My dh has a bff with a HUGE dilemma.
His family of four recently moved out of state w/ hopes of bettering his financial situation, but he left his home here in AZ in care of his realtor.
Well, since the real estate market is ridiculous, they haven't sold the house for almost EIGHT months. they're on an interest only type loan, and financed the house for full asking price of $245,000.
It's now selling for $189,000.00!!!!!!!!! The house keeps on increasing due to the loan, needless to say they still need to pay it on a monthly type basis.
They're waaay underwater with this deal and still have to pay their broker as well w/ probably helping future buyers w/ closing costs. They've ALWAYS made horrible financial decisions and though we try to help them, they never budge and take our advice. What would YOU Mommysaver do?!?


Update: They knocked down the price, once again!

Full loan amount - $245,000 (what they owe - interest only loan)
Price decrease - $237, 500
again - $225,000, $209,000, $200,000
Three weeks ago - $189,000
Today - $175,000

ughhh...!!!!!

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You must be the change you want to see in the world ~ Gandhi

I would sell it as quickly as I could- even if it meant taking a loss.

Or I would consider renting it out. Snowbirds and superbowl people are going to want it.

I agree, I would rent it out, for sure. They are wasting time and money with it not selling and it just sitting there with no one in it. JMHO.

Yep, I agree. Rent it out. That is what everybody is doing here. New families can't afford to buy right now.

Rent it or ask the realtor about a home auction. there have been a lot of home auctions around here. they dont necessary go at a low price bc they set a reserve.

I agree with all of the above...
He told my husband he's thinking about coming back, since there hasn't been any luck.
I find this so very frustrating, I mean, how MANY bad decisions does one have to make to start reaping the benefits of effective decision making skills?
I haven't a clue.

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You must be the change you want to see in the world ~ Gandhi

It's sad - their parents probably weren't very wise with their finances either. I hope they can learn some skills, whether it be by seeing someone's good example, or an intervening source.

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We have friends kind of like that. All we can do as their friends is try to influence them and be supportive when they need it. We can't make them see the light unless they are ready and accepting.

My friends got pregnant and decided to try to buy a house before baby came even though they could barely afford the rent on their apartment. They couldn't afford to buy a house and then decided to "rent to own" her brothers home. I advised that they should get a final inspection done on the house before they signed any contracts for it. Not that there brother would cheat them or anything, but for them to know what kind of condition the house was really in since her brother bought the house "as is" a few years back. They decided not to spend the $400 for the final inspection. Then within a month of moving in, they had to fork out $15K for central air and heat and new ducts. And 4 months later the upstairs shower was leaking into the downstairs shower (for years apparently) so the ceiling fell down and there is lots of dry rot that needs to be replaced. And those are just the big items. There are a lot of little items that need to be fixed.

I am so worried about them...but there isn't anything I can do. Unfortunately all we can do as their friends is just sit by and watch.

Sandra

You're very right. That's all one can and must do...let them fall on their butts and make their mistakes. It's sad though, y'know? She comes from a pretty well off family. I'm conflicted however, in seeing that her parents don't lead them into the right direction and keep on allowing them to fall deeper in debt. He has had AT LEAST three different vehicles in the past six years. Of course he owes more money from the last trade-off so that's on top of his new one. They had bought a luxury fifth wheel ttrailer, decided to keep it less than a year (this was FOUR years ago) and sold it $20,000 less. To this day they're paying the loan. I don't know, I can't see myself talking to them a lot anymore...there's too much there. Her and I would have NEVER been friends under other circumstances, we were just forced to. Anyway...

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You must be the change you want to see in the world ~ Gandhi

They are going to have to hit rock bottom before they change their ways. It's unfortunate..but that is how they are going to learn.

You can still be their friends...but just don't let their situation drag you down emotionally or financially.

Sandra