Posted on: 04th Mar, 2009 02:21 pm
i am a 54 year old single woman. in 2005 i bought a house in northern ca for $288,000. today it's worth $100,000. yes, i'm $188,000 upside down! in 2007 i had to take $15,000 out of my 401k to refinance my adjustable loan. my 401k has taken another $20,000 hit last year. although i am making the payments on time it's hard. my adult daughter moved back in with me and is unemployed and my sick mother stays with me part-time. i'm thinking i'll never recover and i'll never retire if i keep this place. should i walk away? i've heard of short-refinances but also that they are rare.
Before you do that, think about how much rent would cost vs your current mortgage payment. Dont forget to factor in the tax benefits that you pay on the interest.