topic Re: Im Done in Mortgage Loans

Im Done

Anonymous — Fri, 27 Mar 2009 03:45:36 GMT

Hi:

OK--I'll admit, this may be a crappy thing to do, but I'm 95K upside-down in my house on a 30yr IO note and I'm considering walking away as it will be easier to repair my credit than pay this house off. Any ideas on the best way to do it so it does the least harm to my credit rating?

Re: Im Done

Anonymous — Fri, 27 Mar 2009 13:06:17 GMT

Have you thought about trying to get your loan modified?

http://makinghomeaffordable.gov/

You can look at the website and see if you qualify but I guess its a personal choice. If you can afford the payments and enjoy living in your house, not sure if I understand why you wouldn't live up to the commitments that you made when you signed all of your closing documents. There is not anything you can do to limit the damage to your credit. A foreclosure will follow you for 7 years, but it seems that you should be able to buy again in 2-3 years.

Re: Im Done

fishbjc — Fri, 27 Mar 2009 14:38:33 GMT

Don't walk away just because you're 95k upside down. If you can afford the payments, keep it. This will *eventually* turn around. Try to hang in there a bit longer and see where things go.

Re: Im Done

Watchmann — Fri, 27 Mar 2009 14:54:10 GMT

If you are planning to stay in your house for awhile, the $95k 'loss' is only on paper and does not directly affect you or your lifestyle. Prices will come back, and if you can afford your payments stay with them. 'Walking away' is the flavor of the month, but is something that was normally considered as a last resort, not as a first course of action as it is now. See if you can modify the loan to a fixed rate loan, or maybe better terms. And make sure you know what the terms of your IO loan is. It may not be as onerous as you think.

Re: Im Done

Anonymous — Fri, 27 Mar 2009 15:14:26 GMT

Please don't walk away from your home. As others have said, if you can afford your payments just hang in there. Too many people viewed homes as an investment instead of a steady place to live and have a roof over your head. Another problem is that too many people that feel like you are walking away from their homes and causing this number to go up. If you walk away, your neighbors home maybe become worth $115k under what their mortgage is.

I look at it this way, I'm purchasing a home right now. I expect the value to decline and maybe it will come back up by the time I sell, (approx 7 years when my son goes off to college) maybe not...However, if I were to keep renting I figured I'd be paying approximately $1200 a month (or more as the years pass by and rent increases). Over this period of time I would have paid $100,800 towards someone else's mortgage. Well, that's just stupid to me. Atleast if I stick it out in my own place and I sell for what I paid for it 7 years from now, I will break even and really, will be up $100k since I lived rent free all that time.

Honestly, don't become part of the problem, be part of the solution. The more folks walk away the larger the problem becomes.

Re: Im Done

Anonymous — Fri, 27 Mar 2009 16:08:59 GMT

I guess if you expected to get some encouragement, you came to the wrong place. I hope that you have learned something and the next time you purchase a house you will make better decisions. Good luck!

Re: Im Done

happy0510 — Fri, 27 Mar 2009 16:34:04 GMT

Can you afford it?

Re: Im Done

Anonymous — Fri, 27 Mar 2009 17:11:35 GMT

i have a few family members going through this whole thing right now. and they all seem to be doing different things.

My uncle pushed the bank to do a shortsale on his home (his wife and him inherited the home and they both were laid off from their jobs. they are pushing 60 and are having a really hard time finding work.).

My cousin and her husband got in touch with a lawyer, and he was able to get a loan modification, reducing their monthly payments by half. He works for a landscape company and she is a delivery room nurse in a hospital that is cutting hours and staff.

My other cousin is choosing to walk away from his home. He bought in 2005 at $315k and homes in his area are barely selling for $125k. He has lost half his yearly salary as he is a land surveyor and is barely working 3 days a week because there is simply, no work for him. he hasn't even TRIED to do any other option because he just doesn't want the house anymore.

You can get help, you just have to want it and persevere. It will take some time, but it is possible. the choice is yours.

Re: Im Done

Anonymous — Fri, 27 Mar 2009 17:35:01 GMT

@Anonymous wrote:

Honestly, don't become part of the problem, be part of the solution. The more folks walk away the larger the problem becomes.

Couldn't have said it better

Good luck!!

Re: Im Done

Anonymous — Tue, 31 Mar 2009 01:17:58 GMT

I appreciate all the replies, thank you for the feedback. The fact is, I was laid off in January, and I'm now in a job that pays 10K less a year than what I was making. I consulted with an HUD approved counselor and his advice is to not make any more payments and commence a short-sale ASAP. I'm in the process now of filling out the paperwork to submit to the mortgage company and I have a realtor who will list the home.

This has really been a drain on me for the last two years and I need to get rid of it and remove myself from an untenable situation. I can repair my credit a lot faster than I can pay off this loan. I'm looking at it from a business perspective and it is time to cut my losses and get out.

I have no misgivings or guilt about not living up to my obligations, after all, corporate America has no misgivings about cutting people like me at the drop of a hat when the P&L statement goes south. In addition, the gubment has thrown a trillion dollars at Wall Street to protect the banks and in the meantime, the fat cats at the top rake in millions in bonuses and for what? Outstanding performance? They should all be fired, which is what would happen to me if I had screwed the pooch so badly.

I came here, not looking for sympathy or a shoulder to cry on, but for information and I now have that information and I am putting it into action.

Thanks again for the replies, and if you find my attitude repugnant, I really don't care.

Re: Im Done

Anonymous — Tue, 31 Mar 2009 01:57:59 GMT

I am so glad that I have always held myself to a higher level of what I consider acceptable, and not simply compared myself to what other fools are doing. I would not look at it as I don't care because look what corporate America is doing. But then.....I am better then that. I will never have to worry about trying to avoid myself or my decisions and am so glad I can always look myself in the mirror with pride and self-respect. At the end of the day that is always what will matter the most to me. Just remember the decisions you make today will be with you forever, long after the credit is repaired. It is all about choices, morals and ethics.

I truly wish you well and a measure of peace with whatever outcome is on the other side of this situation for you.