|
||||
Posted by LeeZ on May 24, 2007 at 13:46:18:
Looking for some advice, or at least to be pointed in the right direction to get the correct advice....
About 18 months ago I was transferred by employer from CO to CA. We bought a home for $755,000 using an 80/15 loan (1st for 80% LTV, 2nd for 15% LTV, and 5% down). The job fell through, found another job back in CO and I was required to be living in CO by April 2007. We listed our house for sale last October, had an offer in Feb to close in mid-March. We purchased a home in CO, closed, set up the movers. The CA house deal fell through the day before closing (sub prime loan-100% LTV). We had to move anyway. It has now been a few months and I can no longer afford to carry the payments of the CA house each month. We have lowered our price to $724,000, and at this point, with fees, we will lose a substantial amount of money. The house is priced to sell, among the lowest per square foot in the area, but there are no buyers. There has been 1 sale and 2 pendings in the last 60 days in the area.
I have a decent amount of cash, but have run up a lot of debt pulling this move off. I have more debt than cash. I have a decent income, but far less than the income I had when I was moved to CA.
Question is....what are the ramifications if I just stop paying for the CA house? Will the bank simply foreclose, and the house goes back to them? Can they come after me for the house in CO, cars, assets, cash in the bank? Garnish wages?
I am aware of the credit issue, my credit has been spotless my whole life. I am unwilling to continue to pour money each month into that mortgage when there are no buyers, and no end in sight. I would rather have a foreclosure on my credit report than to go broke in this environment?
Am I off base, am I missing something?
Should I contact a lawyer, the bank?
Thanks for any knowledgable advice that may be out there.
Followups are disabled on archived posts
Name : E-Mail : Subject :
Comments: Optional Link URL : Link Title :
