Comments on: Talkback: Would you walk away? http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/ CNNMoney.com Talkback Tue, 24 Nov 2009 15:32:36 +0000 http://wordpress.com/ hourly 1 By: Kathleen, Morristown, NJ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-46374 Kathleen, Morristown, NJ Tue, 24 Nov 2009 15:32:36 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-46374 I'm 66, and I may walk soon. Right now I'm on unemployment because my job was eliminated. I can keep going while the benefits last, but after that I'm in big trouble. Who's going to hire a person my age? If I can't get a sale, I'll be walking and rent much cheaper. And that's something I never thought I would do. This situation is a national disgrace. I’m 66, and I may walk soon. Right now I’m on unemployment because my job was eliminated. I can keep going while the benefits last, but after that I’m in big trouble. Who’s going to hire a person my age? If I can’t get a sale, I’ll be walking and rent much cheaper. And that’s something I never thought I would do. This situation is a national disgrace.

]]> By: Jack Zeek http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-46214 Jack Zeek Mon, 09 Nov 2009 15:45:02 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-46214 IM thinking of walking away too from my house we have 2 mortgages 1st is for 400k and the second 60 k house value at present is around 380 k I tried but no one is ref'ing 2 mortgage homes the actual bank the owns the house is the Deutche bank (found that out after I asked my mortgage service compnay) thing is, IM not a US citizen Im australian so im thinking of not paying mortgage or taxes etc for about 6 months (3500 a month) and just moving back to Oz Dont suppose the bank will ever find me coz i wont be using my US SS# back home and i wont need a US credit report IM thinking of walking away too from my house
we have 2 mortgages 1st is for 400k and the second 60 k

house value at present is around 380 k

I tried but no one is ref’ing 2 mortgage homes

the actual bank the owns the house is the Deutche bank (found that out after I asked my mortgage service compnay)

thing is, IM not a US citizen Im australian
so im thinking of not paying mortgage or taxes etc for about 6 months (3500 a month) and just moving back to Oz

Dont suppose the bank will ever find me coz i wont be using my US SS# back home and i wont need a US credit report

]]> By: Shanda Morales http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-46085 Shanda Morales Thu, 22 Oct 2009 22:40:46 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-46085 This may be a familiar story. We bought our house at the end of 2006 and had a great loan package with just my husband's income. So we rented a home until our "dream home" was being built. Then March of 2007 hit and our loan package was no longer available and we were locked into a loan because we signed an agreement with the builder stating that we would purchase the house so long as financing is available. Well, they came to us with a new loan package and the monthly payment was 900 dollars more than what our previous loan package stated. We wanted to just say no thank you, but the builder would keep our $3000 earnest deposit and sue us for breach of contract. So we were stuck, we talked it out and decided we would work our buts off and pay for the house. We lasted about a year. We had a new baby and I was off of work without pay for 6 weeks. I tried calling the banks to ask for deferment but they said too bad so sad. Anyway, after I returned to work we used my credit to purchase a cheaper home that we could afford and walked away from the "dream home" and our life is great. We can afford to buy our kids halloween costumes and take trips to the zoo and save money and take vacations. The best decision I have ever made. Once you throw out all of the guilt of walking away, you can lead a very happy and healthy life. Its just business, that's what the govt and Wall st. showed us, right? This may be a familiar story. We bought our house at the end of 2006 and had a great loan package with just my husband’s income. So we rented a home until our “dream home” was being built. Then March of 2007 hit and our loan package was no longer available and we were locked into a loan because we signed an agreement with the builder stating that we would purchase the house so long as financing is available. Well, they came to us with a new loan package and the monthly payment was 900 dollars more than what our previous loan package stated. We wanted to just say no thank you, but the builder would keep our $3000 earnest deposit and sue us for breach of contract. So we were stuck, we talked it out and decided we would work our buts off and pay for the house. We lasted about a year. We had a new baby and I was off of work without pay for 6 weeks. I tried calling the banks to ask for deferment but they said too bad so sad. Anyway, after I returned to work we used my credit to purchase a cheaper home that we could afford and walked away from the “dream home” and our life is great. We can afford to buy our kids halloween costumes and take trips to the zoo and save money and take vacations. The best decision I have ever made. Once you throw out all of the guilt of walking away, you can lead a very happy and healthy life. Its just business, that’s what the govt and Wall st. showed us, right?

