Profile picture for albatross1

Suggestions on how to get out of house

Need some help here.  I did everything right when I bought my house in 2006 - put down 28% (to get a conforming loan) had income to support the payments and more than 6 months emergency savings.  Now, with the economy in the toliet, lost my job in late 2007 and have seen savings erroded by the market downtown, but find myself stuck with a house that I can neither afford or sell.  I'm still making payments on time from savings, but savings will be gone soon.  Do I have to stop making payments and wait for foreclosure like so many others?  I'd prefer not to do that.

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October 19 2008 - US
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albatross - do you have any income?  How long till you can find a job?  No, I am not being horrible... here's why I ask - if it seems your situation is temporary, you're likely to be able to get a temporary modification from your bank.  But, if you've been out of work for a year... well, probably not.  Are you upside down?  If you sell, can you pay off the deficit with your savings?   can you rent it for your monthly payments, and/or make up the difference?  There are options, but without knowing more it's hard to help you... contact www.nw.org they will not charge you a thing and are there to help you.  Also, I'd talk with a local agent and find out what a likely sales price would be, what you might be able to rent it for, etc.  If you don't know an agent in your area, I'd be happy to refer someone to you - vchrisner@kw.com is my email, you can contact me privately. 

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October 19 2008
Profile picture for sunnyview
Do not spend any more of your savings on this house. Contact your bank immediately to request a modification. You may be able to get help doing this with a real estate attorney or even a smart realtor, but draining the rest of your savings into the house will not solve your problem or ultimately save your credit either.

Get on the road to changing this situation today. You have done your best, the market timing is just horrible as you said. It is NOT your fault and everybody need a hand sometimes. Please ask for the help you need. You have carried this burden long enough without help. Talk to your bank.
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October 19 2008

Albatross1:

Unfortunately you are one of many in this situation.  There is still hope though in many different forms.

 

You can contact your bank and ask them for help with your situation.  Many times they want to work something out with you rather then go through the drawn out foreclosure process.

 

You can speak with a local Realtor to see what you can price your home at for a quick sale and see if that works with your payoff amount.  In addition you can list your home and have your Realtor help you work with your bank on doing a "short sale".  With a short sale you will not make any money from your home but you will be able to sell for a price that is well below your current payoff and avoid foreclosure.

 

You can also speak with local rental agencies to see what your rental value is.  If you can rent your current home for the monthly mortgage payments this gives you another route to avoid foreclosure.  Once you are back on your feet you can move back in.  In the meantime you can find a rental of your own that is more affordable for your current situation.

 

I wish you the best of luck in your future!

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October 19 2008

albatross, if you would like to email me via my contact page I will forward a full shortsale package to you that you can read over. (it's not mine..just one i got my hands on via a friend)    it explains how to write the letter and what the loss mitigation department wants to hear.  you will have to do the research of where it needs to be sent etc.  List the home asap with an agency even a flat fee is fine but usually the bank wants to see that it's is being marketed effeciently for sale.

 

p.s. sorry to hear about your unfortunate circumstances.

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October 19 2008
Profile picture for albatross1

Thank you for the suggestions and giving me some options to consider.  vchrisner, I have been working when I can find something, which has been intermittant consulting and at half my previous pay rate.  The website www.nw.org doesn't connect, so wasn't able to check that information out.  There is a tremendous amount of inventory in my area, many new homes, none of which are selling, so I don't think selling quickly is a viable option.  My loan is with Countrywide.  I tried talking to them, but got nowhere.  My loan is interest only, (remember the big down payment) so they haven't been interested in options, especially since I haven't missed any payments.  I live in a small upscale community where there isn't much demand for rental, but I will check with a local realtor.

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October 20 2008
Profile picture for sunnyview
Spec made you a really nice offer of the short sale packet. I would take it. Sometimes it is being able to tell a bank what they want to hear. I think listing it for sale is also a really good idea especially if you list it for your loan price plus commission to send a message to the bank. Get some time on the market under your belt and resolve not to continue in your situation. Sell if you can or let it go. This house is not worth all your savings. No house is. Things will get better, but you need a plan to be able to move forward. That short sale packet may be your first step on the road to somewhere better.
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October 20 2008

Countrywide is actually one of the few companies that will take your information first over the phone, When you call ask for the loan modification or loss mitigation department (customer service will not be able to help you). Once you get through to the right department they will ask you many questions regarding your financial situation.

Good luck

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October 20 2008

Countrywide "Home Retention Team"
Try this number and have your account # ready
1-800-669-6087
Remember to always ask for another number if they can't help you (even when they are going to transfer you, it will save time).

 

The process can be frustrating at best, just keep moving forward

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October 20 2008
Profile picture for albatross1

I called Countrywide - this is the number for the retention team 1-800-669-0102.  The next steps are to submit a lot of paperwork, including bank statements, tax returns, etc.  When they see that I still have savings, I'll bet they don't offer anything; also because my payments are current.  What little information that I got over the phone, it sounds like this is a last resort available only when you can't make payments.

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October 24 2008

I am sorry to hear about your situation. Some body here already said it, save your money and don't make any more payments. Yes, your credit it's going to be affected, so what? You can always fix it back. Remember, life is more important than anything else and your current situation is putting a lot of stress on it. Do what needs to be done to get rid of this stressful situation and do not feel bad whatever the outcome may be. Take care of your needs first, that way you will be in a better position to determine what to do next. After all, it is not your fault that we are going through these tough times. Best of luck to you!

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October 26 2008

The first step is to contact the bank and let them know your situation.  People are always amazed to learn that they will actually talk to you.  Keep in mind it's in their best interest to keep you paying monthly.  Don't even consider foreclosure especially since you're making payments.  I handle foreclosures and can tell you first-hand if you have your home taken away from you no one in their right mind is going to rent you a home much less finance you to buy another one.  What about renting the property out?  Even if you end up kicking in money on top of the rent to cover the mortgage that's still better than destroying your credit through foreclosure.  Move in with friends, your parents, do anything but let them take your house back!!

 

I would get yourself hooked up with a realtor who knows how to deal with the banks and see what they can accomplish for you as well as talking to your attorney.  If I had more specifics I could be of much more service to you as well.

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October 27 2008
Profile picture for johnnyr41

They typically wont work with you till you missed some payments. I see regularly that banks are dropping your rate to 3.5% for the next 5 years and tacking on your missed payments to your principal ballance. In florida it takes along time to foreclose and with countrywide because they are being taken over by bank of america you will see they are re doing tons of loans. But none of this matter is you dont have any money comming in to even pay the reduced mortgage.

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October 29 2008

Albatross1 - I'm experiencing the same issue.  Huge mortgage, self employed, on the market for over 1 year, no savings.   I am weighing my options.... rent, short sale, foreclose.  A question to put out there is...... What exactly is the impact of a short sale over foreclosure on one's credit?  Is one worse than the other?  If a short sale is a 3 year ding, but you're saving a ton by getting out of big mortgage and you really can't qualify for a loan due to employment (regardless of credit) - is it a terrible choice?

 

 

 

 

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October 29 2008
Profile picture for wetdawgs

twaski:   short sale/foreclosure have a similar point impact on your credit score (200 to 300 points).  However, the years until you can buy again are different.

 

Please be aware with short sales,  sometimes you have a deficiency judgement so are not fully out of the mortgage.   Please talk with your lender and a real estate lawyer to know the rules in your state.

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November 01 2008
 
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