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akean20 · Joined: 16 Apr 2009 Posts: 2 2.25 Dollars($)

We own 2 homes in Michigan, a rental with a 30 year fixed mortgage and a low payment (our first home, my mom is renting), and our home, which is an 80/20 loan that will adjust in October. We bought the home, believing we could refinance within a couple of years, and then the market took a plunge. We have tried to work with our lender to refinance into a 30 year fixed loan on our home, but they will not budge. If we had a 30 year fixed loan and our payment did not adjust, we would be fine. We have good credit, but we are $30,000 underwater on each house, and we would like to ride the market out, but may not be able to pay when our mortgage adjusts. If we foreclose on our home and move into our rental, which is much cheaper, what could happen to us? What are our options to keep our home?

smithsussane · Posted: Thu Apr 16, 2009 8:51 pm Post subject:

Hi akean!

Welcome to forums!

As you are interested to keep your property, I would suggest you to speak to your lender for a loan modification. In this process, the lender will lower your interest rates and increase the term of the mortgage.

If you foreclose the property, it will badly effect your credit report. It will reduce your credit score by 250 points. Moreover, you'll also have to pay the deficient amount resulting from the sale of the property.

Sussane

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Most of them are in the same boat. may be the new Obama program may help, if you can show some hardship in making the payments.

Guest

I have talked to the lender they won't budge because my 80% loan is not more than 30% of my income, but if you add the other 20% my mortgage is more that 30% of my income, but that does not count. The home equity line was to purchase the house, not to update, send kids to school, etc, but it does not matter, we don't qualify for any of the plans because we are not behind, we have good credit, and we have an 80/20 loan that is not backed by Fannie Mae or Freddie Mac. Does anyone know of a plan we could qualify for?

Guest

If you figure out the answer to that I would love to know. I am in the same boat. We were denied for a modification because we are current on our payments and can currently afford them even though the rising prices and adjustable rate keep squeezing us tighter. They can go to 105% LTV if there is only one loan but the 80/20 is considered 2 loans. What criteria does the Obama plan cover? I see my scenario described all the time and get excited that someone can help us, then after calling or investigating no one can.

Niicss · Posted: Thu Jun 04, 2009 2:20 am Post subject:

Hi akean/mamabear

You can apply for the Hope For Homeowners program and check out if you can qualify for it. This will help you in saving your property and your credit.

Thanks

Guest

akean,

I got this thread late and was wondering over the last several months since your post, have you found a solution that works your situatuion? I am in an identical situation and trying to figure out options and continue to hit brick walls.

Thanks,
Steve

jameshogg · Posted: Thu Jan 07, 2010 12:00 am Post subject:

Hi sayala,

It would be easier to answer your query if you could give the details of our present situation. Apart from me, other members/experts participating in the forum would be able to give their suggestions to you.

Thanks

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Own 2 underwater homes in MI cannot refinance