Replies (33)
- Mankessim
- Contributions:8
All the pseudo loan programs introduced by the Guv and others do not address people in your situation. Its sad, but the vast majority of people who are in need of help still are underneath their home.
put your house up for sale.
- MORTGAGE OPERATOR
- Contributions:2081
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Tom may not be too far off base, but in his suggestion you face a short sale possibly which your lender may not endorse.
That given....call someone in loan servicing with you lender/lenders and Plead your situation. If they know you have no other solution other than to walk or shortsale, they may work with you.
My heart bleeds for you, and hope you find a solution.
Best of Luck
- Mankessim
- Contributions:8
- MORTGAGE OPERATOR
- Contributions:2081
If your home appraisal comes in at 400 and you low your both loans to 400 by paying off 33K.. yes.. you have a good chance to get approved for a refi...I'm little worried about the 60K in other debts you have...the only way to know for sure is to apply and see.
Are you a w2 employee or self employed?
- Vincent Towne, "Countrywide2008"
- Contributions:251
- Mankessim
- Contributions:8
- grdonley
- Contributions:4
- Nic Netherton, "Colorado Lender"
- Contributions:7324
- Art Candler, "ArtCandler"
- Contributions:111
I ask because you have indicated a debt load of 100k including what you are upside down in the mortgage.
They changed the bankruptcy laws to affect w2 employees with a stable income. If you are above a certain threshold, they will steer you into chapter 13 .
Perhaps the loan modification from your lender is the best bet here.
Good luck and keep us posted !!!
- frank1003
- Contributions:266
- Mankessim
- Contributions:8
Back again. I tried modification with my lender, they turned me down - twice. I then got another lender who got me approved for an FHA loan on the first, but my lender will not grant a subordination on the second because the new lender was loaning me an extra 15k to cover closing costs etc
So the saga continues.... no end in sight? Any ideas where I can turn to?
- Mike Smith, MBA, MPM, "MortgagePlanMan"
- Contributions:135
Mankessim,
If you cannot afford the payment you ask for help.
If they will not give you help, you ask again and again and again.
If you are not behind you tell them you will be with these current resets.
BTW .. .FED has dropped Prime by 3.25% or in the past 10 mos. why is your reset so high??
If all else fails, file a CH.& and declare to keep this mortgage. That will buy you 10-12 mos without a payment. Save the money!
Try to work out a deal then at that point.
It is sad so sad I have to recommend but for God's sake this game of chicken pissess me off. Loan modification in order to keep a good guy like you in a home should be a good thing.
I am sorry for you. I will pray for you!
- Mike Smith, MBA, MPM, "MortgagePlanMan"
- Contributions:135
Ch. 7 BK sorry...$795 ish with filing fee if you shop around. I have a great referral but here in Ca.
- Geoff Cochems, "gcochems"
- Contributions:1055
Mike what does the fed dropping the federal funds rate over the last year have to do with his mortgage reset? Sounds like a good old 2/28 and I don't remember any of those being tied to prime...
Mank, the sad reality is that if you continue to make the new payments your lender most likely will not work with you on any debt forgiveness or for a loan mod. If they believe you can afford the new payment, they'll want to keep collecting the higher interest payments...at least that's been my experience with most servicers. I feel for you I really do, and I wish you the best
- Mike Smith, MBA, MPM, "MortgagePlanMan"
- Contributions:135
I got ya Geoff . . . but did not LIBOR, SWAPS, other indices also drop in correlation or am I missing something?? Most of those 2/28 are tied to LIBOR and well across the pond has the same monetary policy as us. LIBOR has dropped almost at the same rate.
Econ 101: when the FED lowers the "fed funds" and the "discount" rate what happens?
Other indices drop as well......as the cost of funds drop. For example Geoff... when the FED lowers the Fed funds rate to say 2% is not true the prime drops to 5% hmmmm?
Prime rate, fed funds, COFI Updated 5/21/2008
Click on the links below to find a fuller explanation of the term.
