considering walking away in AZ


Posted by Gregg on September 25, 2008 at 08:09:25:

I bought a second home for $540k 2.5 years ago at top of market. Been paying 7.125% as it was seen as an investement home (regardless of my intensions). I've had my primary residence the entire time but have sank over $50k into the 2nd house and never lived in it. With market conditions, the value of the 2nd home is around $400-425K. I've had renters but at a considerable monthly loss rate (1.2-1.5K/mth). My renters are leaving in a month and I'm considering walking away.

I can't afford to keep making double payments and i don't want to mortage my entire savings on the property.

one interesting note - i'm the sole name on the title for the second house but my wife and my name are both on our current residence

advice on what to do? i can take the credit hit but i don't want to bankrupt my family or put a big lien against my primary residence (that's now under water as well in current market).

thanks in advance for any advice


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