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MnP
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0.10 Dollars($)
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Post subject: Up and Down |
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We did Carleton Sheets, a few years back. We took equity and bought a Rental (in a depressed area). Then we went for the big house, in 2006, and rented our old one after Neg-Am'ing all 3. Had the market kept going, we'd have sold the 2 and paid down the big house, and be sitting in a $mil house with a $300K mrtg.
Oh well, that WAS the plan.
We finished Short Selling the big house in June. We're trying to Short Sale the rental too, but the loan is $250K and the house is worth about $50K, thanks to some dreamy eye'd Assessors. But we're hopeful we will be out of that soon.
Then we can refocus on our original home. And here we sit, 9 years later, with a $460K mrtg on a $300K house that we used to have a $180K mrtg on. Oops.
And, since we're way past the 115%, we're out of the cheap Neg-am payments, but the loan is still climbing.
SO... Do we choke down the payment, for the next 30 years, and say nothing? Do we try to re-negotiate (they don't sound helpful so far)? Would they ever go for a lesser mrtg at a fixed rate? If we do Chptr 13, do they just stretch it out to a 40 or 50 year (so we're basically renters, right)? What's our best option?
I make a decent check, and we've put so much into this place. But the idea that I could bank $1000/mo or more, if I handed in the keys and went renting, has it's appeal... |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Welcome Mnp,
I suppose you should re-negotiate for a refinance of the negative amortization loan. This is because it'll get worse if you're not able to make payments and reduce the balance. It's better to refinance into a fixed rate mortgage.
As far as Chapter 13 is concerned, that's a good option and not as hard hitting as chapter 7. But you don't need to keep paying for 40 to 50 years or so. It's a matter of 3-5 years within which you'll have to pay the entire or part of your debt according to a payment plan approved by a bankruptcy trustee. Just take a look at the information available on Chapter 13 bankruptcy.
Keep updating the community with what the lender says about the refinance. There are experts participating in the forums. Hopefully they'll be able to come up with more advice.
_________________
Procrastination is the enemy of your financial sucess |
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MnP
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Post subject: RE: Up and Down |
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Thanks adonis for relocating my post in all these forums.
We're scheduled to sit with the most trustworthy mortgage broker we know tomorrow. He's not from the same company, so I'm not sure what he can do, but he didn't say "Sorry can't help ya" so we'll see.
I wish banks actually acted liked they cared a little. If we go to foreclosure, they get to sell the house for current market value. If they'd agree to something less then what they shoehorned us into, we'd go for that. Maybe we can get somewhere with the re-negotiate, but they don't sound helpful. We seem to be talking to a bank now based on India (not just the helpdesk, but the whole bank).
I'll chat with him also about the Ch13 idea, but he might not be the guy to advise on that. Not something I ever "planned" on doing, but I suppose most people would say the same.
Thanks again, and I'll re-post as things progress. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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Hi Mnp,
Welcome back.
I feel chapter 13 would be a better option compared to foreclosure. At least it won't affect your credit as bad as foreclosure. I understand you haven't though of it. But it's an option worth considering.
Regarding the broker, I'd like to ask whether you're looking for a refinance loan in order to get out of the negative amortization loan.
May god bless you.
Samantha
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Know how to compare lenders with mortgage booklet |
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COLD IN CHICAGO
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Post subject: Not behind yet, great credit, unemployed, 15 year mortgage |
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I was severed from my company on 08.08.08. I have not found a job yet. I started my own business though, but it is slow. Was making 80K and paying a 15 year mortgage. Now my unemployment pays only 1/2 of my payment. I had a severance that lasted until Dec. Now I have started to live on credit cards but I have money in a 401k about 111K. I have a loan in my 401K too (not including that amount) People tell me not to cash it in because of the tax hit, but I will have to do it if I do not get a job soon or lose the condo. Condo is on the market, dropped price 2 times. not one person came by. The realtor wanted to short sale in the 1st month. I did not think I should rush, I have not been late on a payment yet. I filled out the HOPE now america form to let the bank know the situation.Bank said I could not pay for three months, but then the entire payment would be due at the end of that, so did not seem helpful and I Decided to pay through 2008 and talk to them about 2009, just in case I found a job or if some legislation was passed due to new president.
