Foreclosure deed in lieu (rent, pay, working)

[stevemorse]

Divorce the wife, she sounds selfish. I would say we chose this house together, we either sell it at a loss or wait but to stick it to people and you have the money is just plain old greed. Get rid of her and keep the house one less in the small home!!!

[techzone]

Originally Posted by joe moving

So you have 6 people living in a 2 bedroom house. Isn't that illegal also?

Illegal. Of course. That's why I need to get the hell out!

[stevemorse]

sounds like your looking for an excuse not to pay your mortgage. Just suck it up, pay it, and sell it at a loss. Where you gonna live with that great wife, a cardboard box?? The homeless shelter, thats kinda small too!

[imoapie]

What town is the house in? Who is the mortgage company? Maybe try calling and doing a short sale, now that you have a history of delinquency. Depending on the company, some are easier to work with than others.

[techzone]

CEOs walk away with golden parachutes after squandering billions in shareholder equity. And they do it, becuase they think they are smarter that the average Joe. Then they dig into tax-payer pocket, becuase they are too big, and they have to be bailed out.

I know some people on this forum, think I should sacrifies my family and my financial security, just to satisfy the greedy banks (and of course the speculating investors behind them). OK. Whatever!

By the way, I do have PMI. I know it won't do me any good. All the money that I have been paying for PMI, is to protect the lender. It's like the Bank lending me an umbrilla, but asking me to give it back when it rains. The whole system is just a scam.

[bully5]

I had to find an alternate loan in 2007 so that i could continue to live in the house for which I purchased. The ARM was killing me. We got an interest-only loan through IndyMac. We haven't missed a payment but must miss our first one this month. We tried to sell the house (before the new finance) but had zero offers. We are upside down on the value of the home. We owe 356,000. Current market is 279,000. We purchased at 430,000 with 100,000 down. Our income to morgage value (today) is {-}$55-. We live in CA and have been told that we can walk away with no liability. We don't want our credit affected, but must miss this payment (possibly more coming up). Would it be more wise to walk away or try to get a DILF?
Help!

[imoapie]

Sorry to break it to you but missing payments......foreclosure....deed in lieu etc etc will hurt your credit. As far as the lender is concerned you are making paymens so you may find it hard for them to work with you when you are current on your mortgage.

To answer your question as to what would be more wise it depends on your definition of wise. What are you trying to accomplish? Without any details the wisest thing would be to continue to make payments or sell, even if at a loss but both of these may not be possible.

[imoapie]

Also whoever told you you can walk away with no liability has no idea what they're talking about. At the very LEAST your credit will be ruined.

[MaverickDD]

Yesterday, did I read a post in this thread suggesting that the troubled homeowner call the bank and threaten to "rape the house" -- in essence, threaten to strip it bare so the bank would be more willing to negotiate? (I thought the post was here... maybe removed by the moderator?)

Anyway, that's insane. Doing it could land you in jail, and/or with a debt that can not be discharged in bankruptcy. It's not a good idea at all.

This article from six months ago sheds some light on this subject:
Man Guts Home, Gets Jail Sentence - The Home Front (usnews.com)

(By the way, once a homeowner is delinquent, most banks send a scout with a camera to the property on a regular basis. They want to make sure this doesn't happen.)

[Roselvr]

Originally Posted by MaverickDD

Yesterday, did I read a post in this thread suggesting that the troubled homeowner call the bank and threaten to "rape the house" -- in essence, threaten to strip it bare so the bank would be more willing to negotiate? (I thought the post was here... maybe removed by the moderator?)

Anyway, that's insane. Doing it could land you in jail, and/or with a debt that can not be discharged in bankruptcy. It's not a good idea at all.

This article from six months ago sheds some light on this subject:
Man Guts Home, Gets Jail Sentence - The Home Front (usnews.com)

(By the way, once a homeowner is delinquent, most banks send a scout with a camera to the property on a regular basis. They want to make sure this doesn't happen.)

It's there..
post #10

Originally Posted by desertsun41

You have 2 choices, maybe 3:

Call the lender, tell them you want to do the "cash for keys" program. What this means is basicly a deed in lieu but you save a little bit of your credit score. What you do is tell your lender if they dont work with you then you will rape YOUR home, not theirs, of all the appliances, light fixtures, cabinets, fans, rugs, copper in the walls and so on...and sell it. Yes it is legal. But if they are willing to give you cash for keys you will promise to leave the house in red ribbon condition. You will have to sign something and the day you walk out that door a bank rep is there with your check to inspect the home. Generally Im hearing $1500 to $3000 offers which is perfect to get your life started again. If you raped YOUR home it could have cost the bank $50,000 to replace everything you took to resell not to mention $50K the cost of foreclosure.

Go google "cash for keys"

Originally Posted by imoapie

Mortagage companies are not in the business of owning houses. In a foreclosure they have the right to go after you for the difference between what the house is actually sold for at the auction and what is owned, called deficiency judgement. Given your good financial standing don't be surprised if that happens. Off course chances of this are slim.

Good advice. Anyone wanting to walk away needs to see if they will have to pay it back.