My situation as follows:
First Mortage with HSBC: $521K @5.375. Payment is 3337.43 per month(aprox. $1000 principle. aprox. $2337.43 interest). HSBC ownes and services the loan.
Second Mortgage: HELOC (Interest Only) at 2.5%: $442K. Payment is aprox. $925 per month interest only). HELOC is with Chase. I am not sure but I think the own it and service it.
Zillow Value: $580,875
Esitmated Actual Market Value From Knowlegable Real Estate Agent: $750K
Was my primary residence but relocted overseas to find work but currently unemployed again.
The property is rented and under lease until September 1, 2013. I receive $3400 month in rent. Including taxes, mortgage payments, and upkeep I am losing about $25K a year in terms of cashflow if I continue renting. If I stop paying my second I will be losing $15K per year to continue renting out my property.
I am current on all credit cards and mortgages and have a 750 credit score. But I do not care about my credit score very much because I live overseas and do not plan to return to the USA.
I AM CONSIDERING STOP PAYING MY SECOND MORTGAGE AS ADVISED MY THIS FORUM. tHEN WAIT FOR CHASE TO COME TO ME TO PROPOSE A SETTLEMENT AND NEGOTIATE FROM THERE. HOPEFULLY, THE RESULT WILL BE END UP WITH A SMALL SECOND MORTGAGE AND ALSO NEGOTIATE THAT MY CREDIT BE CORRECTED AS IF I HAD MADE ALL MY PAYMENTS ON THE SECOND MORTGAGE.
THE ULTIMATE OBJECTIVE IS REACH A FAVORABLE SETTLEMENT ON THE SECOND, THEN BECAUSE I WILL NOT HAVE A LTV ISSUE IN ORDER TORE FINANCE, I CAN REFINANCE AT MUCH LOWER RATES, AND CONTINUE TO RENT THE PRPERTY OUT LONG TERM UNTIL THE HOUSING MARKET RECOVERS.
BASED ON MY SPECIFIC CIRCUMSTANCES CAN ANY ONE TELL ME IF THE ABOVE IS THE BEST COURSE ACTION. IF NOT PLEASE TELL ME WHAT IS WRONG WITH MY THINKING. pLUS WHAT DO THINK THYE CHANCES ARE FOR SUCCESS BASED ON MY SPECIFIC CIRCUMSTANCES. ANY AND ALL COMMENTS WOULD BE APPRECIATED.