Sounds like you could use more information to get a true sense of what your payments could look like when they reset. There is a poster on here that is in the mortgage biz that might be willing to explain all the “fine print” to you. He goes by HLS, do a search for him and you can find his email. You also have the issue of your second coming due in 13 more years, I don’t have a clue what home values will be in 13-15 years, but there is a chance that even by then prices will not have returned to the peak of 2005…who knows??
I am sure that you know this, but just in case – right now since you haven’t refinanced your loans you are under non-recourse protection from the bank and the IRS, meaning they can not come after your other assets in case you do foreclose. Be very careful to preserve this protection when considering any kind of work-out with the bank. I am sure that you have read about the new bill in the Senate. If that actually does pass and could be an option for you, one of the stipulations is that this new “loan” is not “walk-away-able”, meaning there is no way out – that’s scary IMO.
Finally when thinking about what you might want to do and a potential time line, right now Fannie Mae has changed some of the rules regading people qualifying for new mortgages with a foreclosure on their record. I can’t find the link, but I believe it’s something like : you must wait 2 years to buy with a short sale on your credit report, 4 years if you have a deed in lieu, and 5 years if you have a foreclosure on your report. Of course that can always change. Just something to be aware of when timing things if you do plan on “sending in the keys”.
