As everyone's story is a little different in here... here is mine.
I'm 27 years old and purchased my 2/2 Hayward Hills, Ca condo in April 2007 for just under $400,000. I have an FHA 10/30 fixed loan at 6% with Bank of America. (First ten years interest only). I currently live here with my boyfriend and his two kids are here part time.
Since my purchase my father passed away and the construction company he owned and I took over has not been doing as well and I'm closing it down. My 100k a year income dropped to 56k and now I'll probably be on unemployment in a few months. The complex I'm in currently has one unit that originally listed for $300k in February and had an open house yesterday for $218k. There is another going through foreclosure right now. I had my first non-payment last month. It's just too much to handle right now.
I'm sure I could work towards a modification but I'm not sure how much they are going to reduce payments or principle. This is not the place of my dreams and I have no desire to struggle to stay here. Is it worth it to attempt modification or just let the place go? If I go for modification will it drag out the foreclosure process time?
Also, BofA will not take a Deed in Lieu of foreclosure without a short sale attempt first. Should I look into this route and how long does that take?