Wanna hear a tale of a 700K San Diego Mistake?

[Joel Fraser]

Hi: I'm brand new to this forum and actually found it while 'Googling' the phrase "short-refi". At any rate, here's my story. November 2005 I bought a condo in a Downtown San Diego mid rise with my fiancee. We got a loan through some company and now it is with HomEq in Sacramento, CA. The purchase price was $700K and we both put zero down, although we did pay for our closing costs in cash. Both her and I had and still do have excellent credit, so getting a zero down loan at that time was easy. We didn't have to show any tax returns, just bank statements and an application. The loan was approved almost instantly, based on our credit history and our dual incomes: I'm an accountant and she's a Pharmacist. As luck would have it, as soon as we closed on the house, our relationship began to deteriorate. She was supposed to get a residency in San Diego, but was offered a more "glamorous" position in Los Angeles. So much for us starting our lives in San Diego, within a month we were planning her move from San Diego to LA. I ended up putting approximately $50K extra into the house after it closed, installing bathroom fixtures, putting in a artistic niche, custom window coverings, mounting a plasma television on the wall, etc. I was still holding onto the dream that her and I would eventually move back to SD and live out our lives in this property. Well, that never happened. Once she moved to LA, we called off the engagement and I was left making the mortgage payments, $400/month HOA, property tax and insurance. Fast forward three years, and I have paid over $200K out of pocket (not including the tax deductions that I received from expensing the interest). Her credit has benefited from my timely payments and that is the other part of my frustration. Needless to say, I am happy that we are no longer together (I learned a valuable lesson, perhaps costly is a better word), but am angry that she didn't hold up her end of the bargain: paying her 50% share of the debt. Regardless of her claims that she can't afford to help out with any of the costs, she abandoned her financial responsibility and let me to hang out to dry. I have contacted HomEq and told them my story by filling out the "Short Sale (http://www.zinomortgage.org/forum/short-sale-outpost/)" paperwork and submitting it via fax to the Loss Mitigation Department. I tried to appeal to their conscience, explaining that my ex-fiancee abandoned the house and left me to cover the expenses. HomEq said that they would allow me to short-refi if I could find a bank to help me. They originally offered their marketing partner, First Metropolitan Mortgage, but I was quickly turned down because I have other houses with other mortgages. I am self-employed and run a lot of expenses through my business, including food, gas, and some entertainment (as it is pertinent). I have drained my savings and am living paycheck to paycheck to pay for this San Diego pipedream. I was hoping that HomEq might drop my interest rate, but they continue to say it's low (6.75% fixed for 30 years on the first)+(9% fixed for 30 years on the second). I then was hoping that they would allow a short re-fi, but I don't have the income to support my expenses. I am deliberating on whether or not I should attempt a short sale...Downtown SD properties are too many and too alike. IMO, I am stuck and will have to continue paying as agreed. Does anyone have any advice? Thank you, Phinancer