Mortgage Forum

SuzieQ

I decided to give this forum a try after I found this website a couple days ago and a link from foreclosure related news article.I currently have two separate homes in foreclosure.Home 1Sunnyvale CA Purchased Nov 2005 $693,000 100% financing including $10k from seller for closing costs.Payments $4400 not including taxes or insurance. 1st loan GMAC 6.99% 2nd Litton 9.99% Now on the market for $515,000.1st loan 2 year ARM reset to 9.99% in Dec 07 to $6500, never paid a $6500 payment. Last payments made in Nov 07.Tried to negotiate with GMAC/ Litton to no avail. Paid on time for two years, waited to refi because of prepayment penalty. Tried to refi twice but value too low.Moved out in Feb to a house double the size in a way nicer community for $2200 a month rent. I will miss the tax deductions from the interest loan.Home 2Las Vegas NV Purchased Feb 2006 $409,500. 100% financing. Payments $3300 not including taxes or insurance. Rented for $1350. Stopped paying Jan 08. Homes now selling for $200,000 - $250,000.In foreclosure but working on getting a realtor for short sale. If no short sale then walking away.Not too worried about Home 1 because I was told that the difference of sale price is not taxed.Worried about having to eventually pay the taxes on the difference on the Las Vegas home. Not looking forward to paying the $200,000 worth of taxable income for debt forgiveness. Looking for ideas, suggestions, tips. Any good reasons to keep homes that are worth so much less.ThanksAndrew