My story (delimma)

[fandelem]

Hi! I have been reading feverishly many people's heartfelt stories on this board. It has really opened my eyes that my situation pales in comparison to most on this board. With that said, I would like to share my story and see if anyone can offer any suggestions to me. The biggest problem I have is I am paying $3500 a month, not touching princpal, to live in my house.

-I reside in the Grater Tampa Area.

-I purchased a house for $472k. It's our primary residence and homesteaded.

-80(6.75%)/20(9%) 10/1 interest only ARM loan. 103% financing. Currently serviced by AHMS.

-I stupidly wasted my entire savings paying the 20% loan off and threw thousands into the 80% loan reducing the balance to around $370K.

-Our house is around 2200 sqft, and a house 3500sqft 2 doors down just sold for $350k. Zillow does not show this new sale yet, and still says mine is worth $400k, but I don't see how it can be. My guess is that I could possibly get an offer for around $275K.

-My entire mortgage payment including escrow is $3500 a month (~$42,000/yr)

-I make enough money to pay the mortgage, but it is consuming a large part of my income each month, and I am not even touching the principal!!

-I have zero debt aside from the house (cars are paid off, no credit card bills)

-I have a sizeable 401k-- and even more now since I have stopped paying extra into the mortgage each month and put it into my 401k instead.

-My wife has grown unhappy living here in Tampa, and wishes to move back to Gainesville. She and I argue about this every week (I tell her we can't move-- we have a HUGE mortgage we aren't even touching principal!)

-Am I eligible for a short sale, even though I can currently afford the mortgage payment?

-I want to stop paying the mortgage. Save 6-8 months. Move to gainesville, live with our parents (both sides of our family gets along well). Save more. Come up with about $100K cash and try to purchase a $200K home in gainesville.

-I am worried they will enter a deficiency judgement, or try to put a lein on our cars or 401k.


Thank you for listening,


-fand.

[fandelem]

Also,

In looking at our mortgage doc, I cannot see anywhere it says "recourse" or "non-recource" but I do see a paragraph under non-uniform covenants that says, "Lender shall be entitled to collect all expenses incurred in pursing the remedies provided in this Section, including, but not limited to, reasonable attorneys' fees and costs of title evidence". Does this mean recourse, or is this just standard text?

[nbtapia1]

Hi Fandelem
My story is almost the same... and sometimes I fell I just want let the house go., save money for the time foreclousure takes 8 or 10 months move on and start over., but will they put a lien in the other properties?
Could anyone reply please.

[fandelem]

UPDATE:
I met with a foreclosure lawyer. He suggested to me my best recourse is to order a mortgage forensic audit. It will either turn up something to give him ammunition to fight, or nothing, in which case it is in my best interest NOT to let the house go into foreclosure, as he said it is possible the lender can enter a deficiency judgment against me (in FLORIDA).

The audit will take about 3 weeks end-to-end. I'll post an update then. He is charging me $495 for the audit, plus I'm sure a few hundred for him to "review" it.

On another note, I would suggest to everyone to call your lender and have an "escrow analysis" done. In my case, since my property taxes/insur have been reduced so much, they cut me a check for $2000 and reduced my monthly payment by about $400/month.

[Marshall Rosenbach Esq.]

I agree whole heartedly with the audit route. Find out what Truth in Lending/RESPA violations you have with your loan. Find out what remedies you have against the lender. And then seek the modification while telling the lender what violations there are. And for the original poster, you can try to use these violations to negotiate a deficiency waiver with the lender when you do your short sale.