Lawyer gives you gross 90K minus applicable fees and other penalties. You can then deposit it to the bank. Its clean money.

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We found a great house in houston (<$150k) that has lots of potential but we need to tack on about $60k for repairs and upgrades. once it's done it will be marketed at around $300k. home financing is getting trickier and trickier, and at this point we can't seem to get any answers as far where this renovation money could come from. we are approved for the mortgage pending an appraisal survey (at our cost) which is fine, but why spend on that when we don't have our rehab funds secured yet. the house would be to flip & sell, and this is our first time doing it. i'd like to get on a roll and do this continuously as an eventual career so your intelligent information is humbly appreciated.

Rehab a Home w/FHA's 203(k) Rehab Program The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes. The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it. Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing. The Department also believes that the Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs. If you have questions about the 203(k) program or are interested in getting a 203(k) insured mortgage loan, we suggest that you get in touch with an FHA-approved lender in your area or the Homeownership Center in your area. Introduction Section 10 1 (c) (1) of the Housing and Community Development Amendments of 1978 (Public Law 95557) amends Section 203(k) of the National Housing Act (NHA). The objective of the revision is to enable HUD to promote and facilitate the restoration and preservation of the Nation's existing housing stock. The provisions of Section 203(k) are located in Chapter II of Title 24 of the Code of Federal Regulations under Section 203.50 and Sections 203.440 through 203.494. Program instructions are in HUD Handbook 4240-4. HUD Handbooks may be ordered online from The HUD Compendium or from HUDCLIPS. 203(k) - How It Is Different Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan. Eligible Property To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible. Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place. In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit. An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation. A 203(k) mortgage may be originated on a "mixed use" residential property provided: (1) The property has no greater than 25 percent (for a one story building); 33 percent (for a three story building); and 49 percent (for a two story building) of its floor area used for commercial (storefront) purposes; (2) the commercial use will not affect the health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property. http://portal.hud.gov/portal/page?_pageid=33,717160&_dad=portal&_schema=PORTAL Hope this helps

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I owe 410k on two mortgages (260k to wells fargo/150k to chase) for my home and my home is not worth more than 300-340k. i have barely been keeping my head above water making payments on the home. i have debt as well (50-60k) that needs to be paid off but don't have the money to do so. my wife and i want to move to a neighborhood with good school systems within the next 3 years so our daughter and son can start 1st grade in a good school district. our fear is that not only will we struggle to continue to make payments on time but that when we sell our house in 3 years that we will go to the closing table owing money. i have read about people just walking away from their home and others doing a deed in lieu of foreclosure. i could really use some advice as to what to do with our financial situation.

You have few options and they are all bad. You don't want to walk away. If you stop making payments, stay in the house until the last day. That way you protect the house. If it gets vandalized before the foreclosure auction, it is your problem. So take a video of the place on the day you move out with it all clean. The sheriff will arrive to make sure you are out and you can give him the key. Or you call the bank and say that you are signing a deed to them today. Why wait for the foreclosure. Why worry about vandals. My friend made this call 2 weeks ago. Wells Fargo is offering to allow him to skip 6 mortgage payments. Their first offer was to add the 6 to the end of the loan. He said no. They now said they will forgive the 6 payments and not add them. He has decided to stick it out. /

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Please tell me what you think....brutal reality is fine. was just laid off and have full severance until march. (very lucky). the clock is ticking. my wife doesn't work as she watches our two kids, 8 yrs and 6 mos. our monthly expenses, including mortgage and utilities/food are about $4200/mo. (two cars...try to get rid of one.) i have been out of work for just a little over a month and the clock is ticking. i have an mba and 20 years marketing/financial services experience primarily in the credit card field. i am 42. i have been applying for jobs online with no answers. i have been using my network of friends and on linkedin to pass on my resume - nothing. i have been following up with hr and hiring managers via email about the positions - nothing. in the past 30 days i have applied to 70 jobs, including government ones. my last salary was $150k/yr. i have been applying to jobs nationally and even internationally. i'm willing to go down in pay if i have to and have been applying for jobs at significant lower pay. i've been applying jobs in my old industry and outside...the new industries want someone with years of experience in that industry at my level. we have some money saved that would keep us going for another 4 months and then everything is gone. i'd rather not throw that money away to save the house for another 3 months just to watch our credit get killed, our money drained, and the house go into foreclosure anyway. plan is to sell the house, if it'll sell, and move in with my 80 year old mother. it'll be tight, but it's a roof. my wife could get a job, but with full unemployment, she'd have to make over 60k/year annualized simply to cover everything. she doesn't have a degree and probably wouldn't make enough out of the gate to cover everything. i'm not whining...these are my challenges. some people i know were out of work for 3-6 months. some over a year. i'm not going to let up...will keep applying for jobs and following up. there's a little bit of panic in here, i know, but i have to be realistic. what do you think i should do, if anything, outside what i'm already doing? ps: spam links will be reported. i'm looking for honest bona fide answers.

Like you, I have over 20 years of work experience; like you, I have an MBA; like you, I earned about $120-$140K in my best years. Like you, I was laid off ( in 2002 ). Like you, my wife did not work. Unlike you, I had only 3 months of severance. Unlike you, I had one kid in University & one in HS, so my expenses were higher. I was out of work for 2 1/2 years. In that time, we had to live on savings and an emergency fund ( that was a very prudent thing to do , in hindsight ). I am now working for a little more than 1/2 of what I used to earn. We continue to live as simply as we can, no cable, no premium cell phone plans, one car ( going onto 10 years old ). If we want to watch movies, I go to the vending machine at the CVS store. No newspapers, no magazines. Absolutely no eating out at expensive restaurants, and no vacations with overnight stay. Only day trips. I pack a sandwich and water for lunch most days. Why do all this? Well, the fact is that I can lose my job any time, this is a time of bad economy and poor business, I expect more layoffs in every industry. I am older, and less likely to land a job this time around. So, we prepare for a future as a worst case scenario. But, the funny thing is that we are enjoying ourselves even without the luxuries. We talk to each other a lot more. We find interesting things to do with bits of cloth, glue, shells, and wood scraps. We are more aware of the beauty of our local town as we now take long walks, and see new things daily. We are healthier as we now walk and ride our bikes instead of driving to town for a night out.