It's nice and helpful reading all your posts. I haven't missed any payments since the first day I had debts. Here is my situation and I would appreciate your feedback:
I bought a townhome at $310K in 2007. I owe $266K and the negibor is selling at $210K. The HOA due is $481 per month (extremely high). Although it's currently rent out for $1500 a month, I still pay out of pocket of close to $600 a month. I have a 10 year interest only loan at 6% right now so if I continue to keep the townhome I will be paying more 5 years later.
In 2008, I got married. My husband and I bought a house together. So we now have two mortgage payments. It is not that we cannot afford the townhome right now but we just don't have much savings. My 20 months old needs to go to daycare next year and I am expecting in November. Soon, I will need to pay for the daycare of two and surely, with two mortgage payments, we won't be able to afford that.
I met with the lawyer today. He said that my deed of trust shows that my loan is both juidical and non-judical...that means, the bank has the power to come after me for the difference. I want to walk away from the townhome but I'm very scare to do so...because I am afriad that I will end up with a huge debt.
Can someone please give me advise?