What would you do if you want to walk away from your mortgage?
August 1st, 2009
I purchased my home a little less than 2 years ago in Long Beach, California. I paid $255,000.00. I am now upside down because the house is now worth $210,000. The payments went from (114 HOA) from 1700 to 2000 per month in February. But, I don't really like the neighborhood. Lots of section 8 renters are moving in and playing loud Mariachi music and selling drugs. Police won't do anything. It is a terrible place and I did not know what I was getting into.
I have gone to Austin, Tx twice and really would like to move there. What should I do?
I am a teacher with a Master's Degree, but this is all that I could afford. I don't want to be a slave to the mortgage company and pay for something that is not worth it. I also am not above dinging my credit.
I don't feel sorry for ditching this place. The banks were bailed out of their poor choices. I am simply a school teacher who thought I was doing the right thing by buying a home. I will not continue the cycle of being a middle class person living in poverty...I'm going to take the advice of seeking legal council. The originator of my loan sold it to ( I'm quoting someone from their own company) pennies on the dollar. If they don't negotiate with me jut because I pay my bills, I'll take the 7 year mark and live in a tent in the friggin forest.
It makes me sick looking at people in my neighborhood that have like 8 kids and live in my same building on section 8 and I work like a dog and come home at 5:00.
Rant rant...boo hoo.. for real thanks for the advice everybody.
By the way, I tried calling and telling the police about the noise laws. They almost laugh at you. No joke.
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Posted in Upside Down Mortgage FAQs | 
Tags: austin tx, bad neighborhood, bad neighbors, banks, buying a home, doing the right thing, long beach california, mariachi music, middle class person, mortgage company, neighborhood, noise laws, pennies on the dollar, police wont help, poor choices, poverty, rant, school teacher, section 8, selling drugs, walk away, walk away from mortgage, what to do
If it your credit does not matter then do as you wish. You are with hundreds of others in the same predicament. You may want to speak with an attorney, to find out what assets you have, may need protection.
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.