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Home > Ask The Get Out of Debt Experts > I Can’t Care For My House, I Can’t Sell It, I’m Stuck in a Bad Situation. – Vicki

I Can’t Care For My House, I Can’t Sell It, I’m Stuck in a Bad Situation. – Vicki

Vicki

“Dear Steve,

Hi; I am 64 years old, I bought this house in 2007 on a closed 10 year mortgage at 6.4%. I became sick almost a month later and had to have major surgery. I, now have a very bad back and have trouble walking etc. (I have no one to help me and I can’t afford to pay for help) Keeping up with the regular maintenance of the house is killing me.

I want to get out of the house as I am unable to look after it and my health problems (which I have many) any more. I tried to sell it myself (assumable mortgage is the only way possible) or I will have to pay around $8000 which I don’t have. I managed to secure several interested parties which the bank promptly turned down (one had a mortgage arranged but only at B credit, whatever that is) I am fed up and turned it over to a realtor which is getting me nothing.

This house is starting to need repairs and regular maintenance which are beyond my ability to provide. I have other debt too…..creditcard and line of credt etc. I have taken some very bad advice it seems to me.

I have already written a longer version of this question but I never saw it with the others on my Yahoo page. I am desperate as apartments are starting to get scarce again due to students returning and I don’t want to move in the winter and snow. I would most appreciate your help. I have been sent to bankruptcy people for advice but what are they going to sell me except their product—bankruptcy. I don’t think it has to come to that.

I need to get out of this mortgage and house, but without losing my shirt. HOW do I do it ASAP?

Vicki”

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The Answer

 

Dear Vicki,

I think we can both agree that the number one priority here is to get you into a sustainable living situation. An apartment makes perfect sense. It will be on a single level and not require you to keep it up. If something breaks, make a call and they will fix it.

It may be unlikely that you will be able to sell the house for what you owe. From what you described about activity since the realtor took it over I would believe that the house is overpriced for a quick sale. Agents do this because they want you to believe that if you go with them you will get a higher sales price and they will make a larger commission.

If you have not done so already, talk to your realtor about pricing the home to sell fast. See if that price will let you get out with at least covering what you owe on the mortgage. If it won’t we’ll have to go to Plan B.

Plan B is a coordinated approach with a bankruptcy attorney. What I’d want you to do is to find an apartment, qualify for it, and move in. You would then stop making the mortgage payments and go bankrupt clearing the residual house debt and your other miscellaneous debts.

But I strongly suggest that if you go with Plan B that you discuss this approach with a local bankruptcy professional in your area before you do anything. You need to do this so everything happens in the proper sequence.

Big Hug!

I Cant Care For My House, I Cant Sell It, Im Stuck in a Bad Situation.   Vicki
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Rogerdosit

    bought house 2007 now it’s not worth what i paid for it and it has mold spore’s that are effected my health to where i can no longer live there

  • Rogerdosit

    bought house 2007 now it’s not worth what i paid for it and it has mold spore’s that are effected my health to where i can no longer live there

  • Vicki

    Hi Joseph;

    As far as starving, that’s hardly likely especially since I’m trying to get rid of a few pounds right now!!!!

    I have way too much to lose in a bankruptcy….like my vehicle, my savings etc. I fought for everything I’ve got and I will not turn it loose because the bank says so and I’m sick of people walking through my house, (I was literally caught coming out of the shower on Friday) let alone have people messing up my kitchen and bathroom and everywhere else on a daily basis (I want to leave the mortgage not land in prison)

    I have decided the only way to get out is to pay the bank the $8000, then run but at least all I lose is the $8000. I need good credit to rent an apartment (trust me I know)

    So I will be concentrating on raising the money somehow and if I am stubborn…..well it can be a good thing.

    Thanks anyway.

    Vicki.

  • Joseph

    Vickie, you’re a bit too stubborn for your own good. If you neednoyt, you’ve been given quite a fee solutions. Quote frankly, those are the only ones you have. If you would rather starve than take the logical advice given, then by all means.

  • Vicki

    Hi Chris;

    Thanks for your comment, my response to you however, is the same as my response to spiritwealth. I’d rather starve!!!!

    I have been begged to rent or do a rent to own, should I be stupid enough to do either of these things I will be taking a risk. The risk being they wreck the house and leave or in the case of rent to own do the same thing, then I am left with a peice of junk house while still owing money to the bank.

    Also should I go the rental route, I will still have to do repairs etc (which most likely wouldn’t be needed if I didn’t rent in the first place) which puts me back in the position of dealing with bone idle, sloppy tradespeople whiche are a large part of the reason I want out in the first place.

    I appreciate your comment but I’m well and truly stuck until I sell. I want a clean break from everybody, I dislike banks intensely and that alone is a reason to get out and I’m tired of dealing with expensive slobs.

    Thanks but no thanks.

    Vicki

  • Chris

    Vicki,

    Have you thought about renting an apartment and renting
    your house out to someone else?

