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Looking for opinions (house - keep or walk)

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    Looking for opinions (house - keep or walk)

    I don't have exact numbers but I have two mortgages on my house...

    1st: $156k
    2nd: $18k

    In current market my house is worth about $130k (mid-high end). If I can settle the 2nd for around 10%-15% should I consider holding on to the house? It seems obvious to let it go but I live in a small town where rentals are not readily available and I have two kids in school so I rather not move to a different town. My wife wants out of the house (we both do) but I rather stick it out then deal with renting for the next 3 years.

    My first mortgage is right at the 31% needed for a mod. I rather not pay this much per month. What are the chances I could get the bank to give me a lower rate to drop the payment a little? I haven't made a payment to either in several months. I have not recieved a NOD yet, I'm just freshly discharged.

    Looking for any input to help convince myself (and wife) why we should stay or let it go.

    Thanks!
    Filed Ch7 12/11/09 | 341: 1/20/10 | Discharge: 3/23/10

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