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My husband and I both have jobs, not late on payments. We are 70k under. What can we do? Want out!

We earn ok money, this was our first home...did not plan to stay. Now my mother in law is living with us and can not go up and down stairs easy do to medical situation. We are current on payments etc... Any way out?
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May 14 2012 - Oregon City
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Sunnyview is right also check here... http://www.oregonhelps.org/programs/
as there may be grants available to help with retrofits so you can ride out the market. 
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May 14 2012
Very first step--Refi through HARP. If your lender does not participate in HARP, as if it has a HARP-like preogram for refinancing.
Step 2: Tell your lender your problem and see what it will do for you. Your MIL's medical condition may qualify as a hardship, which may or may not count for anything. I do not see anything that impacts your ability to pay, though.

A foreclosure, deed-in-lieu or short sale will hammer your credit score around 200 points, give or take a few. With a deed-in-lieu or foreclosure, which would be a strategic default in your case, it would take years and years to rebuild your credit. It would take around two years for a short sale.

My honest guess is that you're probably stuck for now. Wish I could say otherwise. A lawyer might have some other ideas, and the few hundred dollars fee would be totally worth it in your case.
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May 14 2012
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I think that your first step is finding out what all your options are and what your house is actually worth from a 2-3 local professionals.

Look up who owns your loan and consider seeing if you can lower your payments with a program like HARP to make it easier to make the payments. Just doing that may help give you additional money every month to make the retrofits that you need in your current house like a chair lift for the stairs. It might also give you the breathing room to move in a year of two and keep the house as a rental that will not sink your finances.

You may hear people who recommend a short sale, but that should be your very last resort. It would mean that your credit would be significantly impacted, that you would not be able to buy for 2-3 years in most cases and that you may be subject to other things like deficiency judgements depending on your state law.

Get all your options, do not short sale thinking it is the easy way out and get legal advice before you decide on your final option.
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May 14 2012
Be very careful with trying to do a shortsale on this.  You have to prove that you are unable to make the payments and I don't see this here. 
Collect as much information as you can and talk with several local Realtors that have alot of experience in short sales.  You Mother in law living there is a hardship but you do seem to have ample income to make payments.  So really do your research just to see what your options are.. 
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May 14 2012
You do not say when you bought the property and whether you have contacted a listing agent to see if you are able to selll the property without having to go into a short sale.  Please, do that first and then post your message again, telling us what the agent had to say.
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May 14 2012
I agree with Jim that your first step is to talk to you current mortgage holder as you have a medical necessity to move. You can also begin to explore the option of short sale. You should talk to a local real estate attorney and realtors as well as your mortgage holder about the short sale option. 
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May 14 2012
Is the situation with your mother-in-law recent? If so, that has created a hardship in your financial situation. I have successfully negotiated a short sale where the sellers were current on their payments, but a new or anticipated hardship occurred. In my case, the seller was anticipating being laid off. Sometimes the bank will take that into consideration and allow a short sale. Talk to them and be honest. You might be surprised.
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May 14 2012
Short sale is an option, but it will jeopardize your credit.  Have you considered purchasing new home and turning your existing home into an investment property/rental?  Talk to a realtor and a lender and they can give you more information and consulting on the issue.  If you have financing questions feel free to call me.
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May 14 2012
All you can do is talk to the bank your loan is with and see where you get.  The very sad part is they don't even talk to people who are paying their loan on time.  Most banks require you to be late on your payments before discussing any options, but give them a call.  That is the first step.
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May 14 2012
 
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