[theredsnowman]

Originally Posted by Gatornation

Sure. I didn't mention any of tax breaks you get when owning a home either.

Yeah, you did not mention that but you also did not mention the taxes you have to pay either.

[annerk]

Originally Posted by theredsnowman

Yeah, you did not mention that but you also did not mention the taxes you have to pay either.

I could not rent my house for what I pay in PITI each month. Not to mention that I can paint it and decorate it however I want, I can have two large dogs, and in the not too distant future it will be paid off and an appreciable asset.

[theredsnowman]

Originally Posted by stpeteguy

Yeah, I know. I should've done it sooner.

Good luck and I would not hesitate for a moment to break a deal with the bank.

[Gatornation]

Originally Posted by annerk

I could not rent my house for what I pay in PITI each month. Not to mention that I can paint it and decorate it however I want, I can have two large dogs, and in the not too distant future it will be paid off and an appreciable asset.

The logic makes little sense unless you can live for free somehow at today's low rates.

[annerk]

Originally Posted by Gatornation

The logic makes little sense unless you can live for free somehow at today's low rates.

Huh? I know what homes in my neighborhood rent for, and I know what it costs me to live in my home. The rents are higher than I pay for PITI. Either way I'd have to pay all the utilities. And I wouldn't get any tax write offs as a tenant.

[Gatornation]

Originally Posted by annerk

Huh? I know what homes in my neighborhood rent for, and I know what it costs me to live in my home. The rents are higher than I pay for PITI. Either way I'd have to pay all the utilities. And I wouldn't get any tax write offs as a tenant.

I agree with you. I'm saying the logic of the other poster makes no financial sense.

[stpeteguy]

Originally Posted by skylinet

I know this has has been posted before, but short selling your home is often a much more effective way of doing things. If you are still financially stable and not in a hardship, you may have to come up with some money to get a complete release from your loan. It usually beats having a large judgement over your head or having to file bk.

I've worked on over 60 short sales in the past couple years and every situation or reason for doing it is different. We just had a guy that made $350k a year get a full release out of his property that he could still afford for a $10,000 contribution of which the buyer paid $2000. Some people would look negatively at a person like that, but he bought the condo for his daughter at $320,000 at the peak and it sold for $107,000. There are some situations where it doesn't make any financial sense not to try and get out.

In some cases the banks are offering cash move out programs right now up to $20,000 as well. They are also much more willing to work with people with short selling their home than they have been in the past. I've seen people short sell their home and pay their mortgage until the day they moved out.

If you want to stay in your home their are other options like refi and loan mods, but the success rate on those are pretty low still.

Ignoring the problem or "Screwing" the banks really isn't necessary if you meet with a qualified attorney/realtor/loan person and figure out a plan there are much better ways of doing it.

My attorney's exact words: "The only people who benefit from short sales are realtors".

Reason being, your credit is already shot if you go through a short sale and you've given up all the money you could have saved while living there during the foreclosure process. Often times having to pay out of pocket to just get the deal done and not to mention all the hassle of fighting with the bank to get them to accept an offer. For what? So you can move and start paying rent sooner, have less money in your pocket and still take the hit to your credit? No thanks.

[chopchop0]

Originally Posted by stpeteguy

My attorney's exact words: "The only people who benefit from short sales are realtors".

Reason being, your credit is already shot if you go through a short sale and you've given up all the money you could have saved while living there during the foreclosure process. Often times having to pay out of pocket to just get the deal done and not to mention all the hassle of fighting with the bank to get them to accept an offer. For what? So you can move and start paying rent sooner, have less money in your pocket and still take the hit to your credit? No thanks.

The hit is not nearly as bad as a foreclosure, not to mention that remote chance that somehow they will find a way to come after you for a deficiency judgement

[skylinet]

Originally Posted by stpeteguy

My attorney's exact words: "The only people who benefit from short sales are realtors".

Reason being, your credit is already shot if you go through a short sale and you've given up all the money you could have saved while living there during the foreclosure process. Often times having to pay out of pocket to just get the deal done and not to mention all the hassle of fighting with the bank to get them to accept an offer. For what? So you can move and start paying rent sooner, have less money in your pocket and still take the hit to your credit? No thanks.

LOL and guess who's the only one who benefits from you doing what your doing? He wouldn't be getting his monthly payments if you stopped the foreclosure process. My attorney told me that.

Your credit wouldn't be shot already if you didn't stop making payments months ago. A short sale will ding your credit 80-150pts vs completely ruining it by going into foreclosure.

A properly done short sale will get a full release from the lender and show up as settled where a foreclosure will give the lender the option to pursue you for up to 20 years for the deficiency and will stay be on your credit for 7. Unless you are filing bankruptcy that's an awfully long time to wait with it looming over you.

A short sale you can buy a home again in 2 years, a foreclosure will take a lot longer.

Simple fact is if you are trying to milk the system (as it sounds like you are doing) than a foreclosure seems like a great short term option. The money you save seems nice, but have fun with no credit for the next 5-10 years. If you figure in what you are paying your attorney, court costs, filing bankruptcy, higher interest paid (if you can find credit) and the fact you may have to end up paying the deficiency you really aren't saving any money.

If you are actually trying to solve your situation there are much better options.

[stpeteguy]

Originally Posted by skylinet

If you are actually trying to solve your situation there are much better options.

No there is not. Handing someone like you a commission check does not help me.

Save the sales pitch.

I researched all those avenues long before I stopped paying my mortgage and it became very clear that a short sale was much less beneficial to me(financially) than a strategic default.