live in California, owe approx $100K more than my house is worth, considering discontinuing payments?
We have an FHA loan serviced by Chase home mortgage, financed by Ginnie Mae and we owe about $ 100K more than other houses in the neighborhood are going for. We would like to move out of the area at some point and we are considering not making any more payments to the lender. We are not interested in refinancing. We have considered short sale but the process is so long and dragged out and potentially useless in selling the house.
What happens if we do this? What direct costs are associated with going through the foreclosure process?
What effect would it have on my credit vs a short sale?
How long would I be able to stay in the house before they kick me out?
I am not looking for opinions here. I am asking about California specific info. In CA, they passed a law saying that you wont be taxed on the forgiven amount, just like you wont be taxed by the Feds. Although it’s none of your business, my situation has changed.