In Washington - Is walking away doable?

[reddog64]

So my wife and I bought our Condo 27 months ago... a Interest only ARM that adjusts in 2 years (About)

We bougth for about 220, and put 25K down... we owe 195K
Well now the new condos around ours (Same development) are selling (Sittign on teh market for 6-8 months) for 180K and short sellers are selling for 130K.

I spoke to 2 different agents who said the same thing.. either hold onto it for 3+ years and wait to see what happens, or short sell it.

Here's the problem... we want to move, absolutely hate condo life, and well.... want out of the neighborhood. Were current on our payments, have good credit, and make good money. So a short sale isnt exactly going to be the bank's first offer... keep in mind I dont want a loan mod, as we want to move.

I spoke with a lawyer briefely and he explained that in Washington State, if they forclose, they cant come after me for the difference, lawyer fees, etc...

So I see our options as this -

1 - walk away
Well, i wouldnt close the doors and leave, but not paying my mortgage for 6-9 months and paying off ALL my credit card debt sounds pretty appealing... Course this will destroy my nice credit score, and bar me from getting anything on credit for the next 2 years... let alone buying another house anytime soon.

2 - Keep paying
We continue to live here, and hate life... and make a payment on a place we will never own, nor be able to sell in the next 5 years. When teh ARM resets in 2 years, i wont be able to pay the extra 250 confortably, so...

3 - Ask for a short sale (Was told they will turn me down as I make enough to pay my bills).

Thoughts?
Forcing a forclosure makes me feel like a piece of crap, but it would relieve the fact that I dont want to live here, and cant sell the place.
I'm happy renting for a while till i can find a home to purchase at a later date.

How long till I can get into a home after a forclosure?

(this is a double post as i was advised to post it here vs the previous category, sorry)

[Enough Already]

Hi Reddog,

Here's a link to a discussion regarding walking away in WA state: Help in Washington state

You might find this info helpful. In particular pay attention to posts by The Professor (aka Professor Shays). He's not around the forum anymore (sadly), but he was very knowledgeable. Post #4 by The Professor should give you some good info.

If I my loans were non-recourse I'd walk, but that's just me.

Good luck!