 crackerjack575
Joined: 04 Apr 2011
Posts: 2
1.68 Dollars($)
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Posted: Mon Apr 04, 2011 4:25 pm Post subject: Is there any other option, or should I just walk away now?
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We bought our townhouse in Oct 2005 for $215k with pratically zero money down, 6.625% int and a monthly PMI of $172.
Five years later the current balance of our mortgage is $200k.
The estimated value is $166k.
Our monthly payment (princpl&int) is $1356 + $444 (escrow=$172PMI + prty taxes) =$1800 + $200 HOA dues.
At the time we bought our credit was probably not even fair. Now it is excellent, we have never been late or missed a mortgage or ANY payment. And no one will help us. Can't refinance because the amount we owe is more than 125% of what the place is worth. We were planning on selling and moving within the next 2-5 years, and I just don't see that happening.
Furthermore, we paid more than we should have for this place. That just adds to the wound. How do I know we paid too much for this place? (I know someone is going to ask) I researched what the asking prices and sold prices were for the year prior and after the year we bought. My best estimate is we paid a minimum of $15k and possibly up to $25k more than the place was worth at the time. Funny, at the time we applied for the loan, Countrywide claimed that one of the only ways we were going to be approved for the loan is if the property was appraised for at least $215k. I recently went through all of our loan documents and there is nothing pretaining to an inspection or appraisal even though they claimed one had been done. I was working 60+ hour weeks at the time and wish I had been more involved with the purchase. But as they say, hindsight is always twenty-twenty.
To get back on track. I would like to be able to get out of this place within 2-5 years tops. We are not struggling to pay our bills, but $2k a month alone just to live in a 1100sqft townhouse seems insane when I can rent for half that. Not to mention the fact that we would have to stay here for many years just for the market to recover, if that even happens. Then maybe see it reach what we paid for it in the first place. I know people are trying to be positive, but I honestly just don't see this place getting to $215k in next 10-15 years!
So, now you know the history, I kindly ask what you believe my options are.
Unfortunately, I think the best option is try to short sale, if that is even possible without having a hardship. Or worst case, just walk away and let the bank deal with it.
I can only hope someone has a solution I have not thought of yet. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10439
Location: Alaska
985.83 Dollars($)
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