We need some advice. My wife and I bought our first home in Nov. 04′ in the San Elijo Hills community of Westridge for 406k. We took out a 80/20 5 year arm IO. We have not paid ahead at all. We still owe 406k. It is a cute 2bd 2bath in a gated community. Unfortunately my wife’s job was relocated to Indianapolis, IN in July of 2006. We listed our home as soon as we heard the news, however we were unable to get any offers. We tried to go through the short sale process only to loose two potential sales due to Countrywide dragging their feet. Countrywide is holding the 2nd (20%) in a HELOC.
We decided to rent the townhome in May of 2007. We are currently renting it for 1750/mo. However, our mortgage+taxes+HOA comes to 2700/mo. We are currently netting a $1,000 a month loss. My question to you is should we stick it out or mail in the keys? We are young (28 and 29 respectively). We also have very good credit. Our 5 year balloon payment is scheduled to hit in Nov. 09′.
The current market value of the home is around 330k. Unfortunately, we don’t have the cash to make up the difference. If we were to “mail the keys back” could the lender go after our other assets? Any advice is truly appreciated.
Someone in the money biz can correct me if I’m wrong, but I think you’re on the hook for the HELOC. The 1st should be non-recourse and the bank has to take what they can get. Remains to be seen how long Countrywide will remain solvent, and how willing they will be to chase you for the delinquent HELOC, but theoretically they can.
Someone in the money biz can correct me if I’m wrong, but I think you’re on the hook for the HELOC. The 1st should be non-recourse and the bank has to take what they can get. Remains to be seen how long Countrywide will remain solvent, and how willing they will be to chase you for the delinquent HELOC, but theoretically they can.
Someone in the money biz can correct me if I’m wrong, but I think you’re on the hook for the HELOC. The 1st should be non-recourse and the bank has to take what they can get. Remains to be seen how long Countrywide will remain solvent, and how willing they will be to chase you for the delinquent HELOC, but theoretically they can.
Someone in the money biz can correct me if I’m wrong, but I think you’re on the hook for the HELOC. The 1st should be non-recourse and the bank has to take what they can get. Remains to be seen how long Countrywide will remain solvent, and how willing they will be to chase you for the delinquent HELOC, but theoretically they can.
Someone in the money biz can correct me if I’m wrong, but I think you’re on the hook for the HELOC. The 1st should be non-recourse and the bank has to take what they can get. Remains to be seen how long Countrywide will remain solvent, and how willing they will be to chase you for the delinquent HELOC, but theoretically they can.
If the second was a purchase money loan there is a good chance that it’s also nonrecourse. Again, as suggested to the other “should I stay or should I go” poster, talk to an attorney and accountant that have expertise in this area. I believe there is some debate about the term HELOC for purchase money loans and whether they are recourse or not, and attorney can help you figure it out.
If the second was a purchase money loan there is a good chance that it’s also nonrecourse. Again, as suggested to the other “should I stay or should I go” poster, talk to an attorney and accountant that have expertise in this area. I believe there is some debate about the term HELOC for purchase money loans and whether they are recourse or not, and attorney can help you figure it out.
If the second was a purchase money loan there is a good chance that it’s also nonrecourse. Again, as suggested to the other “should I stay or should I go” poster, talk to an attorney and accountant that have expertise in this area. I believe there is some debate about the term HELOC for purchase money loans and whether they are recourse or not, and attorney can help you figure it out.
If the second was a purchase money loan there is a good chance that it’s also nonrecourse. Again, as suggested to the other “should I stay or should I go” poster, talk to an attorney and accountant that have expertise in this area. I believe there is some debate about the term HELOC for purchase money loans and whether they are recourse or not, and attorney can help you figure it out.
