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| I would like to fully understand the repercussions of what I plan on doing. With the bubble bursting on the housing market, I am one of the unfortunate individuals that lives in one of the worst areas hit. I bought my home for 380,000 back in 2005 and put down 80,000 and also have a HELOC for 40,000. As of this point I owe 297,000 on the house and still owe the 39,000 for the second. With the foreclosures and what not, my same style house in my block is now worth 190,000 (one foreclosed and was sold just recently).
I tried researching getting a home loan re-modification but was denied because i supposedly make too much money…lol….barely under 6 figures.
So……My idea is this: Liquidate all my assets (stock, borrow against my 401k(what’s left of it) and use that money to jump houses and buy my same house in my area that was foreclosed upon for $190,000 while I still have excellent credit. Then attempt to rent my original house out….but lets say worst case scenario I can’t and I have to let my original house go?? My first option would be to sell short on it or get a deed in lieu. What then happens to the second mortgage I had for the $39,000??? Do I have to claim bankruptcy to clear out that debt???? Can the bank owner for the HELOC loan of the original house come after me for that????
What are the repercussions of doing the above??? I can't see myself staying in this house for the next 20 years just to break even. I feel if I can jump houses while my credit is excellent then let my credit go to crap once i dump the 'cancer' of my first home. At least I will be living in a home that I know will have positive equity but with worse credit than living in a house with excellent credit but so far underwater i can see that damn ocean floor!
Would greatly appreciate any answers or clarification!!!
Thanks,
-R
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Posts: 6
Location: Chillicothe, Ohio | I saw this question on another forum.
How many did you post it on? |
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| 3 others...i got the answers i was hoping for. Sorry you had to read it twice. |
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Posts: 4
| Hey!
i suggest u ask a fin expert to know the full repercussions. |
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Posts: 1
| I'm in the exact situation and was planning to do the same thing. Can you tell me what advice did you get for your post? Thanks in advance. |
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Posts: 4
| I'm curious as to what you ended up doing? Is everything turning out okay? |
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Is this a valid alternative to getting out from underwater??
