how do i get out when i am upside down in my loan

winkiewuv · Joined: 03 Sep 2007 Posts: 1 1.45 Dollars($)

I refinanced my home when my adjustable rate went up, i was supposed to be reciving roughly 13,000 in equity, i turned out to be 8,000. I of course was going to use this money to pay off bills. 8,00 was enough to pay off one. My broker told me i needed to get my house to appraise for $95,000, so we pushed for it, although i told him we could never get it. Now my payment is still more only one bill is paid off, and i will never get $95,000 out of my house with out at least $5,000 worth of upgrades. I am so far behind on my other bills a loan is not possible. I want out of this hole that im in and out of my house. What can i do?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

If possible you can sell the house and shift. How is the market right now?

What was the ltv ratio when you refinanced the last time? How long its been that you refinanced? Is there are equity in the house right now?

You are behind on bill payments, has that affected your credit score? How much is it right now?

Miller

Guest 0.10 Dollars($)

I dont know what "shift" means i am sorry i am not educated in this area, obviously. The market is horrible, fast growing area, but i see houses sitting on the market for better than 6 months. I dontknow what ltv ratio is, i refinanced in January, there is no equity, and yes the behind has affected my credit score, Im not sure whta my number is i am scared to look

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

By shift Miller meant relocating after selling the house. LTV ratio means the loan to value ratio, the loan amount as a percentage of the value of your house.

As there is no equity in the house you may face difficulty in finding a lender willing to refinance your mortgage but it is possible.

Now, your credit score is going to be one important factor. You should check your score to know where you stand right now. Is it very low or not?

As per federal laws you are entitled to get one annual credit report. You can get it from annualcreditreport.com and check where your credit stands at this moment.

From what you have mentioned selling the house seems to be difficult. You will have to continue the payments for some more time and then look at selling the house.

0.10 Dollars($)

Hi Angie,

It would be advisable if you don't go for ARM loan as the present interest rate on such loan is a bit higher. It will be better if you go for a FRM loan as your monthly payment will remain fixed. And thus it will help you to remain in budget.

Moreover, I think that you should plan a fixed monthly budget. This will help to plan your expenses and can also help you to save a lot.

0.10 Dollars($)

I have a budget, we have an 80/20 loan, because my husbands crdit was crappy when we got our house. I am not trying to refinance i am trying to get out of what i feel like is a pit. The only hope that i have is that i have an assumable loan, but im not sure really how that works either.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

If the mortgage is assumable, it means that the payments can be assumed by another person for the same terms & rate as they were for the original loan. It is different from a refinance as in refinance the terms & rate of the new mortgage can change according to present market conditions.

Assumable loan can be quite useful. If you find someone who is ready to buy and takeover the mortgage payments then you can transfer ownership to him and he can then assume the payments. Many buyers would feel it is a good option as if they have to refinance the loan in their name; it is possible that the new rates would be higher than what they were earlier.

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