Yes it is true. I am one of the homeowners underwater. I recently disclosed that to a friend and her reply was 'I won't tell anyone'. Nice gesture on her part but totally not necessary. Within the last week I was approached by a financal adviser who volunteered to review my docs on the premise that his company has been able to negotiate through the Courts and prove that the current lien holder was unable to provide a deed to coincide with the loan thereby allowing the mortgagor to obtain the property free and clear from the current mortgagee. Although he qualified his statement by saying he could not give me legal advice he suggested, as a friend, that I stop making payments toward the mortgage as being in the foreclosure process would add a sense of urgency to the Court. The written contract requires a minimum $1500 non refundable fee and a promise to expunge negative credit bureau reports if/when the suit is won as well as other stipulations too detailed to enumerate. My point is this: Yes, I am underwater but I am not drowning. I cannot in good faith arbitrarily stop making my house payment. Not only does it go against my personal grain; I do think that a Court would see that I was intentionally attempting to pull one off on the lender. Despite the fact that the lender may deserve it since I have been negotiating, to no avail, with them for more than a year to modify my loan to a fixed rate at minimum. However, this seemingly rampant rush to jump overboard seems to be exacerbating the current dilemma in the housing market. Yes, I am underwater but still able to row the boat. If I loose my oars I will need to rethink. For the time being I will continue my trek to shore and my a diligent effort not to become a statistic for foreclosure.
Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, AZ