Buying or Selling a Home/house


QUESTION: I buy a $200,000 house.  I borrow $300,000 from the bank and $100,000 from friends.  That total to $400,000.  The house is 30 year payment plan of $1800/month and $5000/year in tax.  About $200,000 are spend on fixing the house and help pay the mortgage.  I have pay for 7 years now.  I cannot afford to pay anymore.  So, the bank took the house for $200,000.
I still owe $100,000 and $100,000 from friends.  The bank did not consider the value of the house when I fixed it and the value of the house when I was paying for 7 years. Now, I do not have a house.  I owe $300,000 in debt as well. Did the bank scam me? It has become a disaster for.  I wanted to buy a house for $200,000. Now, I do not have a house and in debt $300,000.  I am in debt for life.  What should I do? Can I hope to get my house back and not be in debt?

ANSWER: Henry,
I'm sorry but it looks like you scammed yourself. You bought more house than you could afford and involved your friends.  The only thing that the bank considered was that you didn't pay your mortgage.  The house was foreclosed on and what the bank got was market value of the house now.  If the house had sold for over the mortgage that you owed, you would have received the overage.  The value of houses changes with the market and the market has gone down since 2007.  It has come up some, but that depends on where you are.  
No, you cannot get the house back.  It isn't yours anymore because you didn't pay the mortgage.  Next, you probably will not be able to buy a house for some time because the foreclosure ruins your credit, unless you pay cash.  You can't do that because you still owe your friends money that you have to pay back.  Henry, living beyond your means is a bad idea as you have found out.  If you had actually bought a house for $200,000, you might still have it.  You bought a house for $400,000 that you couldn't afford plus you took money from friends and didn't pay them back?
Learn to live within your means and pay cash for everything. That's the only thing you can do.

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QUESTION: What I am thinking is that I bought a $200,000 house and borrow $200,000 to fixed it someone more so it look even better. In the end, they should owe me for the 7 year payment on the house.  I never heard that one would owe someone money for a product that they return.  I mean if I bought something from a store, I return it. I get full refund.  In this case, the house and fixing is returned.  They owe me for the 7 year payment that I mean toward the house.  What happen had not make sense at all?

ANSWER: Henry,
I'm sorry you didn't understand and listen when the mortgage was explained to you.  They don't owe you a thing and you don't own the house.  Nothing is going to change that.  This is the way it is done here.  You didn't pay the mortgage.

---------- FOLLOW-UP ----------

QUESTION: I know, but my life is ruined.

The purpose is to buy a house. Now, the house is no longer mine, I would think that I would get refund or in other word break even.  But I pay for the 7 year payments, I loose $150,000 there.  

How come I loose money out of all of this? I should break even. You got your house back and thus my loan is zero. I even pay payment plan, thus I get compensation for that.

I'm sorry Henry, but nothing you can say or do is going to change anything. You failed to listen when they explained how the mortgage works.  You also fail to understand that house prices are not constant and also house depreciate as they get older.  Most of all, you do not want to recognize that a contract is a contract and what it is, is what it says it is. Period!  It doesn't matter what you want, what you think or what you hope at all.  The contract is final.  YOU GET NOTHING.  In fact, you are additionally penalized, because now, because you didn't pay your mortgage, no one will lend you money at all in the next few years.  That is how it works here.
Henry, I'm sorry I can't help you and neither can anyone else.  The only advise I can give you is
1. Live within your means.

2. Don't spend other people's money.

3. READ and UNDERSTAND the contract because it means what it says.

4. Nobody else is going to get you out of a mess you made.

5. Face reality and learn to live with it and do better next time.  

This time is over.  I can't help you.

Buying or Selling a Home

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Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO


A lot of people who want to move to the mountains don't really realize what it might involve. For instance, here in North Georgia, if you want a mountain view, you may have to drive up very steep roads. Will you have well water (That's usually good!)? Do you speak septic tanks? Have you considered that if you want really want to get away from it all, you'll do it on a gravel road? What's difference between a Log home and a Log Sided home? How can I tell? Who takes care of the house when you're not there? Where can you stay to check it out? This is a very popular area for second homes and investment properties or when you finally decide to get way from it all, I can find your perfect property. I can answer questions on North Georgia Mountain living, housing, land, amenities, and activities. We handle a lot of foreclosed properties in our office so I have become a Certified REO Specialist. REO means Real Estate Owned and is the industry name for a Foreclosure. It refers to "owned by a bank or other corporate entity". If it involves an area of expertise I don't have, I can probably tell you what kind of an expert you do need.


We've had property in the Ellijay area for over 10 years. My husband, who is a Civil Engineer and Appraiser, and I built our own log home. We researched log homes and North Georgia for three years before choosing Ellijay. Because of the building experience and being married to an engineer/appraiser, my real estate experience is a bit more extensive than average. I also am an education freak believing that the more you know, the better off you are. My husband and I both like photography, so we drive and hike all over the mountains looking for pictures.

MHA, CMA, Licensed Realtor, Associate Broker, e-PRO, GRI, Certified REO Specialist. Realtors are required to have 24 hours of continuing education every 4 years. In the last three years, I have 180 hours so far!

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