Author Topic: Wife's Friend House Foreclosed On 12/14, Trying to Buy More Expensive One 2/15  (Read 7141 times)

jackiechiles2

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Wife's friend got married in August, 2013. Pregnant in September 2013. Walks outside in December 2013, sees husband's truck is gone. It was repoed. Her husband is like oh, yeah, sorry. Also, house is going to be foreclosed on because I haven't made payment in 3 months. She's a teacher, he's a fireman. House was worth around $120,000. Foreclosure was final in December 2014.  House was in husband's name only.

So they moved out, and are now currently renting some place in the country for $800 a month from a family friend. They signed a 6 month lease with the woman. Woman really wants to sell the house- says $220,000 is lowest they can go.

Wife's friend really really wants to buy the house. She also doesn't want to be a teacher anymore (even though she has only been teaching for 2 years, and spent the last 4 years earning a Masters from the University of Phoenix online.) She also wants to have another child, which will be the reason for not working.

Wife's friend somehow got approved for a loan for $160,000 at a local credit union. Her husband is supposedly taking some class that will make him a paramedic/firefighter, which means he'll earn what she's earning, and allow her to quit working.

Woman who owns the house is going to hold off on selling it until June to allow her husband to get the job that will increase his salary. Wife's friend is going to get her dad, who's on SSID, to cosign on loan to give them enough income to qualify for loan, since husband can't be on the loan due to the recent foreclosure.

Wife's friend has student loans (presumably on IBR), car payment(s)(not sure after the repo), and credit cards. Husband has kid from prior marriage, paying child support for that kid.

Anyone see this outcome going well? 

vivophoenix

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Wife's friend got married in August, 2013. Pregnant in September 2013. Walks outside in December 2013, sees husband's truck is gone. It was repoed. Her husband is like oh, yeah, sorry. Also, house is going to be foreclosed on because I haven't made payment in 3 months. She's a teacher, he's a fireman. House was worth around $120,000. Foreclosure was final in December 2014.  House was in husband's name only.

So they moved out, and are now currently renting some place in the country for $800 a month from a family friend. They signed a 6 month lease with the woman. Woman really wants to sell the house- says $220,000 is lowest they can go.

Wife's friend really really wants to buy the house. She also doesn't want to be a teacher anymore (even though she has only been teaching for 2 years, and spent the last 4 years earning a Masters from the University of Phoenix online.) She also wants to have another child, which will be the reason for not working.

Wife's friend somehow got approved for a loan for $160,000 at a local credit union. Her husband is supposedly taking some class that will make him a paramedic/firefighter, which means he'll earn what she's earning, and allow her to quit working.

Woman who owns the house is going to hold off on selling it until June to allow her husband to get the job that will increase his salary. Wife's friend is going to get her dad, who's on SSID, to cosign on loan to give them enough income to qualify for loan, since husband can't be on the loan due to the recent foreclosure.

Wife's friend has student loans (presumably on IBR), car payment(s)(not sure after the repo), and credit cards. Husband has kid from prior marriage, paying child support for that kid.

Anyone see this outcome going well? 


im mildly confused. how will she get approval if she quits her job and the only breadwinner isnt allowed on the paperwork?is she planning to quit only after the paperwork goes through?

i mean technically she is a working adult with clean credit, but do they actually have a down payment?

also im betting the repo was the husbands only. and IBR still counts as making every payment on time.

jackiechiles2

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Wife's friend got married in August, 2013. Pregnant in September 2013. Walks outside in December 2013, sees husband's truck is gone. It was repoed. Her husband is like oh, yeah, sorry. Also, house is going to be foreclosed on because I haven't made payment in 3 months. She's a teacher, he's a fireman. House was worth around $120,000. Foreclosure was final in December 2014.  House was in husband's name only.

So they moved out, and are now currently renting some place in the country for $800 a month from a family friend. They signed a 6 month lease with the woman. Woman really wants to sell the house- says $220,000 is lowest they can go.

Wife's friend really really wants to buy the house. She also doesn't want to be a teacher anymore (even though she has only been teaching for 2 years, and spent the last 4 years earning a Masters from the University of Phoenix online.) She also wants to have another child, which will be the reason for not working.

Wife's friend somehow got approved for a loan for $160,000 at a local credit union. Her husband is supposedly taking some class that will make him a paramedic/firefighter, which means he'll earn what she's earning, and allow her to quit working.

Woman who owns the house is going to hold off on selling it until June to allow her husband to get the job that will increase his salary. Wife's friend is going to get her dad, who's on SSID, to cosign on loan to give them enough income to qualify for loan, since husband can't be on the loan due to the recent foreclosure.

Wife's friend has student loans (presumably on IBR), car payment(s)(not sure after the repo), and credit cards. Husband has kid from prior marriage, paying child support for that kid.

