I do know a few people who have walked away from their homes, through a real estate agent I know.

I know the process takes about 9 months or so, and sometimes an attorney can file something called a "deed in lieu".?

I know that after someone stops paying their mortgage, after about 3 months the bank sends forclosure notices, and the process starts.

I hope that they will work with you, since there are no homes selling in the area.

I'm really sorry you are habing to go through this. I think that someone who is in real estate, would know so much more than I do, but happy to help as much as i can.

Really hope it works out for you, and you can stay in your home.

Diane

There is a government program called HAMP that you might want to check out. If you owe more than your house is worth conventional refinancing may not be possible. The information is available on line. What they do is reduce your mortgage payments for 6 months and once you prove that you can make the payments on time then you get to refinance. I did not hear much good about the program and there is a lot of guidelines but it's better than losing your home and your credit for many years to come. I wish you only the best. This economy is just awful.

Cleodoggie is correct. I sell houses...not finance them, but I know the scoop on many of the regualtions. HAMP is a decent program designed to keep people in their homes, with the option to refinance atthe end of the 6 month period. Intrest rates are down now to all time lows which is good for the housing market.

Maggie

Yes, I know someone who did this. They lost their job and tried to hold on to the house as long as possible.

Thie listed the house for sale in November and then in January (this year), they made their last payment and in a few months the bank forecolosed. However, they were never forced to elave the house...and they dropped the price ...and eventually sold it just this month on a short sale for $25,000 less than the first price listed.

They still do not have a FT job and have moved back in with their parents. ...doing mowing now .

I would first try to find out all options before walknig away from the house. Talk to the bank, talk to a mortage person, get an appraisal from a realtor on what it might be listed at, etc.

Good Luck.

I was able to do a short sale on mine. Only because the neighbor wanted to buy it. Our Mortgage was sold 3 times and ended up with Bank of America. They then sold it to some outfit that buys it for 25 cents on the dollar and then forecloses or does a short sale. My Wife wanted to do everything to stay in there and the cost was ridecules. With her gone I could finaly take care of things. My credit took a huge hit and I moved in with relatives for a while. I'm now renting and almost starting over at 58. The low value of the house can actually work in your favor when refinancing. Yep, I agree with everyone else, get somebody who knows what they're doing with this home refinance and maybe you can stay in your home with an affordable mortgage. Good luck.

My house has gone down so much (more than $200,000) that according to zillow it is worth about $90,000 less than I owe. It would never sell in a short sale - there are many great homes in my area that are not selling in short sales and people are walking away.

I was talking to a man last week who said he has not paid his mortgage in almost 2 years and owes $100,000 in credit card debt. He used to own his own business (lost it) wife lost job & now (he looks around 55) he is making practically minimum wage at Home Depot - took him 1 1/2 yrs to get that job. He is hoping to work out a deal to stay.

I went to CEDA - HUD - and my dtr is going to a seminar tomorrow which will allow me to talk to a counselor. In order to get help you must attend seminars that are offered every few months first. I did talk briefly with housing counselor - she said definitely DO NOT call my lender - she said they are unwilling to negotiate with anyone - someone from their office (CEDA) should be doing the work - that sounds good to me. I need a drastic cut. I will never own another home. It appears there is a federal program under Obama for people with Freddie Mac and/or Fannie Mae loans who have undergone a significant life change (loss of job or death) - so we'll see. I have made all my payments on time for everything.

