First off, A big thank you for everyone who created this forum!
Heres my delima: I need/want to get out from my home that I have owned for the past 4 years. I was layed off in Oct. '08, my unemployment ends in April, I've filled out countless job apps. and have yet to become employed. I have not yet made my March payment on the 1st loan, have paid the HOA fee's for this quarter, and am not in alot of debt except for the house.
I did a refi in 2006 to a 30yr fixed from an ARM, and took a little cash out.
The details according to Zillow currently on my house:
Zillows estimated value $123,000.00
Heres the info on my refi:
My first was with First Horizon, (has since been sold to Met life), current balance is $155,296.31 @ 6.750%
The second is with First Horizon, balance of $18,499.46 @ 7.375%.
I have consulted with an attorney to inquire about a deed in lieu, but he stated that the first would probably consider it, but the second more than likely would not. He asked if I would consider making payments on the second if we did do this, but I advised that I am still unemplyed-meaning payments probably would not be wise.
His advice was to file chapter 7, and get a clean start. My total credit card debt is $3500. and I have a car payment. I don't want to loose my car or my personal belongings, and I'll handle the credit card debt somehow.
My family is wanting to help me move back to be closer to them on the east coast. I realize jobs are not much better there, but a fresh start is enticing. Is Chapter 7 my best option? How can I just walk away without the possibility of pending legal action?
Thank you for your input.