Profile picture for gotago

im wondering if i should let my house go back to the bank

I owe 330,000 intrest only loan 7% will adjust starting 2012 princable kicks in 2017 assesed value today 160,000

  • May 12 2010 - Helendale
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Answers (6)

Profile picture for DanSeider
If you are current on your payments you can approach the bank to reduce the princple. If they do not respond to you I could recommend professionals to negotiate this for you to the Bank. Let me know if I can help.
  • May 25 2010
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Profile picture for sinacle
I'm in the same boat Gotago.  I purchased my home in Helendale at the end of 2005 (30-year conventional loan) and I still owe $288k at an interest rate of 8.225%.  Our interest went up drastically in 2008 because we did have an ARM but our lender fixed it through a modification.  My home is estimated at $138k.   

I really want to relocate back to the Midwest to be close to family but cannot sell my home either.  My husband and I plan on doing so by the end of this year and we will more than likely not make as much as we currently do and will not be able to afford homes in both locations.  I'm also wondering if I should let my home foreclose or attempt a short sale.  Any advice from professionals answering this post would be much appreciated.

Thanks...
  • May 23 2010
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Profile picture for DanSeider
If you are current with your payments you can have your principal loan amount negotiated down to current value with some help from professionals. It is typically only done for borrowers you are in good standing.
  • May 12 2010
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Hello Gotago:

Shasta gave you some great info. There are many options out there and the trend is short sales, just like adjustable loans and interest only, we saw where that got us. I am a short sale / froeclosure specialist and both of those option cause you to loose you home. How about if you were able to save your home and cut what you owe and interest? Believe me, there are many hidden things that pop up when you short sale, and many times people don't qualify and end up spining their wheels for nothing.

Log onto http://www.www.naca.com and see what they can do for you. I send many that direction and none have come back to short sale their homes. They are a 100% free service and HUD certified. I have seen miracles come from there. Watch their videos...

Good luck :o)

  • May 12 2010
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Profile picture for shasta_steve
I used to drive through Helendale everyday on my way to work.  I came very close to buying  a house there in 2003 and then my wife and I looked at them again a couple of years ago, just before I moved back up north. 

Well back to the original question.  As was pointed out earlier you need to find out your options.  To tell you the truth I would probably run away.   If it is a "purchase money" loan or loans then it is non-recourse loan and they can not come after you for more money.  Taxes will most likely be forgiven but you may end up with some capital gains because you are interest only and probably did not put much down.  You have to ask yourself how much your credit is worth?  How soon you may want to buy another house?  Do you need credit for your job?  Lots of information on the internet but the last place you should probably ask is here.  Agents pretty much push short sales but they are not always the best option.  Good luck with what you choose.  If you think you might go down that route I would talk to someone who does not have a fianancial interest in your decision and get a plan.  Lots of options and you will have lots of company whatever you decided to do. 
  • May 12 2010
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Profile picture for Diamond Funding

You shoud speak with your current lender first to see if they are willing to modify your mortgage, if you prefer to keep your home.

You never know what is available until you ask.
  • May 12 2010
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