Loans, Debt & Credit - View Single Post - Our journey: a step-by-step account of walking away in CA

outta_here · 10-22-2009, 11:40 AM

First, I want to say thank you to everyone who has posted on the board – My husband (he posts as submersible) and I would be lost if it weren’t for all of you sharing your feelings and stories. It is nice to be somewhere with people who really understand what going through this process is like. We felt that the least we could do now was document our journey for anyone out there who is feeling lost and scared about walking away.

After discussing what to do for a year, we have decided to walk away from our home. We live in the San Francisco Bay Area in California. Our home is underwater 55% - probably more now if I was to take a look at our neighborhood comps, but I just can’t torture myself again. After a year of flip-flopping and looking at all our options, walking away appears to be our best option.

Our target date to stop making mortgage payments is December 1st.

So, our first step is to meet with an attorney to find out what the legal ramifications are, have him review our loan documentation to make sure our loans are all in order and non-recourse, and see what he can tell us about CA tax libaility. Step two, meet with a CPA if we can’t get a straight answer about the tax liability issues from the attorney so we know what to expect.

We meet with the attorney this evening and I’ll post an update on what he says and suggests.

Thank you again to all of you out there on the board – your support is going to be a part of what carries us through all of this!

10-22-2009, 11:40 AM	#1 (permalink)
outta_here Senior Member Join Date: Oct 2009 Posts: 55 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Our journey: a step-by-step account of walking away in CA First, I want to say thank you to everyone who has posted on the board – My husband (he posts as submersible) and I would be lost if it weren’t for all of you sharing your feelings and stories. It is nice to be somewhere with people who really understand what going through this process is like. We felt that the least we could do now was document our journey for anyone out there who is feeling lost and scared about walking away. After discussing what to do for a year, we have decided to walk away from our home. We live in the San Francisco Bay Area in California. Our home is underwater 55% - probably more now if I was to take a look at our neighborhood comps, but I just can’t torture myself again. After a year of flip-flopping and looking at all our options, walking away appears to be our best option. Our target date to stop making mortgage payments is December 1st. So, our first step is to meet with an attorney to find out what the legal ramifications are, have him review our loan documentation to make sure our loans are all in order and non-recourse, and see what he can tell us about CA tax libaility. Step two, meet with a CPA if we can’t get a straight answer about the tax liability issues from the attorney so we know what to expect. We meet with the attorney this evening and I’ll post an update on what he says and suggests. Thank you again to all of you out there on the board – your support is going to be a part of what carries us through all of this!