Hi all. I am contemplating doing the same thing as zboy. Current home has a 1st with HSBC for 126,000 @ 7.9% and a 2nd with Homecomings for $26000 @ 11%. Last refi was in 2006 and I should NEVER have signed those papers.
Through a combination of my own poor judgement and circumstances beyond my control, I got myself into a situation where over HALF of my take home pay is currently going towards housing costs.
My home appraised for $138,000 in 2006, it is now worth 95,000.
Found a nearby home for sale with
more square footage yet a smaller lot for 50,000. I also applied for a mortgage on this property and was approved. Plans are to cover the down payment, closing costs, and necessary repairs with a withdrawl from my 401k (that money sure as hell ain't earning anything in there right now!). I'd be more than happy to do a short sale or DIL if the current lenders will go for it as opposed to just bailing altogether. I'm tired of dealing with phone calls from HSBC (The term "grace period" means
NOTHING to them!
) as well as mortgage brokers who treat you like you're sub human once they find out you're upside down.