I live in Texas and my house has become a crippling financial mess. it's completely falling apart and we don't have the money to fix it.
We're losing about $200/month living here. we're feeling beaten down and disheartened. We've completely gone through our savings trying to stay afloat. We've never missed a payment, but we're seriously considering this drastic step.
We've contacted our lender to attempt to rework our mortgage, but the general feedback so far is that because we've kept up on our payments and aren't in default, we're not going to get help before everyone else who's already in default.
1) How does one "walk away" from a house and what are some of the ramifications?
2) I have read that Texas is an Anti-Deficiency state, but how will that work with our 80/20 mortgage? Both loans were taken out at the same time to get the house (obviously), and are held by the same company.
3) As far as establishing fair market value and avoiding any potential deficiency balance, can we use our property Tax assessed value as evidence of worth?
Any help and info would be much appreciated, thanks!