Feel trapped in my house! (Phoenix, Scottsdale: short sale, foreclosure, rent)

[1999corvette]

Hi, I'm new to this forum, this is my first post.

I came to Phoenix March 2005, and looked and looked, finally found a house that was being built in Queen Creek that someone had backed out on, so I jumped on it.

I was 26, almost 27 at the time.

I was listening to my oldest brother how buying a house here is a good investment, so I figured maybe I would live in the house a while, then one day sell it.

The house was completed about thanksgiving 2005, I moved from a house I rented off 83rd ave and Buckeye.

The home builder made me sign a contract that I would not sell or rent the house for 2 years from the date of move in, or be fined 50,000.00

Something about trying to keep investors from driving up the market.

One day, (I'm not sure) I saw on the news about how prices for houses in the valley had crashed, and after research found out the house was worth less than my loan.

I kept thinking positive.

Well, as of at least a year or more ago, it's probably worth less than 50% of what I owe, to make matters worse, it's not the best loan, 7% and interest only for the first 5 years, never wanted that but fell for the "you can just refinance in a couple of years, it's no big deal"

The house was 190,000.00 (never meant to spend that much, but at the time that was the cheapest new house I could find)

Last year, my neighbor foreclosed, and someone bought the same exact house as mine for 95,000.00!

That made me feel like such a fool for buying when I did!

I've had feelings of just walking away and saying forget it, as it can't be sold for what I owe.

That's gonna ruin the credit I've worked very hard for the past few years.

I'm sure there are plenty of others on here that are in the same way.

By the way, this is/was my first house, other than renting.

I got a letter/flier in the mail from a 3 named attorney's office in Scottsdale specializing in Short Refinancing.

I went in and they got me excited, saying I could basically short sale the house to myself with a new loan from another bank.

Sounded good, but he was pressuring me to sign here... for 2700.00 up front, and 350.00 a hour after that if needed, and that I understand there is no guarantee.

I decided that seems kinda risky and declined the contract.

Does anyone know if these short refinances are a scam, or is it real?

I've also been reading about doing short sale, just to be free of this house.

Not to be a complainer or anything, but I have just realized this being stuck in the house has made me depressed (I think it's harder for a man to admit to himself and others he is depressed)

[Veejee]

Well, unless you had a crystal ball you never would've known what was going to happen with the economy. Try to change your perspective and be thankful you have a house. It could be much worse. The economy will rebound and all of those sunny states that people flocked to they will be back. It's no coincidence that Florida, California, Arizona and Nevada were hit hard; people love warm places! Just stay positive, count your blessings, and DO NOT walk away and ruin your credit. Millions of people would love to be in your shoes and have a home these days without having to worry about having a 790 credit score to get one!

[roundball]

Walk away from your house, and don't feel guilty about it.

If you're only under <100g I'd wait it out.

[TomB90]

Don't worry, I'm sure prices will go up again in the next couple years.

[lyzzard]

Go to your lender and see if they can actually give you some real help. Refinance through your lender if you can for a lower interest rate, but only if the costs of the refinance actually benefit you in the long run.

There are programs out there to help people who are underwater in their home values. My Sister-In-Law did one through her lender and it cut her payments in half. 3.5% APR for 3 years then it goes up to 5.5% after that for the rest of her mortgage, and the years she paid her mortgage was calculated into the refi (meaning it's still a 30 year loan from when she originally started). Her house cost more than three times as yours.

If you can afford to pay the mortgage, why should you run away from your obligations? Sure it sucks, but look at all your options before putting another foreclosure on the market.

[1999corvette]

I called up and talked to a real winner at Bank of America, who took over Countrywide, who bought my loan from Hillsboro Mortgage.

He asked if I had 100,000.00 for a down payment!

Nope, well, we can't do anything then, what a joke!

Also, I understand you can not refinance if you have 0 equity, I have negative equity!

[lyzzard]

Here, this link might be able to help you:

Making Home Affordable - Home

[azizsma]

I wouldn't pay someone to help shortsale! I just completed mine and it didn't cost me a dime. Here is a great resource that gave me tons of info: Loans - Home Loans - Debt Consolidation - Credit My house sold for less than 25% of what I owed. Depressing....

[steel7]

Check out all the programs before you make a decision. Having bad credit is not good but neither is being taken advantage of. A neighbor of mine hasnt paid his high mortgage in 17 months & still hasnt received a 90 day forclosure notice from bank of america. He paid too much for his 3 bedroom, 2 full bath house but didnt have a down payment & was paying $1200.00 month. He could of refinanced for 1500.00 month but didnt. I suggested to him that he get a roomate & split the rent & bills plus he would of had a guest room. He earns approx $2,500.00 month (net). Where his money goes ill never understand. He does spend a few hundred in gas to get to work per month (45 min drive). He dont drink & take drugs & lives a quiet life but he is in credit card debt. Mod Cut: No advertising...

[snowflake13]

You must of bought a house that you liked, right? If you can continue to pay your mortgage, wait it out. As someone said earlier see if you can refinance, shop around.

Don't just walk away from your obligations, if you don't have too. Just because many other people are jumping ship doesn't mean you should...I mean isn't that how you got into the house in the first place....your brother and a ton of other people were buying houses so you did. Just because everyone else is doing it doesn't mean it is the right decision for you. Weigh your options.