Profile picture for baccetta

Please help to bail me out. Loan request ZR-BXHLTFD

I need to find out how I can get bailed out. I have a first and second mortgage. The first is $138K with an interest rate of 6.78% and the second is $74K at 12.625%. My house shows $171K on zestimtes. I earn about $75K a year. My first and second payments total $2,240. We have emptied out my wife's retirement funds to keep up with bills. Our outgoing bills exceed what is coming in. My credit is very good. I have taken a 10% decrease in pay along with no raise for two years.
  • May 10 2010 - Lawrenceville
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Answers (5)

Contact the Servicer of your 1st mortgage... lower that 6.78% Interest rate to the mid 5's through the Obama FNMA Home Affordable REFI or the FREDDIE MAC RELIEF REFI. Both of these programs you will be eligible for. No out of cost expenses, and your subordinate financingon the 2nd won't effect the 1st's eligibility. Takes about 2 weeks to complete and it will allow you to save one months payment that you would have made otherwise, IE you refi in May, your 1st payment is due in July, that will allow to save a little bit of cash immediately as well as have a lower monthly payment when it begins again. Just a thought...
  • May 13 2010
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I would recommend talking to your two mortgage companies and let them know the situation.  Unfortunately, working with them will take a long time and you will need to constantly re-send the same info to them over and over again.  Sometimes I think that is because they want to drag out the process so to be sure they get every penny possible before offering to give you viable help.  If you are not behind on your mortgage payments, then your lenders do not feel you qualify as an "in trouble" borrower (even though you will be in the near future).  Now one thing you have going for you is the 2nd mortgage company does not want to foreclose on your home because, they will have to payoff your 1st mortgage or will loss their equity position on your home when the 1st mortgage company forecloses out the 2nd mortgage lender.  The 2nd mortgage will not want to pay off the 1st mortgage company nor do they want to get your house back and owe more on the property than it is worth.  It is a no win situation for anyone.  So, your best option is to push hard on working out a lower rate and possible balance reduction with the 2nd mortgage lender while working on getting help from the 1st mortgage lender as well.

If you call me, I would be happy to ask an appraiser to do a free comparable search and provide a verbal determination of your value.  Zestimates are great to get an idea of possible value but a trained professional will be able to overcome the issues that can cause a zestimate to give you a false high or low value.  Once you have a better handle on your value, you will be able figure out what your true options are and will be better equipped to talk to your current lenders.

  • May 12 2010
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@ baccetta - You need to talk to a financial planner/advisor, and possibly an attorney. Based on what you posted, your situation is not going to be resolved by a HAMP refi, nor a shortsale (i.e., you will still have the additional debt beyond the house payment).

Bottom line is you need to deal with your whole financial situation, not just the house payment.
  • May 11 2010
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@ Patrick - Are you aware that Zillow prohibits posting of website, email, and phone contact info in the forums?
  • May 11 2010
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You have a hardship, so you would be a candidate for a short sale and possible a mortgage modification. If it is your primary residence, look over the HAMP and HAFA programs. Talk with a local Certified Distressed Property Expert (CDPE) in your area that is an expert on this exact situation. 

If you are in California, let me know and I can assist. 



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  • May 10 2010
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