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Old 03-05-2010, 03:40 PM
 
Location: Chicago, IL
46 posts, read 130,801 times
Reputation: 130

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I bought a nice 1,200sf condo in 2006 for $245,000 in a real nice hoa. It is 100% financed interest only. The current market value of the condo is $60,000 at best. From a financial logic standpoint, it makes no sense to keep paying the mortgage. The bank already told me they are not going to sue me for deficiency.

Giving this situation, would you...

1. Mail the keys back to the bank.
2. Keep paying the mortgage.
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Old 03-05-2010, 03:58 PM
 
Location: Las Vegas, Nevada
12,686 posts, read 30,969,141 times
Reputation: 5358
Default When It's OK to Walk Away From Your Home

Here's what a dude says in the Wall Street Urnal:

ROI: When It's OK to Walk Away From Your Home - WSJ.com
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Old 03-05-2010, 04:00 PM
 
Location: Las Vegas, Nevada
12,686 posts, read 30,969,141 times
Reputation: 5358
What some are doing is buying a second place for bargain basement prices, or out of foreclosure, then walking away from the first home.
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Old 03-05-2010, 04:16 PM
 
9,881 posts, read 8,750,758 times
Reputation: 2874
Quote:
Originally Posted by johntaylorny View Post
I bought a nice 1,200sf condo in 2006 for $245,000 in a real nice hoa. It is 100% financed interest only. The current market value of the condo is $60,000 at best. From a financial logic standpoint, it makes no sense to keep paying the mortgage. The bank already told me they are not going to sue me for deficiency.

Giving this situation, would you...

1. Mail the keys back to the bank.
2. Keep paying the mortgage.
The bank is giving you the blessing to walk away?
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Old 03-05-2010, 04:19 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,484,948 times
Reputation: 2661
Short sell it. Better for you and for your lender. Easy if one lender and the lender is cooperative.

You can avoid almost all damage to your credit if the lender cooperates.
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Old 03-05-2010, 04:21 PM
 
Location: Las Vegas
3,728 posts, read 8,212,165 times
Reputation: 1311
Quote:
Originally Posted by johntaylorny View Post
I bought a nice 1,200sf condo in 2006 for $245,000 in a real nice hoa. It is 100% financed interest only. The current market value of the condo is $60,000 at best. From a financial logic standpoint, it makes no sense to keep paying the mortgage. The bank already told me they are not going to sue me for deficiency.

Giving this situation, would you...

1. Mail the keys back to the bank.
2. Keep paying the mortgage.
You've got to ask yourself if it's worth it to walk away, losing your credit and possibly being denied loans, credit cards, etc. for the next 5 years. You might even have trouble renting or getting a job, both landlords and prospective employers (even insurance companies) run your credit when you apply.
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Old 03-05-2010, 04:28 PM
 
10,485 posts, read 22,550,683 times
Reputation: 6611
Quote:
Originally Posted by johntaylorny View Post
I bought a nice 1,200sf condo in 2006 for $245,000 in a real nice hoa. It is 100% financed interest only. The current market value of the condo is $60,000 at best. From a financial logic standpoint, it makes no sense to keep paying the mortgage. The bank already told me they are not going to sue me for deficiency.

Giving this situation, would you...

1. Mail the keys back to the bank.
2. Keep paying the mortgage.
The main question is can you still afford it? If you are still in the same financial situation by all means keep paying for it to avoid suffering the negative consequences of letting it go. However, if you have gotten laid off or are now working another job for less pay, that would be a different story.
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Old 03-05-2010, 06:01 PM
 
Location: Portland, OR / Las Vegas, NV
1,808 posts, read 3,266,278 times
Reputation: 967
You have to live some place. Save your credit and stick it out.
Besides, you agreed to pay for it.
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Old 03-05-2010, 06:17 PM
 
Location: North Las Vegas
1,631 posts, read 3,384,568 times
Reputation: 743
Quote:
Originally Posted by johntaylorny View Post
I bought a nice 1,200sf condo in 2006 for $245,000 in a real nice hoa. It is 100% financed interest only. The current market value of the condo is $60,000 at best. From a financial logic standpoint, it makes no sense to keep paying the mortgage. The bank already told me they are not going to sue me for deficiency.

Giving this situation, would you...

1. Mail the keys back to the bank.
2. Keep paying the mortgage.
There are somethings going on now that may help you there is a new Law that mandates a bank has to try to modify the loan before foreclosing and also there is talk of writing down principles with the money that Obama has made available to Nevada. You should check into that before you walk away especially if you like the home.the Department of the Treasury has determined that using these funds to buy down the principal of homeowners is an acceptable use.

There is another way to get help and it's free!!

The Foreclosure Mediation Program is open to owner-occupied residential properties that have received foreclosure notices filed on or after July 1, 2009. Commercial property foreclosures and non-owner-occupied residential properties are ineligible. Requests for mediation must be filed within 30 days of a foreclosure notice filing.

For more information, call the Foreclosure Mediation Hotline at 702-486-9380 or 775-687-9816 in Northern Nevada.

More information can be found on the Nevada judiciary Web site at www.nevadajudiciary.us or Stats about all US cities - real estate, relocation info, house prices, home value estimator, recent sales, cost of living, crime, race, income, photos, education, maps, weather, houses, schools, neighborhoods, and more. "The Web site is the best source," said Bill Gang, the Supreme Court's public information officer. "It gives you everything you need to know, including frequently asked questions."
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Old 03-05-2010, 08:10 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,484,948 times
Reputation: 2661
Quote:
Originally Posted by 007 license to sell View Post
There are somethings going on now that may help you there is a new Law that mandates a bank has to try to modify the loan before foreclosing and also there is talk of writing down principles with the money that Obama has made available to Nevada. You should check into that before you walk away especially if you like the home.the Department of the Treasury has determined that using these funds to buy down the principal of homeowners is an acceptable use.

There is another way to get help and it's free!!

The Foreclosure Mediation Program is open to owner-occupied residential properties that have received foreclosure notices filed on or after July 1, 2009. Commercial property foreclosures and non-owner-occupied residential properties are ineligible. Requests for mediation must be filed within 30 days of a foreclosure notice filing.

For more information, call the Foreclosure Mediation Hotline at 702-486-9380 or 775-687-9816 in Northern Nevada.

More information can be found on the Nevada judiciary Web site at www.nevadajudiciary.us or Stats about all US cities - real estate, relocation info, house prices, home value estimator, recent sales, cost of living, crime, race, income, photos, education, maps, weather, houses, schools, neighborhoods, and more. "The Web site is the best source," said Bill Gang, the Supreme Court's public information officer. "It gives you everything you need to know, including frequently asked questions."
YOu have to get a NOD to enter the program. He has not gotten one and would be wiser to try to resolve it without getting one.

If he has a cooperative lender a short sale makes a lot more sense.

The Mediation Program is a great one...but it would be better to not have to use it.
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