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okthirteen · Joined: 31 May 2010 Posts: 1 1.47 Dollars($)

Hello all,

I have owned my home in Michigan for 5 years now. I have a 1st and a 2nd mortgage both through Bank of America (originally through Countrywide). I bought my house for $120,000 and now houses on my street are selling for as low as $40,000. My mortgage is a 5 year arm coming due next month, the HELOC mortgage is because I have an 80/20 and I was sold on not having to pay PMI. I am not struggling to pay my mortgage and have never missed a payment. I also paid down my HELOC so right now I owe BoA $98,500 for both mortgages.

The problem is that my wife finishes school next year and her career will be taking us out of state. When I bought the house we were not married and currently everything is still in my name, I am hoping this will help us rebuild.

I am willing to do whatever needs to be done to get out of our house, but my question is what is the best option for us? Short sale or foreclosure? I know short sales take a loooong time so if this is the case should I get started now? Will this be a problem since I am unable to prove hardship? Will I be able to get out of my HELOC? On the other hand foreclosure sounds enticing because we will be able to remain in the house and save our money while we are not making payments. Which option will have me paying the least out of pocket? Which option has the least risk? (walking away still owing on the HELOC, BoA 1099ing me? Garnished wages?)

Thanks in advance for you help. I don’t like not knowing what to do and the sooner I figure out what my plan of action is the sooner I can start planning for it.

Mike

smithsussane · Posted: Mon May 31, 2010 10:10 pm Post subject:

Hi okthirteen!

Welcome to forums!

I would suggest you to list of the property in the market and check out if you can get buyers for the property. If not, then it would be a better option to apply for a deed in lieu of foreclosure and get rid of the property. You won't be liable for the deficient balance resulting from the sale of the property. The dues will be forgiven but your score would go down by 250 points.

Feel free to ask if you've further queries.

Sussane

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Looking to move out of state. What do I w/ my Loans