[svt4cobra6]

Not sure if my situation is somewhat unique but wondering if anyone might have any advice. I never gambled in while living in vegas but have lost thousands of dollars!
1. Purchased primary residence in Las Vegas @ 306k-1500 square foot with 80/20 loan.
2. Job transfer to California approx 6 months ago. Took 3 months to rent out vegas house, lost $7250 as monthly mortgage with taxes is $2400+.
3. Currently renting out but loosing $1300 per month (more if repairs are required).
4. Balloon payment due in 11 years, 40k+ (so house will forclose then if not sooner unless I hit the lottery).
5. Current balance on loans 285k, current home market value 100k so can not sell.
Will not be able to make up difference if house is empty again for any extended period of time, also will fall behind on payments if any major expense occures such as medical issues, car repairs, ect.
Any ideas are appreciated.

[KD Hawaii]

short sale...

[las vegas drunk]

Either that or let it foreclose and walk away from it.

[svt4cobra6]

thanks for the responses, a little bit worried about the mortgage company comming after me (loan through country wide, first and second) with some type of judgement if it ends up in foreclosure. I do not think they could get much though since I have no assests, just an older car.

[airics]

bankruptcy.... you have an 80 20, they are going to chase you for the 20...

[airics]

and you house now worth only 100k after paying 306.. thats bs...

[olecapt]

Go short sale. CW and BofA are losing all these seconds to other lenders...but you may still be able to kill the second in a short sale. It may help if you can put up a little money. I have one at the moment where the first will pay 3k but the second wants 5% which is 11K. In your case the second might settle for 5 or 10K which is cheap at the price if you can manage it.

If it does not work than foreclosure. Try a deal on the second. If not Airics is right...BK.

[svt4cobra6]

thanks for the additional information, will try to deal with the lender and see if they will do anything. Yes these houses were way overpriced but they were all apraising for what I paid or more. Wonder if the appraisers were working with lenders to artificially jack up prices but do not know for sure.

[Soundman123]

Originally Posted by svt4cobra6

Yes these houses were way overpriced but they were all apraising for what I paid or more. Wonder if the appraisers were working with lenders to artificially jack up prices but do not know for sure.

No. Actually it is a simple equation of supply & demand.

While you chose to over-extend your finances with 2 mortgages, I was living in a 500 sq ft studio apartment next to a very loud freeway.
I waited until I could get into something that I could actually afford, while many people like you were “living large” in your fancy houses.

The tables have turned. I am now a home owner thanks to all the dead-beats who continually drive down the value with each house they default on.

To answer your question, walk away. It is the only honorable thing to do at this point. Don't waste your time with a short sale. Having 2 mortgages makes it nearly impossible.

Peace.

[ruready1st]

Originally Posted by Soundman123

No. Actually it is a simple equation of supply & demand.

I waited until I could get into something that I could actually afford, while many people like you were “living large” in your fancy houses.

I wouldn't call a 1500 sq. ft. home living large. $306k sounds about right for that timing. We bought an 1894 sq. ft. place here that originally sold for $406k.

Originally Posted by Soundman123

The tables have turned. I am now a home owner thanks to all the dead-beats who continually drive down the value with each house they default on..

Not all foreclosed homes are from deadbeats. People loose their jobs or have to move to keep their job. They aren't being deadbeats.

Originally Posted by Soundman123

To answer your question, walk away. It is the only honorable thing to do at this point. Don't waste your time with a short sale. Having 2 mortgages makes it nearly impossible..

Having 2 mortgages doesn't make it impossible. It just requires some serious focus on budgeting, cutting back (maybe no cable/satellite tv), and prayer. I have 2 mortgages. I'm loosing $600/month with a renter. Not pleasant by any means, but so far so good. Got myself into it, so going to honor my obligation and pay my debtors. If I end up having to short sale or foreclose or walk away, I do not see that as honorable.

The issue with renting is that now the property is seen as an investment property, not owner occupied. There are less programs or legal protection for investors. Even though the property was never intended to be an investment. Banks are more likely to go after investment property owners than owner occupied.

Consult an attorney before making any decisions. I did.