Anyone see this outcome going well? 


im mildly confused. how will she get approval if she quits her job and the only breadwinner isnt allowed on the paperwork?is she planning to quit only after the paperwork goes through?

i mean technically she is a working adult with clean credit, but do they actually have a down payment?

also im betting the repo was the husbands only. and IBR still counts as making every payment on time.

That's basically her plan.  Repo/foreclosure were in husband's name only (left over from a prior marriage), so they don't appear on her credit. Her goal is to qualify for the mortgage on her and her co-signer's salary.  After loan is closed, theoretically her husband will be making what the two of them combined were making and she can quit work to have the second child.

My wife tried to tell her to just buy a $160,000 house, but she said a $160,000 house wouldn't meet their needs since they are planning on having another child and have the step-son on weekends or whatever.  I'm not really sure where they're planning on getting the down payment money from. Maybe they were able to save up some during the time between when they stopped paying the mortgage and moved into the rental.

I honestly think she's just really in love with that one house because it will allow them to seem like they're living at a level above firefighters/teachers do down here.  Starting teaching salaries down here are around $36k, and the state mean is $48k. Firemen make less normally- like $15 an hour starting. 

MgoSam

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Meanwhile I'm going to be looking at a house today or tomorrow that is listed for $80,000, that if I like I plan on offer under that.

vivophoenix

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i guess the biggest issue is that when the bank looks at whether you can afford a mortgage,  they dont look at your actual spending habits.

so the bank will get a house to short sale and they will have double shot credit.
its hard to even feel bad for them

they wont be homeless,  they just wont be able to keep up with their bs lifestyle. i get upset when they are allowed to file bankruptcy repeatably.

jackiechiles2

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i guess the biggest issue is that when the bank looks at whether you can afford a mortgage,  they dont look at your actual spending habits.

so the bank will get a house to short sale and they will have double shot credit.
its hard to even feel bad for them

they wont be homeless,  they just wont be able to keep up with their bs lifestyle. i get upset when they are allowed to file bankruptcy repeatably.

It really is.  Their money trouble somehow got out and a friend of theirs offered them some money to go on a vacation.  They took the money and went on a vacation for 5 days.  Meanwhile, I'm sitting over here paying my bills monthly and the only vacation we got was borrowing my bosses parents' beach house for a weekend.   I'm like uhh...why didn't they take the money to try to save the house that was getting foreclosed on?


vivophoenix

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i guess the biggest issue is that when the bank looks at whether you can afford a mortgage,  they dont look at your actual spending habits.

so the bank will get a house to short sale and they will have double shot credit.
its hard to even feel bad for them

they wont be homeless,  they just wont be able to keep up with their bs lifestyle. i get upset when they are allowed to file bankruptcy repeatably.

It really is.  Their money trouble somehow got out and a friend of theirs offered them some money to go on a vacation.  They took the money and went on a vacation for 5 days.  Meanwhile, I'm sitting over here paying my bills monthly and the only vacation we got was borrowing my bosses parents' beach house for a weekend.   I'm like uhh...why didn't they take the money to try to save the house that was getting foreclosed on?

hahah it does seem like people,  who make bad decisions,  get more reward.

but i also think that we miss out on the other troubling aspects of their lives. ( is it bad to say i hope this is the case?)

jackiechiles2

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i guess the biggest issue is that when the bank looks at whether you can afford a mortgage,  they dont look at your actual spending habits.

so the bank will get a house to short sale and they will have double shot credit.
its hard to even feel bad for them

they wont be homeless,  they just wont be able to keep up with their bs lifestyle. i get upset when they are allowed to file bankruptcy repeatably.

It really is.  Their money trouble somehow got out and a friend of theirs offered them some money to go on a vacation.  They took the money and went on a vacation for 5 days.  Meanwhile, I'm sitting over here paying my bills monthly and the only vacation we got was borrowing my bosses parents' beach house for a weekend.   I'm like uhh...why didn't they take the money to try to save the house that was getting foreclosed on?

hahah it does seem like people,  who make bad decisions,  get more reward.

but i also think that we miss out on the other troubling aspects of their lives. ( is it bad to say i hope this is the case?)

There's definitely some other issues with them.  I think the stress of the financial stuff combined with a baby literally 9  months after the wedding, and a step-child that my wife's friend doesn't like that much (why you'd marry someone with a 5 year old kid you didn't like is beyond me) has caused some major problems in their marriage.  It's interesting, because on FB she's always posting how happy they are and how much she loves her "MAN" and whatnot, meantime she was telling my wife she was thinking about leaving the guy when the foreclosure first occurred.  Just goes to show you that if you rely on FB, you'll think that everyone's always better looking, happier, and wealthier than you.

slugline

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It's interesting, because on FB she's always posting how happy they are and how much she loves her "MAN" and whatnot, meantime she was telling my wife she was thinking about leaving the guy when the foreclosure first occurred.

