Profile picture for oteymarin

I owe 390K and the home value is now 175K

Is there any bank can refinance me? Already declined for 2 loan mods by aurora loan services. Have an excellent credit. Should I foreclose anddestroy my credit? Is there anyone can help me?
  • October 21 2010 - North Las Vegas
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Answers (14)

Profile picture for cmapleleaf
I had a similar situation occur, I would suggest you do not give up, I got denied a mod 5 times, then i contacted this company called Regency Financial Group in Florida, I spoke with a guy names mike Austin, his number is 954-226-4246, this guy handle our entire modification process which only took 3 months to get done, I got approved and lowered my payments almost 600 a month. They only charge license fee of 795.00 as a one time payment, well worth it if you ask me, and they provide a money back guarantee contract if they cant get the job done. by far the best company i have ever dealt with.. hope this helps some of you like it did for me.
  • March 01 2011
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No do NOT foreclose on your home. You maybe a great candidate for a short sale since you have already gone thru and been denyed loan mod. There is a good chance your credit score has already been affected if you've gone thru "trial payments" with your mortgage servicer. As they report to credit agencies as lates. Check with an attorney they usually charge $200-300 consulation but everything is laid out and you know what your options and consequences are. Good Luck.
  • November 23 2010
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Profile picture for Tyler Rygmyr
I agree with some of the comments below.  I would not foreclose if at all possible.  If you can keep it and enjoy it then do, or rent it out long term.  If you have to let it go, then I would look into a potential short sale which is easier on your credit than a foreclosure.  You will have to be able to show a true hardship in order to short sell though.
  • November 20 2010
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Let me start off by saying I am NOT an attorney and I do not offer legal advice. I can tell you this... assuming your property value stops declining, it could take you up to 15 years to break even on your home. Today's lending guidelines say 7 years after a strategic default or short sale, 3 with strong compensating factors going FHA. I would assume these guidelines need to be loosened up or not many consumers will qualify for loans which will further depress home sales. 

If your loan is with Aurora, ie.. ALS or better yet Lehman Brothers, I would assume you either did a 100% loan or a no doc loan or both. 

Are you prepared to become a slave to your mortgage for the next 15 years? Could you rent the same house for half the price and do away with taxes, insurance and maintenance? I recommend you fully learn your options and talk to an experienced attorney and even your accountant. Many consumers are treating your situation as a business decision. 

I feel the backlash of this post already coming, but let me ask you this:   If AIG or Lehman Brothers or Citi or Fannie Mae or Freddie Mac or General Motors had a division that was losing money would they think twice about renegotiating a loan or simply shutting down? I'm just saying.....
  • November 16 2010
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Profile picture for sylvia_psllc
[Deleted for self promotion]
  • November 15 2010
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Mark Hunter below has it right. If you can continue making payments just enjoy your home, you have not lost any money until you have to sell the property. If you are at that point a short sale is the best way, contact your lender, if they say no, call them again until they get tire of you and agree to your request or modify your loan. This has worked with a few clients I've had, DO NOT stop making payments just because the value of the property is down, you could end up with a big bill after the house is taken away from you. Good luck
  • October 29 2010
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Refinancing is probably not going to be an option.  The unfortunate choices are, wait until appreciation comes back around, or yes allow the home to go into foreclosure or do a short sale.  
  • October 29 2010
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One thing that is not clear is what you paid for the house or what your current mortgage is and at what rate and have you refinanced taking substantial cash out. If you have taken substantial cash out then your collateral (house) has depreciated and the lender is sitting with a depreciated piece of collateral. If you can afford the mortgage payments, stay in the house and enjoy whatever it was you put your refinance money into. You will just have to stay in it for a long time to see it come back to "par". If on the other hand you bought at the top of the market and paid close to your outstanding mortgage then unless your financial circumstances have changed you should still be able to afford your payments and the fact that the house has devalued is really just numbers on paper.If this is the case though you should be able to get your property taxes adjusted. If you can no longer afford the mortgage then you should seek help in getting a loan modification with a reputable Loan Modification organisation http://www.naca.com/refinance/refinanceTenStep.jsp is one.Yours is unfortunately an all too common situation. Wishing you the best of luck
  • October 29 2010
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First question:  Is your loan purchase money or  refinance money? 

Check Nevada to see if it's a non-recourse state, If Nevada is a non-recourse state is it for purchase money only or both purchase & refinance. Depending on your answer to the first question & what you find out about Nevada a short sale or foreclosure may be the way to go.  Your best bet would be to consult with a local real estate attorney.

I would opt to go the short sale route first.  Under new guidelines that went into effect July, 2010, if you haven't missed any mortgage payments or any other credit payments in the 12 months prior to the short sale you are eligible to purchase a new home immediately as long as there was some type of extenuating circumstance like a divorce or cut in pay.

If you opt to go the short sale route whatever you do, DO NOT listen to the lender if they tell you you have to miss payments to be considered for a short sale or a loan modification.  Many bank employees have really hurt consumers by giving this bad advice.  If they insist, have them put it in writing and guarantee they won't report the late payments to the credit reporting agencies.

Good luck on whatever you decide.
  • October 29 2010
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Profile picture for JarydRuffner
What was the reason for the denial of the loan mod? Also, was this Aurora's loan mod program or HAMP?
  • October 28 2010
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Profile picture for UnicornladyCA
there are SOO many people in your same situation all over the US, and wonder the exact same question, walk-away, forclose, or chose applying for HAFA with no guarantee of being qualified.  In my humble opinion, all 3 will not be favorable to your credit, and could affect taxes, and I would guess walking away would be the only recourse if those banks arnt going to "annie" up and help. and Obama now has agreed that banks can goahead and continue with forclosure proceedures even with the knowledge these banks did fraudulent procedures and practices, which..by the way if it where you or I that did something "FRAUDULENT"would end up with charges against us and land a few days to months in jail.  I dont know what the "honest"answer is here.  Our home went from 600,000 to 285,000!  we owe alot more than its worth monatarily, but for memories and how we spent our lives here...nothing can replace that, nothing. 
  • October 28 2010
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Well, the questions in your case are: is this your primary residence and can you afford to make your payments? If it is your primary residence and you cannot afford to make the payments due to hardship, you could possibly qualify for assistance to exit the home via HAFA depending on who "backs" your loan. HAFA helps homeowners who qualify with moving costs and other relief from potential future debt related to the mortgage loan on a case by case basis.
If you are interested in finding out more about HAFA, visit http://hafa-program.com
Hope this helps.
  • October 27 2010
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Are you having problems making the payments?  If not, keep making them and don't stop trying to get help modifing your loan.  Don't walk away or just stop making payments.  It can only cause problems, and the bank might not forclose.  Then you owe the paymetns plus interest and fees, and taxes, that are late and have late fees also.  You can try and walk away from a home, but it's real hard to walk away from the IRS.  Walking away can backfire, and then you find out that you can't really walk away.  The property might follow you.
  • October 22 2010
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I would try contacting NACA (www.naca.org) to see if they can help you.  Currently there is no way to do a refinance...though there are a couple pending bills in Congress that may, or may not, help you and millions in the same situation.  If you can afford the mortgage I would not recommend a strategic walk away.  The impact to your credit is devastating and will impact you for years. 
  • October 21 2010
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