How to walk away
June 6, 2009 8:54 PM Subscribe
I expect to find out by next week if I am laid off. I don't believe I will be able to find a job that pays as well and I am kinda burned out anyway. I owe 40K in cc bills and owe 227k on a house worth 187K. I have not missed a payment and have a credit score of 700+ but I have HAD ENOUGH. I want out.
posted by CodeMonkey to Work & Money (28 answers total) 1 user marked this as a favorite
If they do lay me off, I will get full pay for 10 weeks...then unemployment..
So there are three things to do about the house: 1) do a deed in lieu, 2) do a short sale 3) 'just walk away' Which would be the most advantageous to me? Do I tell the banks that when I am laid off or when I am on unemployment? How short is too short of a sale? What exactly is 'just walk away' in Colorado?.
Onto CC. I don't pass the means test for 7 so that's out. I can do the credit counciling route...but I don't know who to trust. I worry about picking a fraudulent counciling service that'll take my money and do nothing. Even then the legitimate ones work for the CC companies and will slant advice their way every chance they get. Even bankrupcy lawyers have restrictions on how they can advice you. And you KNOW just as soon as I tell one of these places I am in trouble the rest will hear about it and jack my rates to 30% because unemployed people have SO MUCH MONEY...so timing is also an issue..
I am hoping to get a list of things to do like:.
1) tell mortgage companies when you hear about layoffs and offer ###.
2) stop paying mortgage that day (or after the 10 weeks or after ???) .
3) keep paying cc bills (or stop paying cc bills) .
1) Go to find a reputable credit councilor fount at (website or phone) the day you hear about the layoffs and tell them (cc, house, want out...).
2) stop paying the mortgage that day or in 10 weeks or ???.
After all this crap, I don't care if I never own another house again..
Now, lets say you have no idea what the best thing to do is...what is the thing I shouldn't do? OR who knows what I should do?.
I need a game plan.