patrick.net

jrc.
(1) The lender did not "ding" your credit rating. You did that when you stopped making payments.
(2) I agree with whoever wrote that the modification process is a scam. The most they will do is lower your interest rate, but add back in all shortages plus extra penalties and interest. Your loan liability will go up. The lower payment is temporary. They will probably extend to 40 years. Do you really want to pay the outragous interest on a 40 year amortization, even at a low rate. Do the math, payments are impacted more by the amount borrowed and the length of loan than by the interest rate.
(3) At the amount you are underwater, you will never catch up and be able to sell for what you owe. If you are in a situation in 5 years where you MUST sell, you will still be underwater and the shortage will be subject to federal and state income tax.
(4) If you are willing to accept the personal, emotional and FICO consequences of foreclosure, it is the smart move. If that is your decision, try to stay there payment-free for as long as you can.

http://www.youwalkaway.com/output24/InterectiveFlashCalculator.html

calculator for walking away. a lot of people i know broke the strangle grip of an expensive loan and walked away, they felt so much better about their life after. its just too stressful and often financially difficult when once life is owned by a bank who can take a home at any point of default.

At my wifes company there is outsourcing starting, so family income may drop in half, my job isn't guaranteed either. the loving and caring bank isn't going to give me a second if i cant pay. My suggestion is that if it financially makes sense to walk away... stop paying rent and live there for a year until it forecloses. And don't buy another house until one income can comfortably afford it. In California you are not responsible for taxes for walking away, at least until 2012.

On another note our neighbor has not made a payment for 2 years on his now foreclosed house, almost saved his downpayment back by living in a foreclosed house.

I am 64 yrs old and bought condo in CA 3 yrs ago. Was told my lender not to worry about large mortage as the property would be worth more than the mortage owed when I retired. Now I'm over $100,00 upside down and will have to foreclose anyway when I retire. I want to stay in my place as long as possible. I quit making payments in May. Chase keeps calling from an 800 # but Im not answering. How long can I wait to request a loan modification? How long does it take to get one? If I don't take the mod if approved, how long before they foreclose. Bottom line, I'd like not to have the physical and mental stress of moving until I retire in 2 years.
Anybody got any ideas?? Thanks.

Chapter2008, How much is your HOA? They probably will not want to foreclose on you since they'd have to pay the HOA.

If you have the resources, tell the lender that you temporarily cannot afford payments, but will be able to in say... 8 months. There's a term for it but you can stall your payments, and "pay" them additional interest later on when you start making payments again.