Posted on: 25th Feb, 2009 11:20 am
hello,
thank you in advance for reading this and any insights you may provide.
i have read through various posts on this site and have learned much more information than i knew before...okay well i knew next to nothing before but now i have a few tips. however i was looking for advice based on my situation.
now about my problem: our home is in ri. my husband and i bought this our 1st home in aug '05, about 3 days before hurricane katrina struck and sent oil/gas/electricity through the roof and everything else shot to hell shortly thereafter.
we found a house at the high end of our budget, but back then everything was on the high end. it is an outdated 2000sq ft ranch. small yard. needed updating which is why it was juuuust within our budget, but we could live with the tiny kitchen and '70s d�cor.
we offered $270k and the seller accepted. the loan was setup 80/20 interest only, with two banks each owning a mortgage. at that time both my husband and i were working and i was pregnant. about 2 months later i lost my job. it took me over a year to find a new job, and in that time i gave birth so we were relying totally on 1 income. then i had to be hospitalized and was out of work for about a month, our child was hospitalized, and my husbands company was bought out and his medical went up while income stayed about the same.
we were told we had to wait 2 yrs before we could refinance to a loan with a stable interest rate or face penalties. by the time 2 yrs was up however we had accumulated credit card debt, were about 2-3 months behind on our mortgage payments, and the house was upside down by about $30k...not that it mattered because no one would refi us.
i contacted the '80' loan company (hsbc) several times because i was most concerned with them. our starting pymt was $1250/mo but now was at $1800 with the rate reset...and then we still had to pay our '20' loan company (gmac) $400/mo - totally unaffordable. everytime i got in touch with them they only temporarily lowered payments for a few months but then they shot right up again after 6 months or so. i was also under the impression (silly me) that the 2 back payments & the difference between the temporarily lower payment and the actual payment were stuck on the back end of the mortgage, but apparently its not so.
i contacted them again a few months ago and they didn't reply. i continued making payments between $1150 -$1400 to hsbc (and paying gmac their $400) thinking some was better than nothing and hoping whatever mortgage bailout the government was cooking up would help us.
then last week i received a letter from a local attorney hsbc retained to foreclose on the property. it said an auction notice would be put in the newspaper in mid-march and the house auctioned on april 3rd if i didn't pay the full $220k mortgage + fees.
first of all, isn't this a bit fast???? i don't have that kind of money, we live paycheck to paycheck as it is. it burns me b/c i just sent them a payment of $1450 for feb that i couldn't really afford and they take it and send an attorney after me anyways?? i now have to find a landlord to rent to my family which means i need a 1st, last, and security deposit - which i don't have because i paid my mortgage.
also the attorney has sent me a certified mailing which i have not received b/c usps has lost my signed green card twice now. i faxed and mailed both hsbc over a week ago requesting they stop and again arrange something so my family isn't homeless, but neither responded. figures.
if they foreclose they will get maybe $180k for the property, if it sells. i never had the time or $$ to update it. a home 2 houses down has been for sale for a year now. it is approx the same size as mine but nicer overall, bigger yard and updated. its listed at $199k with no takers.
so hsbc's loan will still be at least $20k short whether through auction or shortsale, and gmac won't get any of their $50k. upon reading i see they both will most likely come after me.
i cannot afford rent plus mortgages on a property i no longer own plus my other bills. we have no major assets - a 6 yr old car with an auto loan and then an 11 yr old car given to us. i also have about $70k in life insurance through my employer. that's it.
what are my options? we can't stay here unless both companies take a significant hit and rewrite the mortgage to about $1600/mo. i thought of asking hsbc to accept a deed in lieu of foreclosure so we would lose the house but be free and clear but based on the reading here that doesn't seem likely since they'll be liable to gmac for $50k as well as their own loss. the president's plan won't help us either b/c we're so upside down.
i know its a long read...but someone please help.
thanks.
thank you in advance for reading this and any insights you may provide.
i have read through various posts on this site and have learned much more information than i knew before...okay well i knew next to nothing before but now i have a few tips. however i was looking for advice based on my situation.
now about my problem: our home is in ri. my husband and i bought this our 1st home in aug '05, about 3 days before hurricane katrina struck and sent oil/gas/electricity through the roof and everything else shot to hell shortly thereafter.
we found a house at the high end of our budget, but back then everything was on the high end. it is an outdated 2000sq ft ranch. small yard. needed updating which is why it was juuuust within our budget, but we could live with the tiny kitchen and '70s d�cor.
we offered $270k and the seller accepted. the loan was setup 80/20 interest only, with two banks each owning a mortgage. at that time both my husband and i were working and i was pregnant. about 2 months later i lost my job. it took me over a year to find a new job, and in that time i gave birth so we were relying totally on 1 income. then i had to be hospitalized and was out of work for about a month, our child was hospitalized, and my husbands company was bought out and his medical went up while income stayed about the same.
we were told we had to wait 2 yrs before we could refinance to a loan with a stable interest rate or face penalties. by the time 2 yrs was up however we had accumulated credit card debt, were about 2-3 months behind on our mortgage payments, and the house was upside down by about $30k...not that it mattered because no one would refi us.
