Lions, & Tigers, & Bears....oh my!

[GiveUporFight]

That's what I feel like! Lost in the Land of Oz with many dangers. Where do I begin? House has 2 mortgages $225k with Green Tree Servicing (I am so afraid of the horror stories on them) and 2nd is $50k with GMAC....zillow says house is worth $100k....we are so underwater $175k!!!. We live in Sacramento, CA. an area hit hard by all of this.

Thing is, we have never been late on a payment, have great credit, blah, blah, blah.....but I just lost my job 2 months ago and our reserves are disappearing fast! So, do we walk away?, do we deal with the stress that I hear Green Tree will bring into our lives? Do we bury our heads in the sand? We are not yet behind but I see us not being able to pay come Sept/Oct. Is "Make home affordable even realistic when $175K under water?!?!?

We love our home, 1 set of Grandparent right across the street and the other set of grandparent 2 doors farther down. My husband grew up on this street and his best friend lives next door....

Not sure where to begin this stupid journey or if to even bother....

[GiveUporFight]

ok, I have read all day till my eyes began to bleed....LOL. I have a way better understanding now, but many more questions....I hope TomEason or Evan sees this!

Here's a better picture:
Bought: 2004 for $225 -
1st/Green Tree Balance = $165.5 (was CW then BOA) purchase money 2004, ARM, (Husband only on loan, both on title)
2nd/GMAC = $88.7 (Non-Purch money) 2006, pd off mom $50k down pmt, & $40k remodel (Both on loan)

So, after discussing for the millionth time with hubby tonight, we decided to walk away, but then I read some more and started to get worried about the 2nd - either owing taxes (???) or them forcing me to pay it (???), then read some more about the 2nd being "money in" (???), started reading strategy for 2nd settlement, but that seems to all relate to 2nds when purchasing....I don't think my brain can absorb any more. However, I'm thinking I should jump online and cancel the auto payments before next Monday arrives and they are both deducted....or close the bank account.

I don't know if this matters or not, but we really have nothing else and are not solvent....2 cars worth maybe $500 (1994 & 99), household items, and a $4k boat....

So do I stop payments and walk? Or will I still owe almost $90k because of the 2nd. Or do I settle the 2nd...first or after foreclose....

[troubleinriverside]

What are your prospects for finding a job ? You can string this out for many months before giving back the house.

[isisis]

Hi Giveuporfight,

I can't help you with your decisions regarding the financial feasibility of getting a modfication much but here's some other reasons to consider keeping your home.

1. Despite it's current underwater status land is worth something more than the arbitrary valuation figures attached to it. It is your home, a place where you built your life. There's an intangible value there that would be hard to replace. Additionally, I expect current figures are lower than actual value - whatever that really means - and in the coming years prices will again go up.

2. An option to consider might be a Chapter 13, that way you could unload the second completely and if you can get a principle reduction on the first your position might not be so bad.

3. Wherever you go you will have to pay rent so as Troubleinriverside said if you are resigned to the loss of your home you could stop paying and take the opportunity to save up some cash for the future.

4. You might also want to research your loan and find out more about what legal rights you have. There are some of us in our homes because we've found legal violations and have been able - at least so far - to prevent a foreclosure sale. This isn't necessarily in easy solution but then again there aren't many easy solutions these days.

BTW, between give up or fighting I'd cast my for for fight.

Lions and tigers and bears oh my, love that title.