Defaulting on 80/20 interest only loan intentionally. Have enough income to make mortgage payments. Home is approximately 100,000 underwater. Entering 6th year of mortgage, nothing towards principle at all. Payments adjust in 4 (2016) years with an increase of 400 dollars. DO NOT qualify for loan remodifications due to sufficient income. No chance of refinancing in the near future.
1ST Loan is 224000 at 7.6% 2nd loan is at 56800 at 9.5%
Without any hope of a loan remodification or refinancing would you walk away from this mortgage? With enough income to cover mortgage payments and no real hardship, i doubt I would even qualify for a short sale.
Your thoughts would be greatly appreciated.