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I bought my home when real estate market was around peak. I bought my home for 315K. I put down 20K and went for single loan of 295K from chase. I was paying PMI everymonth then. After few months, my home was appraised for 350K. So BoA gave me HELOC loan for 50K. I took 40K from HELOC and paid down my first mortage to get rid of my PMI.
I currently have 235K on my first mortgage and 40K on HELOC. In the last few yrs or so, there were a lot of foreclosures in my community, due to that my house price has gone down to 150K. I requested for loan modification, but chase rejected it.
I have 40k on CC as well. My wife has lost the job now. I am finding it really tough to make the monthly bills due to this. I have been talking to few of my friends, they all have been advicing me to either foreclose or short sale and move to apartment. Is that a right idea? I also heard that HELOC is slightly different than 2nd mortgage or Home Equity loan. Will BoA come after me if I short sale or foreclose ( as they wont get any money when my house is sold)? If they forgive that debt, will I have to pay tax on that? I used that HELOC to pay down the first mortgage. Did not use that money for any other purpose.
thanks for any kind of info
I currently have 235K on my first mortgage and 40K on HELOC. In the last few yrs or so, there were a lot of foreclosures in my community, due to that my house price has gone down to 150K. I requested for loan modification, but chase rejected it.
I have 40k on CC as well. My wife has lost the job now. I am finding it really tough to make the monthly bills due to this. I have been talking to few of my friends, they all have been advicing me to either foreclose or short sale and move to apartment. Is that a right idea? I also heard that HELOC is slightly different than 2nd mortgage or Home Equity loan. Will BoA come after me if I short sale or foreclose ( as they wont get any money when my house is sold)? If they forgive that debt, will I have to pay tax on that? I used that HELOC to pay down the first mortgage. Did not use that money for any other purpose.
thanks for any kind of info