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How can I avoid throwing away my money in my mortgage, when my home's value now is over one hundred thousand dollars less...?

Wesley Chapel, FL |

I bought my present home 3.5 years ago at the top of the prices at that time.
Now my house is more than a hundred thousand dollars less in the real state market.
I owe more than the value of the house. I feel like I am throwing away my money.
How can I get rid of it without losing my credit, or how can I get my insurance to lower my payments, etc?

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Attorney answers 4

Best Answer

There are ways to approach this problem but which would be the right answer for you depends on all the details of your particular situation. Florida has very dangerous deficiency judgment law, so "strategic default" is risky unless you are able to also file bankruptcy. Many people are doing this, and when done with knowledgable assistance, it can be a wonderful tool.

You can shop around for cheaper insurance, and it may be possible to get a much better deal.

The "modifications" that mortgage companies talk about are not what they claim - they will virtually never reduce the loan balance, and in fact can increase it. They may reduce the payments for a period of time, but it is very difficult to get even those and while that may be an answer for some people, it can make matters much worse for others. They also often require you to give up important rights, and unfortuantely many desperate people sign these when the have better options but don't realize it.

Before you make any decisions, speak to an attorney who is knowledgable in foreclosure defense AND bankruptcy. Bankruptcy can be an extremely valuable tool in this battle, and doing internet research on bankruptcy is more confusing than helpful. The best course is to consult a really knowledgable attorney to hear all the details of YOUR situation and then to analyze how these tools would work for YOU.


The American economy goes up and down and so from the"big picture" it is likely that the value may well come back.

The note that you signed when you purchased the home is a contract and you can't just "get rid" of it.

Depending on your financial circumstances there are a range of options, anything from an attempted modification to simply holding on to the home.

This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.


You should apply for a loan modification. Banks offer this service for free, however you may be better off hiring an attorney who specializes in this area of law.

THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. Answering this question does not create an attorney-client relationship or otherwise require further consultation.


Hello, a very effective non-profit agency I have seen which helps homeowners present loan modification requests to lenders is NACA (Neighborhood Assistance Corporation of America). They have relationships with numerous lenders and assist homeowners in negotiating and communicating with the lender. NACA periodically has workshops (there was one in Miami Beach in April) where thousands of homeowners received permanent loan modifications on the spot.