Ron Nash - Carlsbad Calif.
Ron Nash
But when it came to obtaining a mortgage workout, he wasn't getting anywhere -- even after months of trying. He finally wrote a letter to the president of his lender to try to resolve the issue. The results were very gratifying -- at first.
"I was contacted by the office of the president and apologized to profusely," he said, "and told that they would try to work things out."
After that, however, and after he was asked to send in all his paperwork for the fifth time, he didn't hear from them again for six months. Then, recently, he finally got a call back with a loan workout offer.
The lender offered an extremely low rate, 2.8%, which sounded great. The problem was the value of his property has dropped from $840,000 to about $620,000 and the lender would do nothing to reduce the mortgage balance. Nash believed he would be upside-down on his mortgage, owing more than the house was worth, for years.
Meanwhile, the slowing economy, with little hiring going on, has taken a toll on his income.
He looked around town and decided he could walk away from his house and rent another comparable place for half of what he would be paying his bank just for the mortgage payment.
He loves his house but he's choosing to give it up rather than shackle himself to a bad investment for years.
"The house is just a thing," he says.
NEXT: Ken Mobley - Tampa Fla.
