Here is a story about one of our newest graduates..
Jim and Meghan (names changed to protect their anonymity) came to us late in 2012. They had several issues that they wanted to solve.
- They were over $110,000 underwater in their house
- They lived over an hour from where either of them worked
- They had some credit card debt they wanted to get rid of
- They had very little savings
- Their financial issues were affecting their relationship
Coming to us was in their words, “A shot in the dark”. They thought that there were no solutions to help them resolve the combination of issues that were making their lives unbearable. They had resigned themselves to continue working, getting home late and paying forever on a house they no longer wanted.
We sat down with them to discuss the myriad of different options that they had available to them. We went through all of their options from stay and keep paying to filing for bankruptcy. Here is what they decided made the most sense for them.
- Stop paying on the mortgage and let it go to foreclosure
- Move to a better location for them and rent their house out to a tenant
- Use some of the money generated to put into savings and some to pay down debt
- Replace the car that needed to be replaced before their credit was damaged
They hired us to coach them through the process. First we set up the step by step strategy to walk them through their immediate action plan. Once they moved to a great new place that cut their drive times down considerably, we helped them through finding a tenant and the paperwork involved. They also bought a different car before their first late payment hit their credit report. Along the way we made sure their bank could not hassle them by phone and we reviewed all of the written correspondence they received.
In the more than a year that they kept the house and collected rent, they brought in over $15,000. That money paid down their debt and created a nice addition to their savings account. In the meantime Jim found a different job that he loves and pays him more than he was making.
Now, the house has gone to foreclosure and they cannot be held responsible for any of the loss. They have no tax issues on it and they have re-centered their lives in the area they want to live in. We protected the tenants so they did not have to move after the foreclosure. They have a handle on what little debt they have left and they are loving their lives together again. They don’t care about their credit because they don’t need it right now. They want to buy another house but they will wait until the bottom of the housing market in a couple of years. Their credit will be fine by then.
Meghan told us…
“It hurts me to even think about where we would be today without you guys. We are in a position now that if something happens to my job, I could not work for a few years and we would be just fine. There is no way we could have done any of this without you.”
There are no identical stories here at the Financial Revival Group because every one of our members has their own unique circumstances and goals. The outcome here is typical though. We help people come up and implement a strategy to accomplish what they want to do and…
We have hundreds of success stories like this to prove it.
If you or someone you care about owe more on your house than it is worth. Take your own “Shot in the dark” to see what is possible for you. Call us at 425-259-2600 to set up a free 15 minute phone consultation so we can talk about your situation and outline your options.