Should I let my house go to foreclosure?
I retired from the military just prior to the housing bust. Unfortunately, we purchased our home in 2005 during the boom. After retirement, we moved from Arizona, where our house is, to Texas where our new job is. We tried to sell our house for nearly ten months after moving, while renting a small place at our new location. We eventually gave up on selling the home and rented it out. We got tenants relatively quick, but the rent is substantially less than our mortgage payment (by $600). We have now purchased a home at our new location where we plan to settle down and sink roots. Tired of constantly moving while on active duty, we plan on living here for probably 20 years or more to raise our family. We are seriously contemplating letting our house in AZ go to foreclosure instead of taking a heavy monthly financial loss. What ramifications are there to giving up your house to foreclosure other than taking a credit score slam? I have been debt free for 7 years with the exception of my two mortgage payments. I have no credit cards, department store cards, car payments or any other debt. I have lived without financing purchases for the past 7 years and I really don't see a need for a "good" credit score. Is a "good" credit score worth losing $600 a month that I will probably never be able to recoup from the sale of that house? What other options could/should I consider before ruining my credit score? Any advice is greatly appreciated!!!