[planet_mondo]

...yrs, is foreclosure the answer? We work with an attorney who doesn't see our home rebounding after this recession. We purchased our home new 4 yrs ago and is now half the value. Our attorney doesn't even think modification will help us ever seeing any kind equity ever build. He has directed us into missing payments for 5 months. After my lay off 3 months ago, he is passionately urging us to walk away with deed of lieu so we can start all over again. We have 2 kids under 2 yrs old. My wife and I feel if we walk away, we have more to gain than to lose our savings into mortgage payments that will never win us equity. My biggest fear is waiting for a length of time to buy a home if we foreclose. I feel there is no win-win situation. If we pay, we lose. If we walk away, we lose. We know our credit has taken a hit missing payments. Our attorney also feels a short sale is also a disadvantage. even if we find a qualified buyer, our lawyer says we need to pay tax on the money that the bank will forgive us for. Seriously is the right thing to do is stay in a house that is pretty much a rental? Our attorney doesn't think we can own this house with no equity in sight. Hard times!

[pmuzzy58]

My husband faced foreclosure 6 years ago before we got married. In 2002 he lost his job and had sustained unemployment until 15 months later. This is when the economy was doing well. He had missed a few payments on his condo. He was throwing good money into a sinking ship. He sold items, borrowed against his insurance to end up losing his home. He went to the foreclosure hearing and the judge wondered why he showed up. The bank had no intention of helping him. Lately after hearing on the news that most foreclosures were rushed through it doesn't surprise me that the real estate market ended up this way. Personally, in 2002 I was looking at buying a home in my home state of PA. I was looking at purchasing the home for $35, 000. I later checked online for curiosity sake to see the value of the home after I moved to Ohio. In 2007 before the crash, the same home was on the market for $95,000! I would have almost doubled my investment. I checked within the last year and the value of the home is down to $40,000. If someone had purchased the home in 2007 they would be underwater on the loan. My suggestion to you is to seek the help of a bankruptcy attorney. If you keep missing payments then your credit is going to be damaged in the end anyhow. The housing market is in a mess right now and isn't looking to get better for a few years according to rebound according to Suze Orman. You can go to several sites that offer help from your State, HUD. I recently read that it is better to get advice from experienced professionals. They can look over your information and give you the best advice. I went through the foreclosure process with my husband. He was brave during the whole process but I know it broke his heart. He lost almost $100,000 that he had paid into the condo over 19 years of living there. We had to file bankruptcy because of credit card companies trying to garnish his wages. The condo debt was paid off at the Sheriff's sale. It is hard to walk away from a home, but your family is more important than house. A friend and his wife are working 2 jobs each to finance a home. They are working to pay for a home. They almost ended up in divorce just a few weeks ago. They don't spend time together and are constantly working. This isn't living. They are working themselves to the bone just to pay for a home. No home is worth your family. I would get help and advice from a professional.However, you can do a short sale or file for bankruptcy. My husband and I are due to be done with the bankruptcy in just a few short months after 5 years of payments. In about 2 years or sooner we can start looking to purchase a reasonably priced home. We use credit very carefully. We only have a car payment right now. You realize that after living through a bankruptcy how important family is rather than money. If you need to find a bankruptcy attorney check with your local lawyer referral service. I wish you and your family the best. Good luck.