Here is the situation. My wife and I bought a house for $ 332k back in ’07. We bought a little more house than we could afford. On paper we could afford it but we are essentially house poor.
If we could sell our house we would but it’s probably worth like $ 230k right now so that would be impossible.
My wife really wants to do a short sale. She thinks that we can get out of the house and rent for a few years then buy again when the market hits rock bottom. She also thinks this will have a min effect on our great credit.
I think she is dead wrong. First why would a bank agree to a short sale when we both have jobs and can afford our mortgage payments. Second even if the bank agreed I think it would devastate our credit and who would want to loan us money after that?
I’d love to get some opinions on the matter… it’s not like we are facing foreclosure… we just got ourselves into a tough spot and my wife wants to get out of the market and pass our losses onto the bank