Old member, now walking in AZ

[Kimbly]

Hey all! Well, the time has come. After successfully negotiating a lock in my mortgage rate with CW a year and 1/2 ago, property values have continued to plummet (as we all know too well, eh?). So, the decision has been made and we will be walking away from our home. A brief history/snapshot follows:

The house: purchased 3/2005 for $170ish; refi'd 2nd, pulling out equity, to put in new flooring, a patio and pay off a large, old loan from a family member. We now owe about $212k. (House appraised at $280+ then; we thought we were being smart only refi'ing to 75% - ha)

Our community: falling apart; 50% or so vacant; moving vans present constantly; vandalism starting and HOA services being reduced (including our security patrols).

Our lives: drudgery; driving to and from the city each day, spending 12-15 hours in a car each week; up to our eyes in debt because we charge every repair to both the house and car; stressful.


After hours of discussions, consultations with attorneys, debates, pro-con lists, analyzing what-if's, etc., the time has come. We missed our first 1st mortgage payment on 9/1 and will miss our first 2nd mortgage payment on 9/15. We will be stashing the cash for quick negotiations with the 2nd when the time comes as we do have liability for the equity pulled out.

While this is sad and we feel a little defeated, it also feels freeing. It is absolutely the right business decision for us and, despite some internal moral battles, it is the right emotional decision. Feeling trapped in a house we do not want, in a state we no longer want to live and in a community that's falling apart is not good for one's relationship. We've both aged over the past few years of stress, and it's time for it to end.

So, I join all my fellow Arizona walkers and say "no more!". We didn't create this mess; no programs have been created to aid us with such severe deficiencies; the builders walked away with their money; the brokers made their loot; the banks have collected over $90k from me on this house. I'm done. Fini. We will enjoy living here rent free until our sale date is set and then will happily leave, accepting whatever consequences are to be as respects our credit, outstanding obligation due to the refi and difficulty renting with a foreclosure and a dog.

Screw credit and homeownership. I'll take life and happiness.

[Evan Bedard]

Hi Kimbly,

I'm sorry to hear that you were not able to achieve any type of assistance from yur lender. Your smart to start saving up now and remain in the home as long as possible until forclosure. You will probably have at least six months before this happens.

Stay strong and keep us posted!

[caldwellb02]

Evan. Hate Paypal. Is there another way we can donate (it won't be much, believe me. But if we can all do a little....)

[Kimbly]

Update:

9/22 - first phone call received from 2nd mortgage company (HSBC). The message was just music (well, muzak) playing. I'm sure the call was one of the "please hold for a rep" calls.

Not a peep from CW/BoA as of yet. It's interesting that the 2nd called first. Of course, being in the 2nd position, they have the most to lose (um, yea, like 100%!). Poor HSBC. I feel so sorry for them. They've been so helpful the three times we've requested a lower interest rate. Not.

I also closed my credit card with HSBC this week. They made that process quite difficult; transferring me twice to listen to all the rebuttals of why I should keep the card.

..and the beat goes on...

[Evan Bedard]

Hi caldwellb02,

Thank you for your kind consideration. If anyone would like to donate not using paypal feel free to send to our direct address at:

31915 Rancho califiornia Rd. Suite 200-381
Temecula,Ca 92591

[Irish Gal]

Hey Kimbly,

Welcome back! Sounds like a good decision to me! Good for you. I'm sure you feel like a huge weight has been lifted from your shoulders. I'm in CA and going the short sale and/or foreclosure route. I played the mod game for months only to be offered 2 (rotten) predatory mods (CW/BofA) which I ultimately rejected. Now, I would only accept a mod w/ a principal reduction, anyways. Which aint gonna happen in my lifetime, so moving on, too. I'm not willing to become a glorified renter who pays the insurance, taxes and HOA dues for the bank/owner too! Anyways, just wanted to welcome you back. As your story has a new twist: someone who modified once already and decided to walk later, it will be interesting to follow. Also, Cactus 77727 (AZ) has an interesting walkaway story in Deed in Lieu/Walkaway. If you haven't checked out his journey/thread, you might find it helpful (as well as entertaining). He foreclosed in AZ in April.