At a certain point, the frequency crosses into "lady doth protest too much" category, doesn't it?

Anyway, this is a great setup. I hope you can return with an update next year (unless the situation implodes sooner, of course).

MgoSam

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It's interesting, because on FB she's always posting how happy they are and how much she loves her "MAN" and whatnot, meantime she was telling my wife she was thinking about leaving the guy when the foreclosure first occurred.

At a certain point, the frequency crosses into "lady doth protest too much" category, doesn't it?

Anyway, this is a great setup. I hope you can return with an update next year (unless the situation implodes sooner, of course).

I do worry when I see lovey-dovey posts on FB, though I hope that they are a genuine reflection of my friend's emotions.

Forcus

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Might need new friends :)

FIreDrill

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So they moved out, and are now currently renting some place in the country for $800 a month from a family friend. They signed a 6 month lease with the woman. Woman really wants to sell the house- says $220,000 is lowest they can go.

So they are renting out a place worth $220,000 for $800 a month? Why the heck don't they just continue to rent it??? A mortgage on that place is going to be way more than $800 a month....

crispy

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i guess the biggest issue is that when the bank looks at whether you can afford a mortgage,  they dont look at your actual spending habits.

so the bank will get a house to short sale and they will have double shot credit.
its hard to even feel bad for them

they wont be homeless,  they just wont be able to keep up with their bs lifestyle. i get upset when they are allowed to file bankruptcy repeatably.

It really is.  Their money trouble somehow got out and a friend of theirs offered them some money to go on a vacation.  They took the money and went on a vacation for 5 days.  Meanwhile, I'm sitting over here paying my bills monthly and the only vacation we got was borrowing my bosses parents' beach house for a weekend.   I'm like uhh...why didn't they take the money to try to save the house that was getting foreclosed on?

This is something I will never understand, and I have seen it happen several times.  If you can't afford food and basic necessities, you can't afford a vacation even if someone else is footing part of the bill.  I knew a girl who was always on the brink of disaster (and had recently asked a group we were both part of to pay her water bill because it was about to get shut-off), talking about her upcoming trip to Disney World.  She said her father was paying.  I never understood why she didn't tell her dad to pay her water bill because that was a heck of a lot more useful to her than a trip to Disney World. In her case, I suspect that she was scamming anyway and used the old "my dad is paying" excuse because she didn't want people to think she actually had money to spend on vacation because then people would stop giving her money. 

russianswinga

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So they are renting out a place worth $220,000 for $800 a month? Why the heck don't they just continue to rent it??? A mortgage on that place is going to be way more than $800 a month....

THIS. Our condo is worth about that much. Its rental rate (we checked) is $1600-1700/month.
Rent. Save. Buy with 20% down and no PMI. Oh and what bank in their right mind would give them ANY kind of a loan in their current scenario??

jackiechiles2

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So they moved out, and are now currently renting some place in the country for $800 a month from a family friend. They signed a 6 month lease with the woman. Woman really wants to sell the house- says $220,000 is lowest they can go.

So they are renting out a place worth $220,000 for $800 a month? Why the heck don't they just continue to rent it??? A mortgage on that place is going to be way more than $800 a month....

I think they'd be ok renting it, but the woman who owns the place wants to sell it to get the mortgage off her back.  Plus in my state, non-primary residences are taxed at 6% instead of 4%, which triples your tax burden.

zephyr911

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...she said a $160,000 house wouldn't meet their needs since they are planning on having another child and have the step-son on weekends or whatever.
*seethes* THEY'RE CALLED BUNK BEDS. Are these people fucking retarded?
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I honestly think she's just really in love with that one house because it will allow them to seem like they're living at a level above firefighters/teachers do down here.
There you have it, the crux of the matter. The main reason why people are broke in this day and age? Trying to look wealthier than they are, instead of being wealthier than they look. Jackasses.

jackiechiles2

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...she said a $160,000 house wouldn't meet their needs since they are planning on having another child and have the step-son on weekends or whatever.
*seethes* THEY'RE CALLED BUNK BEDS. Are these people fucking retarded?
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I honestly think she's just really in love with that one house because it will allow them to seem like they're living at a level above firefighters/teachers do down here.
There you have it, the crux of the matter. The main reason why people are broke in this day and age? Trying to look wealthier than they are, instead of being wealthier than they look. Jackasses.

My wife thinks she may be trying to keep up with what she thinks our standard of living is.  I'm a lawyer, my wife is a speech pathologist, so our income is basically double theirs-probably more, but they're trying to buy a house that's right around the same price ours was. I honestly don't know how they're going to afford it.