Impulsive house purchase in East Bay

New / Eng mediocTC
Sep 9 68 Comments

I'm in serious trouble.

Bought this house in east bay very recently, and now breaking up with partner. Only my name is on the title and mortgage, but with partner moving out, it will be very difficult to pay the mortgage since I only put %10 down, plus I bought expensive furniture to fill the house too. We're both having high paying jobs but still tough to afford on single income.

What are my options? The house is 3br 3ba with a big backyards (hard and expensive to maintain). I feel like it's tough to find roommates or rent it out but I may be wrong. Any suggestions?

I'm under a lot of stress.

TC 310k, monthly mortgage including tax $5600.

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TOP 68 Comments
  • Google NSFW4
    And this folks is phase 1 of the housing bubble here bursting ^

    You probably won't listen, but here is my suggestion. Immediately list the house and downsize into something affordable, especially if you can recapture the down payment. If you can't, or if the monthly payment is too much, just stop paying the mortgage. Seriously. It will take anywhere from months to two years to foreclose and evict you, in the meantime you live rent free. Secondly, there is a chance that they renegotiate the principal lower with you if they don't want the actual house ( which might be the case in a year or two if we're in recession)
    Sep 9 9
    • Wellington Management hmm19
      Definitely the mortgage company will garnish wages, given his TC.
      Sep 9
    • Google NSFW4
      No dude. Mortgages are no recourse loans. They are secured by the asset (home) only. Jeez.... Really??
      Sep 9
    • Google NSFW4
      What is a non recourse loan in California?

      Defaulting borrowers face no personal liability under California foreclosure real estate law. This means that a borrower won't be sued for a deficiency judgment by a non-recourse lender. A recourse loan is a loan that's secured against real property after the buyer's purchase of the property.Sep 4, 2013
      Sep 9
    • Google NSFW4
      Wow the ignorance is outstanding. It's cool just keep paying interest to the banks.
      Sep 9
    • New geAL28
      If only credit worked in dog years
      Sep 10
  • Cadence / Eng
    pretzle

    Cadence Eng

    PRE
    Intel Corporation
    pretzlemore
    So sorry. This is my fear of buying a house on a single income
    Sep 9 5
    • New crazyy!
      Wth!! You are not confident about your relationship
      Sep 9
    • Cadence / Eng
      pretzle

      Cadence Eng

      PRE
      Intel Corporation
      pretzlemore
      Funny how statements can be interpreted. There no SO in my story lol
      Sep 9
    • New crazyy!
      You mentioned “its my fear of buying a house”. Its obvious that you fear for the same
      Sep 9
    • Cadence / Eng
      pretzle

      Cadence Eng

      PRE
      Intel Corporation
      pretzlemore
      Unsolicited advice?
      Sep 9
    • Microsoft MHQh13
      crazyy! You don’t make sense here...
      Sep 9
  • New crazyy!
    Its very easy to get room mates. Just offer a little less if you are so scared and them rent it out or you could do airbnb. Later you can increase the rent. This way your money is also getting invested and dont have to sell

    I am just curious you say you have high paying jobs just wanted to know whats your TC and whats the price of the home
    Sep 9 7
    • Palantir fixbugs
      yeah OP, if you’re okay with living “non-luxuriously,” you should be able to afford the house. Unless you also have other debts..
      Sep 9
    • TI / Product ucc
      Seriously. You are fine on the money side.

      My TC is 160k pre-tax, and also have a $1M house. I could have roommates but choose not to. My friends are always asking me if I’d be willing to rent out a room to them.

      I used to have rommates and I rented the master bedroom out so I could charge more. I am fine living in the second bedroom.
      Sep 9
    • New crazyy!
      On the other note, why are you guys getting seperated?
      Sep 9
    • New / Eng mediocTC
      OP
      My problem is that it doesn't make sense to pay this much only for me in a big house. Also I don't get to save or invest much
      Sep 9
    • New crazyy!
      Yes, it will be your property and you anyways have to pay rent somewhere elae this way you can pay for yourself and rent it out the other rooms or airbnb. That way you will be able to save and invest somewhere else too. Given the market now as the market is very slow to sell you wont be able to make much profit once the market is better you can sell it for a good price given you try all the options either rent ot airbnb and then come to a conclusion whether to keep for yourself or sell it off
      Sep 9
  • Cisco wRUL67
    Rent it out
    Sep 9 7
    • New / Eng mediocTC
      OP
      It's hard to trust people on craigslist. What if they stay and don't pay the rent?
      Sep 9
    • Google / Eng rheimann
      You do a bg check in them to make sure they can pay rent.
      Sep 9
    • Cisco wRUL67
      Go find a standard 1 year lease for California, you can adapt that to your own specs. Then post on Craigslist and show the house with the amount of rent necessary to cover the mortgage or a % of the mortgage you feel comfortable with. They will have to put PG&E and electricity in their names. You can do a credit check and background check. Lock them in for 1 year that will buy you time. You can also Airbnb to test it out if you aren’t ready. Good luck!
      Sep 9
    • Cadence / Eng
      pretzle

      Cadence Eng

      PRE
      Intel Corporation
      pretzlemore
      There are third parties who specialize in such things. You need to pay a small fee, you don't have to go through this.

      Also- Zillow allows you to throw in rent options too, try that too. I agree Craigslist is a bit of stretch; also Roommates.com, Reddit are other options too
      Sep 9
    • Google / Eng rheimann
      Airbnb might be better for cashflow
      Sep 9
  • Amazon 🍑 booty
    You should only a buy that you can pay on your own TC, so it gives your wife the option to quit working when you have a baby... or if they get laid off.