Should I should take the place off the market because it would affect me qualifying for a loan or keep it on until I have a job? Should I cash in my 401K to keep the place or should I go to short sale or do Deed in Lieu of Forclosure. I do not want to lose my credit after years of hard work to keep it. Seems sad to lose everything over one big change in life. But I guess it happens. But I have a lot of determination to prevent the lose if there is away around it.
Do not want to go into foreclosure, but want to maintain my credit hope I find a job. I have to do something in the next 3 months, but I do need a place to live and its cold in Chicago in the winter. I do not know if I should file bankruptcy, it seem extreme. Any advice is appreciated. Thanks Cold in Chicago |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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Hi COLD IN CHICAGO
You can take a loan from the 401k but you should remember that this is your retirement account which will pay you benefits after you retire. So in my opinion it will not be a very good option for you. However if you really face problems in paying the mortgage, then you can go for it.
Short sale and deed in lieu will both affect your credit. However, a short sale will lower your credit by 75-100 points whereas a deed in lieu will lower it by 250 points. But you can also speak to lender for a loan modification or a forbearance. You can also check out the following link to know more:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Thanks.
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Good is the Enemy of Great. |
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903t
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Post subject: property taxes |
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| our property taxes has increased.. and we recieved a letter from countywide stating that our mortage will increase due to the property taxes and now our mortage will jump from 1000 to 1500. Is there anyway we can get an extention on the property taxes to 24 months instead of 12 |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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Hi,
As far as I know, extension period on property taxes may vary from county to county. You should check with your county to determine whether you may be eligible for an extension on the property taxes.
Thanks.
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Good is the Enemy of Great. |
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Sammy1
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Post subject: California Home Owner |
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| Is California one of the states that doesn't allow the lender to after the owner's assets once a home has gone into foreclosure? |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Welcome Sammy,
As far as I know, California is an anti deficiency state wherein the laws does not allow the lender to go after the borrower for the deficient amount resulting from the sale of the property.
_________________
Procrastination is the enemy of your financial sucess |
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waltkat1
Joined: 25 Dec 2008
Posts: 1
1.42 Dollars($)
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Post subject: Foreclosure |
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| A friend's ex-wife is currently letting their old house go into foreclosure. Unfortunately, the friend's name is still on the loan and title. To add insult to injury we just found out the ex's new hubby is a dead beat dad and has a child support lien on the house even though his name is not on anything (separate issue). If there is a way to get that corrected (big if), can the friend avoid taking a hit on his credit? For instance, would a quitclaim deed do the trick at this point in time or is it too late? Maybe he can go to the lender? |
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matti
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Post subject: forecluosure |
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| I have two lenders, one is 80% other is 20%. My question is, if I go with the lieu of foreclosure, short sale or any other process, what can I do, how to talk with boht of them. I am confious, please give an advice. |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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Hi!
Welcome to forums!
To waltkat!
Signing a quitclaim deed now will be considered as a fraudulent transfer. The lender may penalize your friend for doing so. Your friend can speak to the lender and see if there is anything that the lender can do for him. But as far as I know, your friend's credit will be badly affected as his name is on the mortgage of the property.
To matti!
You can speak to the first lender about a deed in lieu foreclosure.You will have to write a hardship letter to the lender for this. The lender will then sell of the property and recover his dues. If there is an excess amount, then you can use it to pay the 2nd lender. Or else the 2nd lender may charge off the mortgage to a collection agency who will in turn collect the dues from you.
Feel free to ask if you have further queries.
Sussane |
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neddinghelpasapinaz
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Post subject: help me to find a solution |
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| We have never been late on our mortgage until 4 months ago, as our savigns ran out. We tried to refinance, but live in az--so we did not qualify to refinance as house price is less than owed. We worked with people's first fianncial--please do NOT anyone else work with them-and now are in foreclosure. The mitigators today said that the lender would not modify loan and gave 3 options- short sale, a 50% reduction of principal balance or refinance (duh, if we didn't qualify a year ago, ya think it would happen now??). I don't understnad what the 50% balance off is--do I get to save my house and only pay the 50% of the loan?? help |
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lis
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Post subject: foreclosure or not |
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| I owe much more than my home is now worth. I am in an option arm and I can barely afford to make my payments. I am now behind by 2 months. I am considering filing for chptr 7. should I let my house go into foreclosure eventually and what do I tell the bank as they keep calling me. they have declined a loan modification due to my lack of income vs expenses. |
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