Upside down mortgage?
December 28, 2009 6:07 AM Subscribe
How do I know if I have an "upside down" mortgage?
posted by scratch to work & money (16 answers total) 4 users marked this as a favorite
Everyone says the answer is "When you owe more than your house is worth." How do I know what my house is worth? It's been on the market for four months at a certain price (suggested by the realtor) and has attracted no buyer interest. I understand "what it is worth" to be synonymous to "what someone will pay for it." We are itching to dump the house and move to a happier place (lit. and fig.), and all these news reports about strategic defaults and "walking away" are making me crazy.
For that matter, how is it strategic to default/walk away if that will fcuk up our credit for 7-10 years? It can be hard even to rent an apartment if you have bad credit, right?
Details: in PA but not Pittsburgh or Philly. FHA mortgage. House in my and my husband's name. We're 42. At the moment we have excellent credit and decent savings but a load of grad school debt (currently in unemployment deferment) in addition to the mortgage.
I know, we ought to talk to a lawyer, but I'm hoping for some helpful free advice from the hive (as ever). Thanks.