Walking Away in AZ - We're Ready - Loan Modification Forum

stryker115 · 02-24-2009, 10:52 AM

Loan Info:
1st w/ CW ($240k)
2nd w/ EMC ($60k)
Purchased in 2006
2010 valuation from the county appraiser - $110k (yikes)

After thinking about it for months, my wife and I are ready to walk away. I've stopped automatic payments and our first missed payment will be March 1st.

I considered talking to an attorney but I'm not sure it's even necessary in AZ. Both loans were obtained at purchase and we haven't refinanced or obtained a HELOC. The AZ laws seem pretty clear in this case, along with the MDRFA.

We have found some great neighborhoods on the other side of town for HALF of what we're paying now. My parents will be helping us obtain the house and we'll be "renting" from them for a few years. I'm so glad we have someone to help us!

It sounds like CW has a settlement in AZ where they are offering some relocation assistance to foreclosure victims. How long do we have after the Trustee Sale to be out of the house? I assume we need to still be living there after the Trustee Sale if we want to try for some cash? We certainly don't plan on causing any damage and will leave the house in as good condition as possible either way.

If anyone is interested I'll try to keep this updated as we go.

AZChick · 02-24-2009, 11:18 AM

Congrats on making a decision, being on the fence is very hard....AZ is being hit really bad....my home dropped to less then half of what I paid....I will not regain that amout for atleast 10-15 years....yikes!

LeavingAZ · 02-24-2009, 01:32 PM

Me too AZChick. It's really, really sad. I just received the county assesor's mail yesterday and it's worth 10K less than I originally thought. Poo.

Jumbo101 · 02-24-2009, 02:45 PM

Good Luck Stryker, Are you buying from your parents later on after your credit clears up?

stryker115 · 02-25-2009, 07:01 AM

Quote:

Originally Posted by Jumbo101

Good Luck Stryker, Are you buying from your parents later on after your credit clears up?

I'm not sure yet - we may buy it from them, or we'll find another one and they can sell it and hopefully get a nice chunk of profit as well. If they're buying at these low prices hopefully in a few years when our credit's repaired it will have gained a bit of value

It sure beats renting though, mainly because we know we'll have the stability for a few years; when renting from someone you never know if you'll be there past your lease date.

LeavingAZ · 02-25-2009, 08:31 AM

my parents did this for us and we will forever be greatful.
renting in these times must be a pain in the neck, seeing so many landlords foreclosing and all.

stryker115 · 02-25-2009, 08:39 AM

They also wanted us to move a bit closer to them, right now we're close to an hour away but where we're looking it will be more like 10 minutes. They're about to be grandparents, and it sure wouldn't hurt to have a babysitter nearby

One other question I've had - does anyone know if the Debt Relief Act will apply to Arizona income tax as well? I know it's up in the air in CA at least.

stryker115 · 03-04-2009, 12:43 PM

Well, after some hand-wringing I left the automatic payments off - I'm sure we'll be hearing from both lenders in a couple weeks or so.

Does anyone have advice for transitioning out of the house? Our insurance is paid through mid-Sept. and we plan to be out by then. Do we just call up the lender and tell them that we are going to be out on a certain date? What are our obligations in that regard?

AZChick · 03-04-2009, 05:28 PM

I'm wondering the same thing, thought to call them April 1st(no pun there) and tell them we are out, who do we give the keys to? We should have all our stuff out by then, and all utilites off.

stryker115 · 04-01-2009, 08:35 AM

As of today we are a month behind, and have been receiving fairly regular auto-calls from Countrywide. EMC hasn't tried to contact us once yet, although as they're the second maybe they know they're not in the best position.

Before we started I went through both companies' tools and removed any contact information other than my cell. Apparently they don't have/use historical contact info as any calls so far have gone through that number.

AZ Meltdown · 04-01-2009, 11:41 AM

It sounds like CW has a settlement in AZ where they are offering some relocation assistance to foreclosure victims. How long do we have after the Trustee Sale to be out of the house? I assume we need to still be living there after the Trustee Sale if we want to try for some cash? We certainly don't plan on causing any damage and will leave the house in as good condition as possible either way.

A realtor representing CW stopped my my house to evaluate the situation 3 days or so after the trustee sale.
I was suprised they acted that quick!

She said CW would provide a Cash For Keys offer in a few weeks, instead it was but a few days later.

That realtor had the property For Sale in about 6 weeks after I left. The house was market ready when I vacated.

In my case they got right on it.

The property next door was vacant for 6 months before the trustee sale and another 6 months or more before they even priced and marketed it.
Other homes in the area have taken longer.

Maybe CW is starting to get serious??

stryker115 · 04-01-2009, 07:27 PM

Interesting - I still don't know if we'll stay that long but it sounds promising.

