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bought home in 05 with an interest only loan with arm for 350K and in 08 the value is 242K options?

I owe more on my home than the present value.  It's an interest only loam with an arm.  the first arm was in sept 08 at 8.50%.  It is due to change again in March.  what are my options.  I am current on payments?

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December 22 2008 - Alexandria
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Answers (3)

Good advise from Derek and JKuhney.  Most Lenders have a "modification" feature or a "streamline" program geared to their current customers who pay their mortgage on time.  Many people just don't know to ask.  Be leary of the deals that sound too good to be true...they are.  Waiting out the market might be your only option but I believe eventually the values will turn around.  Not like they were, but better than they are.  If your current Lender cannot help and you can afford the payment, then stay the course, while you are paying a higher interest rate, think of it like this...you have a little more interest to write off :)
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December 23 2008
Best thing for you to do is a loan modification.  It's a process in which you fill out a package requesting a change in loan terms more than likely the principal balance, interest rate or the term of the loan.  It's easy to do yourself and you should not pay a company thousands of the dollars on something you could do yourself.  Email me and i send you the package.  Click on my profile and email me "Loan Modification Package"  Good Luck and take care.

Oh the "False Hope for Homeowners Program" that's what we call it in the mortgage business it has too much red tape and it's a waste of time.  The program was started in July and only 312 people applied since  then  0 have avoided foreclosure! It's a joke and you should not waste your time.  Once more do a loan modification and Good Luck!
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December 23 2008
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First off, if you can still make your payments do so. If you are planning on living in the home for more than five years from now and the rate hike will not cause you to be late on your payments do not panic one bit. Right now, prices are at their lowest levels in years, but it doesn't mean it's going to stay that way forever.
Historically, home prices go in cycles. If you bought your home in 2005, you unfortunately bought it at the top of the swing, but it is not as if it will never regain its value. However, the bad news is it will take some time.

Back in the 1991, San Diego County's median home price was $171,000. Sure, it was low at the time too, but compare it to the "low" median price of $345,000 as of November and you'll realize someone who bought their home then still made out with almost twice the equity in their home.

If keeping the home is not an option, contact your bank/loan servicer immediately. RIght now, banks are in a lot of trouble and do not want to lose any more money than they already have. You may get lucky and they might try to work out a deal with you.

When all else fails, call HOPE NOW, a government-sponsored program that helps troubled homeowners refinance. 

NEVER pay to have someone help you with your mortgage problems who claims that for a small fee of $1,000 or more they can solve all your problems. The odds are it is a scam and you can get very similar services for free from various nonprofits.
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December 22 2008
 
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