Profile picture for Idorin188

I'm an ideal customer that needs help!

I have a 1st and 2nd mortgage (2 different lenders), I've made every single payment on time, and almost all with extra principal. My wife was recently let got from her job, and we just found out that we owe 108% of the value of our home. We also refinanced in 2010 on the first, and it looks like I'm stuck. What now? TIA.
  • February 08 2012 - Springfield
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Answers (11)

Profile picture for realtorpamwebb
[self promotion deleted by Zillow moderator.  Please see our Good Neighbor Policy]
  • February 08 2012
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What do you mean by stuck?

If you refinanced back in 2010 then your interest rates are pretty good and a refinance now would not really do anything for you.  Hopefully you did not pay extra on the low interest rate mortgage instead of building up a savings account in case one of you lost your job.  If you did then stop paying extra, cut back on every non-essential item immediately, and do your best to make your payments on time until she can find a job.





  • February 08 2012
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Look into a short sale
  • February 08 2012
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Profile picture for sunnyview
Short sale is not a panacea. 
  • February 08 2012
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Profile picture for realtorpamwebb
speak with a qualified mortgage professional about your situation.  Also, how did you come to determine that you are "under water".   In addition, if you are not selling your home, it should not matter.  Best of luck to you 
  • February 09 2012
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Like so many situations, a basic question leads to more questions.  It's unclear to me what your goal is.  Are you seeking a lower rate?  If so, you might not benefit sufficiently from a refinance to justify the cost.  If you want to sell your home, please consult a real estate professional for advice and an indication of the price you can expect to be paid.  Finally, as was said earlier, a short sale can sound like a quick fix--but it can have severe long-term implications.  Best of luck to you.
  • February 09 2012
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Profile picture for Idorin188
I spoke to a friend who is a realtor, and she provided some great info about the value of our home, which is how we know we are under water. Our first mortgage rate is 5.3%, and our second is 7.3%, and with rates what they are, we know we are over paying. The couple of brokers we've spoken to didn't want anything to do with us. Selling of any kind is not an option. We'd rather eat ramen then sell, even if we were to break even (which we won't).
Thanks for the help!
  • February 09 2012
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Profile picture for blub blub blub
Maybe this will help you. Best of luck to you.
  • February 09 2012
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Profile picture for Connie Klemme
it sounds like you don't want to sell.   and it's not clear if you can't make the payment now without your wife working or if it's just painful to owe more than it's worth (which certainly is painful). 

with that ratio of loan to value it's likely you can't refinance even without her job loss.  so I'm not sure what help is available other than some budgeting tips (not necessarily the tip to eat ramen- lower quality health will cost you more in long term).  

one tip I'd offer now is to keep an eye our for predators with "solutions"
 to your problem.  There are plenty of those running around with new scams.  most of the scams target those that want to sell so they offer these "trust sales" where you only sell the title and a trust takes over the mortgage then they do an owner finance scheme with some other victim.    but it's only a matter of time before scam artists come up with a creative way for people that want to keep their home.

have a talk with the contacts at the bank....that's the best option if you can't refinance.   and get creative with the budget- do without name brands, stay home, get rid of cable, cut back on cell phones etc.  whatever applies.
  • February 09 2012
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Try working with your current lenders and see if they can work something out due to your current hardships. IF they help, it will most likely be a temporary fix, but hopefully it will be good enough to hold your family over until your wife finds a job and the RE market turns for the better. Good luck.
  • February 16 2012
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which part of that is ideal?
  • February 16 2012
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