]]> By: Kathryn Yanez, Laredo, TX http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-46032 Kathryn Yanez, Laredo, TX Tue, 13 Oct 2009 20:39:53 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-46032 Well, here is my situation. I have been in my home for a little over 3 years. Divorced with two kids, remarried, and trying to get out of the drug infested, roach trap home i was in, we started looking for a home. After a couple tries we come across a good deal, low priced, all original house so it was a blank slate for us to do as we pleased. but we get in on an 80/20 loan giving us a combined interest rate of nearly 9%. So a year later we refinance, rolling all the closing costs in for 7.25% but upping my loan another $10000. Not too bad of an idea being this is our home, we want to be here, and we need a break on the payments. So we do this. THEN the economy crashes. Husband and I take a 20% paycut between the two of us at our jobs. We just had a baby weeks before, my mother passed away few months before that, ive maxed out my credit cards, and now i need new options. So, i do a streamline and reduce my rate down to 5.25% but again, rolling in the closing costs and upping the balance again another chunk. Now after two refi's, I've upped my mortgage balance over $22000. But its still not enough. SO I take out my 401K until i have depleted that resource. We try different small business to try and make a few bucks here and there, but with no luck now we are in a crisis. They are building houses newer, bigger, and much more updated that ours north of us for under $200,000. I need $215,000 just to break even after realtor fees and a possible concession to the buyer but there is no way ill sell it for $215,000 when there are new homes in a great new area for less. SO i try and get a loan modification. But since im not technically behind, just had some late payments, there arent any programs for me. But as well it seems that the pockets within GMAC dont have any programs to offer. Im assuming that they didnt participate in Obamas plan. So they tell me there are no options except that if i default that they can review the options to split up the balance over a small period of time to make it up. So now we are trying to lease the house out at what our payment is and then rent something smaller for cheaper. Hoping that the market stablizes and then gets better so eventually we can gain some equity OR just be able to break even and sell. BUT a once strong renting market doesnt seem as strong as we thought. We've had 3 interested parties and nothing. Whats left? If we walk, im not sure what the consequences are, if we try and short sale, we dont qualify because we are both still working. What options are there for people who have made it this far but just cant anymore? NOTHING! The plan has too many holes. I am a supporter of Obamas but they need to push harder or have another resource for people who cant get help from the mortgage companies they are with. Well, here is my situation. I have been in my home for a little over 3 years. Divorced with two kids, remarried, and trying to get out of the drug infested, roach trap home i was in, we started looking for a home. After a couple tries we come across a good deal, low priced, all original house so it was a blank slate for us to do as we pleased. but we get in on an 80/20 loan giving us a combined interest rate of nearly 9%. So a year later we refinance, rolling all the closing costs in for 7.25% but upping my loan another $10000. Not too bad of an idea being this is our home, we want to be here, and we need a break on the payments. So we do this. THEN the economy crashes. Husband and I take a 20% paycut between the two of us at our jobs. We just had a baby weeks before, my mother passed away few months before that, ive maxed out my credit cards, and now i need new options. So, i do a streamline and reduce my rate down to 5.25% but again, rolling in the closing costs and upping the balance again another chunk. Now after two refi’s, I’ve upped my mortgage balance over $22000. But its still not enough. SO I take out my 401K until i have depleted that resource. We try different small business to try and make a few bucks here and there, but with no luck now we are in a crisis. They are building houses newer, bigger, and much more updated that ours north of us for under $200,000. I need $215,000 just to break even after realtor fees and a possible concession to the buyer but there is no way ill sell it for $215,000 when there are new homes in a great new area for less. SO i try and get a loan modification. But since im not technically behind, just had some late payments, there arent any programs for me. But as well it seems that the pockets within GMAC dont have any programs to offer. Im assuming that they didnt participate in Obamas plan. So they tell me there are no options except that if i default that they can review the options to split up the balance over a small period of time to make it up. So now we are trying to lease the house out at what our payment is and then rent something smaller for cheaper. Hoping that the market stablizes and then gets better so eventually we can gain some equity OR just be able to break even and sell. BUT a once strong renting market doesnt seem as strong as we thought. We’ve had 3 interested parties and nothing. Whats left? If we walk, im not sure what the consequences are, if we try and short sale, we dont qualify because we are both still working. What options are there for people who have made it this far but just cant anymore? NOTHING! The plan has too many holes. I am a supporter of Obamas but they need to push harder or have another resource for people who cant get help from the mortgage companies they are with.

]]> By: Iris, California http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45895 Iris, California Wed, 23 Sep 2009 19:10:40 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45895 So here we all are, 3 years into the financial crisis, with no end in sight. Here's my story, it's one of survival. Purchased a home in Ca. in 1995. For the next 12 years offers came in the mail saying the house was worth 110K, 220K, 350K, finally about 425K, and would I like a loan? No thanks. Kept paying down the loan. Market crashed, my house is nearly paid off, and worth about what I paid for it in 1995. That is okay because it never made sense that a neighborhood with multiple drive by shootings, gangs, drugs, etx. would have 400K homes. I knew things would go wrong and fall eventually..why? Because when I saw ads written in Spanish, saying you can buy a 500K house with 3% down (that's 1,500.) and pay just 1,200 a month, I said oh oh, they are going to rook people into impossible loans. Well, why not? The mortgage brokers, the 19 year old "loan specialists" were making 10K per transaction, so if it breathed, it was eligible for a loan. Since all this,lost my job. I moved out of Ca. rented the house, took ALL the money out of my home equity line, and have purchased another house, foreclosed, in another state. I would sell the Ca house, but the neighbor was foreclosed, decided to make her house look ugly so a relative could buy it back for her cheap. While she did take the 400K refi, she decided to walk..why pay for a house that isn't worth it, that's her attitude. It's also the banks attitude about things, so while it impacts my property, I don't blame her. I'm still not working, but have income from the rental, and renting rooms in the new house. At age 55, it's hard to find a job. So we must all find a way to change our lifestyles to fit this new picture. I not only stopped eating out, I now grow vegetables and herbs. Every little bit helps..and I hope to find a job before the home equity runs out. till then, survival. So here we all are, 3 years into the financial crisis, with no end in sight.
Here’s my story, it’s one of survival.
Purchased a home in Ca. in 1995. For the next 12 years offers came in the mail saying the house was worth 110K, 220K, 350K, finally about 425K, and would I like a loan? No thanks. Kept paying down the loan. Market crashed, my house is nearly paid off, and worth about what I paid for it in 1995. That is okay because it never made sense that a neighborhood with multiple drive by shootings, gangs, drugs, etx. would have 400K homes. I knew things would go wrong and fall eventually..why? Because when I saw ads written in Spanish, saying you can buy a 500K house with 3% down (that’s 1,500.) and pay just 1,200 a month, I said oh oh, they are going to rook people into impossible loans. Well, why not? The mortgage brokers, the 19 year old “loan specialists” were making 10K per transaction, so if it breathed, it was eligible for a loan. Since all this,lost my job. I moved out of Ca. rented the house, took ALL the money out of my home equity line, and have purchased another house, foreclosed, in another state. I would sell the Ca house, but the neighbor was foreclosed, decided to make her house look ugly so a relative could buy it back for her cheap. While she did take the 400K refi, she decided to walk..why pay for a house that isn’t worth it, that’s her attitude. It’s also the banks attitude about things, so while it impacts my property, I don’t blame her. I’m still not working, but have income from the rental, and renting rooms in the new house. At age 55, it’s hard to find a job. So we must all find a way to change our lifestyles to fit this new picture. I not only stopped eating out, I now grow vegetables and herbs. Every little bit helps..and I hope to find a job before the home equity runs out.
till then, survival.

]]> By: Em http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45869 Em Wed, 16 Sep 2009 04:31:37 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45869 I posted below, a few months ago. I am glad to see CNN still has the comments open, because as hard as it is to be in this situation, it is good to hear from other folks who did the right thing but are flummoxed by this situation. I live in South Florida. I am a 33 year old woman and bought my home in 2007 as prices were falling, but am now about $110,000 underwater. This was a fixer, starter home for me as a single, but the neighborhood is deteriorating and the schools are bad. This house was perfectly affordable for me but my long term boyfriend and I are planning marriage and starting a family, and my house is holding us back from starting our lives together. Given all the analysis in Florida, it is clear to me that things will not recover for many years. I have been denied the "Obama" refinancing as I am too underwater, so with a nearly 7 percent interest rate it is not possible to treat the home as a rental. I have tried every angle with my bank but they will not help me. At this point, I will probably move forward with defaulting on the loan and forcing the bank to short sale the property. If it comes to it, bankruptcy and ruined credit will be a shorter term solution than staying in a grossly upside down home in a deteriorating area. I have been turned off from buying a home ever again, so my credit score does not mean as much to me now. I can buy a vehicle with cash and deal with it. I posted below, a few months ago. I am glad to see CNN still has the comments open, because as hard as it is to be in this situation, it is good to hear from other folks who did the right thing but are flummoxed by this situation.

