Owe 127k; make 190k

[Anonymous]

Anonymous wrote:

Anonymous wrote:$4800 mortgage on $190k income? Did you have a higher HHI when you took out the mortgage?

No. It was a surprise to me. I thought payment would be closer to 3800, but with escrow , insurance (home ), and taxes I’m at 4800.
Previous rent was 4500 so I genuinely thought I could do it.
Household size is 4. The other adults are on aid and cover their own expenses.
-op

[Anonymous]

May I congratulate the PPs who have responded for extracting more sense out of OP's posts than they certainly deserved?

[Anonymous]

You are really bad at money and math.
Bankruptcy would be yet another bad step.
Do you have any interest in turning this around?
Your income is high enough to get it done in two years.

[Anonymous]

We have no idea how OP got into this situation- medical debt, divorce, bad decisions- it doesn’t matter, they need help getting out now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Posters usually write in complete sentences when asking for advice, OP.

No private. Public. My kid spent K-12 with an IEP in MCPS. I hope yours can do the same. Your college-bound kids have a better chance of standing out in a crappy high school than a private when it comes to college admissions.

Community college then guaranteed transfer to state college. I know someone who did that who went on to get a graduate degree at Johns Hopkins.

I don’t b/c I believe I will be recognized.-op

You original post is unintelligible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can you start over with the real numbers and using sentences? Where is the other 100k in debt? Is that 2 in private?

Definitely not bankruptcy

Hello I have 127k in debt including
2 cars ; 1 in repo. 1 with 12500 owed
4800 mortgage total owed 642k.
Tuition ending in June 3800
29k to irs. on payment plan
5k to VA
The rest of debt is credit cards, medical, toll bills that I didn’t catch (eg 810 on a $8 toll).
Thank you.

Just so you know, the almost $40K that I have bolded in your response is not dischargeable debt. That means that even if you declare bankruptcy, you will still owe that money after the bankruptcy. Your house, car and any other assets will be sold to pay off off the car debts, revolving debt (the CC, medical, toll bills). Your credit score will plunge, you will not be eligible for any credit cards, you child will no longer qualify for financial aid for either private or college and you will essentially rule out that your child can be accepted by any private school (because you would be too big a financial risk that you would not be able to pay the tuition).

So, bankruptcy would at best pay off 2/3 of your debt and leave you in a much worse financial situation than you currently are in. You need to find a different way to resolve the issues.

OP should read this carefully three or four times. Declaring bankruptcy is a horrible idea given those non-dischargeable debts.

As for selling the house, I'm kind of torn. OP says they owe $642k on a house worth $670k. With only $28k in equity, OP won't have $30k in proceeds if they sell. They'd probably have to write a check at settlement. It might be worth it—$4800 is a lot to pay each month on OP's income—but OP would have to come up with more money to sell that house. It's kind of a nasty catch-22: OP is in debt in part because a mortgage payment they can't afford, but they may not have the money needed to sell the house.

I wish I had a good answer. OP, your financial situation is a mess. But bankruptcy is the absolute last resort.

Sell the house, rent for 2k.

[Anonymous]

Anonymous wrote:May I congratulate the PPs who have responded for extracting more sense out of OP's posts than they certainly deserved?

*stands up while giving a slow golf clap and nodding head*

[Anonymous]

I have heard of free credit counseling services. I assume there could be something reputable near to you. But do make sure it is reputable. You probably need someone to help you study details of your agreements.

[Anonymous]

Mr. Money Mustache website and Dave Ramsey

[Anonymous]

Anonymous wrote:You are really bad at money and math.
Bankruptcy would be yet another bad step.
Do you have any interest in turning this around?
Your income is high enough to get it done in two years.

Yes and this is my belief. Consulting a settlement attorney this week .

[Anonymous]

The rent of $4500 was too high too. You need cheaper living situation, mo private school. Maybe another job to clear some of the other debt quickly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$4800 mortgage on $190k income? Did you have a higher HHI when you took out the mortgage?

No. It was a surprise to me. I thought payment would be closer to 3800, but with escrow , insurance (home ), and taxes I’m at 4800.
Previous rent was 4500 so I genuinely thought I could do it.
Household size is 4. The other adults are on aid and cover their own expenses.
-op

I'm having the hardest time figuring out what's going on here. You own the house and are making the full $4,800 monthly payments on it, but there are three other people, some of whom are adults and "cover their own expenses"—but don't contribute to the mortgage? That doesn't sound like contributing to their own expenses. Are you related to these people? If you sold the house, would they have to move with you? I'm very confused.

[Anonymous]

I don’t understand all of OP’s situation, but a $4,800 mortgage on a 190k (assume this is gross?) income is not good. We make 210k and our mortgage (with tax & insurance) is $1400. Sure, we could afford more, but life is plenty expensive. I could not imagine tripling our mortgage on our current salary.

Also, while a 700k home likely isn’t a mansion, the larger and more expensive the home, the more everything costs- taxes, insurance, repairs, maintenance. Our home is only 1500 square feet. It’s a little small. We are fine living in it, but entertaining is tough- we never host at holidays. Anyway, bigger house has a bigger roof, bigger furnace and more maintenance/$$$$.

[Anonymous]

OP, you have a high enough income and you can get out of debt in just 2 years.
At $190k, your take home pay could be $120k.
Can your family of 4 live on $60k? Yes you can. Do this for 2 years and pay off your debt.

[Anonymous]

Anonymous wrote:OP, you have a high enough income and you can get out of debt in just 2 years.
At $190k, your take home pay could be $120k.
Can your family of 4 live on $60k? Yes you can. Do this for 2 years and pay off your debt.

I think given her house situation (virtually no equity so sale would require cash which doesn’t sound doable and then there would still be the need for rent payments so no real financial advantage to this), it will take a bit longer. With $10k take home a month, there would be least $3500 to pay debt.