This week Month ago Year ago
WSJ Prime Rate 5.00 5.25 8.25
Federal Discount Rate 2.25 2.50 6.25
Fed Funds Rate 2.00 2.25 5.25
11th District Cost of Funds 3.280 3.560 4.299
I am seeing subprime resets resetting to rates 2-3% less than expected based on FED moves.
- George DeVine, "George DeVine"
- Contributions:858
Mank,
I do not encourage you to default, or stop making payments as a strategy to get the lender to modify your terms. Have you exhausted all other avenues, such as, a 401K loan, a gift from a family member to pay the closing costs? I am shocked that the second mortgage holder wouldn't subordinate. I would run that up the ladder again. What bank are these two loans with?
- George DeVine, "George DeVine"
- Contributions:858
I realize that the lenders on this site are offering their advise with good intentions, but some of the suggestions, such as, short sales, and defaulting on the loan, is advise that cannot be given by reading a couple of paragraphs about someone's situation. It may be likely that these are the best courses of action, but Mank needs to sit with an experienced loan officer, loan counselor, and lawyer to review his situation in its enitirety before he crosses any of those bridges. You guys are a bit too cavalier with your advise.
- Mankessim
- Contributions:8
I do not want to stop payments, at least not in the immediate few months, and I am exploring the possibility of a gift etc to pay the CCs. I am also quite frustrated that the subordination was denied, but I guess it is the whole chicken game and taking advantage of a guy who desperately wants to keep both his home and credit. My two loans are with America's Servicing Company.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Mank,
Look at George's advice first and foremost. Your situation is difficult and so should be the solution. My suggestion is to get with someone who knows their stuff and you prioritize the importance of things... I said you, not me,. not anyone else. If you prioritize the home first so be it and if something else has to drag.. it has to drag. The big bummer here is that you had no down.. you may have more in debt today than when you bought... only you know that answer and your home has gone down in value and you have not "stockpiled" any money away to overcome above-listed 3. The answer will be inside you. Sorry for the RE market in your area correcting/crashing/whatever, but there is a solution to this and the casualty may be the PLASTIC and no more trips to the mall, but you will have shelter instead. When it gets down to crunch time... home or Starbucks..... I'll fight for my home. Good luck and keep fighting and we'll help guide you and fight with you... FIGHT FIGHT FIGHT!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3768
Mank;
If I have the area you live in correct (Greater Alexandria) area you would qualify for the FHA loan paying off both mortgages providing credit, income, etc all check out. They have recently increased the limits in various areas, but not all banks/investors are on board. The catch you are going to have is the value of your home. The guidelines state that we can loan 97.75% of the value so it sounds like you would have to come out of pocket with some money. As for the closing costs, 15k seems high. Click on my link to access my contact info and give me a call to discuss.
- Geoff Cochems, "gcochems"
- Contributions:1055
George and Mank, Please don't take what I said as meaning you need to defualt on your home. It's just been my experience that lenders are not working with people whose rate's have reset while they continue to make their payments on time. It sucks for people like you who are trying to save your home and keep your credit up...I wish lenders would take that into consideration, but I think greed is getting the best of them. Again I wish you the best.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3768
Mank;
We can also look at the other option where we do the first as an FHA and you subordinate the second. I am coming up with closing costs closer to $6k. Was there a magic number where the holder of the second would subordinate? We can play with the rate a little bit and give you a lender credit so we limit your out of pocket. Let me know.
I have to agree. Lenders, especially trustees who simply govern the investor pool of mortgages, have done the math and decided to IGNORE the homeowners and simply see who would pay as opposed to dump their credit score and house.
They found out the hard way that WAY more people than they thought mailed in the keys.
- PHILIP M SMOAK, "MortgageRatesToYou"
- Contributions:21
FannieMae recently announce their 120% program. It is available only to current FannieMae mortgage borrowers. The details are very sketchy as it has not yet hit the investors rate sheets yet but essentially, If FannieMae already holds your mortgage they will allow up to 120% of the current appraised value in a rate-term refinance only.
I imagine you will be able to subordinate the second mortgage which will at least allow you to reduce the rate and the payments on the first mortgage. The program does require that you have a good payment record. Stay tuned until the program becomes available.
I have to refi!
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