i contacted the '80' loan company (hsbc) several times because i was most concerned with them. our starting pymt was $1250/mo but now was at $1800 with the rate reset...and then we still had to pay our '20' loan company (gmac) $400/mo - totally unaffordable. everytime i got in touch with them they only temporarily lowered payments for a few months but then they shot right up again after 6 months or so. i was also under the impression (silly me) that the 2 back payments & the difference between the temporarily lower payment and the actual payment were stuck on the back end of the mortgage, but apparently its not so.
i contacted them again a few months ago and they didn't reply. i continued making payments between $1150 -$1400 to hsbc (and paying gmac their $400) thinking some was better than nothing and hoping whatever mortgage bailout the government was cooking up would help us.
then last week i received a letter from a local attorney hsbc retained to foreclose on the property. it said an auction notice would be put in the newspaper in mid-march and the house auctioned on april 3rd if i didn't pay the full $220k mortgage + fees.
first of all, isn't this a bit fast???? i don't have that kind of money, we live paycheck to paycheck as it is. it burns me b/c i just sent them a payment of $1450 for feb that i couldn't really afford and they take it and send an attorney after me anyways?? i now have to find a landlord to rent to my family which means i need a 1st, last, and security deposit - which i don't have because i paid my mortgage.
also the attorney has sent me a certified mailing which i have not received b/c usps has lost my signed green card twice now. i faxed and mailed both hsbc over a week ago requesting they stop and again arrange something so my family isn't homeless, but neither responded. figures.
if they foreclose they will get maybe $180k for the property, if it sells. i never had the time or $$ to update it. a home 2 houses down has been for sale for a year now. it is approx the same size as mine but nicer overall, bigger yard and updated. its listed at $199k with no takers.
so hsbc's loan will still be at least $20k short whether through auction or shortsale, and gmac won't get any of their $50k. upon reading i see they both will most likely come after me.
i cannot afford rent plus mortgages on a property i no longer own plus my other bills. we have no major assets - a 6 yr old car with an auto loan and then an 11 yr old car given to us. i also have about $70k in life insurance through my employer. that's it.
what are my options? we can't stay here unless both companies take a significant hit and rewrite the mortgage to about $1600/mo. i thought of asking hsbc to accept a deed in lieu of foreclosure so we would lose the house but be free and clear but based on the reading here that doesn't seem likely since they'll be liable to gmac for $50k as well as their own loss. the president's plan won't help us either b/c we're so upside down.
i know its a long read...but someone please help.
thanks.
Hi Guest,
I can understand you are facing a tough situation while paying both the mortgages. You should note that if you do not make proper payments, the lender will have the right to foreclose the property. And yes, you are correct that they can come after you for the deficient amount. Apart from this, the second lender will also have the right to demand his dies from you.
You can try speaking to the lender about a loan modification. If both the lenders accept your loan modification request then you can get a new payment plan through which you will be able to pay off the dues. But you should note that the lender may add up the past dues which may increase your monthly payments.
Thanks
I can understand you are facing a tough situation while paying both the mortgages. You should note that if you do not make proper payments, the lender will have the right to foreclose the property. And yes, you are correct that they can come after you for the deficient amount. Apart from this, the second lender will also have the right to demand his dies from you.
You can try speaking to the lender about a loan modification. If both the lenders accept your loan modification request then you can get a new payment plan through which you will be able to pay off the dues. But you should note that the lender may add up the past dues which may increase your monthly payments.
Thanks
I can understand with the whole long story but i need to remind you that do not get morose by these two loans.
I know you will be homeless if the HSBC & GMAC file for foreclosure but there are alternatives to do.
1. do not fall pray to any debt consolidation company's promise.Most of the time you will end up loosing money for their fees which you can use to repay back the mortgage.
2.As jamshogg told you , you can again discuss with the lenders see if they can readjust the mortgage EMI.
3.Always keep the basic needs first. Don't ever get panic.Surely you will be out of this if you try on yourself with the officials of the banks sending them professional forms with proper content.
4.bankruptcy should be the last option.remember it will lower 250 credit points of yours if you file for BK. :arrow: :arrow:
I know you will be homeless if the HSBC & GMAC file for foreclosure but there are alternatives to do.
1. do not fall pray to any debt consolidation company's promise.Most of the time you will end up loosing money for their fees which you can use to repay back the mortgage.
2.As jamshogg told you , you can again discuss with the lenders see if they can readjust the mortgage EMI.
3.Always keep the basic needs first. Don't ever get panic.Surely you will be out of this if you try on yourself with the officials of the banks sending them professional forms with proper content.
4.bankruptcy should be the last option.remember it will lower 250 credit points of yours if you file for BK. :arrow: :arrow:
be careful here.nobody can help you here or even suggest how you can get financial help.any answer of a loan lender to your question or loan request,you MUST ignore,because they are SCAMS...real SCAMS...i was a victim of which i was ripped thousands of dollars....so email me rightaway on tips of detecting a loan scam and a safer way of getting a cheap legitimate loan help via †kenshawwjeanne(at)gmail(dot)com “.Replace the content in brackets as usual.I made it so because of those CON artist..beware,I can't diclose anything here for fear of SCAMMERS,so do as instructed and you shall see the reality of it all