Question:

My homes value is dropping fast should i keep struggling or bail?

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My homes value keeps dropping and things cost more now. If i foreclose on my home along with the millions of other family's in the same boat, is it really as bad as it was 5 or 10 years ago to have a foreclosure on your record. I would have $2,500 more a month.

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  1. If you can not pay your mortgage, you can't refinance because of your property value and you want to keep your house- try modify your mortgage with the lender you have your mortgage now. If you don't want to save your house- try to do a short sale- it is less damaging for your credit, then foreclosure.


  2. what does the decrease in value have to do with you struggling each month?

    Are you saying that if the house was increasing in value, you wouldn't be struggling?

    Doesn't make sense.

  3. Are you unable to pay your mortgage?  That is the key issue - not the current market value of the house.  If you are in trouble, first contact your lender to see if a loan modification is possible.

  4. first of all you have to live in some sort of dwellings. see what it would cost for a apt.. if you are going to lose you equity and all then you will be loosing a lot. your family comes first,if you can't provide a good life for your wife and children because you are over extended with a huge mortgage. ask to refinance and drop your mortgage payment into your comfort zone. If you are just wanting out from under the large payments then jump out and tell the bank to stuff it. i use the same  laws that the big banks use to hose their customers with( in reverse)  when they can't pay. they will tell you what a bad person you are if you file a chapter 13,but fall and break your back and get behind a few payments and watch how fast they boot your a ss out in the street. if you need to get the first punch in ,go for it. the max. for a chapter is supposed to be (7) years, but in the real world it will be more like (10) years. why?  because that same system you are talking about is the same system that will stuff it up your backside if you get behind in your mortgage. you don't have to answer to anybody for your actions (unless they are illegal). you wanna do it ,go for it.

  5. If you are able to pay your mortgage, I would stay put. The values will increase again. Could you let the bank foreclose, well sure, but it does a number on your credit score and stays on your history for 7 years. Plus there is a possibility that other companies may consider you too high a risk for other financing. So don't go there if you don't have to.  Some of us are using our retirement money to get by, this sucks big time for all of us.

  6. real estate is a business transaction.  if it isn't making sense for you financially, bail.  lenders understand that foreclosure is an option, they took the gamble along with you that the house price would go up.

    there are no --- zero, none, zilch ---indications that prices will rise anytime in the next five or seven years.  in fact, there will probably be a slow decline for five years and then five years of modest increases putting you at least ten years away from any real appreciation.  do you want to spend the next ten years waiting for appreciation?

    rent the same house you are living in for half the price or more and put the savings some place safe to help you weather the economic storm of the next few years.

    what's the point in staying underwater?  it's a waste of a life.  enjoy the freedom of renting and extra cash flow.

  7. Are you unable to pay your mortgage?  Has the amount changed or has your income changed?  It's still as bad from a lender's point of view because it means you took the money and now don't plan to pay it back.  That doesn't entice me to lender you money in the future.

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