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…

By the way, National Foreclosure Relief is not a government institution. It is a private firm that tries to get people who are behind on their loans to use their mitigation services. In fact, they are some of the worst predators in the pre-foreclosure field. A lot of times they send these letters to owners who are late on payments. However, they also do spam mailings to cities or neighborhoods just because there is a high rate of foreclusores or bankruptcies, so it is quite possible your owners are not having any problems.

Even if there is an eviction, most cases you will be allowed to stay through the end of your lease, and depending on the situation, possibly longer.

You would be given at least 30 days notice before you are required to leave. However, I believe that you will be safe to complete your current lease before you have any problems. I would, however, check with the management or the owners about these suspicious letters. If you don;t get satisfactory answers, start looking for another place for when your lease expires.

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.

How much did you pay upfront? and what state are you located?

They shouldn’t charge until they complete it

You should never default on your mortgage unless there is absolutely no other alternative and it sounds as though the worst thing you have right now is a couple weeks of unemployment (and I’m assuming your wife is still employed). Considering defaulting on your mortgage seems a pretty extreme choice.

If the lender writes off your loan, then the $60,000 will be considered income to you. You will owe taxes on $60,000 at whatever your marginal tax rate is. So you would owe the government around $20,000, give or take, depending on your income.