Quote:
Originally Posted by ichi the killer
I myself am way "upside down" with a property I own. Part of me wants to just walk away from it and cut my losses. The other part of me says "no just pay it off, you don't want to ruin your credit."
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I am sorry to hear about that, your a good guy.
Have you thought about applying for one of the programs to reduce your interest rate? A friend of mine who was in the same situation got his interest rate reduced to 2% for something like 7 years because he was upside down. Him and his wife make a good 6 figure salary as well so it's not like you have to be unemployed or anything. They considered leaving there house as well but I told him that if he leaves he is guaranteed to losing everything he has put into the home. I asked if they could comfortably afford the payments that the price of the home will eventually recover, it will just take 15 years at least.
If your not too far upside down and would be happy to be living there in 10 to 15 years than keep it up. Think about how much your home will cost you over a 7 year span and what you would save vs renting in that same time period. In 7 years your credit will have recovered and you will have the money you saved by renting that can be used to purchase another home. I think prices will remain relatively steady in that 7 years so you should come out on top.
Your a smart guy Ichi, whatever you decide will be the best for you and your family. I wish you all the luck in the world my friend.