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Answers (7)
- jal74
- Contributions:1077
Start paying principal.
I realize this may sound like bizaro world, but in order to reduce your loan balance you have to pay principal, not just interest.
Was this not made clear to you when you took out the loan? Do you understand the concept?
If you want to refi, its easy, pay down principal such that your loan balance is reduced to 96.5% of the home appraisal value and then do an FHA refi.
If you can't pay down principal, I suggest you contact a good lawyer and CPA in your community to give you good advice as to what your options are.
I do believe however that Washington state allows for non-judicial forclosure and in most cases, unless specifically stipulated for in the mortgage deed, that they (the banks or mortgage holder) will be unable to file a deficiency judgement against you and their only remedy is to take back possession of the property. I am however, not a licensed attorney, and thus please do not in any way use this as the basis for any decision. Please, once again seek out a professional, competent attorney in your community before making any decisions.
Regards
I realize this may sound like bizaro world, but in order to reduce your loan balance you have to pay principal, not just interest.
Was this not made clear to you when you took out the loan? Do you understand the concept?
If you want to refi, its easy, pay down principal such that your loan balance is reduced to 96.5% of the home appraisal value and then do an FHA refi.
If you can't pay down principal, I suggest you contact a good lawyer and CPA in your community to give you good advice as to what your options are.
I do believe however that Washington state allows for non-judicial forclosure and in most cases, unless specifically stipulated for in the mortgage deed, that they (the banks or mortgage holder) will be unable to file a deficiency judgement against you and their only remedy is to take back possession of the property. I am however, not a licensed attorney, and thus please do not in any way use this as the basis for any decision. Please, once again seek out a professional, competent attorney in your community before making any decisions.
Regards
- dadclark
- Contributions:1
Try a different bank. You don't BoA anything. Find someone who will give you what you ask them for.
- Dan, "the_country_hick"
- Contributions:4699
There is a big problem even if you could refinance. When you refinance at 4.5% (if possible) you are likely to have a larger monthly payment. You will stop just paying interest and instead be paying off the principle amount borrowed also. That is very likely to make you pay more even at a lower % rate.
That said check into refinancing again.
http://www.zillow.com/advice-thread/are-there-any-legitimate-125-home-refinance-loans-in-the-market/359283/
That said check into refinancing again.
http://www.zillow.com/advice-thread/are-there-any-legitimate-125-home-refinance-loans-in-the-market/359283/
They are out there if current loan is Fannie Mae or Freddie Mac owned.
For the most part, you need to go through current servicer if you are above 105%, however there are a few banks that will do up to 125 when not servicing. Not available in every state.
For the most part, you need to go through current servicer if you are above 105%, however there are a few banks that will do up to 125 when not servicing. Not available in every state.
- NTETS, "Mr Caveat"
- Contributions:6436
wow, mike kelly, you are absolutely the worst agent i have ever witnessed in action. congrats. you work for a bank or something?
"you are just a number" "consider yourself lucky you ONLY lost 20%!" "why do you even care? its only 20%" "this sort of thing happens"
i'm sorry, but no. property values dont just sometimes fall 20, 30, 60%. that doesnt just happen. this is not a market cycle that occurs every 20 years, this is a big deal to a lot of people. you deserve to get your behind swatted.
now then HKC, your best option is to make additional payments toward principal, this will address the main concern of you not denting your mortgage principal, and even though i believe that mike kelly ought to be thrown into a pit and left overnight till Monday for that answer, honestly he isn't totally wrong. you will probably need about another 23,000 dollars in equity before you will qualify for a refinance on your own merit, and the fact is that the banks can give you a modification or they can give you the finger. it is solely their call.
unfortunately, this is one of those things that you chalk up to "learning experience." dont take out a mortgage at 97% ltv, dont get talked into a loan that you cant pay for, even if the reset seems far in the future. dont take people like mike kelly at their word when they say "now is a great time to buy" because pretty soon, you find that 13,000 is "only 5%" or 40,000 is just a headfake
"you are just a number" "consider yourself lucky you ONLY lost 20%!" "why do you even care? its only 20%" "this sort of thing happens"
i'm sorry, but no. property values dont just sometimes fall 20, 30, 60%. that doesnt just happen. this is not a market cycle that occurs every 20 years, this is a big deal to a lot of people. you deserve to get your behind swatted.
