Posted on: 11th Mar, 2009 02:02 pm
i want to know what the best way to proceed may be. i have a condo i bought in 2005 on a 5/1 arm interest only that is up in mar 2010. i also have a 2nd that is a variable heloc, interest only for the first 5 yrs as well. both loans were originally with american home mortgage, and as another person stated they are impossible to deal with. there phone center is in india. they went bk last year and sold off my second.
i originally paid $450k for my condo. i have $360k on the first and $90 on the 2nd. it is now valued at $275!
next year not only will my fixed interest of 4.75% on my first be up, but principle on both will kick in.
with the current value of my home i cannot refinance. i get them to renegotiate my 1st, to at least get a 30yr fixed, what does that mean to my ability to do the same withy my 2nd?
my payments at interest only have varied from $351 to $761 depending on the going rate that month, and when you add principle to that volitility, i wil not be able to make the payments.
i had originally hoped to be able to re-fi before the value tanked so badly.
being underwater $175k...should i just walk away and go bk for the 2nd. what can i do??
i originally paid $450k for my condo. i have $360k on the first and $90 on the 2nd. it is now valued at $275!
next year not only will my fixed interest of 4.75% on my first be up, but principle on both will kick in.
with the current value of my home i cannot refinance. i get them to renegotiate my 1st, to at least get a 30yr fixed, what does that mean to my ability to do the same withy my 2nd?
my payments at interest only have varied from $351 to $761 depending on the going rate that month, and when you add principle to that volitility, i wil not be able to make the payments.
i had originally hoped to be able to re-fi before the value tanked so badly.
being underwater $175k...should i just walk away and go bk for the 2nd. what can i do??
hi sunjunkie!
welcome to forums!
you can speak to your second lender and check out if he is ready to modify your loan. i don't think walking away or declaring bankruptcy would be a good option. if you walk away from the property, the first lender would foreclose it and you will still be liable to pay the second mortgage lender.
you should inform your second lender about your hardship and check if they can offer you a loan modification. however, you should note that the lender would accept your request for a loan modification only if you are delinquent on your payments.
thanks
welcome to forums!
you can speak to your second lender and check out if he is ready to modify your loan. i don't think walking away or declaring bankruptcy would be a good option. if you walk away from the property, the first lender would foreclose it and you will still be liable to pay the second mortgage lender.
you should inform your second lender about your hardship and check if they can offer you a loan modification. however, you should note that the lender would accept your request for a loan modification only if you are delinquent on your payments.
thanks