Nevada Foreclosure Questions

[rlolsen77]

What is the name of your state? Nevada

I bought a home (5 year interest only arm, 80-15heloc) in Henderson in June 2004 with ex-wife. Divorced two months later (I moved home to native California after divorce); decree called for sale of home, on market for six months to no avail. Ex completely abandoned mortgage obligation two months after we bought it in Sept 04, leaving me to come up with the mortgage payments since that time.

Both on Mortgage. I am only on title through quit claim in March 05. I have maintained negative cash flow -1,000/month while it has been rented out for 3+ years. Never missed a single payment (on ANY bill in my life). 1st Mortgage to reset in July 2009.

Recently realized home has depreciated 30% (appraisal on Oct 22). Currently upside down 50K to loan value. Would cost 65-70K out of pocket to sell it. Grandfather has recently been diagnosed with Alzheimer's which will require expensive care. Professionals have advised me to walk away from property (my accountant, FA) as future real estate prices are expected to continue their decline. Why wait for the inevitable.

Banks Comments:
Am currently working with Countrywide's Work Out Department, exploring all types of scenarios. They are strong position that if I do anything that involves NOT paying the loans in full (DIL, Short Sell) they will mark "foreclosure" on my credit. Short sell is unrealistic in market where Im already down 30% and there are 17 sellers per buyer. They offered Deed in Lieu IF I was willing to pay them $166/month for the next 10 years (20K) AND they will still mark Foreclosure-DIL on my credit. Why would I be willing to pay Countrywide 20K to destroy my credit anyways???

My Recent Action
Current credit score is 740.
I have tentent month to month. Im thinking of pocketing rent money until the bank forecloses. I have applied for an additonal 70K in credit card (only have 6K current total balance) in the event my credit is about to take a foreclosure dive. I can also use these lines during the next 5-7 years to rebuild credit.

QUESTIONS:
These loans were primary money purchase loans (originated together at the same time to but the property). They are NON-recourse loans, correct?

Is there any added benefit to have a lawyer negotiate terms of the transaction on my behalf? What type of concesscions do you think Countrywide would be willing (if any)?

[FlyingRon]

What makes you think they are non-recourse loans?

[rlolsen77]

I read that loans originated for the initial purchase of the home (primary purchase loans) were usually held as non-recourse loans... inlcuidng helocs. I was hoping somebody familiar with nevada law could validate that claim....

?

If i am mistaken, what will happen to me financially, given I cannibalize my credit.

[FlyingRon]

An aquisition loan is not automatically a non-recourse loan. It is pretty uncommon as well.

As for the rest, it depends on whether you have anything they can pursue to collect on a deficiency judgment.

[speedway121]

I am in the same situation, 760 credit score.
I paid 225k for a condo in Las Vegas in sept 2006
it is now worth 150k.

I havent had a tenant for 6 months and am paying approx 1800 a month (including HOA, taxes, warranty, etc).

I need to dump this property.
I purchased initially through contrywide as investment property, then refinanced through countrywide as primary mortgage (primary residence).

What can they come after me for in the even of foreclosure? I dont want this damn thing, however I do make enough to sustain the payment. How do I dump this property and walk away with the least liability??? Please help.

[speedway121]

What happened? please do inform me so I can take my precautions!