Strategic Default in Washington State

[Barckles]

Here is my story: 1st time home-buyer in 2004 with adjustable rate. Refinanced in 2006 to a fixed rate, but also took money from equity to remodel. In 2009, my husbands job disappeared and we have since been making ends meet on my salary and a reduced income for my husband. I have had the same job since 2000. I submitted an application for home modification to Bank of America and was rejected. We received the rejection letter two weeks ago. They said the reason they denied me a mortgage modification was that I was current on my mortgage at the end of July. I am only current on my mortgage because I have dipped into my 401k repeatedly over the last couple of years to make ends meet (considering where I am now, I wish I hadn't done that - its all gone). Well, no more. I am choosing to walk away - strategic default. I've been behind on my payments before, but this is the first time I have done so knowing I will never willingly send them another payment again. The person that handled my application and subsequent denial of modification from Bank of America called me today to follow-up. I'm not sure if I should call him back or communicate with them at all considering what I've decided to do. Any advice from anyone reading would be welcome.

[gjoru]

Welcome to the forum, if you have decided to walk away, you don't need to call BoA back. As a matter of fact, you need not to communicate at all with them. There are a lot of Wa walkers here and I'm for one. Check out the Feb/March walkers or do a search for Wa walkers. You can also follow Scubagear, myself, Octanefam, GreenPasture, and many more. Good luck and keep us posted.

[Barckles]

Thanks for the advice, gjoru! I will follow it.

[Barckles]

Hello again. Update since September.... BofA keeps trying to contact me by phone and of course I don't answer it. They have also tried to send me documents in the mail for which I have to show ID and sign for. So far, I have ignored all these as I can't see how providing them documentation I received anything they've tried to send me helps anyone but them. On 9/17, I received a Notice of Intent to Accelerate. This is the first notice of Intent to Accelerate I've received since they denied my application for loan modification back in July. Since then, I haven't received anything too serious.... aside from the ID/signature required documents I haven't picked up, its just been pleas from BofA to contact them, etc. Today, we got a new one, though. A woman called from NDS, a company working with Bank of America about an option that might be available to us to help with our mortgage situation. After researching this a bit, it looks like this is basically a short-sale of your home. I've read mixed reviews on short-sales. I've heard some reports that short-sales don't necessarily clear you of the remaining debt owed on the house (ie, the difference between the amount left owing on my loan and the lesser amount my house was sold for). But then I also read that you can have the bank include a notarized letter in your loan documents stating the debt is cleared, therefore providing you written proof that it really is cleared.

Can anyone provide any feedback these things? (ie, DNS, short-sale pros/cons, etc.) Also, feedback as to what we should expect to happen as the bank starts the foreclosure process (IF we still decide to continue moving forward with that of course - if the short-sale really is a viable option, we may decide to go that route). THANKS!!