Refi'ed & Want to Foreclose

[DiZZ-831]

What is the name of your state (only U.S. law)? CA

My Situation,

I live in a place considered to be Ground Zero for home depreciation. My loan is for 415k (original loan 395k) and my home is worth somewhere between 150-160k. This is my primary residence for the past 4 years and never late on a payment. Refi'ed a couple times and rolled those costs on top of the principal and pulled out 5k for home improvements. My last Refi is a 40yr with BofA through the ACORN program with 10 yr i/o and 30yr p/i at 5.87% interest rate.

My question is, as i understand it having refi'ed makes my loans recourse. With that said, how likely is BofA to come after me for deficiency a judgment? I feel it is pointless to keep this home unless BofA hacked off 250k of my loan and i'm not holding my breath on that one. I hear banks rarely pursue Judicial Foreclosure and opt for Non-Judicial because they are quicker and less taxing. And by pursuing the Non-Judicial route it will forfeit their (Banks) right to pursue a deficiency judgment.

Can anyone advise on my situation?

Thank You in Advance!

DiZZ-831

[FlyingRon]

So lets see, you pulled out money, took a sweet 40 year deal and now you want to blow away your responsibility not because of any financial hardship but purely because you don't feel like living up to your obligations?

Yes your loan is recourse and they'll have to pursue a judicial foreclosure to get a deficiency judgement. If you have any assets I hope they do.

[DiZZ-831]

Sweet Deal? You're funny. Why would anyone hold onto a house that has depreciated more than 60%? My great great grand kids would never see a return on the value of what i paid. Thus the bank can have it back.

Yea, i pulled 5k to get my floors done and my yard landscaped but you could dip my house in gold and it wouldn't make a difference in value. As for assets, none really so i guess i'm in luck.

Thank you for confirming what i already know.

Originally Posted by FlyingRon

So lets see, you pulled out money, took a sweet 40 year deal and now you want to blow away your responsibility not because of any financial hardship but purely because you don't feel like living up to your obligations?

Yes your loan is recourse and they'll have to pursue a judicial foreclosure to get a deficiency judgement. If you have any assets I hope they do.

[nextwife]

Originally Posted by DiZZ-831

Sweet Deal? You're funny. Why would anyone hold onto a house that has depreciated more than 60%? My great great grand kids would never see a return on the value of what i paid. Thus the bank can have it back.

Yea, i pulled 5k to get my floors done and my yard landscaped but you could dip my house in gold and it wouldn't make a difference in value. As for assets, none really so i guess i'm in luck.

Thank you for confirming what i already know.

OK, so your logic is that one should not have any obligation to pay back their creditors if the value of the item they borrowed the money for drops (perhaps temporarily) after they buy it?

Wow, Everyone should stop making their car payments, their payments on their big screen TVs, clothes or furniture they bought, because THOSE all also dropped significantly in worth once purchased?

[HomeGuru]

I guess the OP has pretzel logic.

[FlyingRon]

Suite deal. You got a 40 year loan at a fantastic interest rate.
It's not the markets fault that you kept pulling your equity out and now don't have any.

[AHA]

Originally Posted by DiZZ-831

What is the name of your state (only U.S. law)? CA

My Situation,

I live in a place considered to be Ground Zero for home depreciation. My loan is for 415k (original loan 395k) and my home is worth somewhere between 150-160k. This is my primary residence for the past 4 years and never late on a payment. Refi'ed a couple times and rolled those costs on top of the principal and pulled out 5k for home improvements. My last Refi is a 40yr with BofA through the ACORN program with 10 yr i/o and 30yr p/i at 5.87% interest rate.

My question is, as i understand it having refi'ed makes my loans recourse. With that said, how likely is BofA to come after me for deficiency a judgment? I feel it is pointless to keep this home unless BofA hacked off 250k of my loan and i'm not holding my breath on that one. I hear banks rarely pursue Judicial Foreclosure and opt for Non-Judicial because they are quicker and less taxing. And by pursuing the Non-Judicial route it will forfeit their (Banks) right to pursue a deficiency judgment.

Can anyone advise on my situation?

Thank You in Advance!

DiZZ-831

Do your share of pulling this country back up on its feet (since you have enjoyed the earlier benefits it has provided you), instead of helping to push it down even further for everyone incl yourself.

[rob2060]

DZ - we have a home in Las Vegas. We never refi'd but we can relate to your situation. We purchased a home for 305K that's now listed as a short sale for 144K. Best of luck in whatever path you choose.

[DiZZ-831]

First off, I've sacrificed way to much for this house to only see it decrease in 60% of it's original purchase price. It sounds like everyone who's responding here is a wall street banker expecting the consumer to take it up the a$$ while you run off with the bail out money.

I used to be exactly like you a-holes until i realized my American Dream was a mirage. Besides the pay cuts, other foreclosures that have have run my neighborhood down, the increase in crime and to keep current on my mortgage, and for what?

