sell later. Not sure how quickly we could find tenants, nor thrilled with the idea of being a landlord.
Please be very careful about trying to be a landlord - placing your financial security in the hands of a tenant who may or may not pay their rent, or who may or may not cause damage to your property can be a risky option.
Also, for additional general information, you can review collected AskMes about Civil Rights, which includes threads about rights to have pets in rental housing, and Disability/Elder, which includes threads about SSDI.
And +1 desjardins re: retroactive SSDI payments, which could be significant and help with a down payment on a new home. The National Organization of Social Security Claimants' Representatives (NOSSCR) has a lawyer referral service at 1-800-431-2804 and information about how to find a Social Security lawyer. The Disability Rights Bar Association also offers an online directory of attorneys that can be searched by state.
posted by Little Dawn at 7:21 AM on May 29, 2015
Please be very careful about trying to be a landlord - placing your financial security in the hands of a tenant who may or may not pay their rent, or who may or may not cause damage to your property can be a risky option.
Also, for additional general information, you can review collected AskMes about Civil Rights, which includes threads about rights to have pets in rental housing, and Disability/Elder, which includes threads about SSDI.
And +1 desjardins re: retroactive SSDI payments, which could be significant and help with a down payment on a new home. The National Organization of Social Security Claimants' Representatives (NOSSCR) has a lawyer referral service at 1-800-431-2804 and information about how to find a Social Security lawyer. The Disability Rights Bar Association also offers an online directory of attorneys that can be searched by state.
posted by Little Dawn at 7:21 AM on May 29, 2015
Ok, so -
1) Ask your friend if he is serious about the home swap. You seem to be.
2) Getting into an easier place for moving...
Fish:
Advertise and see if a local fish hobbyist could 'mind' your fish for an indefinite amount of time? This sounds weird, but I currently essentially have someone 'minding my library' for a few years while I am overseas. I was going to pack it into storage, but it's a good reference library (200+ books), so just asked if anyone wanted to mind it instead, making it clear that I had alternative storage, and got two offers. So, hopefully some of those books will be read and enjoyed while I am gone.
If someone has a garage set up for one tank, they may have room for a second tank, in a place you could visit until you get settled.
It's a long shot, but if there are any discussion boards, or petstores that sell supplies for the type of your fish in your city, just put up a wanted sign (ring the petstore, post or email the sign, to alleviate your transport issues) - "Due to housing issues, Wanted: space to store "# by # metre multiple tank, tropical/'fish terms I don't know' with squaggly, bloo, and red fish.
Would like the opportunity to come visit my fish."
If you don't find anything suitable, no harm no foul. But if you do find somewhere with public transport, then that takes the pressure off finding a rental.
At least mention the issue to other enthusiasts, because people with the same issue might have better solutions.
Dogs:
If you can rehome, then having cats only will also make it easier.
posted by Elysum at 11:32 AM on May 29, 2015
1) Ask your friend if he is serious about the home swap. You seem to be.
2) Getting into an easier place for moving...
Fish:
Advertise and see if a local fish hobbyist could 'mind' your fish for an indefinite amount of time? This sounds weird, but I currently essentially have someone 'minding my library' for a few years while I am overseas. I was going to pack it into storage, but it's a good reference library (200+ books), so just asked if anyone wanted to mind it instead, making it clear that I had alternative storage, and got two offers. So, hopefully some of those books will be read and enjoyed while I am gone.
If someone has a garage set up for one tank, they may have room for a second tank, in a place you could visit until you get settled.
It's a long shot, but if there are any discussion boards, or petstores that sell supplies for the type of your fish in your city, just put up a wanted sign (ring the petstore, post or email the sign, to alleviate your transport issues) - "Due to housing issues, Wanted: space to store "# by # metre multiple tank, tropical/'fish terms I don't know' with squaggly, bloo, and red fish.
Would like the opportunity to come visit my fish."
If you don't find anything suitable, no harm no foul. But if you do find somewhere with public transport, then that takes the pressure off finding a rental.
At least mention the issue to other enthusiasts, because people with the same issue might have better solutions.
Dogs:
If you can rehome, then having cats only will also make it easier.
posted by Elysum at 11:32 AM on May 29, 2015
I'm curious about your tax situation since both mortgage interest and PMI are deductible, and out-of-pocket medical bills are as well. If both you and your husband worked less than the full year, your tax burden will be less.
Obviously I don't what all your circumstances are, but it might be a good idea to run through a 1040 just to get an idea of what will happen.
posted by bendy at 1:04 PM on May 29, 2015
Obviously I don't what all your circumstances are, but it might be a good idea to run through a 1040 just to get an idea of what will happen.
posted by bendy at 1:04 PM on May 29, 2015
Response by poster: Taxes, just disorganized/avoiding. I don't think we'll see anything back, in fact I think we'll owe for a few reasons I don't want to go into here. But I'm not excited by the prospect. :/
If anyone is following along still - is there a system to swap houses if you still have a mortgage, and wouldn't qualify for a loan? I've seen it mentioned online as an alternative to getting a mortgage, and how the banks would "swap" mortgages, but I can't see how that would help those who don't qualify for a loan. Would it just be the banks are willing to be more flexible if you have a buyer lined up?
FWIW, I am considering ALL the options, including staying put a while longer. I just want to get all the possibilities on the table before deciding.
posted by [insert clever name here] at 7:42 AM on June 1, 2015 [1 favorite]
If anyone is following along still - is there a system to swap houses if you still have a mortgage, and wouldn't qualify for a loan? I've seen it mentioned online as an alternative to getting a mortgage, and how the banks would "swap" mortgages, but I can't see how that would help those who don't qualify for a loan. Would it just be the banks are willing to be more flexible if you have a buyer lined up?
FWIW, I am considering ALL the options, including staying put a while longer. I just want to get all the possibilities on the table before deciding.
posted by [insert clever name here] at 7:42 AM on June 1, 2015 [1 favorite]
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To clarify, I meant,"long term plans are to move out of the state".
posted by [insert clever name here] at 12:59 PM on May 28, 2015