on the fence - Orange County

[shweempyo]

So glad to find this forum. I think I am very close to walking away...as I have started to make this less emotional and more as many have stated - a financial / business decision (many thanks to all of you who have shared your stories!) Lost my job last year and have been chipping away at savings. I need to save what I have left for my family/kids.

My situation is as follows:

1. Orange county, CA

2. purchase price - $650k
loan - $520k
countrywide, 5 year interest only jumbo
No other loans.

3. market value - $520k at the most, more like $500k or lower. I met with the realtor last month and they were like "no, you don't want the hit on your credit, just refi and stay here...or take the hit on your equity and get back in again right away..." Told them I can't afford to sink more money into this house. I tried to refi, but countrywide said they can't even do anything since I'm not late on my payments.

4. Purchased home in 2005 and lived here since.
I have occupied the home as my primary residence and have no other properties.

Concerns:
1. reading through the loan docs / "note" - I'm not sure what to look for to give me comfort that this is a non-recourse loan. Should I look for any other documents beside the loan note?

2. savings/assets/401k - should I do anything?, I'm worried that there is some recourse, or maybe I signed something...but I think I had the standard 5 year interest only loan...

3. what are some typical tactics that the bank/countrywide would try to use to get me to start paying. Typical timeline, calls, letters? They all seem varied depending on the customer rep you get.

4. I still go back and forth thinking I could sell this house and cover my costs (too optimistic?) but when I do the numbers, it looks like I have to sink more money in to walk away. Or that I could possibly refi / short sale, yadda yadda yadda...

If anybody could share similar situation and advice, it would be most helpful.

Anyway, just venting. Thanks.

-jason

[The Professor]

Loan documentation won't suggest that the debt is non-recourse. That status results directly from transactional circumstances. Those circumstances bring into play California Code of Civil Procedure 580b protection by characterizing your loan as purchase money on a residence. You can read the statute by pointing your browser to:
California Code Of Civil Procedure Section 580b - California Attorney Resources - California Laws

Your circumstances appear to indicate qualification. However, as I always do, I believe it important that you find a lawyer who specializes in California real estate law and debt collection practices, have them review your loan and purchase documentation, and provide you with a written opinion outlining why your loan qualifies for "non-recourse" status.

Daniel

[shweempyo]

Thanks Professor. Your comments and dedication to answering questions on the forum are really appreciated.


Additional info:
When I go to my Countrywide account / website it seems to give me two other payment options:

Amortized Payment Choice
15-Year Amortized Payment Choice
Interest-Only Payment

This is a 30 Yr Conv Jumbo ARM, where I pay interest only for the first 5 years.