Another Foreclosure case?

Posted by Scott on September 28, 2007 at 09:03:32:

Hello, I've been reading through some many posts here and there is alot of good info. I'm another one of many out there caught up in this housing mess. Its sad really, I had hoped my first home would be a keeper but its not looking that way.

To make a long story somewhat short....

I bought a house in Monterey county about 3 yrs ago. I was promised by a realtor that its an investment and you cant go wrong! My gut told me otherwise as I knew that I couldnt afford the house with a conventional loan. Here steps in the 80/20 loan combo's with interest only and neg arm options..ect.

I have excellent credit and had pride in the fact I've paid everything on time. My score is around 800 and I had no problem qualifying for the loan. Being my first house, I was unaware of what I was doing and believed the realtor word for word.

Now is a very different story. All those promises and dreams mean nothing as my house sits nearly 100k over what everything else is selling for in my area. I'm way underwater and barely manage the neg arm payment as it is. To add more issues, my company has given me advance notice that I will be layed off in 2008. While I can look for a new job now, I will definately be taking a 20% paycut anywhere else. I'm praying for some way to get out of this house but it doesnt look good. Short Sale or foreclosure? I'm up for which ever can save me. For a while I was trying to do anythign to save my credit score..but I've come to terms with the fact that I'm going to have to bite the bullet and take the hit. I just dont know how to initiate it or which is better. It will be hard to NOT make payments as I have programmed myself to pay religously on time. I'm also concerned they will go after all my assets if i foreclose. If I have any cash in savings or my 401k ect.

I believe we have a long road to go..at least in my area. With lenders tightening up, there are far less qualifying loans. To qualify for a 600k loan (which is around average in my area) people have to make big bucks and I know that the average person makes far below that. Prices will continue to drop as loans get stricter. This is why I see no escape for me. I cant sell this beast. I'm gonna have to walk away somehow.

So to sum up:
Losing my job soon
Underwater
Looking for help


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