Is it wrong to throw in the towel?

[Tunckey06]

Credit is really not that important right now I know two people who have brought properties with bad credit not to mention cash is king now a days

[davewindsor]

Credit is really not that important right now I know two people who have brought properties with bad credit not to mention cash is king now a days

If you have a lot of cash, why do you have a $300k mortgage on a personal house?  And how much more are we talking about with the extra $150K you are taking an issue with?  An extra $600 a month on top of what you would be paying if the mortgage were $150K?  How much could you get it reduced to under a loan mod after you bring up to the bank that the building would only fetch $150K on the market?  It might not be that bad.

If you think it's that easy to get a new mortgage on another house with bad credit from giving ypur house back to the bank in this market, I'll take my hat off to you. 

[Tunckey06]

Since its a condo and the space is small I don't feel I will be able to sale in the future. At the time when I brought to market was and of course people where like just buy something it will sell for more but of course that didn't happen but I do c ur point

[sammydy]

stuck with a Lease option?  What happened to just going to a plain old rental?

What's with the obsession with, having, to own something.  The goal should not be just to own something.  That is the mistake many people made during the bubble.

BTW, right now with so many people being foreclosed upon or the like its likely the black marks on their records will disappear quicker and blend in more than at any other time for they will be considered special cases resulting from the bubble.  If one is going to be foreclosed upon or the like its better to do it now than drag it out and blend into the crowd and start today towards rebuilding your credit.

Look if it is considered home and is so well loved that he is willing to pay an extra $150k that is one thing.  If it were and investment and it were still a successful investment that would also be one thing.

However his posts make it clear that he dislikes the place and its was just bought at the time just to own something, likely as an investment.
Furthermore as an investment its already pretty much a lost cause.  He's not going to recoup a 50% loss in value.  Even if you think hyperinflation is around the corner that money and credit could be put towards something else today at half the price.

Add in a divorce, child support, and that he specifically said he is having trouble making payments and expects to have even more trouble in the near future.

Also $600/month is not little money to everyone.  It would take a lot of work hours for some people to make that amount.  And it adds up, $7,200 in just a year not counting potential interest.  And for what, his payment is only interest and it would take $150k in principle payments just to not be in a personal negative net-worth.  Moreover thinking of the situation in that way is bad financial thinking.  Its the monthly payment mindset that led so many people to huge burdens of debt.  He's in the hole for $150,000.  Thinking of that as $600/month is leaving out the little fact that its $600/month for infinity (considering that is just interest on the $150k).  BTW, his more likely extra monthly burden is about $750, assuming he has something like a 6% interest rate (might be low for an interest only).

It does come down to which he which he prefers more $161k today (by being released from the mortgage liability) or bad credit for a few years.  Its may be worth it to him to pay for his mistake.  BTW, I assume the wife was also involved so its actually both their burdens and her input should be taken into account.

If you do decide to walk away via short sale, deed in lieu, or foreclosure speak to a local attorney to advise and maybe represent you.  Laws covering your situation differ by region.  Its possible that your loan(s) are not recourse by law so you may not have to worry about a deficiency judgment.  You can also get advise that that matter from several web sites such as you walk away dot com.  If you decide to stick it out  I do wish you the best and hope it all turns out alright for you.

[Tunckey06]

Sammydy u took all the words out if my mouth I don't want to be tied down to something that wasn't worth what I paid for If the place was more spacious than yeah stay in the fight but if not going ahead let it go there so many other cases and houses sitting out here that they will have to change the laws to get people back in these house home ownership is so over rated

[lar789]

the place here is not to wide that i am more bigger than the place itself.. maybe i will sell it after 3 years because i cant afford the loan..