Walk away. Rent . Never use a Realtor. Mail the keys to the bank.

I just found out more information about my loan. I just found out that it will continue to rise by 1 %, though the wording says it will rise or lower by 1 % based on the libor 6 month index. Every 6 months it will rise by 1% up to a maximum of 13.28%.

Now I am really thinking that I entered into a contract with all out crooks. I know shame on me! I was told that with my excellent credit rating and all the equity I am buying into I would have no problem refinancing. Of course the value dropped to 40%. Is there anyone out there who can suggest I stay now?

These companies are nothing short of evil! I probably still have no easy way out, or way to improve the situation. Absolutly ridiculous.

Sean,

I am sorry to hear you are in the situation you are in. Before you move forward with any decision get more information about the consequences that a short sale or foreclosure will bring. Your credit will be greatly affected and there might be some tax consequences - consult you accountant or tax lawyer, you might have different rules being a foreigner.

A ruined credit could automatically increase the rates you pay on all your current credit cards, plus expect to pay more and have worse terms on every single loan you make in the next several years, from car purchases to any other type of loan.

Another factor to consider is that these days many potential empolyers will check your credit when considering you for a new job or promotion. A ruined credit will close many doors for you.

With that said your best option might be to keep your home and if possible refinance or get a loan modification. But, if you definitely need to get rid of your property a short sale will be a less damaging option than a foreclosure. It is not guaranteed, but you have nothing to loose by trying.

I will gladly help you should you need further assistance.

Sean
Welcome to the world of homeownership. Let me ask you, if your home's value had gone UP as much as it went down, would you want to GIVE the profit away? No, you'd sit there, fat and happy, right?

Like all markets, like the stock market, values go up, and go down. My advice is to talk with your Realtor and have them help you talk with lenders about your options.

You say that you never want to own again. What if I told you that in 15 years your property would be worth twice what you paid? What would you do?

Homeownership is a long term investment. Talk with your CPA about your questions. Ask them to explain the concept of appreciation.

Sit tight, ignore the media, and enjoy your life in Mesa. You never sell at the bottom of the market.

If you lose your job, you certainly would have a reason to short sale that would be easy to excuse later when trying to repair your credit. Or if your loan adjusts and can longer afford it that would also be a reasonable excuse. But to just walk away because right now it's a bad investment really doesnt seem like a good reason to walk away, although others may not see it my way. I re-read you original post. Are you still paying 8.7% ? I be you could talk you lender into dropping that down. I should be about half that. Have you talked to your lender yet ?

I don't want to rid my self of the place, but the economics of it makes that option make sense. It's more than what I signed up for, this is the first time I have owned. I was told to take the higher interest rate because with my excellent credit rating and the payments I was going to make on time I would have no problem refinancing. The place was valued at $180,000 when I bought it, despite the carpet being severely ruined and obvious repairs in the drywall. The guy I bought it from basically made $60,000+ from my purchase. I saved him from foreclosure apparently. Why should I be responsible? I am not even a citizen, not that I want to hide behind that! I am limited by my TN-Visa as to the work I can do (I am a Land Surveyor). Lots in my profession have lost their jobs, I happen to be fairly good at what I do (which helps me stay). I am in fear that if I loose my job thats it, I am out weather I want to be or not. All I want to do is minimize my liability and increase my freedom to move to acquire another job. The market here has really really dived and it doesn't look better in the near term. These are the things swirling around in my head while I ponder what to do. I don't want to do it, but why shouldn't I? If I don't I may be worse off!

Why do you want to leave? Are you changing jobs? Or are you just sick because property value has fallen? You're not alone!!! I own 2 homes. One I live in,, and the other I rent. I'm under water on both. I don't believe in walking out just because your home has become a poor value. You still have to live somewhere. At least your mortgage is a tax write off. I would not short sale nor would I let the house foreclose. If you have to leave, rent it out. Renting has even more write offs. All your HOA and expenses become business write offs plus you can claim depreciation. Most of all, don't just blog your concerns, see a tax or other financial expert ! ! ! ! ! ! I would not make a decision based on what somebody on the internet tells you. The previous post mentions refinancing. I don't know how you'd refinance unless you own another home that has equity. Check with who ever is holding your mortgage. Good luck

An option would be to consider a Short Sale if you want to move. I have legal information available to send you regarding the options.

We are helping a number of owners in your situation. It is difficult, but we understand your concerns.

Sean

It's me again. So, my advice, REFINANCE. Rent your condo and if you want to leave the area, hire a property manager to manage your property. Your payment will come down dramatically. One problem; talk to a loan officer right away and see if the refinancing is possible. I'm not sure because you financed your purchase with an 80/20. Any loan officer in your area will be able to answer your question about refinancing right away. Good luck.

Sean

I am so sorry that your home owner purchase experience turned into a nightmare. You know, you are not alone. Millions are in your predicament. Anything you do short of staying in the condo will damage your credit. Loan modification would be the only alternative that would save your credit but unfortunately, you already explored this possibility and you did not qualify. Short sale will damage your credit but not half as bad as a foreclosure or a bankruptcy. Again, in a foreclosure or a bankruptcy you would have to prove that you are in a terrible financial position, and you are not. Maybe, you should just rent your condominium. Hold on. WHAT ABOUT REFINANCING TO A LOWER RATE. YOU HAVE GREAT CREDIT AND YOU QUALIFY. GET RID OF THE TERRIBLE MORTGAGE THAT YOU HAVE. PAYING 5.250% WOULD BE A LOT BETTER THAN PAYING 8.7%. Good luck