Mraicopa, Arizona mess

[Joel Fraser]

I am in Arizona, We have 80/20 split loan primary loan is interest only at 5.8%. Secondary loan we have refinanced at and received cash out at 11.75%. This is not an interst only loan. We owe $305,000 total and other house selling for $130K to $140K. Cant refinance. Primary adjust in 09/2010. We are current no missed payments with FICO of 700. If our loan adjusts we will not be able to make payments. Homecomings financial owns the first and Tennesee Bank the second. Homecomings will not even consider anything for us as we are current and rate not adjusting for another 2 years. However we are considering walking away due to value of homes in the area and not being able to refinance. We dont know whether to wait it out and see what the market does or to walk now due to the Bush tax plan good thru 2009. My husbands employer is also going thru bankruptcy and very possible a lay off which would make it impossible to keep our home. Is our second refinance loan eligable for the Bush tax plan where we do not have to pay taxes on the difference? I have not been able to understand the info on the forum under AZ law? So confused on our options. Just looking for your opinion., or anyones opinion on our situation. Thank you and good luck to everyone thats in financial trouble due to the lending practices here. I feel for everyone as I read their story.