[faith]

Originally Posted by Kimbly

Update:

9/22 - first phone call received from 2nd mortgage company (HSBC). The message was just music (well, muzak) playing. I'm sure the call was one of the "please hold for a rep" calls.

Not a peep from CW/BoA as of yet. It's interesting that the 2nd called first. Of course, being in the 2nd position, they have the most to lose (um, yea, like 100%!). Poor HSBC. I feel so sorry for them. They've been so helpful the three times we've requested a lower interest rate. Not.

I also closed my credit card with HSBC this week. They made that process quite difficult; transferring me twice to listen to all the rebuttals of why I should keep the card.

..and the beat goes on...

Kimby,
It's nice to hear from you again. I don't like BOA and HSBC, their credit card interest is too high Let them worry about this mess they have created. I hope you get cash for keys before you walk away.

Take care and God bless.

[Kimbly]

Hello to both of you as well!

I'm surprised I'm the first post-mod'er from Loansafe to walk, I'm sure I'm not the last! The mod doesn't change the terms of the loan, other than extending my I/O period for five years, so I doubt it will change the process much.

HSBC continues to call several times a day. The number they are calling is my partners cell phone which she rarely answers anyway (doubtful that'll change now, eh?).

On Friday 9-25, we received our first "you're late" letter from HSBC along with a past due bill. Nada from CW/BoA. Not a call, not an email, not a past due notice. Nothing.

Oh, yea, and I also got a notice from HSBC on one of my cards that the interest rate was increasing from 9.9% to 19%. Never a late payment, rarely much of a balance, been their customer for 7 years. Hmm... no wonder they fought so hard to keep it open.


Yes, it actually feels freeing to have made the decision. It also feels good to see a little $$ in the bank. Oh, yea, and the pantry actually stocked!


...I will never be house/rent poor again... Now, THAT feels great!!!

[Kimbly]

Just an update.

Missed second payment with BoA yesterday; and am now officially 30 days late. I think I heard the thud of my credit score yesterday, it was easy to ignore.

Not a word from BoA yet either. Seems odd. I'm waiting for things to clear the bank account with them and then that will be closed; all set up with the credit union, changed direct deposit, etc.

HSBC calls every evening now at 7:30 (right in the middle of dinner). My partner answered a couple nights ago and, when they asked for me, she said she was happy to help. They told her she wasn't on the loan. Good, maybe it won't impact her credit. She's clearly on all our loan docs, and there's a reason they have her number. Annoying. When she protested they said, "Well, then do you know when she's going to make a payment?" her response: "No." (She works in claims; never give more than you're asked!). They hung up.

So, moving forward. It's becoming more clear just how much we were utilizing credit to keep paying this morning. Our monthly payments combined were $1800 and we only managed to put $1300 aside last month, after oil changes, groceries, utilities etc.

Thirty days and ticking..... wonder how long til we hear a peep from BoA....

[stephslr]

Hey There:

We have also decided we are done working 100-120 hours per week, BofA has lost our paperwork twice now for a loan mod even though we prequalified for one, and are ready to take control of our lives again. I got swine flu (fun stuff) and bronchitis 2 weeks ago. I seriously thought against going to the doctor because the copay and possible meds would have been too much for us to afford. A 2400 square foot house is not my life.

After a year of struggles it feels great to pay all our other bills on time for September and October. Every month for the last 10-12 months we have paid a $100 late fee each month to BofA, paying the mortgage on the 29th day so we are never 30 days late. Starting on the 16th of each month, BofA calls 1-3 times a day asking for my payment. I tell them you will get it on the 29th of the month like you always do, with a $100 bonus for charging us too much. We did not pay the house payment in September, it as not possible.

But guess what??? I have not received a single call. What is the deal? We are borderline harassed each month, and now when I am officially a month late there are no calls? I feel neglected It sure feels good to out to dinner as a family to someplace other than Taco Bell though.

