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ssmom3 Joined: 10 Mar 2009 Posts: 2 2.00 Dollars($)	Posted: Tue Mar 10, 2009 7:06 pm    Post subject: Options Like 0 Dislike 0 My daughter bought a 2 year old 'cookie cutter' home in Tampa, Florida which was purchased ($320000) at the peak of the housing upturn. It is now worth 58% of the mortgage that is due. Her spouse despite having a college degree working in the housing industry and is now without employment. They are up-to-date on payments but feel as though they are in a black tunnel. Having financed paying interest only, and basically paid no downpayment, what are their options with the current state of mortgage affairs to recover from this terrible situation? Many thanks.
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Tue Mar 10, 2009 10:47 pm    Post subject: Like 0 Dislike 0 Hi ssmom, Your daughter could have opted for a refinance but as the property does not have equity, lenders won't refinance. If your daughter wants to save the property from getting sold off, then she can go for a loan modification. But lenders would accept a loan modification only if she is delinquent in her payments. While modifying the loan, the lender will give her a new payment plan to pay off the mortgage. Thanks
ssmom3 Joined: 10 Mar 2009 Posts: 2 2.00 Dollars($)	Posted: Wed Mar 11, 2009 4:47 pm    Post subject: HELP options Like 0 Dislike 0 What exactly is a loan modification? Would it just restructure payments for the amount owed on the loan? What would be the next step if they simply chose to 'get out of the home?? In other words what would be the lessor of the 'evils'? Trapped in Florida by economic downturn....... Many thanks for any info.
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Wed Mar 11, 2009 11:46 pm    Post subject: Like 0 Dislike 0 If you are delinquent in your mortgage payments, you can contact your lender and modify the loan. The lender will look after your financial situation and thereby decide whether he would consider your request for a modification of the loan. In this process, the lender will give you an alternative plan to pay off the debts but the past due payments will be added to the monthly payments. This can sometimes increase the monthly payments. If they want to get out of the property, then they can speak to the lender about a short sale or a deed in lieu. _________________ Procrastination is the enemy of your financial success

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