So - here's the breakdown...
We live in CA, and have a home that we bought 7 years ago. Originally, we had it financed with 2 loans -- a first and second both 5 year fixed/then variable - no home equity line of credit. Two years ago, we refinanced for one consolidated loan through Countrywide (the loan was then sold to Bank of America) for a 30 year fixed at 6.25%. The market rate on our home is approx. $350,000 and we owe $399,000.
We were a two income family until I was just laid off this week (after 10 years on the job...). My wife's salary alone would not cover the payment.
Is it possible BOA would lower the rate/princial enough so we could continue living in the home? If not, would it be better to ask for a short sale or just "walk away"? If so, in either case, would we be "on the hook" to pay any difference between the sell price and the remaining balance on the loan?
Thanks for all your legal advice!
We live in CA, and have a home that we bought 7 years ago. Originally, we had it financed with 2 loans -- a first and second both 5 year fixed/then variable - no home equity line of credit. Two years ago, we refinanced for one consolidated loan through Countrywide (the loan was then sold to Bank of America) for a 30 year fixed at 6.25%. The market rate on our home is approx. $350,000 and we owe $399,000.
We were a two income family until I was just laid off this week (after 10 years on the job...). My wife's salary alone would not cover the payment.
Is it possible BOA would lower the rate/princial enough so we could continue living in the home? If not, would it be better to ask for a short sale or just "walk away"? If so, in either case, would we be "on the hook" to pay any difference between the sell price and the remaining balance on the loan?
Thanks for all your legal advice!