Our story starts over two years ago. We moved to the Atlanta area from out west with a job transfer and bought a new home in a subdivision that at the time was building and selling homes at a rapid pace. We purchased the home for $289,000 with an 80/20 30 year conventional loan. Not long after we had moved in, the building and selling slowed and came to a halt several months later. Over the last year and a half, the condition of what we thought was a great investment has turned very ugly to say the least. For whatever reason, our subdivision has been hit very hard by forclosures. Add to the pot that three or more of the original builders have also forclosed on many brand new homes in the subdivision (30+, 14 even on one street). The house to the right and to the left of ours have both gone through forclousure and have new owners in them each for 168,000 and 175,000, keeping in mind that both of thoes homes sold for 285,000 and 292,000 just two short years ago. The streets in 75% of the subdivision are not finnished with the top coat of pavement, and I have been told that they will not until the whole subdivision is at least 80% compleete. They are falling apart, with pot holes that are beeing filled in with sand. Between the above grade manhole covers sticking up every where and the recent pothole issue, the streets into the subdivision are an eyesore to say the least, with no end in sight as there are about 60 builders lots that are just left to weeds (one with a unfinished house that is molding/rotting as it has never had any brick for over a year). And don't take my next comment the wrong way, but the "new" Homeowners that are buying homes for $150.000 in what was a $300,000 subdivision 2 short years ago are not helping the situation of declining property values, with their Lack of care in landscapeing, bed sheets hung in the windows in place of blinds and more jalopies parked on the street than a used car lot. And these new neighbors are paying close to half the mortgauge that I am locked into. What do we do? I would never have even thought of the "F" word as something that I would do, but this home and this subdivision are not going to get better, they drop in value every day. I have already lost $110,000 in home value, and I am trying to understand how this is my fault, and how I should be held responsible to pay my Mort for the next 30 years on a property that is so upside-down! I don't know how to figure it exactly to a $ amount of loss, but I know that starting with that kind of negitave equity in a subdivision that will most likely never recover to what I thought I bought into seems like a devestating investment/situation. Who is to blame? What is someone like me to do? Are Morals and Ethics in play anymore in this market and economy (as the lack there of has led us all to this)? In the end I have to do what is best for my family and My financial future, and that right now seems to be to walk away! I could rent a compareable house for half of what I am paying on my current mort and not have the 110,000 (or more before the bottom comes). Sure, My credit would be knocked to 450 and I would have a forclosure on my reccord, But I would also have droped that "Huge Loss" (That was not of my makeing) and will have a savings of 1,100 a month between rent and the old mort to put towards a house when the forclosure drops off ($40,000+). Is this not a nobrainer? Will any bank approve a short sale on such a loss? Any thoughts from any realestate professionals would be appriciated?
