Sold condo for a loss, now stuck at parents house

Hi Terry,
I have seen you a couple times on the WGN news and this morning, 7-29-15, you spoke of the housing market. I think it was almost destiny that you were on and I was sitting at the kitchen table. I am sure you have gone over this at nausea but here is my scenario and I wondered if you can point me in the right direction or possible options.
I am a small business owner on the northwest side of Chicago, I own and operate a chiropractic clinic. I recently sold my condo for what I consider a huge loss. I purchased the condo approximately 8-9 years ago which what was probably the top of the bubble. I paid 235,000 for the property and about 2 weeks ago sold it for 170,000. I took money from the office to pay for the closing which was 41,000. My brother is a financial adviser and he recommended I do everything to protect my credit. It was a tough pill to swallow but now it is done. With that being said I’ve spent a large portion of money that has been saved over the years since opening my office. I have approximately 10,000 left in the business account to run the office. The office does make money, however, it had taken me a better part of 7-8 years to save that much. Also noteworthy is that within that time I had paid back a small business loan in the amount of close to 200,000 within 5 years of opening the office.
I don’t consider myself bad with money. I save what I can and usually only spend on necessity outside of little splurging here and there. I was one of the thousands of Americas who thought they were doing what they needed to do and got caught in a bad situation. I invest in an IRA and it is manage with my brother and has approximately 40,000. So I do what I can.
I got married in June and my wife and I have moved back home with my parents, a story you have probably heard before. Did I mention that I’m 38!!!! So now that you know my situation here are the questions…… Since I am self employed banks have a harder time loaning money because I don’t pay myself a lot of money, usually tend to pay what I need for personal bills and keep the rest in the business. My wife has had a history of credit problems in the past and has been slowly building it back up. Would I be better going through a bank or a loan agency where they shop around? My concern is that although I make money and pay bills the banks are gonna look at the bottom line and see that Me, personally, ain’t worth much and not approve a loan that will put me in a house and neighborhood that I can ride out the next storm in. The business, maybe, but last time I sat down with B of A they informed me that the business and myself are separate even though the business pays me and I owe the business. I wish this were easier……. Maybe I can just set up a meeting with you and we can figure this out and best steps??? Do you have an office in Chicago? I feel like I’m stuck even though I feel that I did everything right!!!!!! Look forward to hearing from you.. Thank you, C.

Terry Says: Whew, that is quite a story.  My first reaction is to ask WHY you sold the condo, and used up your savings to pay off the balance of the mortgage?!  That’s done now, and can’t be undone.  I’m assuming that you couldn’t afford to keep living there and paying the mortgage and taxes, while waiting for prices to rebound.  Still, it looks like a bad decision to me — especially if it forced you into your parents’ basement!

Second, you married someone with her own financial problems.  That doesn’t look like a smart move either, since now you have a double strike against you for the future.

Third — why do you want to borrow now?  It seems like you need to stay where you are and keep saving.  Don’t charge much on your cards — and when you do, pay promptly and in full. That more than anything else will help build back your credit over the next few years.  And you and your wife should be on the same page with this plan.  And both of you should contribute to a joint savings account so you can build up enough money for a down payment on a house when your credit is repaired.

I don’t have individual clients.  But if you want a more personalized plan or at least help, contact the National Foundation for Credit Counseling at 800-388-2227.  That will automatically connect you to the nearest local office.  It’s not too late to start over, and you should count your blessings that you have a business that is bringing you some cash flow.  Use it wisely!