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Profile picture for Uncle Mank

I owe 200,000 on a value of 138,000. Can I get refinanced at a lower rate, or just walk away ?

I dont really know what to do here. I can not get anyone to help with refinancing and since my wifes buisness has dropped out, I am struggling to make my bills. I cut corners everywhere, including grocery's and still, I cant make it. This has been going on now for over a year. Any advice or help would be gratly appreciated.
Or, Can I just walk and start over somewhere else?
Thank you
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February 13 2011 - Rixeyville
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Answers (10)

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His wife lost her job and the household is struggling!

1.  Try the loan modification route.  The only company I recommend is www.THHF.org.  Don't try to do this yourself.  You already experienced the response.

You need to do everything you can to maintain.  These are tough times but they are also times that spark innovation.  Think out of the box on how to make additional income.  Get involved/learn with the wife's business.  Talk to someone at the local church.  Market some handyman skills on Craigslist.

Contact me privately.

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February 21 2011

Try www.naca.com. They seem to work wonders fomr some of my past clients.

Jeff Thomas

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June 30 2011
Profile picture for sunnyview
So Bill F/fergie58, what do you do? Your profile page on Zillow is blank yet you state that you do loan modifications. Do you charge upfront? Are you licensed?
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February 22 2011
Hi Uncle Mank, thanks for the more info.
Ray sent you a good link, and modification is certainly an avenue to try for a lower rate. 

Remember, Zestimates in VA can be as much as 20% BELOW an actual appraisal...however, even if your value is exactly $138,000.

Check to see even now if your mortgage payment (review your tax benefits too) is lower than a comparable rental. I bought my first home back in 1990, where it promptly lost 30% of its value. I was devastated, but the mortgage was still lower than rent, especially after figuring the tax deduction. I stuck with it, and by 1998, the house was worth twice what I paid, then, by 2005...FOUR times what I paid....YES, I wish I sold it then, but....
I still have a house, less than rent, worth 2.5-3 times what I paid.

I think after that review, you will be where I was, paying your mortgage that is less than rent, and no one cares about the value until you need to sell, you shouldn't worry about it either. If you walk, you will still face a rental payment, and one probably higher than the mortgage payment.
Good luck, Jim, HSOA.
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February 21 2011
Excuse me if I'm the stupid one, but what does the value of your property have to do with your inability to pay for what you are obligated to pay for? Your post seems to imply that because your home has lost value, you are somehow in a pinch, when in reality, the value has nothing to do with your situation. You merely cannot afford your house, regardless of the value. You are just deciding to walk away because you are upside down. 

My question to you is simple; if your home were worth $438,000 instead of your stated $138,000, would you be able to find a way to continue paying for it? I cannot imagine any rate you would currently have on a 200K mortgage that a refi to current rates would save you from what you describe. Even if you had the value to refi, what dollar amount are we talking about in monthly savings? 

What you are really saying is that you "don't want" to continue paying because you perceive a loss in value. 

Let's just be clear.
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February 14 2011
Profile picture for Uncle Mank
Thank you for all your responses. To give furtheer detail, Zillow is where I got my home value and have been watching it drop for quite awhile now. And my wife was/is self employed. However, her buisness has dropped so much that there is no income from it. She is barely breaking even if I dare call it that. I guess the whole point of my question is, Am I throwing good money against bad with the values what they are today. My mortgage is with Benificial and they say I make to much. Go figure. I barley bump 60k and my wife is at 0.
I am not behind on my mortgage and have not been. But it is all I can do to keep up the struggle with only the one income. (Wife cant find employment) With all my other bills we can hardley afford groceries and that is what gets pinched first to keep from loosing anything.
Again, Thank you for ALL replies.
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February 14 2011
Profile picture for upinsmoke
do your research and decide for yourself if "walking away" is the right option for you. FYI A short sale willwreck havoc on your fico score almost as bad as a forclosure. You need to seriously evaluate what your options are and what it will cost for you and your family to stay and what it will cost if you walk away. Once you know these numbers talk to an attorney and discuss your options with him/her and find out what your financial exposure is.
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February 13 2011
I'm sorry but walking away is stupid.  Too many people get a notice from their lenders that they're going to be foreclosed and they just pack up and leave.  You are much better served to try to work with your lender for a loan modification or a short sale.  Either way, you should be able to stay in your home longer and at least make sure all your other bills are paid.  Call a local Realtor with experience in short sales and find out why its a better option for everyone.
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February 13 2011
What is the actual value of your home? Have realtor give you a CMA. Do you want to keep your home? Then, contact the Lender and see if a Modification can be done to lower your rate or principle reduction. Are you currently behind in Mortgage payments?
These are items that needs addressing first. Because you should consider Short Sale instead of Walking Away to save your credit score
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February 13 2011
How did you arrive at the house value? Have you called your present lender? Is your wife self employed?
Too many variables to give you a good answer here...sorry.
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February 13 2011
 
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