I have a serious question that I would like to ask the professionals on this forum. I am in the middle of this crisis and have a mortgage lender that has no desire to help. I've tried to get them to refi, restructure, let me roll a payment on the backside, etc. to no avail. My credit rating has plumetted to the mid 600s (last year it was in the mid/upper 700s). DTI is 65%+ My ARM has doubled in the past year and I am barely able to pay it and my other debts. I have appraised my property recently and it has dropped 38% over last summer's appraisal and the home value is way below what I owe. I am not able to put anything into retirement now do to all of this. My question. In this market, it is nearly impossible to liquidate a property and cover your notes (in my situation). I've thought about trying to do a short sale or foreclosure....The dreaded F word. I know that it would destroy my credit for a significant amount of time. BUT, if I did that, my thought would be this. I can always rent at a fraction of my PITI. I would be able to put nearly 50K a year into my 401 and investments. (remember I can't do anything at the present). In 10 years (latter 50s) I would have over 500K (hopefully) towards my retirement and I may be able to get back into a home. I grew up being taught right from wrong....paying your bills, etc. and I'm truly ashamed. But stating that, I am more worried about my future/retirement when I'm on a fixed income than currently "owning" a money pit. Please provide me honest advice and not lectures of opinion....I've read enough of those. Thanks ahead of time.
