[stpeteguy]

Originally Posted by gypsychic

Is there a reason you are not trying to do a short sale?

I haven't really looked into the short sale solution. But to be honest, I owe way more on my home than it's worth.


To show you what I mean, just this morning, I made a mortgage payment. I glanced over at the "balance" window on my statement and it said $134K

comparable homes in my area are now selling for about $55K or $60K.

I don't see any reason why the bank would agree to a short sale, knowing they will be out that much money.

Everytime I make one of those payments, I feel like i'm just throwing money in a black hole.

[stpeteguy]

Originally Posted by MiamiRob

Well your credit will be ruined for years and is even much worse than a bankruptcy. Is there anyway you can try a loan modification program instead? The mortgage company can as stated above hold you accountable for the difference and sue. Now imagine if they do sue and win and they garnish your wages too.

I'm not worried about my credit. Not at all.

I've tried the loan modifications, but was turned down because i'm not behind on my payments.

[gypsychic]

Originally Posted by stpeteguy

I haven't really looked into the short sale solution. But to be honest, I owe way more on my home than it's worth.


To show you what I mean, just this morning, I made a mortgage payment. I glanced over at the "balance" window on my statement and it said $134K

comparable homes in my area are now selling for about $55K or $60K.

I don't see any reason why the bank would agree to a short sale, knowing they will be out that much money.

Everytime I make one of those payments, I feel like i'm just throwing money in a black hole.

It's worth it to at least try, you would be surprised what banks will agree to, they would rather do a short sale these days than a foreclosure. Before you just "walk" I would talk to an attorney or realtor that specializes in short sales, at this point you have nothing to lose.

Also, if you haven't already, you should post this in the real estate forum here, you might get more advice.

[beachmouse]

Originally Posted by stpeteguy

To show you what I mean, just this morning, I made a mortgage payment. I glanced over at the "balance" window on my statement and it said $134K

comparable homes in my area are now selling for about $55K or $60K.

Remember you've got to live somewhere. How much are you going to save renting an equivalent property somewhere else?

[stpeteguy]

Originally Posted by beachmouse

Remember you've got to live somewhere. How much are you going to save renting an equivalent property somewhere else?

about half my monthly mortgage payment.

Yeah, I know. That's why it makes me sick every month when I do it.

[stpeteguy]

Originally Posted by gypsychic

It's worth it to at least try, you would be surprised what banks will agree to, they would rather do a short sale these days than a foreclosure. Before you just "walk" I would talk to an attorney or realtor that specializes in short sales, at this point you have nothing to lose.

Also, if you haven't already, you should post this in the real estate forum here, you might get more advice.

Yeah, I know I should probably talk to a realtor and a lawyer. At this point, i'm just testing the waters and I mainly just wanted to get input from people who have done this or know something about it.

The more I know, the better decision I can make.

also, I didn't know we even had a real estate forum here. Does it deal with Florida real estate exclusively? I'll have to check into it. thanks.

[FloridaKash]

Are you paying PMI on your home? A lot of people seem to overlook this and most people carry it.

Private Mortgage Insurance (PMI):Benefits, New Requirements, Homeowners' Protection Act, Terminating PMI, HPA Disclosures, and Home Value Increases - an FRBSF Brochure

I foreclosed on a house in Texas back in 2006. Bank never came after me for the money, probably cuz they didn't lose any and I had PMI.

[stpeteguy]

Originally Posted by FloridaKash

Are you paying PMI on your home? A lot of people seem to overlook this and most people carry it.

Private Mortgage Insurance (PMI):Benefits, New Requirements, Homeowners' Protection Act, Terminating PMI, HPA Disclosures, and Home Value Increases - an FRBSF Brochure

I foreclosed on a house in Texas back in 2006. Bank never came after me for the money, probably cuz they didn't lose any and I had PMI.

Yeah, I have PMI

I'm not sure what your getting at.

Are you saying that if you have PMI insurance, the mortgage holders are less likely to pursue the difference between what you owe and what it's worth?

[TriMT7]

Try the short sale route if possible. Call your bank and ask what needs to happen before you are considered. They may need you to be behind in your payments, etc.

$60k is really not a lot or an inordinate amount for the bank to "write off"... it's actually not even that much "underwater" compared to what some people are experiencing. Over the course of the 30 year mortgage, it will recoup what it has lost.

Are you just tired of living in the house? What if the house were worth what you owed? Remember that if you foreclose, the bank can come after you for the difference AND judgments can be executed on for twenty years.

[EclecticTastes]

Deed in lieu of foreclosure? Hurts your credit, but less than foreclosure. Also, if the bank agrees to a deed in lieu then you can avoid a summary judgment.

Keep in mind the tax implications. Forgiven debt is taxable under some circumstances. If you walk away and the bank writes off the loss then this may possibly be taxable income.