I Owe $169k By The End Of The Month (What Do I Do?)

Brought to you by the EveryDollar app. Start budgeting for free today. I am in kind of a tight pickle here. About a few months ago, I was looking to move and I needed to move quick because the living situation I was in was not good for my kids. The neighborhood drastically turned and became extremely dangerous. I took out a bridge loan to kind of try to get me into a new home. I was hoping that I was going to come in at a competitive price. My price was already like $30,000 less than what my home was worth. It's almost six months now and my old home still hasn't sold. I owe $169,500 by the end of the month. Their two options for me are not the greatest, so I don't know which one to do. They will either purchase a home, but I still have to bring $7,000 to the closing plus $2,000 carrying cost every month it's not sold, or I refinance again with them at $143,000 and pay $33,000 at closing and then sell it to keep it on the market for whoever knows how long. I've tried reaching out to investors. Who did you get this loan with? With UpEquity. This is not a standard bridge loan? No. This is an I'm going to screw you bridge loan? In a very short period of time. Yeah. I didn't realize that. Like I said, their crime was raising and I needed to get my boys out of there as quickly as possible. You can't use that excuse anymore because now you've stepped neck deep into stupid. What you should have done is gone and rented a property if you need to get your boys safe instead of stepping up with some loan shark. Instead, you went and bought a house that was not required for you to get out of the neighborhood. You could have got out of the neighborhood and gone and rented something. Anyway, we're here now. What do we do now? You're not bankable. What's the house on the market for? Right now, I just dropped the price again. It's at $170,000. Is it free and clear? No, I had. It was before the bridge loan. What do you mean free and clear? Did you have a mortgage on it prior to taking the bridge loan? Yes, I did. Of how much? $128,000. Did the bridge loan pay off the $128,000? Yes, it did. Okay. So your only debt against this is the $169,000 bridge loan. You dropped the price to $170,000 to try to get rid of it. Correct. Okay. The investors, so far the offers that I've gotten are $115,000, $120,000. So I'm looking at $50,000 to $60,000 of basically deficient pay. Do you have any money? I have about $26,000 in savings and checking. What about cars? I own my car outright, but yeah, I have a car. What's it worth? I don't know what it'd be worth now, maybe $17,000, $15,000. What do you make? I make just about $92,000 a year. Okay. Have you talked to your credit union about a $100,000, $150,000 loan and you put $26,000 with it and get rid of the loan sharks and just put a credit union loan on it and take the panic out of this discussion? No, I haven't really considered that yet. That would have been where you should have gone first before you did the loan shark deal. But, um, wow. Yeah. I mean, refinancing it without within getting these people out of the picture on a five-year balloon note or something makes a lot more sense. And then you've got some room to take the beating that apparently you're going to take on price and some room to cover the difference. But right now, I mean, if you write a check for 7,000, you're still on the hook for $2,000 a month for another $24,000 a year. Is that what you told me? Basically? Yeah. With the, with the loan shark guy. So you write a check for 7,000, you're not out. No, I'm not. Okay. So that's not really an option. That's like going from bad to worse. So I would rather you write a check for 26,000 and take out $140,000 loan with a credit union on $170,000 house, um, or something along those lines, or for that matter, I would rather you let's establish you are in debt, 170,000 with a rip off. Okay. That's where we are today. Right? So now if we restructure that debt, I don't care how we restructure it as long as we get rid of these guys. So if you bought a borrowed a hundred thousand from the credit union, put 26,000 in it and put 30,000 on a credit card, that's a better deal than you got now. And just because credit card, you're just got a series of payments. They're not going to come take the house. They're not, you know, but these guys that you signed up with Guido man. Wow. Yeah. I really, um, I really wish I hadn't done that. And I thought I was doing what was best for my health and for the kids, but you were leaving was best for your kids. I'm not making that argument, but how you left. Oh man. Oh my gosh. Yeah. I would have just put the house on the market left and gone and rented it, rented something, but that's behind us now for those of you out there that are listening. So yeah, that that's, um, restructure this somehow and get these goobs out of your life. Get Guido out of your life. The lesson for the listener is when you're fearful and you do things out of fear, you have to really think every way about the decision you're making and when you do things in urgency. So those are the two things that need to make you stop and go, wait a minute, let me make sure I'm making the right choice and I'm not. Does that make sense? I can look back on the worst deals I've done in my life and they usually followed me being desperate. Yeah, there you go. Desperate for me always equals stupid. As soon as I get desperate right after that, my brain quits working and I do something stupid. Right. Cause that's exactly what he did. The logic behind wanting to move is exactly right, but that's just a good word to the wise. Yeah. And, and you know, and when you do something stupid and it costs you money, when I do that, I call, I have to write a check for my stupidness. I write in the four column on the checks, stupid tax. Yes. You have to pay a tax when you're stupid. And I have paid so much stupid tax in my life, which qualifies me to host this show. Exactly. Because I have a PhD in DUMB. So I know, I know from whence you come. And so if I say you've done something stupid, it's because I love you and you're just like me. Your people are my people. You're my, you're my people. Create your free every dollar budget today. The simplest way to budget for your life.