Not hopeful for the Loan Mod and trying to decide what to do in WA

[micealc]

Our story: My husband and I live in Washington State. We owe $214,000 on our home bought last summer. According to the valuation done by Citi in June our home is worth $259,000, but we are very aware of the current market in our area and my husband is a former real estate agent, and it is doubtful we could sell our house for any more than $200,000 (and that's being generous).

We haven't made a payment since April and have been trying to work with Citi since June on a HAMP modification. Due to internal issues on their end, we really aren't any farther with the modification than we were in June, and I am doubtful it will go through, so I am thinking about what to do in that case.

We don't have a whole lot of liquid assets, so we would like to stay in our home rent-free for as long as possible to save up for 1st/last and a large deposit on a rental when we do go, but if we can lessen the long term affects of our situation, that would be good. Not sure if we'll ever buy again, but it would be nice to have that option in the future.

I should also mention that I am the only one on the loan (ironically I had the good credit when we applied for the loan), but my credit was only in the upper 600s when we defaulted. Not sure what it looks like now.

Just looking for advice on what we should do if the modification doesn't go through.

[CinFL]

I don't have experience with Chase but can tell you with CW/BoA that if the house is on the market as a short sale, the foreclosure was suspended. So if you want to stay longer, list it for sale as a short sale - if your loan mod doesn't go through. Good luck!

[auroraproblem]

There are tools for either path you choose, though it sounds as though you have not stated which you are wanting to take.

If you want to keep the house, then there is a nasty long fight that many of us have already fought now or are still in the process. Prepare for 9 months to one full year before a mod is completed. Is your loan Fannie or Freddie? You can find out via their websites if you don't know already. If so, your fight just became a bit easier.

If you decide to walk and really have no desire to stay, then you have already begun that process. Washington state is a non-recourse state as long as the lender chooses to non-judicially foreclose on you (likely they will). If you have a second mortgage, that can be a bit more sticky.