Anybody in this situation? Accepted, but currently own a house...

[loo]

...and the market has tanked. To add to the misery, the rental market is saturated as well.

I'm worried because I'm not sure I'll be able to unload my house before school starts.

As far as I know, you can't get/use student loans to pay the mortgage...

Anybody have experience with this? Would it be possible to request a deferment from the school? Am I screwed?

Thanks.

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[SketchLazy]

...and the market has tanked. To add to the misery, the rental market is saturated as well.

I'm worried because I'm not sure I'll be able to unload my house before school starts.

As far as I know, you can't get/use student loans to pay the mortgage...

Anybody have experience with this? Would it be possible to request a deferment from the school? Am I screwed?

Thanks.

Most Financial Aid offices will raise your COA if you come to them with a list of all your bills including your mortgage and show to them that you can't pay them all off without having your COA raised. As long as you make your case, they should be fine with it, and you should be able to get either GradPlus or private loans depending on how much your original COA was.

Whether it's a good idea to pay your mortgage payments with a loan is another story. If your mortgage is set up so that you are paying mostly interest in each payment, it is a really bad idea. You're not making any equity and you're paying off a loan with another loan which probably has a higher interest rate than your mortgage. Might as well find an apartment that is a lot cheaper than your mortgage in that case. But as you said, you might not have a choice because you might not be able to sell the house. Avoid it if you can.

 

[gman33]

Are you going to have to move for school? I assumed yes from your original question.

If so, I doubt you will be able to get your COA high enough to cover mortgage + rent at school. If you are still working now, you should be able to get a HELOC to help cover some expenses while you are trying to sell the house. This is assuming you have equity built up.
If you are upside down in your home (more debt than value), you will have some problems. You could sell the place for a lose, or just try to rent it out for a lower number so you can get some money back. Unfortunately you're in a tough situation. Not sure a deferment would help much. No reason to believe that the housing market will be in better shape a year from now.

I'd suggest talking to a knowledgable realtor in your area. It's hard to give any advice without knowing all the specifics of your finances and the market in your area.

 

[Kateb4]

I am in the same boat! We haven't been able to sell our house, and it's just not a good rental market where we are. We already signed a lease to rent a house where we will be moving to, so come July we will be paying a mortgage and rent on another house. Plus, I have to find some money somewhere to pay movers to take us halfway accross the country, not to mention the security deposit on the rental.

I'm looking into some short term loans that can get us thru the summer until we get loan disbursements. Luckilly, my husband found a good job, so we should be ok short term, but if the house dosn't sell by the end of the year we are in a bit of trouble.

 

[TheBee]

Wow I think you guys are my long-lost brothers/sisters! My husband and I own a house in Phoenix, which is one of the worst markets right now. We've been trying to sell it for almost $50k less than its appraised value with no luck. I'm going to Chicago in 6 weeks to start pod school, so we're really stuck. We were planning on buying a house in Chicago, but that can't happen now.

Just this week we've started to look for renters. It's way less than ideal, but it's either that or foreclose (ie financial suicide). One good website I've found is www.roommates.com, and also craigslist.

Good luck with your situations, guys. The hurt is deep, oh how I know!

Anyone need a house in Phoenix...?!

 

[mshheaddoc]

Are you going to have to move for school? I assumed yes from your original question.

If so, I doubt you will be able to get your COA high enough to cover mortgage + rent at school. If you are still working now, you should be able to get a HELOC to help cover some expenses while you are trying to sell the house. This is assuming you have equity built up.

FYI: HELOC's are pretty frozen in many areas because of the tanking market values because most people are highly leveraged unless you have like 50% LTV even then the limits/threshold of getting a HELOC have been raised to unbelievable heights.

I don't have anything else helpful to say yet I wish I did. Good luck!

 

[Phoenix.]

Yeah, I'm in a similar position. But I made sure to secure a home equity line of credit before I submitted for federal/gradplus loans (actually still haven't submitted for them yet) so that I'd have the HELOC to help if I end up having to pay two mortgages while in school. I plan on buying a place in DC this summer (where unfortunately for me, it's a SELLERS market), and will be putting my Chicago condo on the market this week. Fingers crossed.

Hopefully things will work out for everyone by August/September.

 

[mshheaddoc]

moving to the finance forum. I meant to do this earlier.