    Chris

  • Vicki

    Hi Steve;

    This is Vicki again. I have made several inquiries and the best I can get is debt consolidation covering only my line of credit and credit card debt. I will still be stuck with the major problem….THE HOUSE and it’s attendant expenses.
    I will lose my credit card in the meantime.

    As for the chapter 7 bankruptcy, it doesn’t exist in Canada which I suspected. Our system is different. I can’t walk away from my house. Bankruptcy will cost me about $2500 and I will lose everything…..my vehicle, my savings etc and I will end up kissing the government’s butt for a pitiful handout and ‘living’ in some city hovel with a bunch of losers.

    I have called my lawyer,, and several other people who are supposed to help with this stuff and if I am not left to wait an eternity on the phone (wasting a $40 battery) they do not ever return my calls and if they do I’m treated like I have the pox.

    This is it for me, I guess I’m just going to have to die here, I know I brought this on myself but there must be something I could do, but what?

    Vicki.

  • Vicki

    Hi Steve;

    Yes, it’s me again!!!! Thanks for the previouse answer but I absolutely DO NOT want to go bankrupt. I had that misfortune about 27 years ago and I can’t face it. I had a piece of junk car at the time (worth $50) that they made me pay for twice and the mortification is beyond belief.

    No, my main problem is I really need to be in an apartment. It’s not just the expense of upkeep and repairs but the fact that nobody wants to do anything, all they want is first rate pay for a third rate job and being older, a female and on my own, I must also have aquired a lobotomy scar I haven’t covered properly as they figure I will pay up and shut up. (oh the stories I can tell you!!!!)

    Having an apartment doesn’t neccesarily remove my need to have stuff done as my last apartment, they did nothing, I barely managed to get them to change a faulty light fixture that exploded and sent shards of glass at me, one of which nearly severed an artery in my neck (I had my thick winter coat on at the time so I was fortunate. However an apartment is what I need for sure.

    Now, if I were to choose bankruptcy. I will not be able to have a decent apartment, first I will need a credit check (even the last hovel ran one) then I would have no money to pay for it as I will lose all my savings etc. I also have a half decent vehicle that was purchased new and cash in 2001 that I am rather attached to that I will lose.

    I am not trying to get out of my other bills though I will have to tighten my belt and make a budget and stick to it. I just want to get out of the house, if I had the money to pay the penalty (up to about $8000) I would pay and run but I don’t have it to spare.

    At my age and condition, however am I going to come up with that much money and given the fact that I am trained for nothing (I married very young and have been a homemaker exclusivly) Now I’m just a pile of useless wreckage which annoys me no end.

    Please accept my appologies for being a pest but I had to get this off my chest though if you should come up with some other solution, just shoot it across and who knows!!!!! I am open to anything that will not ruin me completely like bankruptcy.

    I don’t want to go bankrupt as it will ruin me. I just want to get out of the house as home ownership is not good in my case.

    Thanks and big hug back.

    Vicki.

    • http://GetOutOfDebt.org Steve Rhode

      Vicki,

      My suggestion is to apply for the apartment right now, before the house gets behind and hurts your credit.

      There is no perfect solution here that is not going to result in some pain and I suspect that you would be able to qualify for a Chapter 7 bankruptcy and wipe out the house debt completely once you are in your new apartment and then stop making the house payments.

      A solution you select will one that is least painful for you, not painless. However, the plan I laid out in my original answer seems like the most logical and gets you into an apartment fast and hopefully with better management than you had before.

      Thanks for keeping me posted.

      Steve

  • Vicki

    Hi Spiritwealth;
    Thanks for your comment to my query to Steve. As you have noticed I am able to make the mortgage payments but the constant barage of ever increasing utility bills is driving me into the ground.

    I also need to get some kind of health insurance while I still can as I am covered for nothing except under OHIP which doesn’t cover dental and glasses etc and I am getting desperate for these services.

    As for your suggestion, you are right, my house is not suitable for a tenant and frankly I have had tenants before and I’d rather starve!!!! Also I have no family and I wouldn’t borrow money or anything from them if I had. I think the bank has screwed up my chances to have the mortgage assumed by people who most probably were better able to keep the house than I am but their credit is not as good as mine.

    Anyway, I appreciate your thoughts anyway. Vicki.

  • http://spiritwealth.wordpress.com Spiritwealth

    There is another solution here that might work. Her problem is that she is getting sick and can’t keep the house up. She does have other debt. It seems that it might work for her to find someone who wants to board with her, in exchange for house maintenance and a reduced rent, so that she can start to negotiate her credit bills with her creditors while being less stressed. This buys her time in a down real estate market until it can be sold without incurring a loss. She doesn’t seem to be saying she can’t swing the mortgage payments, only that it is hard for her to keep it up. Of course, if she hasn’t a spare room, it might not be doable. Just thought I’d mention this alternative. Sometimes a relative is even willing to help in such a situation as they may be out of work or struggling financially themselves. Then, it can be a win-win for both parties.
    .-= Spiritwealth´s last blog ..What Your Gut Instincts Can Tell You In Business =-.

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