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What should I do!!

Posted on: 13th Aug, 2007 12:13 pm
here is the deal. i signed a mortgage that was fixed for 3 years at 8.25%. after the 3 years they raised the interest rate to 8.75%, not to much and not impossible to reach. i just received a letter from them stating that they are raising the interest up to 11.25%. there is no way that i can afford to make that type of house payment. i can not refinance as the houses in the area i live are going for about $15, 000 less then what i owe on my house.

what am i suppose to do now? i am very willing to walk away from the home, it is in need of about $8,000 worth of work to be done on it.

i would like to go with a deed in lieu of foreclosure, is that even possible? the new house payment would start september 1. at this point i am not behind at all.

please tell me what steps i should take. i have a family, and there is just no way that i can afford to make over a $1,000 house payment a month and still feed and clothe my kids.

thanks for your help.

kim sturm
it was me who posted thouse and they were choices in her situation not a list of things to do
its either or and i never said the choices were good but whatever you choose Kim stick with it and make sure that you can go through with it b4 you commit
For example if you planning on continue making payments make sure you can, otherwise you will arrive at foreclosure in much worse of a financial situation. Good luck and dont feel guilt just do what you feel is right and rational for you and your family.
Posted on: 16th Aug, 2007 08:05 pm
Hi Kim,

At present, the US real estate market is at a stake. The lenders are tightening the mortgage market because of the sub prime loans. I agree with Gmakerley as obtaining a 100% LTV loan in this market situation seems to be quite impossible for Kim. And foreclosure, bankruptcy or deed in lieu are all going to affect your credit score negatively. So Kim, it will be better if you go for a short sale.
Posted on: 17th Aug, 2007 04:02 am
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