Posted on: 21st Apr, 2011 06:43 pm
I'm currently under water ($150K) on my first home in California. I'm in a ARM and can't refi because I'm upside down. The value will never recover to the original purchase price. I have great credit and good cash flow and I qualify for a second mortage ($280K). I want to buy a second home in Nevada and short sale the home in California.
I don't want to continuing to spend good money on a lost cause. Once I purchase my affordable home in Nevada Should I strategically default on the california home? It make good business sense and I can salvage my credit within 3 years.
I don't want to continuing to spend good money on a lost cause. Once I purchase my affordable home in Nevada Should I strategically default on the california home? It make good business sense and I can salvage my credit within 3 years.
Hi s_hayes,
You can strategically default on the home loan for the property in California. However, if the lender finds that you have a good income and still you are not making the mortgage payments, he will foreclose the property rather than considering you for a short sale.
You can strategically default on the home loan for the property in California. However, if the lender finds that you have a good income and still you are not making the mortgage payments, he will foreclose the property rather than considering you for a short sale.
I think you have to discuss with lender for your better options....