Samsung bricked everyone's S22 with their latest update. Are we just gonna sit here and take it? Meanwhile Samsung is printing more money than God thanks to the Memory shortage.
I'm looking specifically for first-hand experiences from California homeowners who could afford their mortgage but chose to strategically default because the home was substantially underwater.
My situation:
California primary residence
Purchased for $925k
Current estimated value: ~$650k
Current mortgage balance: ~$685k
Interest rate: 6%
About 28 years remaining
One mortgage, no second/HELOC
Mortgage was refinanced, but no cash was taken out — refinance was just for the loan/rate
I can afford the payments; this isn't a hardship situation
On paper I'm only about $35k underwater relative to the current mortgage balance, but I've already lost roughly $275k in home value from the purchase price, and I've talked to a few realtors in my town that say the market might not recover for another 5-10 years.
I'm mainly interested in what actually happened to people who went through this.
If you strategically defaulted in California:
How long after your first missed payment did the foreclosure actually happen?
How long did you remain in the house without making mortgage payments?
Did the lender ever pursue you for any deficiency?
Did you continue paying property taxes and homeowners insurance while waiting?
Did you try a short sale or deed-in-lieu first? Will the lender entertain it without any financial hardship?
What happened to your credit score, and how long did recovery take?
Did the foreclosure cause problems renting afterward?
Did you receive a 1099-C or have any unexpected tax consequences?
Were there any legal/financial consequences you hadn't anticipated?
Did you sign up with any professional like foreclosure attorney, realtor or CPA to guide you through the entire process?
Looking back, would you handle the process differently?
I'm particularly interested in recent California experiences, since foreclosure and anti-deficiency laws vary considerably by state.
I'm not really looking for a debate about whether strategic default is morally right or wrong. I'm trying to understand the actual practical experience and consequences from people who have done it.