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I am thinking of going into foreclosure....?

With Countrywide on horrible ARM on home in Indiana. Been trying to work with them for 2 years(Re-Fi, Rate Freeze, Rate Adjustment, Short Sale, ect.) and am still at square one and I am extremely tired of talking to their call center in India. I have literally called 2-3 times a week for the past 2 years! They have done nothing but give me the run around. I purchased the house in Nov/2005(I should not have even qualified for this loan, but live and learn!) My ARM just keeps going up plus I am deficient $4400 in my escrow account due to them underestimating my taxes. But I am currently not behind on my payments.I would LOVE to just "walk away". I recently got married and we do not live there. I am not concerned about my credit because we can put everything in my husbands name. Is foreclosure my best option? And how can I expedite this process and walk away not owing any more money? I have given them plenty of money, believe me.

Public Comments

1. Do a short sale. It will hurt your credit less than a foreclosure.
2. NEVER EVER chose foreclosure! Get the house on the market and sold. They can and will come after you for the difference if they sell it and you still owe them money. Putting everything in hubby's name is very risky ... divorce happens, don't do stupid stuff like that!! Make payments, sell the house, pay off the debt. CW is open to short sales now, and refinances. Perhaps they have a local office you can go into for a meeting. You signed up for the deal, and you can't just walk away unscathed.
3. You don't go into foreclosure. The bank forecloses on the house. I worked at a Credit Agency for 10 years. What you would need to do is simply stop paying for it. It is like a repossession of a car. If you take the car to them (in this case you can't do that :) then you owe them for the car. If you make them come get it, you owe nothing. Be advised that your credit score will take an enormous hit. It will be reported as a foreclosure on a house on your credit report for 7 to 10 years depending on a few factors. You can also declare bankruptcy in your name only, but speak to a lawyer about that. It is according to which chapter you file as to what will happen. If the house you currently live in is not in your name, I would suggest filing chapter 7. Then they will take your house, and you owe nothing. You can include credit cards, loans, medical bills, cars, etc. However, they may take your car if you file bankruptcy on that as well. Consider all options first. Consult an attorney. (Normally the first consultation is free.) Be careful, and good luck!
4. They can and will Bill you for any costs and sale price difference that doesn't cover the Mortgage. Now that you are married, that bill will be Joint. They can accept a foreclosure action as a simple default or force you to pay/file bankruptcy . . . if they feel there are assets/income enough they will do the later. You would be better off selling if you can. Try other lenders too. Good Luck.
5. Unfortunately, I believe it takes a "default" for these mortgage companies to do anything. And, then it still takes them forever, as they level threats to try to get you to pay. They talk about helping their borrowers, but it appears to me to be nothing but smoke and mirrors. Its just not happening. And, by the way my mortgage company (a different one) sends their calls to India also. If they don't employ Americans how the heck do they expect Americans to pay ! Corporate America needs to wake up ! Unfortunately, they probably won't till we all default and file bankruptcy. Good Luck
6. Do not go into foreclosure, if you can help it. Try a short sale, or refi with a different lender. On the other hand with BofA taking over Countrywide, they may be more willing to talk to you. But never ever just walk away, the your credit will be worthless (even if you think that you wont need it) this will not solve the problem. Take a look at some of the sites that offer a number of options... short sale, rent it, lease with option etc.
7. I'm not certain about Indiana, but in my state of California, a purchase money mortgage is 'non recourse' debt. If you default, they can sell the home for repayment of the debt and that's it. No deficiency judgements, that is their only move. Again, that is Cali. Not sure about Indiana. In any case, please attempt to work a short sale first. It will lessen the effect on your credit and you'll sleep better at night knowing you did the right thing. Call them up and tell them the Fed Chairman suggests they reduce their mortgage balance to give you some equity and better payments. See what they say.