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johnnyblaze313 · 04-15-2009, 05:09 PM

I will start with some facts.

Purchased the home in '02 @ 85k on a 30 year adjustable rate with a yearly cap of half a percent. I now owe 70k on the home with my rate currently at 5.75%.

I called country wide in december after being laid off to see if they could at least lock my rate, they took all my info and had me write a hardship letter but said I should still be able to afford the home on unemployment.

I'm back at work now so all has been well but theres talk of another layoff coming in a month. So I called country wide again last week the guy on the phone offered me a streamline mortgage 15yr at 4.25% rate locked but $4,800 to close. Still better terms than I'm on now, I'm really considering this.

Now here's my other option maybe. My neighborhood is full of homes that are basically identical to mine (same floor plan) for 15-30k now, so my thoughts are just walk out of this one and go get a 20 thousand dollar one that I can pay off in 3-4 years. My mom tells me this is crazy and to just ride it out the prices will come back plus she says is it worth ruining my credit? Also she thinks they will garnish my wages to get the money anyhow, is this true? Couldn't I just file banckruptcy?

I feel it is worth it to me I got robbed and I have a chance to save a ton of money. Just in the interest alone would be close to 100k, plus I work in a failing industry (automotive) so if I can get home paid off at least I wont have to stress layoffs anymore.

So what do you think? 1.Go with the streamline 2. Walk and get me one of these cheap homes?. 3. Keep trying to get a renegotiation?

Hope to hear lots of opinions and thanks for any help.....

04-15-2009, 05:09 PM	#1 (permalink)
johnnyblaze313 Junior Member Join Date: Apr 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Am I foolish for thinking of walking? I will start with some facts. Purchased the home in '02 @ 85k on a 30 year adjustable rate with a yearly cap of half a percent. I now owe 70k on the home with my rate currently at 5.75%. I called country wide in december after being laid off to see if they could at least lock my rate, they took all my info and had me write a hardship letter but said I should still be able to afford the home on unemployment. I'm back at work now so all has been well but theres talk of another layoff coming in a month. So I called country wide again last week the guy on the phone offered me a streamline mortgage 15yr at 4.25% rate locked but $4,800 to close. Still better terms than I'm on now, I'm really considering this. Now here's my other option maybe. My neighborhood is full of homes that are basically identical to mine (same floor plan) for 15-30k now, so my thoughts are just walk out of this one and go get a 20 thousand dollar one that I can pay off in 3-4 years. My mom tells me this is crazy and to just ride it out the prices will come back plus she says is it worth ruining my credit? Also she thinks they will garnish my wages to get the money anyhow, is this true? Couldn't I just file banckruptcy? I feel it is worth it to me I got robbed and I have a chance to save a ton of money. Just in the interest alone would be close to 100k, plus I work in a failing industry (automotive) so if I can get home paid off at least I wont have to stress layoffs anymore. So what do you think? 1.Go with the streamline 2. Walk and get me one of these cheap homes?. 3. Keep trying to get a renegotiation? Hope to hear lots of opinions and thanks for any help.....