1) Reject all attempts of your government to bail out the banks under the guise of catchy names like "Hope Now" and "Lifeline". Remind yourself that this is not to help you.I know hat's hard to believe…….
2) If you can't pay the mortgage or your home has lost a lot of equity and you are upside down, or (fill in the blank) then call the bank tell them you want to do a deed in lieu. If they say no, don't pay them anymore. Live rent and mortgage and property tax free for at least 8 to 9 months possibly a year in this market. Let them foreclose and you save all the money that would have went to the bank during that time for a first and last month's rent deposit for the rental you are going to need after the sheriff shows up. (Make sure you take the upgrades YOU PAID for before he shows up).
*The bank will have to pay the property tax as it is THEIR PROPERTY. It will not go on your credit report as a lien. If they don't pay, it will go to tax sale and they lose everything…..
3) Rent your new home that is twice as big for half the cost of owning a home..now that's smart thinking there…..for the next two years. I know…your thinking…I should have just done this before buying a bubble house in SD but then I couldn't have bought all those things with my CASH OUT REFINANCE. Decisions Decisions…..
4) Take the next two years to clean the credit and remove the foreclosure to position yourself to buy your same house back at…you guessed it…half the price……(removing foreclosure is one of the easiest to remove at this time).
5) Buy your house with easy financing again via artificially deflated rates by the FED and non regulated or monitored lending and do it all over again…….make sure you strip that equity again to buy a bunch of consumer goods to stimulate the economy…..and to keep up with Mr. Jones and his spoiled kids.
Man, you gotta love non recourse laws and Real Estate Cycles in CA.
I know this infuriates folks but none of these ACTIONS above by the BORROWER are ILLEGAL. They are the Rights of the Homeowner…..
