11 Oct 2012, 1:02 pm
argyle wrote:
Ah, if you're significantly underwater, consider behaving like a responsible financial firm. 
Start out with negotiating a principal reduction. Then, offer to stop paying the mortgage and make the bank evict you. (Please research this first...I am not an expert...just listened to some relatives considering this option.) As I understand it - the bank gets the house, the mortgage, and a lot of legal fees. You get to live in a house rent free for 6-9 months. They do have an incentive to negotiate.
On that subject, if you can pay off student loans with homeowner's loans, bankruptcy can look like a good option. (Which might make such loans problematic.)
If you aren't underwater (and it sounds like you aren't quite underwater), try looking into federally-assisted mortgage modification programs. They originally weren't doing much, but have recently been much more active. (I was refused the first time, went through recently, wasn't much work.) Not worth it if you need to move, but handy if you'd like to lower your payments.
Thing I notice is that, from a purely fiscal point of view, all of your options except (3) sound worse than walking away (and pocketing 6-9 months rent) - once you've added in the stress of months and months of showings. Albeit #3 really could pay off pretty well.
--Argyle
Start out with negotiating a principal reduction. Then, offer to stop paying the mortgage and make the bank evict you. (Please research this first...I am not an expert...just listened to some relatives considering this option.) As I understand it - the bank gets the house, the mortgage, and a lot of legal fees. You get to live in a house rent free for 6-9 months. They do have an incentive to negotiate.On that subject, if you can pay off student loans with homeowner's loans, bankruptcy can look like a good option. (Which might make such loans problematic.)
If you aren't underwater (and it sounds like you aren't quite underwater), try looking into federally-assisted mortgage modification programs. They originally weren't doing much, but have recently been much more active. (I was refused the first time, went through recently, wasn't much work.) Not worth it if you need to move, but handy if you'd like to lower your payments.
Thing I notice is that, from a purely fiscal point of view, all of your options except (3) sound worse than walking away (and pocketing 6-9 months rent) - once you've added in the stress of months and months of showings. Albeit #3 really could pay off pretty well.
--Argyle
Thanks - at this point, I think I'm leaning towards option 3 - and then in the spring if it's not looking any better after a couple of months, I'll probably re-assess the situation. We're not terribly under water, but we're not in a good place either. I just managed to land some extra freelancing work for the next couple of months, so that's going to help keep us afloat while off the market. I'll tell ya, I am planning on renting for a LONG time after this headache :/
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