[MRC123]

Me and my husband are seriously considering walking away from our home here in Arizona. We purchased the house in Sept 2006 for $265,000 and put $19,000 down. Our mortgage is 5/1 ARM interest only loan and the balance is $249,000. There are no second mortgages on the house. We make our payments to Wells Fargo and from the things I have read on here, they are extremly difficult to work with. We are current on the mortgage.

I don't even like the thought of moving, but like Prof says cut all emotional ties to the decision. We have 3 children and don't want to put them through this, but we do have to do what is best for our family in the long run. I figure the sooner we start the process the sooner we will be out of it.

If we do plan to walk we will be able to pay off our credit card debt, which is only about $4,000, then save the rest. Me and my husband had a few questions.

1. How long before we can purchase another home?
2. How long do foreclosures stay on your credit?
3. If everything is settled before the Mortgage Debt Relief Act is set to expire (end of 2009?), do we have to claim the amount that was outstanding on our taxes?

We can make our house payments confortably, but I just feel like we are depriving our children from doing extra curricular activities, because we just can't afford dance classes or gym lessons and I want our children to at least experience all the great things life has to offer.

I know we will be able to rent somewhere, but I just hate renting, I like to feel that where I live is or will be mine.

This is a great site and I hope to make our final decision based on some of the information I get from here.