I live in South Florida. I am a 33 year old woman and bought my home in 2007 as prices were falling, but am now about $110,000 underwater. This was a fixer, starter home for me as a single, but the neighborhood is deteriorating and the schools are bad. This house was perfectly affordable for me but my long term boyfriend and I are planning marriage and starting a family, and my house is holding us back from starting our lives together. Given all the analysis in Florida, it is clear to me that things will not recover for many years. I have been denied the “Obama” refinancing as I am too underwater, so with a nearly 7 percent interest rate it is not possible to treat the home as a rental. I have tried every angle with my bank but they will not help me. At this point, I will probably move forward with defaulting on the loan and forcing the bank to short sale the property. If it comes to it, bankruptcy and ruined credit will be a shorter term solution than staying in a grossly upside down home in a deteriorating area. I have been turned off from buying a home ever again, so my credit score does not mean as much to me now. I can buy a vehicle with cash and deal with it.

]]> By: A.P., Phoenix, AZ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45632 A.P., Phoenix, AZ Tue, 25 Aug 2009 20:27:52 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45632 I have to say, reading these posts makes me feel a little better since I'm finally hearing from other people who are in a similar boat to ours. But it also fuels my anger at the same time. My husband and I bought a house for 265K in AZ in 2006. We were told it was a "buyers market" since prices were beginning to fall from the year before. Well our house is now worth about 60K less than we bought it for, and it will probably fall even farther in the coming months/years. We planned on keeping it for a few years as a "starter house" and then selling. We thought we were making a smart investment since we'd previously lived in Los Angeles where we'd paid a ton in rent for 7 years. I was looking forward to finally building some equity - ha!! I have two reasons for wanting to walk away. First, we have two children and the house is just getting way too small. I was pregnant with my first when we moved in, but never saw this as a two-child house. That said, it's not the size of the house that bothers me the most...it's the neighborhood. There have been so many foreclosures in our neighborhood that it's just becoming a crap-hole. Weeds and unkempt lawns everywhere. We had criminals renting the house next door to us, who are now thankfully in jail. The people who just started renting the house across the street (which was vacant for two years) have brawls in the street in the middle of the night. This is NOT where I want to be raising my young children. So now I'm longing for my previous life of a renter - when I'd be able to pick up and move when the living situation got bad. I am sure our neighborhood will get worse before it gets better, and I'm not willing to risk the safety of my family so that I can do the "right thing" by my mortgage company. I have to say, reading these posts makes me feel a little better since I’m finally hearing from other people who are in a similar boat to ours. But it also fuels my anger at the same time.

My husband and I bought a house for 265K in AZ in 2006. We were told it was a “buyers market” since prices were beginning to fall from the year before. Well our house is now worth about 60K less than we bought it for, and it will probably fall even farther in the coming months/years.

We planned on keeping it for a few years as a “starter house” and then selling. We thought we were making a smart investment since we’d previously lived in Los Angeles where we’d paid a ton in rent for 7 years. I was looking forward to finally building some equity – ha!!

I have two reasons for wanting to walk away. First, we have two children and the house is just getting way too small. I was pregnant with my first when we moved in, but never saw this as a two-child house. That said, it’s not the size of the house that bothers me the most…it’s the neighborhood. There have been so many foreclosures in our neighborhood that it’s just becoming a crap-hole. Weeds and unkempt lawns everywhere. We had criminals renting the house next door to us, who are now thankfully in jail. The people who just started renting the house across the street (which was vacant for two years) have brawls in the street in the middle of the night. This is NOT where I want to be raising my young children.

So now I’m longing for my previous life of a renter – when I’d be able to pick up and move when the living situation got bad. I am sure our neighborhood will get worse before it gets better, and I’m not willing to risk the safety of my family so that I can do the “right thing” by my mortgage company.

]]> By: Steph Tampa, FL http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45521 Steph Tampa, FL Tue, 25 Aug 2009 00:25:49 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45521 My husband and I are among the many Americans who bought a home in 2005 and are now upside-down on our home. We have faithfully paid our mortgage for the last 4 years and have prided ourselves on doing that, even though we no longer want to live here. Over time the tight budget, the fact that we have no extra money to maintain the home, our yard is such a mess I am too embarrassed to have anyone over and our kids have no yard to play in. I am paying all this money for a poor quality of life. My husband and I have decided to either walk away or short sale the home because our family is more important than the bank. Recently our marriage has been affected and I just had to draw the line. I will not end up divorced over this. We will go and rent in a better neighborhood, have extra money every month which means we will pay off our credit card debt faster and ultimately be debt free faster. My husband and I are among the many Americans who bought a home in 2005 and are now upside-down on our home. We have faithfully paid our mortgage for the last 4 years and have prided ourselves on doing that, even though we no longer want to live here. Over time the tight budget, the fact that we have no extra money to maintain the home, our yard is such a mess I am too embarrassed to have anyone over and our kids have no yard to play in. I am paying all this money for a poor quality of life. My husband and I have decided to either walk away or short sale the home because our family is more important than the bank. Recently our marriage has been affected and I just had to draw the line. I will not end up divorced over this. We will go and rent in a better neighborhood, have extra money every month which means we will pay off our credit card debt faster and ultimately be debt free faster.

