1) sell my home at a loss;
2)pay the bank the $110 with my new loan
3) buy a foreclosed home for $175K –

my mortgage payment would go down by $800-$1000 a month. It is NOT -Un-Be-Lieve-Able that someone would wonder if they could do something like this…in the long run the new home will go up in value and probably more because it was bought at such a low price! Whether this is possible or not is another story…

It’s sad that you are a victim of the market, but the market is down because homes simply aren’t worth what ppl like you have been willing to pay for them. – And now that it’s bitten you in the behind, you want to buy another!

-Un-Be-Lieve-Able!

When you default on a mortgage, there are numerous additional debt you incur from the mortgage company. Just to be sure you are fully protected, by just walking away from it, I would advise legal advise. Why take a chance.

We’re dealing with CW. We’re in the biz – no sales – no money… We put our house on the market and began making partial payments, they called 3x a week. After 90 days, they call and the discussion was more like, maybe we could consider a short sale or deed in lieu of foreclosure. Keep trying to sell your house, reduce the price and we’ll consider any and all offers you may receive. Next call told us that if we made a full payment every 89 days, it resets the foreclosure clock sort of speak. So we’ve significantly reduced our price and are making one full payment every 89 days. The calls have slowed down, maybe one a week now. No bites on our house, but we just reduced in on Sunday. It’s a game. It’s a tough one to fight, because you become stressed and weary and tired and sick of it. But you are not alone, there are millions of us going through similar scenarios. Hang in there.

I have to admit that I was a little skeptical about being told how to, in essence, analyze risk from risk managers who presumably helped UBS lose over $40 billion. But then again, they should understand the market.

If there is any weakness in their analysis it is that it is next to impossible to conduct any sort of statistical sampling when so many loan applications were fraudulent.

Still, all-in-all, I highly recommend this book. Oh, and don’t let the term derivatives scare you, the authors used virtually no mathematics to explain these complex instruments. The only thing I would like to have seen was an Excel disk with their models on it, or at least an appendix with more details on how to do their analysis.

I have no idea whether this answers your question.

There are millions of people in your boat, upside down on their mortgages. When you bought your house, you never said that you’d pay if (and only if) the value of your house went up. You paid your money and you took your chances. Your chances included a gain or a loss. You happened to get a loss. If you had a huge gain, would you be looking to share it with your bank? Would be looking for programs where you could share all the money you made? No, of course not.

The only way to get out of your current loan without a ding on your credit is to come up with the difference before closing. You can ask for a short sale or a deed-in-lieu of foreclosure, but both do serious damage to your credit and may not allow you to buy another house for quite some time.

If you don’t need to move, you shouldn’t…

good luck!

It allows a small down payment of only 3.5% of purchase price.

What the bank will do is pull comparable homes that are within 1 mile if in a urban location or 5 miles if rural that have sold in last 6 months and see what they sold for. They will make a list of repairs and have estimates for them. Based on the condition of the home they will have a figure in mind that should be acceptable. This is called a Brokers Price Opinion.

If you want to do this work for the bank that’s fine but they will verify independently. In addition, if the bank has not completed this work understand that you may be waiting a very long time before you hear back from them about accepting your offer. Buying homes in foreclosure is a time consuming process.