I am contemplating walking away from my home. Is this my best option?
Submitted by Jake
from CA
- 02/06/2010 - 11:44pm
I have a condo in Tracy, CA with only 1 mortgage (VA loan 30 year fixed). I also have a 2nd house that I have bought recently with a 30 year fixed mortgage. My condo, which I have owned for 5 years, is $70K underwater. I am contemplating walking away from it and moving into the other house. I am employed and this would be a strategic default. I am relatively unconcerned about my credit rating (currently 805, but I live below my means and don't really need credit). Could my bank come after me or my 2nd house if they found out that I have income and could afford to pay my mortgage?
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if you want to stay in your home at a fraction of a cost of renting. call me. we specialize in delaying foreclosure to help save you money
Have you tried loan modification? If not, then you should. If that loan modification doesn't work for you then the last option is Short sale before walking away and let the house goes to foreclosure. The benefits of short sale are that your credit scores will not be lower as much as with foreclosure. I did some googling and the result is that with short sale, your credit scores would lower from 80-170 points vs foreclosures will lower from 250 points or more. With short sale, you can buy a house again within 2 years vs 5-7 years for foreclosures. Also, you can negotiate the deficency up front with short sale; with foreclosures, the lender can come after you for deficencies many years later. Finally, with the new program making home affordable by the Obama administration, you may qualified for a relocation expense of $1500. With all of this benefits why would you want to let it go to foreclosure? If you need help selling short sale, let me know. I am a realtor in Merced county. Hope this help.
Have you tried loan modification? If not, then you should. If that loan modification doesn't work for you then the last option is Short sale before walking away and let the house goes to foreclosure. The benefits of short sale are that your credit scores will not be lower as much as with foreclosure. I did some googling and the result is that with short sale, your credit scores would lower from 80-170 points vs foreclosures will lower from 250 points or more. With short sale, you can buy a house again within 2 years vs 5-7 years for foreclosures. Also, you can negotiate the deficency up front with short sale; with foreclosures, the lender can come after you for deficencies many years later. Finally, with the new program making home affordable by the Obama administration, you may qualified for a relocation expense of $1500. With all of this benefits why would you want to let it go to foreclosure? If you need help selling short sale, let me know. I am a realtor in Merced county. Hope this help.
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