02-24-2009, 10:52 AM	#1 (permalink)
stryker115 Member Join Date: Jan 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Walking Away in AZ - We're Ready Loan Info: 1st w/ CW ($240k) 2nd w/ EMC ($60k) Purchased in 2006 2010 valuation from the county appraiser - $110k (yikes) After thinking about it for months, my wife and I are ready to walk away. I've stopped automatic payments and our first missed payment will be March 1st. I considered talking to an attorney but I'm not sure it's even necessary in AZ. Both loans were obtained at purchase and we haven't refinanced or obtained a HELOC. The AZ laws seem pretty clear in this case, along with the MDRFA. We have found some great neighborhoods on the other side of town for HALF of what we're paying now. My parents will be helping us obtain the house and we'll be "renting" from them for a few years. I'm so glad we have someone to help us! It sounds like CW has a settlement in AZ where they are offering some relocation assistance to foreclosure victims. How long do we have after the Trustee Sale to be out of the house? I assume we need to still be living there after the Trustee Sale if we want to try for some cash? We certainly don't plan on causing any damage and will leave the house in as good condition as possible either way. If anyone is interested I'll try to keep this updated as we go.

02-24-2009, 11:18 AM	#2 (permalink)
AZChick Senior Member Join Date: Dec 2008 Posts: 247 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready Congrats on making a decision, being on the fence is very hard....AZ is being hit really bad....my home dropped to less then half of what I paid....I will not regain that amout for atleast 10-15 years....yikes!

02-24-2009, 01:32 PM	#3 (permalink)
LeavingAZ Senior Member Join Date: Jan 2009 Posts: 216 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready Me too AZChick. It's really, really sad. I just received the county assesor's mail yesterday and it's worth 10K less than I originally thought. Poo.

02-24-2009, 02:45 PM	#4 (permalink)
Jumbo101 Senior Member Join Date: Feb 2009 Posts: 48 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready Good Luck Stryker, Are you buying from your parents later on after your credit clears up?

02-25-2009, 08:31 AM	#6 (permalink)
LeavingAZ Senior Member Join Date: Jan 2009 Posts: 216 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready my parents did this for us and we will forever be greatful. renting in these times must be a pain in the neck, seeing so many landlords foreclosing and all.

02-25-2009, 08:39 AM	#7 (permalink)
stryker115 Member Join Date: Jan 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready They also wanted us to move a bit closer to them, right now we're close to an hour away but where we're looking it will be more like 10 minutes. They're about to be grandparents, and it sure wouldn't hurt to have a babysitter nearby One other question I've had - does anyone know if the Debt Relief Act will apply to Arizona income tax as well? I know it's up in the air in CA at least.

03-04-2009, 12:43 PM	#8 (permalink)
stryker115 Member Join Date: Jan 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready Well, after some hand-wringing I left the automatic payments off - I'm sure we'll be hearing from both lenders in a couple weeks or so. Does anyone have advice for transitioning out of the house? Our insurance is paid through mid-Sept. and we plan to be out by then. Do we just call up the lender and tell them that we are going to be out on a certain date? What are our obligations in that regard?

03-04-2009, 05:28 PM	#9 (permalink)
AZChick Senior Member Join Date: Dec 2008 Posts: 247 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready I'm wondering the same thing, thought to call them April 1st(no pun there) and tell them we are out, who do we give the keys to? We should have all our stuff out by then, and all utilites off.

04-01-2009, 08:35 AM	#10 (permalink)
stryker115 Member Join Date: Jan 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready As of today we are a month behind, and have been receiving fairly regular auto-calls from Countrywide. EMC hasn't tried to contact us once yet, although as they're the second maybe they know they're not in the best position. Before we started I went through both companies' tools and removed any contact information other than my cell. Apparently they don't have/use historical contact info as any calls so far have gone through that number.

04-01-2009, 11:41 AM	#11 (permalink)
AZ Meltdown Senior Member Join Date: Apr 2008 Posts: 129 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready It sounds like CW has a settlement in AZ where they are offering some relocation assistance to foreclosure victims. How long do we have after the Trustee Sale to be out of the house? I assume we need to still be living there after the Trustee Sale if we want to try for some cash? We certainly don't plan on causing any damage and will leave the house in as good condition as possible either way. A realtor representing CW stopped my my house to evaluate the situation 3 days or so after the trustee sale. I was suprised they acted that quick! She said CW would provide a Cash For Keys offer in a few weeks, instead it was but a few days later. That realtor had the property For Sale in about 6 weeks after I left. The house was market ready when I vacated. In my case they got right on it. The property next door was vacant for 6 months before the trustee sale and another 6 months or more before they even priced and marketed it. Other homes in the area have taken longer. Maybe CW is starting to get serious??

04-01-2009, 07:27 PM	#12 (permalink)
stryker115 Member Join Date: Jan 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in AZ - We're Ready Interesting - I still don't know if we'll stay that long but it sounds promising.

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