Should I let my upside down mortgage go?

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My mortgage is with wells fargo and up until now they have been great. I was a full time student for 2 years for reasons beyond my control, and am now done with school and have a great job. For the last 2 years we have been living off my wife’s income and we fell behind on our mortgage.
They were willing to work with us; I followed their advice and still got a foreclosure notice. The strange thing was, I did not know my house was in foreclosure until I started getting letters form lawyers offering their services. How did they know before us? My loan is for 72,000.00 and my house is now worth about 40,000.00. Wells Fargo is willing to work with me for a small fee of $ 2500.00, LOL. Here is my problem I am ready to tell these greedy jerks to keep their house and let them deal with the 32,000.00 loss that and I will find another. What should I do? We can afford our house twice over now. But since I just started working again things are still tight. In other words I can afford my house and am loosening it.
Dear Real estate guy. I thank you for the personal attack. However maybe you should look deep inside your self and decide what would make you hate me so. I am just looking for advice. Truth be known I would like to keep my home; I have lived here for a very long time. I am concerned with what wells fargo will do next. My dealings with them have led me to believe they are being disingenuous.
Namaste

4 Comments
  1. Reply
    real estate guy
    February 9, 2011 at 3:15 pm

    they are the greedy jerks????

    Would you be posting here if the value was over 72,000?

    The bank loaned you money for a house. You PROMISED to repay it. PERIOD. It doesn’t matter if the value decreased. YOU PROMISED TO REPAY.

    I read your other posts, and boy, are you a victim here

    You had a bad credit card bill that resulted in being sued, (but you didn’t know about this either) and you had let your tags expired (but didn’t know about this or the fine) and now you are being foreclosed, but NEVER got any notice.

    PLEASE!!!

    ********EDIT***********

    disingenuous? The bottom line is that you promised to pay them. So pay them. PERIOD.

  2. Reply
    mcmufin
    February 9, 2011 at 3:16 pm

    It will appear on your credit history and adversely impact the interest rates you get for future loans and mortgages, as well as most likely keep you from getting a mortgage over the next seven years. On the other hand, rents are cheap right now and you may be able to save up enough over the next several years to put down an incredibly large down payment.

    Then you could get a very sweet mortgage indeed. All that being said, read you mortgage and note. Make sure it says it is a “non-recourse” loan. That means the bank cannot go after you personally if the house if not worth the amount of the loan when it forecloses. If it is a “recourse” loan, the bank may be legally entitled to sue you again after it takes over the property for the difference.

  3. Reply
    Marie
    February 9, 2011 at 4:13 pm

    That is the risk of becoming a homeowner. Values fluctuate, it is a historical thing. Wait it out for a few years, your home will go back up.
    If you leave it, then go purchase a home twice the value because you can afford it, then, you are the greedy one.

  4. Reply
    fakehuskie
    February 9, 2011 at 5:09 pm

    See if the loan modification is a right fit for you. If they want to work with you for that fee, ask what is all involved, and what you will get at the end.

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