You bought in 2005 for $260K. 2200 sq ft. 4 bedroom plus a den. You love the home, the neighborhood, etc.
Financed with a 1st and 2nd to avoid mortgage insurance. A year later converted the 2nd to a HELOC when the home appraised at $350K.
4 years later, comps in the neighborhood are going for $130K.
You have spotless credit. No other debt. No CC debt. No car payments. Nothing.
What do you do?
A) Keep paying the mortgage if you can afford it?
B) Mail the keys in and walk away ASAP?
C) Stop paying and live in the house 6 months rent free until it forecloses?
D) Try to shortsell?
E) Any other ideas?
Keep in mind, if you walk, foreclose, or shortsell, you will more than likely still be stuck with the $60K home equity line of credit since its not necessarily tied to the house.
Financed with a 1st and 2nd to avoid mortgage insurance. A year later converted the 2nd to a HELOC when the home appraised at $350K.
4 years later, comps in the neighborhood are going for $130K.
You have spotless credit. No other debt. No CC debt. No car payments. Nothing.
What do you do?
A) Keep paying the mortgage if you can afford it?
B) Mail the keys in and walk away ASAP?
C) Stop paying and live in the house 6 months rent free until it forecloses?
D) Try to shortsell?
E) Any other ideas?
Keep in mind, if you walk, foreclose, or shortsell, you will more than likely still be stuck with the $60K home equity line of credit since its not necessarily tied to the house.