]]> By: N.G. Scottsdale, AZ http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45485 N.G. Scottsdale, AZ Sun, 23 Aug 2009 18:04:19 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45485 I am just....so....ANGRY. All those freaking greedy banks and politicians have totally RUINED this country! Those of us who are responsible spenders and borrowers seem to be getting the hardest hit in this housing crisis, yet we are getting the least help. My father taught me impeccable credit skills, which I am thankful for. I started getting credit at 16, pay off all my car loans early, paid off my school loan early, and always pay off my credit cards in full every month. I bought my first house in July of '05. I didn't want to buy a house, but my parents sort of coerced me to do it, because they were afraid that I would get priced out of one, as fast as the home prices were rising here in Arizona. So, I caved in and bought a small townhouse (under 1000 sq ft) in Scottsdale, AZ for $160k, with a fixed APR on both loans. (I got an 80/20 loan.) I have never been late on a payment, but I have been told by B of A that I cannot get refinanced or anything, despite the fact that my house is now worth only $120k. Everyone here in AZ on the radios are saying that another foreclosure wave is coming through AZ, and our home values will go even lower. Great. So, basically, my house will NEVER be worth what it was when I bought it. I can't even rent it out, because the rent in this area has dropped so low, it wouldn't cover my mortgage payments. What pisses me off, is that if I had terrible credit, I would have been refinanced or my total amount of the loan could have been reduced. However, because I am responsible, I get screwed. So, even though I have perfect credit, I am seriously considering walking away from my house, because why pay off a house that is going to be worth less than what I bought it for in 26 years?? I am even considering squatting in my house (not paying the mortgage) until they kick me out. Because if I"m going to take a terrible credit hit, I might as well get something in return...free rent while I can. I am just….so….ANGRY. All those freaking greedy banks and politicians have totally RUINED this country! Those of us who are responsible spenders and borrowers seem to be getting the hardest hit in this housing crisis, yet we are getting the least help. My father taught me impeccable credit skills, which I am thankful for. I started getting credit at 16, pay off all my car loans early, paid off my school loan early, and always pay off my credit cards in full every month. I bought my first house in July of ‘05. I didn’t want to buy a house, but my parents sort of coerced me to do it, because they were afraid that I would get priced out of one, as fast as the home prices were rising here in Arizona. So, I caved in and bought a small townhouse (under 1000 sq ft) in Scottsdale, AZ for $160k, with a fixed APR on both loans. (I got an 80/20 loan.) I have never been late on a payment, but I have been told by B of A that I cannot get refinanced or anything, despite the fact that my house is now worth only $120k. Everyone here in AZ on the radios are saying that another foreclosure wave is coming through AZ, and our home values will go even lower. Great. So, basically, my house will NEVER be worth what it was when I bought it. I can’t even rent it out, because the rent in this area has dropped so low, it wouldn’t cover my mortgage payments. What pisses me off, is that if I had terrible credit, I would have been refinanced or my total amount of the loan could have been reduced. However, because I am responsible, I get screwed. So, even though I have perfect credit, I am seriously considering walking away from my house, because why pay off a house that is going to be worth less than what I bought it for in 26 years?? I am even considering squatting in my house (not paying the mortgage) until they kick me out. Because if I”m going to take a terrible credit hit, I might as well get something in return…free rent while I can.

]]> By: Monica, Richmond, CA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45463 Monica, Richmond, CA Wed, 19 Aug 2009 04:27:00 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45463 Similar to some others stories, I've worked so hard all my life to save money and finally buy a home all on my own. I’m 39 years old. About 20 months ago, a very large chunk of my meager life’s savings went toward the down payment of my town home. A year later my home is completely upside down by and now is under about 33% (145k). I put 11% down on my house, and pay 6.2% interest on a 30 year fixed mortgage. I feel lucky (at times) to be able to afford my home, but this is also a curse as no bank will consider working with you (from what I’ve been reading). This was my 1st home and certainly wasn’t planning to be here for long term (5-7 years). I hear it will take more than 15 -20 years to recover my losses (I know this can vary). I'm paying 35k a year in interest I wonder if walking away and just starting over would be better. I have heard most banks won't even consider talking to me because I'm not desperate. So do I walk away and accept that maybe I made a bad business investment? I'm still trying to work that out, but there is so little decent advice for those in my situation and there are so many new businesses popping up to feed off the desperate. At a loss for now, but hoping I can figure this out soon. In the meantime I'm just trying not to beat myself up for my bad timing. Similar to some others stories, I’ve worked so hard all my life to save money and finally buy a home all on my own. I’m 39 years old. About 20 months ago, a very large chunk of my meager life’s savings went toward the down payment of my town home. A year later my home is completely upside down by and now is under about 33% (145k). I put 11% down on my house, and pay 6.2% interest on a 30 year fixed mortgage. I feel lucky (at times) to be able to afford my home, but this is also a curse as no bank will consider working with you (from what I’ve been reading). This was my 1st home and certainly wasn’t planning to be here for long term (5-7 years).

I hear it will take more than 15 -20 years to recover my losses (I know this can vary). I’m paying 35k a year in interest I wonder if walking away and just starting over would be better. I have heard most banks won’t even consider talking to me because I’m not desperate. So do I walk away and accept that maybe I made a bad business investment? I’m still trying to work that out, but there is so little decent advice for those in my situation and there are so many new businesses popping up to feed off the desperate. At a loss for now, but hoping I can figure this out soon. In the meantime I’m just trying not to beat myself up for my bad timing.

]]> By: Greg Scott, Chantilly VA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45404 Greg Scott, Chantilly VA Thu, 13 Aug 2009 11:58:09 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45404 Sorry I'm a late comer to this forum, but I just saw it and it's the first forum I've seen with so many stories like mine. We owned a home for 11 years, and sold it after I finished school to move to a better neighborhood. We rented for a time, but as renters our taxes increased dramatically, and with the feeling we'd have to buy or forever be priced-out, we bought a small townhouse despite the lingering credit effects of my return to school. I worked hard to pay off the debt we incurred while I was in school, and was briefly the proud owner of an 810 credit score. But now with the property value down by 38% ($200k), the ARM up to 11%, and my wife unemployed, we can't sell or refinance (believe me, their 'call before there's trouble' policy is just PR, never to be implemented). Our lawyer advised us to run the credit cards up again, buy new cars, and take lower paying jobs in order to make bankruptcy attainable. Why did I go back to school? We can't recover the loss, can't pay, can't sell, can't refinance. The 'better' neighborhood we borrowed for is quickly degrading into an unkempt, noisy slum. I doubt it's value will return. Why won't the 'financial experts' who got us into this mess share responsibility? I've ignored prompts for bankruptcy and walk-away, but I'm tired. Why shouldn't I walk away? Sorry I’m a late comer to this forum, but I just saw it and it’s the first forum I’ve seen with so many stories like mine.

We owned a home for 11 years, and sold it after I finished school to move to a better neighborhood. We rented for a time, but as renters our taxes increased dramatically, and with the feeling we’d have to buy or forever be priced-out, we bought a small townhouse despite the lingering credit effects of my return to school.

