We are thinking of walking away from our house in Michigan. My husband took a 30-35% pay cut and we are not going to be able to stay afloat much longer. We have a 1st with GMAC and 2nd with Specialized Loan Servicing (used to be with Homecoming/GMAC). Our first is $87500.00, second is $141000.00. We have refinanced the first to a lower rate a few years back but the second was debt consolidation. The house is currently listed for a short sale at $169,900.00. The house has lost $60,000 to $70,000 value over the the last 3-4 years.
We are in our mid 50's so things are not looking good for the house to re-coop its lost value before we are ready to retire. We are wondering after reading several posts here if it might not be better to just walk away instead of the short sale and all the hassels that brings with it. It is hard to see ourselves pouring good money after bad in a sinking ship.
We have been looking for other employment and have even considered looking out of state if the need be to get our income up. Not having the weight around our neck of the house will make that easier.
Is there anyone out there that has walked in Michigan and could you share your experience with us?