Posted on: 21st Sep, 2009 09:41 am
We currently live in AZ and I have taken a new job in CA. We are current on our house payments however we are approx. $75K in negative equity, we have a 30 fixed mortgage with no second. We need to know what our options are to get out from under our house, we have to relocate within 3 month and cannot afford 2 rent/mortgage payments. We are being told our best option is to walk away.
well, walking away isn't going to assist you in obtaining a new mortgage in your new residence. is there any chance that you may be able to get a tenant into the arizona home? and of course, if you can, would you be able to obtain enough rent to make it worth your trouble?
it's hard to state options - i'm all the way in connecticut and we don't have the severe issues you're running into in arizona. i know there are a ton of walkaways there, and that doesn't make selling your home any more of a picnic either.
in relocating, i guess you'd be in a rental for a while if you simply left the home behind. your credit will take a beating for a while, but credit is only a temporary thing anyway...it's like money, in that you can't take it with you.
it's hard to state options - i'm all the way in connecticut and we don't have the severe issues you're running into in arizona. i know there are a ton of walkaways there, and that doesn't make selling your home any more of a picnic either.
in relocating, i guess you'd be in a rental for a while if you simply left the home behind. your credit will take a beating for a while, but credit is only a temporary thing anyway...it's like money, in that you can't take it with you.
George, thank you that is the same advice we are getting, we are not in a position to rent the property the same house on the street which there are currently 5 for lease, are all going for a 1/4 of our payment. AZ is an anti-deficit state so we are covered for the loss and we have PMI still so the mortgage company should still be covered. But like most they wont talk to us because we are not behind. Hopefully our credit will survive we are at about 750 score now so although a hit from foreclosure will hurt hopefully we can recover within a few years. We do plan on renting in the new location. Thank you for your response.
