After reading so many posts on this site and others, I have officially decided to walk away from my home of 11 years. Why? In a recent refinance attempt with WF, I found that I am $50K underwater (difference between my loan and the value of my house).
Recent articles suggest that the housing market in MN will not return a value for 5 to 15 years. I'm not willing to throw my hard earned money into the black hole to wait for that time.
Current loan is $133K and the Nov 2010 apprasial came in at $88K.
My first missed payment will be on Jan 1st, 2011. Based on some information I've obtained from the following site (MN Home Ownership Center), I will have approximately 11 to 12 months to remain in the house before an eviction will be filed.
Helpful Fact Sheets
Because of Minnesota being a non-recourse state,
“deficiency judgment is
not allowed if a mortgage is foreclosed by advertisement . . . and has a redemption period of six months or five weeks.”
"Since most foreclosure sales in Minnesota are by advertisement, and most homeowners get a six month or five week redemption period, most foreclosed homeowners will not have a deficiency judgment against them."
I'm a little nervous about the whole process but I feel that this is the right thing to do for my family as I am a divorced mother of 4. I need to think of their future at this time.
I'll update info on my strategic default as time goes on. Wish me luck.