I worked hard to pay off the debt we incurred while I was in school, and was briefly the proud owner of an 810 credit score. But now with the property value down by 38% ($200k), the ARM up to 11%, and my wife unemployed, we can’t sell or refinance (believe me, their ‘call before there’s trouble’ policy is just PR, never to be implemented). Our lawyer advised us to run the credit cards up again, buy new cars, and take lower paying jobs in order to make bankruptcy attainable. Why did I go back to school?

We can’t recover the loss, can’t pay, can’t sell, can’t refinance. The ‘better’ neighborhood we borrowed for is quickly degrading into an unkempt, noisy slum. I doubt it’s value will return. Why won’t the ‘financial experts’ who got us into this mess share responsibility? I’ve ignored prompts for bankruptcy and walk-away, but I’m tired. Why shouldn’t I walk away?

]]> By: Michelle Longview Portland, Texas http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45327 Michelle Longview Portland, Texas Thu, 06 Aug 2009 19:49:26 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45327 Here is our dilemma. We live in a drought-ridden city, and over a year ago got an estimate from a foundation repair company. It was 14 thousand dollars. I contacted our bank, and they said no of course and to try back in about 6 months. Now, we have never been late on anything..and I mean anything for the 12 years we have been married. We have owned this home for almost 4 now and again have never been late, in fact have sent in extra money when possible. One week ago, we came home from vacation to the right side of our brick home crumbled down about 3 inches (enough to sever our gas lines). The gas company turned off the gas..took the meter. We now have to hire someone to fix that hole in the house and broken gas line. (estimated at 5 thousand dollars)The foundation repair estimate is now at 24 thousand dollars, 5 thousand for the gas line/home repair, and the cause of all this was a leaky pool pipe underground for what appears to be years. We have doors that won;t open, doors that won't shut, compression lines on 7 of our walls, 23 cracks on our walls, bricks loose and literally falling off of our house..the list goes on and on. The bank will not lend us 35 thousand dollars to do a home improvement and fix these problems. The contractor said if we don't fix the foundation, our roof/windows/etc are next and the problem will only get more and more problematic. We are either going to file bankrupcy, or give the house back to the bank. We cannot get into our garage, cannot lock our back door, do not even have hot water right now. We have no other alternative but to give it back to the bank. Since they won't loan us the money to repair it, they can have it because it is uninhabitable. Should we file bankrupcy and not reaffirm for the house, or just let it go into Foreclosure? Here is our dilemma. We live in a drought-ridden city, and over a year ago got an estimate from a foundation repair company. It was 14 thousand dollars. I contacted our bank, and they said no of course and to try back in about 6 months. Now, we have never been late on anything..and I mean anything for the 12 years we have been married. We have owned this home for almost 4 now and again have never been late, in fact have sent in extra money when possible. One week ago, we came home from vacation to the right side of our brick home crumbled down about 3 inches (enough to sever our gas lines). The gas company turned off the gas..took the meter. We now have to hire someone to fix that hole in the house and broken gas line. (estimated at 5 thousand dollars)The foundation repair estimate is now at 24 thousand dollars, 5 thousand for the gas line/home repair, and the cause of all this was a leaky pool pipe underground for what appears to be years. We have doors that won;t open, doors that won’t shut, compression lines on 7 of our walls, 23 cracks on our walls, bricks loose and literally falling off of our house..the list goes on and on. The bank will not lend us 35 thousand dollars to do a home improvement and fix these problems. The contractor said if we don’t fix the foundation, our roof/windows/etc are next and the problem will only get more and more problematic. We are either going to file bankrupcy, or give the house back to the bank. We cannot get into our garage, cannot lock our back door, do not even have hot water right now. We have no other alternative but to give it back to the bank. Since they won’t loan us the money to repair it, they can have it because it is uninhabitable. Should we file bankrupcy and not reaffirm for the house, or just let it go into Foreclosure?

]]> By: Dianne, Chicago http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-45300 Dianne, Chicago Thu, 06 Aug 2009 04:34:26 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-45300 I find it interesting that CNN Money chose to profile four homeowners - two who won't walk away and two on the fence only because of their "moral values." Where are the two that did walk away who can tell us the net effect on their lives? Are they lost and unable to even rent becaue of poor credit scores or have they moved on to live without stress or overwhelming financial burden? I find it distressing that we are getting such a skewed picture here! I find it interesting that CNN Money chose to profile four homeowners – two who won’t walk away and two on the fence only because of their “moral values.” Where are the two that did walk away who can tell us the net effect on their lives? Are they lost and unable to even rent becaue of poor credit scores or have they moved on to live without stress or overwhelming financial burden? I find it distressing that we are getting such a skewed picture here!

]]> By: Paul Maneer, Spotsylvania, VA http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43935 Paul Maneer, Spotsylvania, VA Fri, 05 Jun 2009 04:32:10 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43935 My wife and I bought a house 5 years ago for 165,000.00 it was a fixer upper. we fixed up what we could the first year and then refinanced the house. The house was at 315,000.00 We took that money and completed the repairs to the house had extra money left over and paid off some bills. Now, 2 years later our house has developed a very bad habit. When i rains hard in VA the house floods. last year the water was 8" high. we paid to have a sump pump professionally installed and lost a good many personal belongings as the homeowners insurance would not cover. After the flood we jacked up our insurance levels, for just in case. we joked that we would never need it since we bought it. we then proceeded to do repairs to the house. Now, 13 months later we were hit by a bad storm, lost power and the house flooded badly. A freind of mine arrived with a generator, we got the sump pump to work and now 2 days later we have most of the water dealt with. my wife and I are done. She is a nervous wreck (it keeps storming) and I am tired of putting money into an indoor fishing pool. What options do you recommend... should we call the bank and say here you go it is your problem have a nice day. should we short sale it, which means i have to do all kinds of repairs again to get it ready. A contractor friend of mine came by to look at the house, he said to fix it properly would take a bobcat or bulldozer (not sure) to dig out the whole house, put a rubber matting against the foundation and then cover it back up with correct pitch to length. Sounds good, but i do not have $53k to do this. We are so tired, and frustrated. We have never been late on any payments, and the bank will not even talk about adjusting our mortgage (the ARM is set to increase in July). Any suggestions? What can happen to us if we just walk away and give the bank the keys? We live in Virginia. Thanks! My wife and I bought a house 5 years ago for 165,000.00 it was a fixer upper. we fixed up what we could the first year and then refinanced the house. The house was at 315,000.00 We took that money and completed the repairs to the house had extra money left over and paid off some bills.
Now, 2 years later our house has developed a very bad habit. When i rains hard in VA the house floods. last year the water was 8″ high. we paid to have a sump pump professionally installed and lost a good many personal belongings as the homeowners insurance would not cover. After the flood we jacked up our insurance levels, for just in case. we joked that we would never need it since we bought it. we then proceeded to do repairs to the house.
Now, 13 months later we were hit by a bad storm, lost power and the house flooded badly. A freind of mine arrived with a generator, we got the sump pump to work and now 2 days later we have most of the water dealt with.
my wife and I are done. She is a nervous wreck (it keeps storming) and I am tired of putting money into an indoor fishing pool.
What options do you recommend… should we call the bank and say here you go it is your problem have a nice day. should we short sale it, which means i have to do all kinds of repairs again to get it ready.
A contractor friend of mine came by to look at the house, he said to fix it properly would take a bobcat or bulldozer (not sure) to dig out the whole house, put a rubber matting against the foundation and then cover it back up with correct pitch to length. Sounds good, but i do not have $53k to do this.
We are so tired, and frustrated.
We have never been late on any payments, and the bank will not even talk about adjusting our mortgage (the ARM is set to increase in July).

