LOOKING FOR REAL ESTATE/FORECLOSURE ADVICE...PLEASE.
In light of the economic meltdown that is fast approaching the US, I need some housing advice. We are 2 months late on our mortgage because our payment adjusted. We have an opportunity to pay a legal company (my friend works there) $2500 and they negotiate through the back door with my mortgage company. The deal they are looking to get us is 2% for the first 5 years, then it adjusts 1% each year until it maxes out at 4.9% and it stays fixed from then on. They do not reduce the principle and they add in all the missed payments and fees on the back end. The principle balance on our home is over $500K and it is worth around $300K. We have been planning to lose our home for the last year and really OK with it. The plan was to stay in our home as long as we could and use our mortgage payment every month to buy PM's. We already have 1600 oz's of silver stored in a safe deposit box at our bank. My last child is moving out in 2 years, so the hope was to stay in our house for those 2 years, invest the money then rent a house when we finally foreclose and my child moves out. I have done a lot of homework on this and I know staying in our home 2 to 3 years a good possibility. We are OK with our credit getting trashed and we are not interested in buying a home anytime in the near future. I don't want to fork over $2500 for a "chance" they could help us, when we could be investing it. My friend's argument was that, we're gonna have to rent anyway, so we might as well be using that payment on our own home. If the US goes into hyperinflation, I'm thinking that housing will keep going down because interest rates will be going up and that it could be 10 plus years until housing starts going back up. I'm not sure how the real estate market is going to end up. What do you think? Please send any advice or recommendations. Thanks
