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If you chose the first 2 options, will you be able to work out a deal with the bank to cap off the maximum amount of your deficiency if you surrender the property back to them and thus they avoid the legal expense of foreclose in order to get possession?
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I don't think my ability to work out a deal is affected by where do I live. Actually staying home, taking care of it and listing it for sale will increase my chances of the bank accepting a short sale or deed in lieu (surrender property back).
Unfortunately I am with HSBC and they have change policy and currently they rather foreclose you than accept a short sale or deed in lieu, I will try anyway, but I am not very hopeful. I offered a shortsale months ago and they declined, now prices are even lower so it is less likely they would approve a short sale. Same with deed in lieu, they will not take it, they want money, not a property title.
They WILL come after me for the deficiency, this is why I need a "deficiency fund" I want to pay the 80-100k deficiency as fast as possible. I am hoping they will accept a payment plan, otherwise I will have to go to court.
HSBC is not into settling with anybody, Furthermore they are notorious for sueing for deficiency even after accepting a short sale. They do this via a technicality on the docs.
I think since I go for foreclosure, it is actually more ethical staying in the property, abandoning it sounds more irresponsible to me...Abandoned properties get damaged so the bank will get even less for it and it affects the neigborhood prices as well...