lobo @LoboSeawolf sell underwater condo at 70k loss or refinance and rent out? Both use all savings. .Rent w/o refi 800 loss/mo. Baby due, need bigger place.
ANSWER: This is simple to me: stop paying the mortgage. Have your baby. Live in your home. On average it takes 18 months for the bank to foreclose?
Two questions then:
– Isn’t this unethical?
– Won’t this destroy my credit?
The answer to both is “no”. You have a contract with the bank. The contract specifically states that when you don’t pay the mortgage they can take the house. So it has nothing to do with ethics. It’s a contract. The bank is not St. Peter at heaven’s gate weighing up your list of rights and wrongs. What’s right is to have savings and be stress-free when you deliver your baby.
As far as credit. It will effect your credit for awhile. But not forever. And there are services you can use to clean up credit no matter how bad it gets.
The key now: you’ve been stressing forever about this underwater property. The entire world feels your stress.
Stress kills. Bad credit doesn’t. The bank doesn’t. And your baby needs you.