I was hoping there may be a reader who has access to financing terms below 11% with 20% to 25% down?
Answer to questions:
-It was a business decision(like any other uninsured event*) and Wells Fargo signed the same contract I signed
-I knew the default would take three years to fix my FICO.
-I save 30% of what I make, donate 5% and and work 6-7 days a week
* Ask your self if you would you hand the bank the property if you had a mud slide, sink hole or uninsured catastrophic earthquake
I will tell you my logic when I followed my loan contract and avoid the moral decision
My past mortgage was 6% fixed and I could not get a refinance because it was underwater.
Today with my bad credit I will pay 10% or 11%. This is 4% over my old loan. This will cost me an extra $20,000 to $25,000 a year but it is tax deductible.
After a 40% tax benefit that cost me $12,000 to $15,000 after tax more per year. It would take 8 -10 years of a 4% higher interest rate to make up for the $120,000 negative equity
I feel I will be able to refinance in two years for another 6% mortgage.
