Alternatives to Foreclosure for Condo that is worth $160,000 less

[CoolMV]

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

I have a condo we bought in 2004 for $406,000 in Northern California. Comps are now worth $240,00.
It is a one bedroom. We have since had a baby who is now a toddler and I plan to have another child. We planned on selling and moving but were told to wait until things got better. They haven't.
We are ready to go. We have never missed our payments but they are about $3000 a month with taxes. We could rent it out for only $1,200.

We don't want to foreclose but it seems deed in lieu wont work because our first mortgage is with BofA countrywide for $325,000 and the 2nd is with Wells Fargo for $50,000. Was also told we could not short sell because we are not behind and do not have a hardship. We are both employed full time and pay for daycare too and thought we don't have it as rough as so many it is strapping us to keep this condo. We don't feel that we can wait till it comes back up which could take many many years. Our toddler sleeps in a walk in closet!

We do not want to own again in the near future. We want to rent which will cut our costs down at least $1000 a month.
Any advice would be more than appreciated.
We are planning on talking to a real estate attorney but would like to be informed by what my options are.
Thanks!What is the name of your state (only U.S. law)?

 

[whiskeyecho]

I am in a very similar situation

I'm in Florida.
I have a tiny condo that I bought in '06 for $265K ($250K mortgage; $230K current balance). My next door neighbor just completed a short sale for ~$100K.
I can afford my mortgage payments but I need to unburden myself financially. If I get out of this place I could easily cut my monthly living expenses in half. But because I'm solvent the mortgage company basically won't even talk to me.
I too am going to get a real estate lawyer, but I'd like to be reasonably informed when I walk in their door.
As I understand it, the options are basically (1) refinance with the same or a different lender, which probably won't change much of anything; (2) stop payments, await foreclosure and hope the mortgage company doesn't seek a deficiency judgment; (3) negotiate for a short sale (which my mortgage company clearly will not do); (4) stay where I am and keep throwing money away.
So like you I'll await the advice of others.

 

[ecmst12]

Don't hijack other people's threads.