My husband and I have lived in our home for 14 years. About 8 years ago we moved the mortgage from a large mortgage company to a credit union who made us take out PMI. 6 years ago we made the mistake of refinancing the home and taking out a second mortgage to catch up on bills and do home improvement, we had to agree to roll $10,000 credit card with them into second mortgage.
Four years ago hubby was on temporary disability for an illness, I lost my job and the bills piled up. Charged up the credit cards to eat and live. Hubby went back to work, I went to school about 2 years ago but the damage was done so we had to file bankruptcy. None of the companies would work with us, our intrest rates on our credit cards went from under 10% to high 20's. The bank owes us $10,000 because the credit card was discharged in BK despite no balance, but they will not take the amount off of the 2nd mortgage.
This year my hubby hurt himself, we call the credit union for help. They say pay every other month until he is back to work and do not pay second mortgage until then also. They wait for 6 months to go by so there is now 3 months behind and starts to foreclose with a lawyer. I call the bank and they say too bad pay $5000 for past due, lawyer fees, and fines or get out once the foreclosure is done.
I cried a lot about it but now I am over it. I can come up with the $5000 now but I am so sick of dealing with them that I am walking away. My house is worth $100,000 less than what I owe because my city has become a foreclosure pit, and it needs $10,000 in repair. Part of me feels bad because my foreclosure will hurt my neighbors, part of me is scared about the future but I just can't do this anymore.
Am I a crappy person for just saying f' it? My lawyer and a non profit foreclosure specialist says walk away. We did not reaffirm the home so we can walk away scott free but I do feel somewhat like a scumbag for doing it.