Not sure exactly the "benefit" this house has given me other than 100k+ i've paid in interest to the lenders over the past 4 years. I've done everything in my power to do the "right" thing and guess what...i was wrong. Time to cut my losses and move on.

[DiZZ-831]

Likewise. It's a tough time for everyone and unfortunately for me i may lose my house and hope there will be no recourse, but we'll see.

Originally Posted by rob2060

DZ - we have a home in Las Vegas. We never refi'd but we can relate to your situation. We purchased a home for 305K that's now listed as a short sale for 144K. Best of luck in whatever path you choose.

[DiZZ-831]

I pulled 5k to improve my home so not sure where you get "Kept pulling equity". 40yr w/ a decent interest rate helped but not really. Obviously you didnt do to well in economics in school. Owe 415k on a home worth 160k, hmmmmmm...good investment?

Originally Posted by FlyingRon

Suite deal. You got a 40 year loan at a fantastic interest rate. It's not the markets fault that you kept pulling your equity out and now don't have any.

[DiZZ-831]

I can understand why you're the "nextwife". Think about it, do you buy a car, tv, furniture as an investment? Didn't think so. And "Perhaps Temporarily", where do you live, in OZ? All kidding aside, a home is an INVESTMENT, yet my INVESTMENT will not see a return. What to do? Whatever is best for me and my family.

Originally Posted by nextwife

OK, so your logic is that one should not have any obligation to pay back their creditors if the value of the item they borrowed the money for drops (perhaps temporarily) after they buy it?

Wow, Everyone should stop making their car payments, their payments on their big screen TVs, clothes or furniture they bought, because THOSE all also dropped significantly in worth once purchased?

[nextwife]

Originally Posted by DiZZ-831

I can understand why you're the "nextwife". Think about it, do you buy a car, tv, furniture as an investment? Didn't think so. And "Perhaps Temporarily", where do you live, in OZ? All kidding aside, a home is an INVESTMENT, yet my INVESTMENT will not see a return. What to do? Whatever is best for me and my family.

Wrong. A HOME is a place to live, that may also act as an investment - over the LONG term, not the short term.

Plenty of people have, for now, lost value in their home. The difference is that, when the home value goes UP the borrower wants to the increase to belong to them, but, it now appears, when it goes down, they want the decrease to belong to someone else.

Also, instead of plugging away at the mortgage balance, you kept sucking out any equity. So what, that some of that went back into some landscaping? Lots of us have been quietly improving our homes incrementally out of our pockets without refinancing, thus improving our homes while our mortgages kept DECREASING. The only difference is that the result is that WE own any current drop on value, rather than the bank.

Just curious: while you were NOT paying down your mortgage those years, were you eating out frequently? Traveling maybe? Buy/pay for new cars during that time? You get the idea. A whole lot of the people who spent on other things now want to stick it to society because they want someone else to take their loss.

[AHA]

Originally Posted by DiZZ-831

First off, I've sacrificed way to much for this house to only see it decrease in 60% of it's original purchase price. It sounds like everyone who's responding here is a wall street banker expecting the consumer to take it up the a$$ while you run off with the bail out money.

I used to be exactly like you a-holes until i realized my American Dream was a mirage. Besides the pay cuts, other foreclosures that have have run my neighborhood down, the increase in crime and to keep current on my mortgage, and for what?

Not sure exactly the "benefit" this house has given me other than 100k+ i've paid in interest to the lenders over the past 4 years. I've done everything in my power to do the "right" thing and guess what...i was wrong. Time to cut my losses and move on.

It has been your home for years and you've apparently liked it enough to pull money out of the equity to make it even more enjoyable for you, so yes there have definitely been benefits for you.
Why did you refinance, if you still couldn't afford the house? Just becuase a house drops in value (which is temporary), doesn't mean you HAVE to jump ship. You buy a house as a long term investment.

[DiZZ-831]

I never pulled money for new cars, vacations, clothes blah blah blah. I live as froogle as you get. Yes, a home is where you live and i agree is a long term investment. With that said, do you think i would see a return on my "long term investment", again owe 415k now worth 160k? Honestly and i'm being 110% serious, do you think i would see the value of my home even reach what i paid for the house over the next 40yrs? i dont think so. I can do more good for this economy by giving up my house to normalize housing prices and the money i save by renting i can put back in aka stimulate my local economy. To reiterate, i sacrificed putting money in savings, retirement, kids college fund to buy this home. And at this point, i dont see any need to pour good money after bad.

As for paying down the principal, if you ever owned a home you would know the first 10-15 years is primarily paying down the interest. So to answer your question, no. Did have money to pay down the principal? No. I've taken a 10% pay decrease this past year and times have been tight to say the least.

I can understand you're frustrations but my intent was never to get rich off pulling 5k on my house as AHA is implying. Come on, 5k? I bet most of you are in denial that the govt. is going to help you with your ARM's that are getting ready to reset in the next year or two. If so, i say pull your head out of the sand and smell the dung heap you are standing in.

Good luck to you all and i appreciate the commentary although i was looking for "advice".

DiZZ