Hi,
I bought my house as a single man right before the market crashed. I thought I was doing the smart thing financially, but it quickly went upside down. Well, fast forward 6 years and I'm now married and the house is way too small for my growing family, and even after the bounce in prices this year, it's still 6 figures upside down.
Fortunately, my career has progressed a lot in those 6 years and we were able to qualify for a 2nd mortgage on another house. We're almost done with the "buy" part of buy & bail. We close soon, and could potentially miss our first payment on the existing house shortly after.
We've really struggled with this decision. We've never walked out on an obligation before, and we "can" afford to pay the current house, but I would be close to retirement before it ever got out from underwater, and it doesn't fit our family anymore.
In the end, it's a business decision, but even in business, I want to do it as honorably as is possible. So we're going to leave the house in as good condition as we can. The bank is getting back a much nicer house than I started with. Lots of remodeling. We'll rent it out and make sure it's maintained and clean for the bank.
My question is, we're getting our new mortgage through a mortgage broker. From the paperwork, it looks like they are the initial lender, but they don't service loans and intend to sell it to another servicer within 30 days. If I stop payment on the first mortgage right away, it could conceivably put a mark on my credit before the broker can resell the new mortgage. Does anyone know if that would cause problems for them in reselling it? The new broker has been very helpful, and I do not want to do anything to cause problems for them, or more problems for myself than I'm already facing with doing a strategic default. So, if necessary I will make one more payment on the old house. Just trying to find out if it is necessary.
thanks
I bought my house as a single man right before the market crashed. I thought I was doing the smart thing financially, but it quickly went upside down. Well, fast forward 6 years and I'm now married and the house is way too small for my growing family, and even after the bounce in prices this year, it's still 6 figures upside down.
Fortunately, my career has progressed a lot in those 6 years and we were able to qualify for a 2nd mortgage on another house. We're almost done with the "buy" part of buy & bail. We close soon, and could potentially miss our first payment on the existing house shortly after.
We've really struggled with this decision. We've never walked out on an obligation before, and we "can" afford to pay the current house, but I would be close to retirement before it ever got out from underwater, and it doesn't fit our family anymore.
In the end, it's a business decision, but even in business, I want to do it as honorably as is possible. So we're going to leave the house in as good condition as we can. The bank is getting back a much nicer house than I started with. Lots of remodeling. We'll rent it out and make sure it's maintained and clean for the bank.
My question is, we're getting our new mortgage through a mortgage broker. From the paperwork, it looks like they are the initial lender, but they don't service loans and intend to sell it to another servicer within 30 days. If I stop payment on the first mortgage right away, it could conceivably put a mark on my credit before the broker can resell the new mortgage. Does anyone know if that would cause problems for them in reselling it? The new broker has been very helpful, and I do not want to do anything to cause problems for them, or more problems for myself than I'm already facing with doing a strategic default. So, if necessary I will make one more payment on the old house. Just trying to find out if it is necessary.
thanks
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