You answered a similar question from an active duty member regarding mortgage relief. My situation is as follows. I am active duty, bought a house while on active duty in Colorado Springs. Lived there no problem however I have been ordered to a new post. I have tried to sell the house, but like many, my house is worth less than what it is worth. I have tried to rent it out and wait for the value to rise again. However renting is becoming difficult, no one is willing to pay what I owe for the mortgage. like I mentioned I am at my new duty assignment and I am paying rent here, so essentially I am paying two mortgages and it is getting tough. I am afraid to just let the house go. My credit would suffer and I want to be able to purchase another house in the near future.
What are my options? Open to anything!
I’m afraid your options are limited because of the drop in value and the fact this is non-owner occupied house. The first step would be to contact a local HUD Housing Counselor and see if your specific lender offers any modification programs that make sense for you.
If that does not work out for you then you need to start thinking about a strategic default where you hand the house back to the bank and go bankrupt to discharge your remaining obligation on that first home.
Right about now you are getting concerned about how that will impact your status in the military. In fact your clearance is more likely to suffer because you are maxed out than if you decide to pursue bankruptcy, a legal option, to remedy a situation beyond your control. For more information on this, read this article.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.