Has anyone else also gone through a foreclosure recently? I’d love to hear your story. You’re not alone.

So before I go any further, please be respectful. I’m being vulnerable here and sometimes, Reddit is a breeding ground for superiority complexes.

So for context, my wife and I bought a house in California in 2023; we were making good money and we lived comfortably. We had money in the savings, could afford everything easily, and things were going really well. Then it hit us like a ton of bricks.

Around a year and a half after we bought our house, my company made the decision to restructure to cut costs, so they laid people off and drastically reduced our hours for the people that were left. I went from working 60 hour weeks for the past 8 years to suddenly working 35-40. It was a punch to the gut. Then a month later, we get hit with an escrow shortage and our mortgage went up $1000 a month(apparently we’re in a fire zone so insurance skyrocketed) we have a son with autism, so us working two jobs wasn’t plausible, but two jobs still wouldn’t have been enough to compensate for all that.

We spoke to our realtor and refinancing/loan modification wouldn’t have helped. We were just in too deep, so we made the decision to sell our house. Unfortunately because we weren’t there for very long, we had to do a short sale. We got lender approval and we found a buyer. The process took about 5 months, but we finally got a closing date.

Then 3 days before the closing date, our realtor sat us down and gave us the unfortunate news; our short sale got rejected. Basically, the lenders weren’t satisfied with the amount of money they’d be getting from the short sale, so they told our realtor that they’d much rather foreclose and risk taking it to auction. By then, we didn’t care anymore. We packed all our stuff, moved in with in laws, and we’re honestly a lot happier. I actually recently learned that my brother also has to sell his house for the same exact reason; escrow shortage made his mortgage go up $1000 also, so it’s just a product of the current economy.

But I’d love to hear other people’s stories. I know we’re not alone in this. Thanks for listening.

submitted by /u/Eastern-Western7072
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1x52aiz/has_anyone_else_also_gone_through_a_foreclosure/