    Get some roommates and rent it out, good luck.
    Sep 9 0
  • Facebook public2
    Guys this is a troll lol
    Sep 9 10
    • New crazyy!
      Got it
      Sep 9
    • New / Eng mediocTC
      OP
      Oh now I see what you say. I don't know how easy it is to rent out the rooms. The house is a suburban residential area with families, etc. Personally I wouldn't rent here if I was single (which I am now 😥), but that may be just me.
      Sep 10
    • OP why are you guys getting seperated
      Sep 10
    • New / Eng mediocTC
      OP
      On some level I knew this isn't working, but I was pushing forward. Buying the house was my effort to push it, until soon after realized I can't.
      Sep 10
    • Facebook public2
      In a place with new people arriving daily and barely any new housing it's pretty darn easy.
      Sep 10
  • Verizon myiw84
    This can’t be a serious post. If your TC is really $310k and your mortgage is only $5600 you should have no problem financially.... unless you’re spending all your money on hookers and blow and partying with Charlie Sheen.
    Sep 9 2
    • New crazyy!
      Op can survive but he wants to invest in other places and wants good savings
      Sep 9
    • Verizon myiw84
      That’s not what the OP is saying.... “with partner moving out, it will be very difficult to pay the mortgage since I only put %10 down, plus I bought expensive furniture to fill the house too. We're both having high paying jobs but still tough to afford on single income.”
      Sep 9
  • Haha. What a troll. With 310k tc your take home per month is more than 14k per month. Out of that you can't spend 5600? I would easily take on 7k per month . Unless you were given paper money or are not at all worth the tc. Like most of these overloaded blinders
    Sep 10 0
  • Amazon Freakstyle
    Rent it rent it. It's very easy. Especially in the bay area. We found our renter in just 1 day. If you can't find one that will take the entire home then rent individual rooms and just live there.
    Sep 9 0
  • Palantir fixbugs
    You can try selling the house quickly if you still have a bit of financial runway, and let this be a lesson for you...
    Sep 9 0
  • Palantir fixbugs
    By the way, actually relevant here, what’s your TC and monthly mortgage payment, taxes, and HOC due? And if you’re comfortable with sharing, how much liquid savings do you have?
    Sep 9 8
    • Palantir fixbugs
      closing on a positive note though, even though mistakes were made and costs are to be paid, I’m sure you can overcome this and hopefully learn some lessons as well. Better screw up now than in 20 years where you mistakenly sign away your then much larger net worth - good luck!
      Sep 9
    • New / Eng mediocTC
      OP
      So you suggest I save cash and refinance? How do I get out of this mortgage deal?
      Sep 9
    • LinkedIn kboom
      @fixbugs what makes you say his apr is terrible from the data above ? What's the apr you think he has ?
      Sep 9
    • New / Eng mediocTC
      OP
      It's 4.375. It was supposed to be 4.25 which wasn't too far off given %10 down, but in the last day my mortgage broker said he couldn't give me that due to my debt to income ratio, and gave me $5000 credit and increased the rate by 0.125. I didn't have loan contingency, so I could lose my 30k deposit.
      Sep 9
    • Palantir fixbugs
      Regarding the question, yes you’re in a spot where, say, a year of frugal living and aggressive repayment + refinancing can lead to significant savings down the line. I can’t give you specific suggestions since everyone has different spending patterns and financial background (don’t know enough about your spending patterns, illiquid assets, other loans, and even just life priorities).

      I’d recommend that you start speaking with some mortgage brokers (not banks) to see if they can provide practical advice and refinancing advice, esp. when/how to make the move and ask them to do a comparison to see how much you can save, and the short-term vs long-term tradeoff (again, are you willing to spend less in the near term for a fatter wallet in the future).

      Another helpful resource is r/personalfinance; folks there are overall less “edgy” and are happy to chat about your situation in a thread.
      Sep 9
  • LinkedIn Wigglytuff
    Keep it! Unless you have other expenditures that you didn't list. At 310k TC, $5600 monthly should be fine for your debt to income ratio. Less than half of your monthly paycheck goes toward your mortgage.
    Sep 9 0
  • LinkedIn somelee
    Dude you are fine. Rent out rooms and live in one of the rooms. Or airbnb if you are willing to put in a little more effort. Try to refinance asap into a lower interest rate (by bumping the down payment, sell stocks)
    Sep 9 0
  • Amazon
    baijos

    Amazon

    PRE
    Amazon
    baijosmore
    Find room mates to rent individual bedrooms. Loads of new grads join tech companies every year.
    Sep 9 0
  • Google ShakeBake
    With 10% down you’re probably paying some steep PMI. If you can rent it out and use that income to pay down the mortgage to 20% equity, you can refinance for a better interest rate and eliminate PMI, two birds with one stone.
    Sep 10 0
  • Google lQUu76
    Impulsive house purchase is an oxymoron.
    Sep 9 0
  • Cognizant
    thunderboy

    Cognizant

    PRE
    Morningstar
    thunderboymore
    Add roomates and have fun. This is new beginning and all the best. Dont stress, lost hair never comes back
    Sep 9 0
  • Gen!x / Eng
    ixptl12

    Gen!x Eng

    PRE
    startups, JPMorgan Chase
    BIO
    ¯\_(ツ)_/¯
    ixptl12more
    😂🤣☺️
    Sep 10 0
  • Juniper scandeep
    Rent out all the rooms in your house. Sleep in the living room.
    Sep 9 0
  • TI / Product ucc
    Getting roommates should be fairly easy. You can also put the extra rooms on Airbnb, or even the whole house.

    Sorry to hear about the breakup. That sucks.
    Sep 9 0

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