Any suggestions? What can happen to us if we just walk away and give the bank the keys? We live in Virginia.
Thanks!

]]> By: Cheryl , Warren, RI 02885 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43867 Cheryl , Warren, RI 02885 Tue, 02 Jun 2009 06:06:19 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43867 I am so glad to hear people agree on the fact that BANKS NEED TO REGULATED. Talk about PIRATES - we have mass colonies of them all over our country. When is the government going to put these pices of crap in their place. I would love to know who voted a long time ago to let banks be regulated. Well, now and forever is the time. I have story to tell about a reverse mortage my recently deceased mother had (we (myself and two brothers) and still have 1/2 house value in equity. Well, the RIHMFC and Morris-Griffin didn't let my mother know what would happen if anything should ever happen to her. She had cancer, and was given a clean bill of health after her last bladder cancer surgery. Well, she died in 2 weeks of that surgery. What a mess we had to contend with - the shock of losing our mother, paying for the funeral, and all tjhe big house expense (taxes, etc.) We didn't even have a chance to mourn losing her because we had all this to contend with. Along with that, because there is a reverse mortgage on the property that we live in, we either have to refinance or, sell or forclose. The last option is out as far as I am concerned. However, one of my brothers wants out, and my other brother wants to go in on the mortgage with me. However, he hates credit cards, and has nothing on his credit report. I only work in a supermarket because for the past 3 years I had to take my mother shopping and to her drs. appointments (she had 5 doctors.), and my job is nights and is 5 minutes away from home. Now, I am scrambling to find a better paying job, trying to get the 500% overly cluttered house ready to show if we try to sell. We are trying to do both - get refinaced and sell, or else Morris-Griffin will just vulture in and take over. This is such an unfair experience, not only losing our mother, but losing the home that we grew up and lived in most of lives. We have 1/2 the property value as our interest, but that isn't enough. I asked Morris-Griffin if we could refinance it, and since we are not 62 years of age, we cannot. My mother could have done that and we could have taken over the payments. Now, I, who is doing all the work here, am totally exhausted and stressed out. All this stress and fear of losing our home with nowhere to go when November (and near the holidays mind you) comes around. I wake up in the morning and feel like I am in a nightmare. All this because a bank couldn't see that my my mother died sooner than was expected (they had given her 3-6 months), but died in 1 week. After a clean bill of health after surgery, she goes back to the hospital and is full of cancer, and died shortly thereafter. Is this fair? THE BANKS ARE HEARTLESS PIECES OF CRAP, AND NEED A BEATEN - AND A GOOD ONE. I am so glad to hear people agree on the fact that BANKS NEED TO REGULATED. Talk about PIRATES – we have
mass colonies of them all over our country. When is the government going to put these pices of crap in their place. I would love to know who voted a long time ago to let banks be regulated. Well, now and forever is the time. I have story to tell about a reverse mortage my recently deceased mother had (we (myself and two brothers) and still have 1/2 house value in equity. Well, the RIHMFC and Morris-Griffin didn’t let my mother know what would happen if anything should ever happen to her. She had cancer, and was given a clean bill of health after her last bladder cancer surgery. Well, she died in 2 weeks of that surgery. What a mess we had to contend with – the shock of losing our mother, paying for the funeral, and all tjhe big house expense (taxes, etc.) We didn’t even have a chance to mourn losing her because we had all this to contend with. Along with that, because there is a reverse mortgage on the property that we live in, we either have to refinance or, sell or forclose. The last option is out as far as I am concerned. However, one of my brothers wants out, and my other brother wants to go in on the mortgage with me. However, he hates credit cards, and has nothing on his credit report. I only work in a supermarket because for the past 3 years I had to take my mother shopping and to her drs. appointments (she had 5 doctors.), and my job is nights and is 5 minutes away from home. Now, I am scrambling to find a better paying job, trying to get the 500% overly cluttered house ready to show if we try to sell. We are trying to do both – get refinaced and sell, or else Morris-Griffin will just vulture in and take over. This is such an unfair experience, not only losing our mother, but losing the home that we grew up and lived in most of lives. We have 1/2 the property value as our interest, but that isn’t enough. I asked Morris-Griffin if we could refinance it, and since we are not 62 years of age, we cannot. My mother could have done that and we could have taken over the payments. Now, I, who is doing all the work here, am totally exhausted and stressed out. All this stress and fear of losing our home with nowhere to go when November (and near the holidays mind you) comes around. I wake up in the morning and feel like I am in a nightmare. All this because a bank couldn’t see that my my mother died sooner than was expected (they had given her 3-6 months), but died in 1 week. After a clean bill of health after surgery, she goes back to the hospital and is full of cancer, and died shortly thereafter. Is this fair? THE BANKS ARE HEARTLESS PIECES OF CRAP, AND NEED A BEATEN – AND A GOOD ONE.