now then HKC, your best option is to make additional payments toward principal, this will address the main concern of you not denting your mortgage principal, and even though i believe that mike kelly ought to be thrown into a pit and left overnight till Monday for that answer, honestly he isn't totally wrong. you will probably need about another 23,000 dollars in equity before you will qualify for a refinance on your own merit, and the fact is that the banks can give you a modification or they can give you the finger. it is solely their call.
unfortunately, this is one of those things that you chalk up to "learning experience." dont take out a mortgage at 97% ltv, dont get talked into a loan that you cant pay for, even if the reset seems far in the future. dont take people like mike kelly at their word when they say "now is a great time to buy" because pretty soon, you find that 13,000 is "only 5%" or 40,000 is just a headfake
- Dan, "the_country_hick"
- Contributions:4699
" we are making intrest only payments @ 6%, our equity is not improving."
Of course not. You are NOT paying on or for the house. You are paying on the borrowed money only. You could make payments like this for 50 years and never pay off $1 of equity. Interest only loans were not designed to ever pay off a house. They were only meant to maintain debt.
The solution is simple. Pay more than the required minimum payment on the house. Send in an extra $400 a month and in 1 year you will have paid down $4,800 of equity. If you sent in an extra $1,000 a month you would pay off $12,000 in equity each year.
Painful? yup. Will it help you to pay off your house? yup.
Of course not. You are NOT paying on or for the house. You are paying on the borrowed money only. You could make payments like this for 50 years and never pay off $1 of equity. Interest only loans were not designed to ever pay off a house. They were only meant to maintain debt.
The solution is simple. Pay more than the required minimum payment on the house. Send in an extra $400 a month and in 1 year you will have paid down $4,800 of equity. If you sent in an extra $1,000 a month you would pay off $12,000 in equity each year.
Painful? yup. Will it help you to pay off your house? yup.
- Mike Kelly& Alli Norman, "mjkelly"
- Contributions:137
#1 you ARE home owners! And in California your numbers would be a huge welcome relief to current homeowners in Sonoma County,California where values have dropped 50-60%! Even though your home has gone down in Value 18% you are technically only "under water" by a mere 5%!! (Loan amount vs. current value) and That will NOT get you much attention! And frankly, WHY are you so concerned about this? Just because you are under water does NOT automatically trigger a panic, principal reduction, re-negotiation--hey! Property VALUES SOMETIMES GO DOWN!!
O.K. Enuff of my rantin' and a ravin'! NOW you need to become the proverbial "squeaky wheel"! Expect this delay, expect them to turn you down, expect them to loose your complete package (keep one on your desk top and EMAIL it to them!), just keep pestering them!
But in all honesty--when you have states like Florida,Arizona, Neveda, California where Millions of homeowners are 30-60% under water do you REALLY expect them to get around to yours anytime soon?
O.K. Enuff of my rantin' and a ravin'! NOW you need to become the proverbial "squeaky wheel"! Expect this delay, expect them to turn you down, expect them to loose your complete package (keep one on your desk top and EMAIL it to them!), just keep pestering them!
But in all honesty--when you have states like Florida,Arizona, Neveda, California where Millions of homeowners are 30-60% under water do you REALLY expect them to get around to yours anytime soon?
- wetdawgs
- Contributions:26842
Keep pushing with B of A. Asking for the same paperwork 4x over is the way they seem to do business (no wonder they needed bailing out).
When you write "renegotiate the home" - are you suggesting a principle reduction? At the moment, getting a principle reduction is rarer than hen's teeth, and as you've not described any hardships it is even less likely even if you do spend money on an attorney.
I think the ideal would be to have a loan at a lower interest rate where you are paying towards the principle.
When you write "renegotiate the home" - are you suggesting a principle reduction? At the moment, getting a principle reduction is rarer than hen's teeth, and as you've not described any hardships it is even less likely even if you do spend money on an attorney.
I think the ideal would be to have a loan at a lower interest rate where you are paying towards the principle.
Our homes value keeps dropping, no equity, refi is out...what now?
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