I spoke to my advisors today. They recommended staying put and waiting for the completion of the modification. If at the end of the process, I decide to walk away from the house, I still can.
The advantage of staying in the house is to save what money I can since I am not paying the mortgage. That money will be used either as the first payment after the modification is complete or to do whatever I need to do should I walk away from the house. That made me feel a lot better.
Apparently, if I receive a foreclosure notice from the bank, I will still have 90 days to move. However, the modification will also work in my favor. As long as the modification is in process, the bank will not sell the house. I potentially will have 9 to 12 months to live here mortgage free.
Should I accept the modification settlement, all late payments and fees will be added to the principle. I will make payments according to the new arrangements i.e. a decreased interest rate with lowered payments. At that point, I will need the saved money as a down payment or first payment of the new arrangements.
Now, another key piece of this huge puzzle is that of getting kids in the daycare. I am already doing my best. I am also in the process of looking for other employment. We will just have to see how things go from here. In the meantime, I have decided to stay put and utilize my time as efficiently as I can.
I do feel much better. Kind of back where I was before I panicked...lol!
Monday, August 31, 2009
Me and my kids sat yesterday afternoon and brainstormed on ideas of what we can do with the house, just in case the modification doesn't go well. My income is also threatened.
I am very concerned about the day care as well. Many other day cares, in the area, are closing because they can't handle the economy. Though I have been running ads in the PennySaver, putting up my banner, monitoring my webpage and talking to other providers, the kids are just not coming in. I am still down three kids. A few of my kids are three years old. Parents like to put their children in preschool at this age. If I loose those three children, I am really, really in bad shape.
So, what we discussed was my daughter, whose 21 and my 17 year old son would find a place to rent together. My 15 year old son would stay with them to finsh high school. Between the three of them, they would work out babysitting arrangements for my grandson. I would let this house go, give it back to the bank, and move back to San Diego. I would move back into the rental that I own down there.
Though I don't want to do daycare again, it is a very, very good location for it. I was well known in the area being two houses from the school. Getting children shouldn't be a problem at all. I plan to look online to see what other employment opportunities might exist. However, the down side is being away from my children and living alone, not to mentioin feeling like a complete failure to my intended goal.
I will make some phone calls today to my real estate advisors and see what their input might be. Ideally, I should wait for the modification to be completed. However, even if I get the best arrangements from the mod., if I don't get kids in the daycare, I might not be able to afford the payments anyway.
I should have more ideas by the end of the day. Positive thoughts :)