Please help?

Question

I'm new to this great site & would like to ask some questions on my situations here:

Bought this home in March 2007 for $625K as a primary residential.
- Down =$62.5k (my money) + Second =$62.5k (same lender). 
- 1st = $500k + 2nd = $62.5k ( total finance= $562.5k)

- Now the value of the house is around = $460k ( means lost $100k+) in two years.

* I will no longer able to pay mortgage on this house because of my job & other financial issues right now.

Should I walk away? short sale? or forclosure?..Thanks in advance for any inputs.

Account Closed · Answer

How do you get another job and try to make up $100k shortfall?  Or suggest eating the $75k the fellow lost isn't enough already?

I suggest if walking away makes the most sense, do it and don't look back. How? You make a deal with the bank.

There's an art to the deed in lieu deal (and you'd better believe, it is a deal). Work a deal!

I suspect you can get everything you need in this market, and then some (like they agree they will not ding your credit). Doing so costs them nothing and if it facilitates the deal and saves them time and money, why not?

Harrison Painter · Answer

FJ,

I see that it has been about 45 days since you spoke about your issue............

Any updates as to your situation?

We really hope and pray that things work out for you!

Vicci Fain · Answer

You could do a Loan Audit which could entitle you to money damages and / or  a new lower rate loan. [SOLICITATION REMOVED]

Peter G. Cronje · Answer

Yes, try to hang on to the property, try everthing in you power.  Don't just give up, you must take responsibility for your actions.

Mike C · Answer

I suggest you follow MikeOHâ€™s advice about getting some other jobs and hanging on to your property. 
                                    
                                    Taking the easy way out and pretending it isnâ€™t your fault isnâ€™t the best way to handle things. And take it from a former loss mit negotiator in that a deed in lieu is just as bad as a foreclosure on your credit report. Donâ€™t believe the hype. 
                                    
                                    California is a Power of Sale state which is generally faster through the process of foreclosure than judicial foreclosures. Be glad you are not in Texas. They are one of the fastest states, usually less than 3-4 months. They donâ€™t call it super Tuesday for nothing. I donâ€™t remember California as not allowing deficiency judgments although that could have changed. I seem to remember reading they may have passed some legislation to at least temporarily keep people from getting 1099s for income on foreclosures during this "crisis."  
                                    
            Edit. Yes, Bush signed a law giving a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. No taxes would be owed on the value of any debt forgiven or written off.
            
            Here is a link for your reference:
            http://www.msnbc.msn.com/id/22345416/ 
            
                                    Good luck
                                    
                                    Mike C

Fjcruiser X · Answer

Kolt B...
It seems like you have a good understanding what's going on & why we got into these situations. Hopefully things will get better soon but it does not look that way for the next 2-3 years.
I don't think this Admin knows what to do, but they have to do sometings & we may end up in a deeper hole in a long run.

-As I said I have not make any dicision yet, but will choose what I think is right for me. Yes, my credit rating will be really bad for few years, fortunately only my name on the title.

- Loan modification won't help much in my case because they only able to either xtending 5 more years on the term or lower the interest rates or both.
- Short sale is a joke: almost zero chance?. because the banks have too much inventories....Best Regards.

Kolt Berringer · Answer

Fjcruiser X,

It seems you may have done a "Deed in lieu of Foreclosure" is that correct? That means you saved the lender the cost of an attorney and filings of foreclosure. In a sense it is walking away from the home with no legal ramifications. However you must have taken a serious blow to the credit aspect. I hope you get back on track, and unlike some people on here, I do understand you originally did not get in over your head, you are a result of a bad economy stemming from the scandalous lending of ARM loans to people who could not afford their homes. Those borrowers were not fully advised of the future outcomes of a rate adjustment and in a sence alot of people made money on ignorance of a borrower, how sad. GOOD LUCK!

Fjcruiser X · Answer

Thanks Taz..that's correct CA  is 99% None-Judicial process of foreclosure.
            
            http://www.foreclosurelaw.org/California_Foreclosure_Law.htm
            
            Calvin. I cannot answer to your questions, but please see this link below to see if you will get anything out of it. It seems like Gorgia's foreclure law is much thougher than CA that's why more people choose Bankruptcies option.
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Account Closed · Answer

I think he meant no deficiency judgment.

BTW, with a full-on foreclosure, your score will be much lower than 600.

Calvin N. · Answer

I would really like an explaination how you can walk away without any legal ramifications.  Can you tell me more of what your attorney said?  What did he say would happen to the property?  Who will be responsible for the debt?  Just wondering....