[quote=jpinpb]. . . Here’s her deal. Her adjustable rate fell, so her payments are less. She has plenty of money to pay for it. She doesn’t want to. Her dad passed away and she wants to move to a better school district for her kid and she doesn’t see values going up in that area any time soon.
She’s not interested in any programs. She’s contemplating walking. Business decision.
All these programs just kick the can. I haven’t heard that any of these programs have been a great success. Sure, there’s a handful it’s helped. But for the most part, IMO, it’s done nothing more than extend and pretend. . . [/quote]
jp, I, too, don’t think there is enough incentive in CA (and a few other states) for this program to be useful, because the degree of “underwater” is typically far more than the 10% that would presumably be “forgiven.”
As an attorney, I’m sure your friend is well aware that she should buy another property while she owns her current property and is current on its payments in order to qualify for a prime loan on the property she is soon to buy. After her next property transaction is closed, THEN and ONLY then could she stop making payments on her underwater property, as she will take a hit of about 300 points on her FICO score by the time it gets foreclosed upon.
