How do I get rid of my de-valued home?

Question

Bought a house 2 years ago. Now it's lost 1/3 of the purchase price. Struggled with the payment this whole time and getting sick of it. What should keep me from walking away from it? Not investing in it period. So even if I try to short sell I refuse to buy carpet or anything as there's little chane the short sell would be accepted...

Any feedback appreciated!

Answer 1

just walk away.........

your situation will be forgiven along with millions of others...........

call the lending institution........

keep paying taxes, water, electric, insurance, UPKEEP, etc...

just not the mortage, it will take the bank 4-6 months to kick you out...

buy that time they may short sale it to you!

tell them you'll keep the property if they reduce the debt by 1/3rd....

the fed is goning to bail them out........still 2/3rds is better than 0

Answer 2

If you are able to make your payments, why SHOULD the lender agree to a short sale ?  You bought in an overvalued market, and now you want the lender to take it in the shorts ?  If you struggled with the payment from the outset, it's apparent you made a bad decision there as well, buying more house than you could comfortably afford.

I'd venture that, if the house had appreciated by 35 percent in those two years, you'd be struggling MIGHTILY to make those payments.  Guess what?  It works the other way too.

Answer 3

Hey, some of the short sales I see are outright disasters, carpet is the least of the problems.  So, I'm not a big fan of short sales either but you could at least give it a shot.  

Beyond that, your credit will be ruined and you could possibly be held responsible for some of the mortgage money lost (or maybe not - depends, and even if the bank gets a judgement against you if you have little money maybe they still can't enforce it) but thats about it.  

No debtors prison for the last 500 years or so; so you may have a hard time getting any credit for years to come but thats probably the worst of it.  Note, you also may want to try talking to hopenow.com.  Maybe they can talk the bank into lowering your mortgage or something - again not sure, buts its worth a shot.

Answer 4

There was a bill that was recently passed allowing some banks to lend people money even though they are upside down.

You can apply for this @ www.asmartloan.com

Good luck!!

Answer 5

What should keep you from walking away? That would send you into foreclosure which would destroy your credit.

Why not contact your lender and see if they are willing to work with you on some solutions?

Answer 6

Whats to keep you from walking away from it?  Well, it depends on the laws of the state you live in.  In states like California and Nevada where I live, a mortgage loan is only secured by the property, so if you default on the loan they take your house, but they can't come after you for the difference between the loan and the value of the home.  

I understand your struggle, I am in a similar situation myself.  What state is your home in?