upsidedown mortgage in california, need to refi–foreclosure the only option?
i bought a condo two yrs ago with subprime credit, interest only loan. i counted on improving my credit score and refinancing before ARM expired. my score is now 720, but condos in my complex and neighborhood have depreciated and keep declining. i owe 190,000; recent comps are $ 90,000 – $ 130,000. County officially devalued the property and reduced tax. Spoke to my lender–said they can’t do anything. I could rent the property for less than half the mortgage payment, not counting HOA dues, insurance, etc. ARM % doubles in one year, but everyone expects forecolsures from subprimes to increase, more condos on market, lower prices. I’ve contacted 2 different ‘programs’ advertising help for my situation, both said nothing I can do. Historically these properties took 12yrs to recover from last price drop. i retire in 6 yrs, need to break even on sale by then, or foreclose. What should i do now? Any options–or hope of quick recovery?
Thanks for all suggestions so far but: i don’t qualify for short sale yet, i’ve researched this. the lender won’t negotiate anything right now because the market in Sacramento is so bad and my loan is so ‘upside down’ it’s standing on its head. the HOPE program/bailout info is about credit counseling only; my credit is not the problem, score is now high–my problem comes from the increase in interest rates over past 2 years and huge decline in the market in my area. Not the lender’s fault, or mine. Any other solutions besides foreclosure? thanks.