[caldwellb02]

Evan - as much time as I spend on this forum I JUST now found the address you posted for donations. One more question - can I make it out to Loansafe? Or should I use another name?

[darlyj]

Originally Posted by stephslr

Hey There:

We have also decided we are done working 100-120 hours per week, BofA has lost our paperwork twice now for a loan mod even though we prequalified for one, and are ready to take control of our lives again. I got swine flu (fun stuff) and bronchitis 2 weeks ago. I seriously thought against going to the doctor because the copay and possible meds would have been too much for us to afford. A 2400 square foot house is not my life.

After a year of struggles it feels great to pay all our other bills on time for September and October. Every month for the last 10-12 months we have paid a $100 late fee each month to BofA, paying the mortgage on the 29th day so we are never 30 days late. Starting on the 16th of each month, BofA calls 1-3 times a day asking for my payment. I tell them you will get it on the 29th of the month like you always do, with a $100 bonus for charging us too much. We did not pay the house payment in September, it as not possible.

But guess what??? I have not received a single call. What is the deal? We are borderline harassed each month, and now when I am officially a month late there are no calls? I feel neglected It sure feels good to out to dinner as a family to someplace other than Taco Bell though.

We are in a similar situation. DH is heading to Phoenix to the Save the Dream even tomorrow and if something does not come of it then we are going to let go. We've been struggling as well and have made about all of the sacrafices we can. It feels so good to be able to get our other bills caught up, regardless of whether or not Chase gets their money. And it is even nicer to be able to put good, healthy food on the table for the kids instead of the processed, cheap, artery-clogging crap. It's nice to know that you are not alone, eh?

[Believe]

Hello Kimbly. Thank you for sharing your story. I'm sorry to hear about the difficulties you've had, but I understand completely. We just missed our first payment yesterday. Our lender on our 1st mortgage is HSBC. We also have a credit card with them that we're going to cancel. We received a notice of a rate change on our card, too, but ours is changing to an adjustable rate. So, not only do we have an adjustable rate mortgage, we have an adjustable rate credit card. Isn't that clever? Well, before long, we won't have either. Thanks again for sharing your story, and I wish you the best of luck.

Steph, 100-120 hours per week is way too much, and it's not worth it. That's what we're doing, also. Right now I'm worried about how I'll manage without our home, but maybe my feeling about it will change now that we'll have money to get out of the house! If we're actually able to go out to eat, movies, etc., like normal people do, we might not be so attached to the house. That's what I'm hoping for anyway. Thanks for listening. Good luck to you!

[Kimbly]

Hi Believe, Darlyj, Stephslr!!

Yes, it feels good to have some control. And to have made the c.c payments this month without also checking the balance to see what I can use them for.

Nice to hear your situations. Hang in there; whatever may come, we are now in control of our decisions.

[Believe]

Kimbly, I'm sorry to ask such a stupid question, but can I cancel the credit card without paying the balance off all at one time? I don't know how that works. Mine is HSBC, also.

[mintdeer]

I am almost three months late now but have started to finally get that relieved feeling,or the unattached feeling when it comes to my house. I too can finally pay my utilities on time and eat real food! It is just not worth all the worry any more. I figure what ever happens will happen we are all just along for the ride. Maybe something good will come out of this mess! A nicer less expensive home, some sanity, and the knowledge to never trust a bank ever again! I am paying for everything with cash from now on! Like they saying goes " every cloud has a silver lining" Good luck everyone!

[Kimbly]

Originally Posted by stephslr

Hey There:

I got swine flu (fun stuff) and bronchitis 2 weeks ago. I seriously thought against going to the doctor because the copay and possible meds would have been too much for us to afford. A 2400 square foot house is not my life.

But guess what??? I have not received a single call. What is the deal? We are borderline harassed each month, and now when I am officially a month late there are no calls? I feel neglected It sure feels good to out to dinner as a family to someplace other than Taco Bell though.

I hope you are feeling better! Ick.

I know, I had to have some diagnostic testing done a couple months ago and the results were concerning to the doc so I had to go back for more. I contemplating postponing them because of the cost. Seriously? I'm going to pay for this sinking ship but not make sure I don't have indications of cancer? Really???

