[I am in Georgia] Strategic Default question...my house is worth $160K, I owe $240K.. this Wells Fargo loan was in my BK 7 in Feb 2009.. but the lender cut me a deal (modified loan with 2.75% interest rate with no principal reduction) after bk (modified loan) and I kept paying.
However, with this huge negative equity, I don't feel its a good deal to pay $240k to own $160K property. 2 questions: 1) If I walk away, what negative consequences do I have? 2) Will the lender even consider principal reduction, even meeting in the half way between $160K and $240K? I am already preapproved for another loan and I can buy another property...i am not behind payments right now...but willing to go behind if the will consider modification after I am late few months..
I would rather stay at this property if I can. If they foreclose, will it be in my credit report? I don't think so..All these payments I have made so far don't show in my credit report..so, if you don't mind answering, what is the best way to get the bank (Wells Fargo) start thinking about principal reduction in my case?