]]> By: Betty Thorpe 3122 orange tree dr. Edgewater, FL. 32141 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43863 Betty Thorpe 3122 orange tree dr. Edgewater, FL. 32141 Tue, 02 Jun 2009 01:01:18 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43863 We live in Florida and bought a modest home for $175,000 in 2005 at the top of the market we were afraid if we waited much longer we would be priced right out of the market. Between my husband and I were making > $100,000+ a year. I made extra payments, Fixed up the house by putting in about $20,000 in up grades (house built 1987 still original ranch)we could afford the house even though we only put down 5%. Well the market dropped out and I was laid off, after 4 months I found another job, making $30,000 less than I made before. We went thru all our savings keeping up the 4 months I was out of work. Now I am 2 months behind in our mortgage because we are just making it by the skin of out teeth and had a few emergencies to deal. (no more $ cushion.) From the begining I kept in touch with my bank who said "sorry we can't help you" I asked about refinancing but my home is worth $120,000 and we owe $165,000. Fine than give me a LOWER % RATE SO IT LOWERS MY PAYMENT, can't help me either. I can't sell it without being held liable for the remainder of what we owe on the house since there is no way someone is going to pay us $165,000 for the house when it is only worth $120,000. I have taken my daughter out of college, and will not be able to send our son to college either in our current economic situation. Why is it okay to bail out the banks, but there is no help for the middle class people who have to pay this bailout back in their taxes. Do you wonder why people walk away when no matter how hard they try to do the right thing there is no help, or you are to so far ruined that by the time help comes it is too late, your credit is ruined. The very thing most families are the most proud of is their family, their home, their committment to their responsiblity and their credit rating. I would walk away if we could to do what is best for our family, but we can't so we continue to struggle to stay on time with all our other obilgations. We all need help, the American dream is dying qickly, how long is it going to take for the government to open their eyes. We live in Florida and bought a modest home for $175,000 in 2005 at the top of the market we were afraid if we waited much longer we would be priced right out of the market. Between my husband and I were making > $100,000+ a year. I made extra payments, Fixed up the house by putting in about $20,000 in up grades (house built 1987 still original ranch)we could afford the house even though we only put down 5%. Well the market dropped out and I
was laid off, after 4 months I found another job, making $30,000 less than I made before. We went thru all our savings keeping up the 4 months I was out of work. Now I am 2 months behind in our mortgage because we are just making it by the skin of out teeth and had a few emergencies to deal. (no more $ cushion.) From the begining I kept in touch with my bank who said “sorry we can’t help you” I asked about refinancing but my home is worth $120,000 and we owe $165,000. Fine than give me a LOWER % RATE SO IT LOWERS MY PAYMENT, can’t help me either. I can’t sell it without being held liable for the remainder of what we owe on the house since there is no way someone is going to pay us $165,000 for the house when it is only worth $120,000. I have taken my daughter out of college, and will not be able to send our son to college either in our current economic situation. Why is it okay to bail out the banks, but there is no help for the middle class people who have to pay this bailout back in their taxes. Do you wonder why people walk away when no matter how hard they try to do the right thing there is no help, or you are to so far ruined that by the time help comes it is too late, your credit is ruined. The very thing most families are the most proud of is their family, their home, their committment to their responsiblity and their credit rating. I would walk away if we could to do what is best for our family, but we can’t so we continue to struggle to stay on time with all our other obilgations. We all need help, the American dream is dying qickly, how long is it going to take for the government to open their eyes.

]]> By: Fay, Fort Lauderdale FL http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43538 Fay, Fort Lauderdale FL Thu, 28 May 2009 13:55:27 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43538 I made the mistake of buying a "starter" home during the boom, and now it looks like I am stuck with it forever. My boyfriend and I are planning to get married, yet we will never own a home together. The neighborhood around my home is declining and it is unsuitable for the long term. The house needs tons of work but when we are upside down $100,000 (!!!!) why freaking' bother? Our only hope is to rent out the starter home for less than the mortgage (big deficit each month when adding maintenance costs), and buy a better home for less than $200,000. We may do this, but I do not really want the headache of landlording. I am pretty stressed out by this and if I lived in a state where walking away did not subject me to a deficiency judgment (we live in Florida where the lender can hold me personally liable) I would consider it! I made the mistake of buying a “starter” home during the boom, and now it looks like I am stuck with it forever. My boyfriend and I are planning to get married, yet we will never own a home together. The neighborhood around my home is declining and it is unsuitable for the long term. The house needs tons of work but when we are upside down $100,000 (!!!!) why freaking’ bother? Our only hope is to rent out the starter home for less than the mortgage (big deficit each month when adding maintenance costs), and buy a better home for less than $200,000. We may do this, but I do not really want the headache of landlording. I am pretty stressed out by this and if I lived in a state where walking away did not subject me to a deficiency judgment (we live in Florida where the lender can hold me personally liable) I would consider it!

