Ok, I’m looking for all opinions on my plan. Look it over and tell me what’s wrong with it, what won’t work, and how I should/could fix it. By the way, I hope this is no way insulting to people who are in a much worse situation than us; please understand that we consider ourselves very fortunate as we both have well paying, stable jobs. My thought is: the banksters got their bailout, so this is mine.
My wife and I are strategically defaulting. We are currently 90 days late since we started in December of 2009. Let me preface this by saying we have no interest in a loan mod or trial as we are $200,000 underwater. I realize this is only going to prolong the inevitable, but that’s the point. We want to milk this for as long as possible…say 9 plus months (or more if possible).
I figure if we do nothing, we have 6-7 months free rent (we’re already halfway there). At this point, I want to call the mortgage companies (Saxon and EMC) and tell them we cannot pay due to a change in employment situations. They will send paperwork for us to fill out. I will forget to send something, or send something back incomplete. I get an application for a HAMP and I don’t fill it out completely. They send it back again, I delay again. In the meantime, I don’t pay anything on either mortgage. I say to the companies that I really want a loan mod, but I’m lying. I don’t need to file for BK as we can pay all our other bills. We won’t be approved because our income is too high, but they don’t know that.
So, by just filing out the paperwork….does that delay it enough? My understanding is that they can't forclose if you are applying for a HAMP, but is it true with a regular in-house mod application? Even though I don’t want to, should I make a payment in a few months just to delay it more, or will that money go elsewhere and I’m simply throwing it away?
Finally, I don’t remember seeing this anywhere else on the forum. A lot of others who are doing this are also filing BK, so that changes things on my end. If this is another post/thread, please tell me where.
Thanks again for everyone’s input and help. This site really has been a godsend to most of us, and I want to thank Moe for putting it together. I wish he wasn’t leaving, but only he knows what’s best for him, no one else. Gotta respect that.
PS: If anyone is interested, I have a post going about my situation. It's 1/1/10--We Walk in Arizona.