What are my options if I can no longer afford my house?

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I bought a house as a first time home buyer (25 years old at the time) in June of 2024. Things were going fine until the end of last year. I am struggling to pay mortgage, bills, groceries etc. even though I am making a bit more money. I have made a few poor financial decisions, but nothing crazy. Everything is just expensive as all get out and I am trying to figure out what my options are given the fact the real estate market is atrocious right now (especially as a seller).

I have about $50,000 of equity in the property. I'm pretty much debt-free. Small lines of credit on 2 accounts.

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How permanent are your "poor financial decisions"? What your "best" options are will be heavily dependent on whether your problems have short, medium, or long term horizons.

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How permanent are your "poor financial decisions"?

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Short term. Ran through my emergency fund. Nothing major at all

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Ran through my emergency fund.

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On what? Look at your cashflow.

Stop eating avocado toast and just work harder!!!
Kidding.


As someone else mentioned, going to need more context to give advice.
Is getting a roommate an option?

It's a simple math equation, gotta know your outflows and inflows and see where it's hurting you. We cant help out until that is understood.

"I think" isnt going to help, have to see the actual numbers. What is your net take home pay each month, what is the mortgage, what are your other major expenses and debt payments.

your options if you truly cannot afford your mortgage are pretty cut and dried

-sell the house
-cut expenses so you can afford the mortgage
-increase your income so you can afford the mortgage
-split the mortgage payment with another party

If you don't like the roommate option, try getting a part-time job for a year or two. Not only do you make a little extra cash, but you have less free time to spend money. You may be able to find a job on the side doing something you really enjoy.

If your income growth prospects in your full-time job are good, you can quit in a year or two. Right now, you are "house poor".

If you sell, you could lose all or most of that equity.

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I am struggling to pay mortgage, bills, groceries etc. even though I am making a bit more money.

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Let's start with the basics: what are your monthly bills and where is your money going each month?

If keeping the mortgage current becomes a concern, I would make the house payment the top priority and cut every nonessential expense before missing a mortgage payment. Review all discretionary spending and eliminate anything that isn't necessary for day to day living.

For example:

Cancel streaming services, premium subscriptions, and cable television.
Consider switching to a low cost prepaid cell phone plan if you're currently paying for an expensive unlimited plan.
Review your electric and water bills and look for ways to reduce consumption. Small changes in thermostat settings, water usage, and energy habits can make a noticeable difference over time.

Food is another area where many families can significantly reduce spending without sacrificing nutrition. Groceries only become expensive when convenience and premium items are prioritized.

Cook more meals at home instead of eating out.
Choose lower cost proteins such as pork, chicken, eggs, and beans rather than relying heavily on beef.
Buy vegetables and staple foods in season and in bulk when practical.
Brew your coffee at home instead of purchasing it daily from coffee shops.

Transportation is another major expense. Do you currently have a car payment? Personally, I would look at downsizing or eliminating an expensive vehicle before risking the loss of a home. A car can be replaced more easily than a house.

It would also help to understand your family situation:

Are you single or married?
Do you have children or other dependents?
What are your monthly income and expenses?
How far behind are you, if at all?

Once we understand your full financial picture, we can identify where cuts can be made and develop a realistic plan to protect your home and improve your cash flow.

I too, bought a house at 25.
I had two roomates at all times who covered more than half my mortgage.
It's not hard to find a couple of decent people who just want to go to grad school nearby.

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I'm pretty much debt-free.
Small lines of credit on 2 accounts.
My credit score is not great. Around 600

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That's a lot of contradictory talk. Clean that shite up and start making smart decisions.

There is no reason for a single man with any kind of decent job to have a credit score lower than 800.