]]> By: Lisa Perez, Tucson, Az http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43375 Lisa Perez, Tucson, Az Fri, 15 May 2009 18:12:27 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43375 Oh this subject just had me boiling. I dont mind helping those who had terrible instances in their lives, ie deaths, loss of jobs etc. But what Im mad at is the fact that I am in AZ one of that hardest hit states. I bought at the peak 2/06 and I cant get help. I no longer work but apprently my husband makes to much to modify our loan. We bought when we did because prices were going so high we feared if we didnt buy then we would never be able to afford a home, I was pregnant and had a child already. We were making a combined income of 100,000.00 per year! We were responsible and even though told we could afford much more we bought what we knew we could afford. BUT they only way to get approval was to get an interest only loan. 10 years interest only (option to pay more which we ALWAYS do) for 10 years then re-ammortarize after at the same crappy 7.45%. We went this route becasue I had a credit score of 791 but his was not good at all so in order to get a loan this was the only "stated income" option. Meaning they used BOTH our incomes but only my credit. We have always made our payments on time and I always add more to the principal every month. But I want a regular 30 year fixed at a lonwer rate. Even to lower it to 5% would cut 200.00+ off my payment that I could live with! But we cant get any help becasue we own WAY more then the 105% guidlines to qualify under the Obama plan and my lender (Aurora) actually had the balls to say well if you pay the difference between what your house would appraise at ( I would be LUCKY at 120,000.00 and we owe 165,000.00) then we can refinance you! Well if I had 45,000,.00 laying around to put in my home I would do it. Why didnt they set money aside for the worst hit states or ALL home buyers that did not buy over their heads, or flippers and say any home owner who bought in the peak will automatically have their interest dropped by 1-2%? This would have helped far more people then the only ones getting approved. In my oppion we will be double hit. Why? well all the people who do get their loans modified will owe less then us and take a lot less time to recover. This was supposed to be my starter home not the one I die in. I honestly see why people are walking away! A friend just bought a brand new home, double my size, for less then what I owe at a rate of 3.8%! his payment is the same as mine. Its tempting really it is. If I didnt worry about uprooting my daughter I would have walked by now. Something more NEEDS to be done for me and others in the same situation because if not more and more people will walk creating and even BIGGER housing problem and lowering the house prices for me and the other honest people who are NOT walking away. Oh this subject just had me boiling. I dont mind helping those who had terrible instances in their lives, ie deaths, loss of jobs etc. But what Im mad at is the fact that I am in AZ one of that hardest hit states. I bought at the peak 2/06 and I cant get help. I no longer work but apprently my husband makes to much to modify our loan. We bought when we did because prices were going so high we feared if we didnt buy then we would never be able to afford a home, I was pregnant and had a child already. We were making a combined income of 100,000.00 per year! We were responsible and even though told we could afford much more we bought what we knew we could afford. BUT they only way to get approval was to get an interest only loan. 10 years interest only (option to pay more which we ALWAYS do) for 10 years then re-ammortarize after at the same crappy 7.45%. We went this route becasue I had a credit score of 791 but his was not good at all so in order to get a loan this was the only “stated income” option. Meaning they used BOTH our incomes but only my credit. We have always made our payments on time and I always add more to the principal every month. But I want a regular 30 year fixed at a lonwer rate. Even to lower it to 5% would cut 200.00+ off my payment that I could live with! But we cant get any help becasue we own WAY more then the 105% guidlines to qualify under the Obama plan and my lender (Aurora) actually had the balls to say well if you pay the difference between what your house would appraise at ( I would be LUCKY at 120,000.00 and we owe 165,000.00) then we can refinance you! Well if I had 45,000,.00 laying around to put in my home I would do it. Why didnt they set money aside for the worst hit states or ALL home buyers that did not buy over their heads, or flippers and say any home owner who bought in the peak will automatically have their interest dropped by 1-2%? This would have helped far more people then the only ones getting approved. In my oppion we will be double hit. Why? well all the people who do get their loans modified will owe less then us and take a lot less time to recover. This was supposed to be my starter home not the one I die in. I honestly see why people are walking away! A friend just bought a brand new home, double my size, for less then what I owe at a rate of 3.8%! his payment is the same as mine. Its tempting really it is. If I didnt worry about uprooting my daughter I would have walked by now. Something more NEEDS to be done for me and others in the same situation because if not more and more people will walk creating and even BIGGER housing problem and lowering the house prices for me and the other honest people who are NOT walking away.

]]> By: John, Palm Beach County, FL http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43090 John, Palm Beach County, FL Mon, 11 May 2009 15:18:44 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43090 LISTEN UP AMERICA. THIS POST IS ETREMELY IMPORTANT. My wife and I refinanced one of our rental properties. We both work very hard, we both pay off ALL of our debts. And we live on very little. My motto in life has always been, Sacrifce now for a nice early retirement later. We both have credit scores of 807 and 814. Like I said, we do our best to make right decisions. However, now we are faced with an epidemic crisis. Our property which we were very capable of affording and one day refinance has become our nemesis. Our small condo rental property has dropped in value from 120K to 35K. We cant refinance and we are soon to see our 5/1 Arm Interest rate skyrocket. The bank won't renogotiate because we are not behind on our payments, nor are they willing to help because we have $25K in savings. EVEN IF I WANTED TO DO THE RIGHT THING AND PAY OFF THE MORTGAGE OR REFINANCE, I CANNOT. I truly believe that the worst is yet to come for our great nation. When a couple with a nice combined income and credit scores over 800 cannot avoid foreclosure then we are facing an epidemic crisis this country has ever faced. More upsetting than anything, our leaders (both Dems and Repubs) are doing very little to force banks to make good wise decisions for the American people. Every great Dynasty has its time. America is soon becoming a second rated sub-standard country. I SURE HOPE I'M WRONG. PLEASE STAND UP TO OUR ELECTED OFFICIALS AND TELL THEM ENOUGH IS ENOUGH. LISTEN UP AMERICA. THIS POST IS ETREMELY IMPORTANT.
My wife and I refinanced one of our rental properties. We both work very hard, we both pay off ALL of our debts. And we live on very little. My motto in life has always been, Sacrifce now for a nice early retirement later. We both have credit scores of 807 and 814. Like I said, we do our best to make right decisions.
However, now we are faced with an epidemic crisis. Our property which we were very capable of affording and one day refinance has become our nemesis. Our small condo rental property has dropped in value from 120K to 35K. We cant refinance and we are soon to see our 5/1 Arm Interest rate skyrocket. The bank won’t renogotiate because we are not behind on our payments, nor are they willing to help because we have $25K in savings.
EVEN IF I WANTED TO DO THE RIGHT THING AND PAY OFF THE MORTGAGE OR REFINANCE, I CANNOT.
I truly believe that the worst is yet to come for our great nation. When a couple with a nice combined income and credit scores over 800 cannot avoid foreclosure then we are facing an epidemic crisis this country has ever faced.
More upsetting than anything, our leaders (both Dems and Repubs) are doing very little to force banks to make good wise decisions for the American people.
Every great Dynasty has its time. America is soon becoming a second rated sub-standard country.
I SURE HOPE I’M WRONG. PLEASE STAND UP TO OUR ELECTED OFFICIALS AND TELL THEM ENOUGH IS ENOUGH.

]]> By: Brooke, Cleve, OH http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/2009/02/27/walk-away/#comment-43059 Brooke, Cleve, OH Sat, 09 May 2009 05:12:11 +0000 http://cnnmoneytalkback.blogs.cnnmoney.cnn.com/?p=688#comment-43059 I have a PS. I dont think poeple should be so judgemental of others. Everyones situation is not yours and people have to do whats right for them. I also wanted to say that it certainly sticks in my crawl to be paying for a house that isnt worth what ya bought it for. You expect that for cars not homes. Its just all a sad sad situation for us all. OH and yes Id love to take advantage of the market and unload my current house and neighborhood that Im not so happy with for a more desirable one. I have a PS. I dont think poeple should be so judgemental of others. Everyones situation is not yours and people have to do whats right for them. I also wanted to say that it certainly sticks in my crawl to be paying for a house that isnt worth what ya bought it for. You expect that for cars not homes. Its just all a sad sad situation for us all. OH and yes Id love to take advantage of the market and unload my current house and neighborhood that Im not so happy with for a more desirable one.

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