Michael has it 100% correct with his response. Mortgage companies are now coming after home owners who can afford to make their payments, yet walk away from a home. Fannie Mae, Freddie Mac, and HUD are al taking a firm stance against this practice. Many are pursing and obtaining deficiency judgments against those home owners for the losses incurred with a foreclosure. This means you also now have a judgment against you to pay back that difference on a home you now longer live in.
Had you home increased in value, there probably would have been no question asked. A value is just a snapshot in time. Values are slowly beginning to rise, but until the foreclosures and short sales get through the system, it will just take some time.
Rodney Mason, NMLS #151088
Sr Loan Officer
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Office: (404) 591-2453
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Prospect Mortgage offers a full selection of mortgage programs including:
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Where will you live then? If the value had tripled, would the bank require you to pay them more? You have some options; if you want to stay inquire with your lender about a loan modification. While this is far from guaranteed to work, it's could be worth the effort. Next, if you need to move anyway you need to learn about the pros and cons of a short sale.
It will impact your credit, but typically not as bad as a foreclosure. It will take 3-9 months or possibly longer to complete and depending on your lender and negotiator you may still have some balance owing.