 smelltheroses09
Joined: 21 Oct 2008
Posts: 1
1.49 Dollars($)
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 Posted: Tue Oct 21, 2008 2:02 pm Post subject: California homeowner in distress |
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| We bought our California home in 2005 for $640,000. It is currently worth $350,000. Our 1st and 2nd mortgages total $580,000. We have one stable income, but our second income is through the real estate industry which has been virtually negligible to us lately, especially in the past 6 months. We've been surviving off our savings and had to foreclose on a rental property we owned one year ago. After readjusting our budget time and time again, we've finally determined we can no longer afford living in our home with the mortgage we currently have. We contacted our lender, Countrywide, and they told us to call them back in a couple of weeks to see if they can help us with new programs they are trying to get into place. We also asked Countrywide to give us the name of the bank which holds our 1st and 2nd mortgages (since they no longer do), but they have not responded to our written request. We have not missed a payment on anything yet, but we do not have the money to pay next month. We don't want to loose our home, but by being so upside down in it and with Countrywide holding us off, we are looking into what our options are. I'm sure our credit is pretty lousy because of our rental foreclosure, but in an effort to save our home, would it be wise if we don't pay one month, then try to pay the next month and continue to do that for a few months in order to hopefully have some program in place to help us save our home? Is it best to be behind in our mortgage payments in order to get any type of help? Plus, property taxes are due in December. There's no way we can afford that right now either. Any advice is greatly appreciated!! |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1486
Location: florida
251.25 Dollars($)
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| Posted: Wed Oct 22, 2008 6:22 am Post subject: |
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Hi smelltheroses,
I can pretty well understand your situation. I think Countrywide is your new loan servicer.
I personally feel you shouldn't stop making payments as any late payment brings down your score further. However, the fact remains that unless you're 2-3 payments behind, the lender won't usually agree to an alternative plan.
However since Countrywide has asked you to wait, I suggest you do so for a few weeks. And then call them up again to check the status. You may even take help of an attorney or a loss mitigation expert to help you avoid a foreclosure on your home if things get that tough and nothing works out between you and Countrywide. Also, check out some of the loss mitigation plans before you start negotiating with the lender.
good luck
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