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  • January 21, 2009 at 10:46 AM #14873
    jimmyle
    Participant

    My coworker bought 1b/1b condo in Irvine in 2005 for around $400K with no down payment and now is at least $100K under water. He is working and his wife is going school. He is reluctance to let the house go because both of them will have bad credit.

    I told him if he doesn’t want to let it go at least try to get a reduction in payment, may be a combination of lower principal and lower interest rate. And he should do this before his wife is done with school and start working.

    I suggested to him that he could start skipping payment. What is your guys susggestion on how to get the bailout?

    His income is around $70K.

    January 21, 2009 at 10:57 AM #332381
    Noob
    Participant

    I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.

    January 21, 2009 at 10:57 AM #332716
    Noob
    Participant

    I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.

    January 21, 2009 at 10:57 AM #332796
    Noob
    Participant

    I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.

    January 21, 2009 at 10:57 AM #332824
    Noob
    Participant

    I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.

    January 21, 2009 at 10:57 AM #332908
    Noob
    Participant

    I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.

    January 21, 2009 at 12:18 PM #332435
    cr
    Participant

    [quote=Noob]I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]

    Uh, yeah…pretty sure that’s called fraud.

    jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.

    A hit to his credit might be worth the lesson if the bank won’t work with him.

    January 21, 2009 at 12:18 PM #332771
    cr
    Participant

    [quote=Noob]I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]

    Uh, yeah…pretty sure that’s called fraud.

    jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.

    A hit to his credit might be worth the lesson if the bank won’t work with him.

    January 21, 2009 at 12:18 PM #332851
    cr
    Participant

    [quote=Noob]I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]

    Uh, yeah…pretty sure that’s called fraud.

    jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.

    A hit to his credit might be worth the lesson if the bank won’t work with him.

    January 21, 2009 at 12:18 PM #332879
    cr
    Participant

    [quote=Noob]I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]

    Uh, yeah…pretty sure that’s called fraud.

    jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.

    A hit to his credit might be worth the lesson if the bank won’t work with him.

    January 21, 2009 at 12:18 PM #332963
    cr
    Participant

    [quote=Noob]I have a plan for this.

    Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]

    Uh, yeah…pretty sure that’s called fraud.

    jimmyle, I think you hit it already, the best advice is to try and rework the loan. The fact is your coworker bought a house he shouldn’t have, at nearly a 6-1 debt to income ratio w/ no money down.

    A hit to his credit might be worth the lesson if the bank won’t work with him.

    January 21, 2009 at 12:24 PM #332445
    Coronita
    Participant

    he should walk. period.

    $70k on a 400k 1/1 condo soon to depreciate even futher and a wife that goes to school making $0 and possibly with student loans up the yazoo…

    Bite the bullet and walk. Might as well do it during a time when a lot of other people are.

    I think it’s worst if he/she delays the inevitable and walks at a time when others aren’t (though I think a lot more people are going to be doing this for a loooooong time)….

    January 21, 2009 at 12:24 PM #332781
    Coronita
    Participant

    he should walk. period.

    $70k on a 400k 1/1 condo soon to depreciate even futher and a wife that goes to school making $0 and possibly with student loans up the yazoo…

    Bite the bullet and walk. Might as well do it during a time when a lot of other people are.

    I think it’s worst if he/she delays the inevitable and walks at a time when others aren’t (though I think a lot more people are going to be doing this for a loooooong time)….

    January 21, 2009 at 12:24 PM #332861
    Coronita
    Participant

    he should walk. period.

    $70k on a 400k 1/1 condo soon to depreciate even futher and a wife that goes to school making $0 and possibly with student loans up the yazoo…

    Bite the bullet and walk. Might as well do it during a time when a lot of other people are.

    I think it’s worst if he/she delays the inevitable and walks at a time when others aren’t (though I think a lot more people are going to be doing this for a loooooong time)….

    January 21, 2009 at 12:24 PM #332889
    Coronita
    Participant

    he should walk. period.

    $70k on a 400k 1/1 condo soon to depreciate even futher and a wife that goes to school making $0 and possibly with student loans up the yazoo…

    Bite the bullet and walk. Might as well do it during a time when a lot of other people are.

    I think it’s worst if he/she delays the inevitable and walks at a time when others aren’t (though I think a lot more people are going to be doing this for a loooooong time)….

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