I wonder if they are still just overwhelmed by the emails from the campaign here; no one has time to call us!!

We had Taco Bell last night - felt good to pay cash!!!!

[Kimbly]

Originally Posted by Believe

Kimbly, I'm sorry to ask such a stupid question, but can I cancel the credit card without paying the balance off all at one time? I don't know how that works. Mine is HSBC, also.

Yes, you can. They asked me if I wanted to pay it in full or would continue my monthly payments.

I also asked that they send me a letter stating that the account was closed at my request and in good standing. I'll keep it in my files if they try and list it on my credit report as closed by them. My credit's going to be damaged enough but I hope that future landlords and such will focus on the fact that I'm paying the rest of my debts.

[darlyj]

They were probably handled in the same fashion as the letter that a mob of people tried to deliver to Chase. There is video of the secretary refusing to accept it.

[Kimbly]

Originally Posted by Believe

Our lender on our 1st mortgage is HSBC. We also have a credit card with them that we're going to cancel. We received a notice of a rate change on our card, too, but ours is changing to an adjustable rate. So, not only do we have an adjustable rate mortgage, we have an adjustable rate credit card. Isn't that clever?

Believe - I'd let them know you're opting out of the change in terms so they have to continue your current rate on the balance, too.

[Believe]

lol, Darly! Thank you, Kimbly. I didn't know that. I was thinking I had to pay it off in full if I closed the card. That's the only thing holding me up. Thank you very much for explaining. That's exactly what I'll do, and I will also ask for the letter.

[Believe]

Originally Posted by Kimbly

Believe - I'd let them know you're opting out of the change in terms so they have to continue your current rate on the balance, too.

Okay, that's important. Thank you again.

[Moe Bedard]

Hi Kimbly!

I just wanted to say that I support your decision and wish you the best. No pain, no gain. Better to get through it now, so you can pursue greener pastures for you and your family later.

We live and we learn.

One thing we do learn is that our credit scores DO NOT define who we are as people. It does not reflect our ethics or morals. It is a credit rating instrument used for debt and loans. It should not an instrument used to judge who we are as people.

With that said, I have been living debt free (except for a 2004 Honda ) since 2002 and have not repaired my credit since.

And you know what, I have done perfectly fine in renting, buying a car, living and buying what I "need" to get by. One thing I do know is that I don't need credit cards and I don't need a 700 or even a 600 FICO to live.

My kids love me, my wife loves me and my friends could care less. I'm happy.

I wish you the best Kimbly and it looks like you have some great members that are can use this story. You all can share and help one another through this. That is very cool !!!

[pdsfoley]

Well said Moe.........I agree 100%........My only regret is...I wish I would have paid better attention and started sooner.....NO MORE CREDIT CARDS!!! its a freeing feeling!!

[Kimbly]

Thanks Moe! I've said it once, I'll say it again (probably hundreds of times!), I wouldn't be the person I am today without this site and learning from you. And, I don't just mean about this goshdarned mortgage or debt.


Funny news - after I posted before I went to check the mail and lo, and behold, a "you're late" notice was in the mail with my monthly BoA statement. AND they called while I was outside too; left a message asking me very politely to call them. It took them 31 days to call. Interesting.

I really am curious to see if these banks starting handling people "like me" differently; never a late payment, never a partial payment, just quietly paid for 4+ years, even through our modification (which actually went quicker than most because it was still new, there were no gov't programs to modify and I had this site!). Will they start creating little computer programs that spit out some type of "score" indicating that we are likely walking away?? Will that start to make the foreclosures move more quickly??

I feel so at peace with my decision that I'm almost more of a spectator to this process right now; and see myself in the much larger context of the group of which I'm a part.

I'm off to enjoy a leisurely weekend with my partner, give the dog attention, eat a meal that includes fresh produce that I bought without credit and maybe a glass of wine. My stress level is so much lower since making this decision.

Along with turning over the mortgage leaf, I've also stopped working weekends. I'm taking back my life!