It's an awful situtation to be in. Rob had to go on DSS and I was laid off prior to his death. We had a modification in place with the mortgage company but once Rob went on DSS and me on unemployment they said we were no longer eligible for the modification and also that we had to pay back the entire amount of shortgage we had on the modification. They demanded full payment 2 septs. ago. I stopped paying the mortgage, the house has been listed for sale at that time. I am still here, haven't paid in almost 2 years but have a short sale contract on the home. It has been 2 months and the contract has yet to be accepted and here I am still. I know I will have to leave but I did try to negotiate with them but they wouldn't do it's on them. They are just as glad that I have stayed here so that the property is maintained. You do what you have to do, just know that if you can't negotiate with the bank for a remodification than you can stay there until it's sold. Just my personal experience. I don't feel good about not paying but I was in a situation like you losing most of my income. Sorry you are going through this on top of the grief. Ugh, Hug, Donna

There are so many sad stories of people losing their homes and banks unwilling to work with anyone. So many are treading the financial water just trying to keep their heads above it all. Costs are rising and financial income declining. I tread wanting to sell my house but I need to get enough out of it to replace it with a smaller condo. .

I tired to make the first few payments after my husband passed away, but quickly realized I could not afford my mortgage. I have not made 1 payment in 12 months and I am still in my home and I am not in foreclosure yet. I tried to do a loan modification, but they only decreased my payments by $80 a month which still wasn't enough for me.

Modifications were what I was told to stay away from, and working w/my current lender went no where. However the local town's credit union did work with me and refinanced my place to where I could afford the payments. However I did make mistake of allowing them to put taxes and insurance w/it. I w/have been better off paying them myself - in fact I had already paid my insurance but due to low amt of loan they were rather insistent I just went along w/ it. I took am on SS and with health insurance @557 a month just does make it easy to have an ease on $$ needed. It was on TV just the other day a program where they are allowing people to stay in their homes - some kinds of program when you go into foreclosure...

So sorry you are having to go through this - along with so many others. I hope you find a program, company or whatever that will work with you so that you can remain in your home.

Not familiar with it personally, but I'm a big fan of Suzy Orman who talked about it on her show. In that case the owner was a woman living in Florida and it was a condo that was way underwater. She couldn't sell the condo because they wern't selling. The woman was married and the condo was in her name only. Suzy actually told her to walk away. Only her credit would be affected, but they could rent or buy much cheaper somewhere else. Suzy suggested renting as home values are still falling. It does affect your credit history negatively, but what else can you do if the bank won't help.

Keep in mine that you may want to secure a rental before the negative impact to your credit occurs. Rentals do credit checks nowadays.

I was watching another episoed of Suzy Orman the other night and she said that home values only increase by 3 to 5 percent a year. That means that the average home won't get it's value back for another 14 years. If I had a home, I would definetly walk. The homes are just not worth the high price paid years ago. It's cheaper to rent and all the buyers are just looking for extrodinary deals.

Clark Howard, another financial advisor, suggested renting out the homes. Rent prices are going up big time, due to all the forclosed homes out there. Maybe that would work for you.

Tru

Forgot to add. In 2013 the laws in the US change regarding foreclousures and short sales. The new law means you will be taxed I would definetly make my decision before that happens.

Here's a link:

http://www.dailyfinance.com/2011/03/08/handling-a-1099-c-after-settling-a-debt/

Wow our stories have some similar points. When my EX died nine months after our divorce we each end up with a home - we had 2 homes, well he never refinanced his, so when he died, I had a debt to his house that I have no ownership in, although it did go to the kids. My youngest is 7 so we have several yrs before the SocSec runs out. The mortgage on his house is paid out of the estate acct., but is still on my credit. i had rented out my house and moved but the renters fell months behind, it foreclosed in July. I hated to have in on my credit report as i am digging my way out of debt, but I honestly felt a sense of relief to be rid of it! I went thru Dave Ramsey's financial class, he has NO credit report because he deons't use credit at all. Not sure if I will ever get there. lol but I no longer Idolize my FICO score, lol. I honesly lost no sleep when it came to the foreclosure, it was circumstances beyond my control, I praise God he has been faithful and is delivering me!

Have you considered taking in a roommate or two? If your house is large enough, perhaps doing that would work. Just a thought....

I hope something sorts out for you so that you don't have to walk away and lose the house.

Love and Hugs, Martha