Foreclose, short sales or stay put?

[daddypoe]

I live in Minnesota.

Here is the deal. I own a house. I owe like 143,000 on the house, 22,000 in equity loan and have 12,000 in CC.

When I first bought this home I got it for a good deal but it needed a lot of work. The majority of my debt (about 30K) is from redoing the upstairs and completely finishing the basement. Plan was to do all this work and refinance my home, live in it for a bit and then sell it to get a bigger house. Well, that plan back fired.

I'm never late on a payment, I can afford everything I have and I'm paying down my debt. The thing is myself and my fiance want to get a bigger home now that we have had our 2nd child and she is working again. What should we do?

I can't sell the house for what we need. It is entirely in my name. If we got a house together what would happen if I can't sell my old one and I'm left with no choice but to let it go? Any other options or should we just wait it out another year? Thanks!

[nextwife]

So you "want" a bigger house right now, thus you are considering buying a home and dumping your current house equity defiency on another? Rather than simply staying put for the time being or covering any short amount to sell now, which you admit you can readily do?

Do you know how that sounds? You have no true hardship that REQUIRES you to sell now. You could rent out your current home, or sell it now and THEN buy.

I, for one, will NOT assist two able bodied, employed people not experiencing any true hardship (other than maybe our kids may need to share a room for a while or I'll have to make do without more bathroom) in walking away from their responsibilities. You AGREED to pay back your loan. You did not agree to only pay back your loan IF you didn't "want" more house NOW.

[HUD-1]

Without a hardship, a lender is not going to entertain a short sale. You could rent it out until such time as the value catches up with the principal balance, or you can sell and come up with the cash out of pocket. How big is the gap between value and debt?

[daddypoe]

HUD-1 - Thanks for your response. I'm not sure what the difference is at the moment but my realtor told me not to bother at the moment to getting it appraised, it would just be a waste of money.

nextwife - If I wanted a "lecture" I WOULD have gone to CLASS. I was upfront about my situation and asked questions. I do believe that this forum was intended for that. You should go and lecture all those receiving the bailout on their responsibilities instead of those who the affects are trickling down on.

Thanks again for the input, I was just kind of seeing what would happen and if I really had any other options than waiting or renting out my home. Renting it really all depends on how big of a hit I want to take every month since it is a town house with a pretty high association fee.