Hey guys. I've been lingering for a few days and thought I'd finally chime in. I first off want to say thank to everyone in the forum, the last two days of reading thread after thread has been incredibly informative and inspirational. Particularly to my fellow Washitonians Magic beans and Izzle, your threads have been very helpful, so thank you. Hopefully you guys can help me out further.
My wife and I are considering a strategic foreclosure on our home here in the south sound. We bought it in the summer of 2007 (lucky us) and currently owe around $190k. Other units in our complex are currently selling for around $80k, so for us "under water" is an under statement. We have one loan with no refi, originally through Countrywide, which of course is now BofA. We are current on all our payments and have good credit, but are willing to sacrifice that in order to get out. At this time, I want to say that we are about 90% sure that a strategic foreclosure is what we want to do, but we're still kind of on the fence. Our next payment is due in about a week and I'm starting to feel the pressure.
So a few of our questions/concerns are:
In Washington state does a lender have to do a non-judicial foreclosure if there's a "power of sale" clause in the mortgage, or is that what they're just more likely to do?
Can my PMI company come after me, or do they fall under the same "non-recourse" laws as the lender?
At what point, if any, do you open up communication with the lender? Or do you just ignore them through the whole process?
And lastly, Lawyers. I've been thinking about seeking one out, but from some of the threads I've read it seems that they often try to talk you out of "strategic default," or basically tell you what you already know. Opinions? Is it worth it?
Anyway, I'm going to continue reading and hopefully answer some of these questions on my own, but until then any help would be appreciated. Thanks again.