Profile picture for allrig

financially strapped with a 2063 monthly mortgage payment. How can we reduce our monthly payments?

Bought our house two years ago for 276000 and now the property is worth about 189000. Able to hang on this long has been a miracle. All repairs made to home prior to purchase are failing. i.e.  Roof, Black mold around shower stall and so on. Credit debt is escalating just to make minor repairs. What's the best solution to obtain a lower monthly payment.
  • April 22 2010 - Vacaville
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Answers (5)

What do you currently owe on the property, current loan amount?  Do you know what your FICO scores are?
  • April 26 2010
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Profile picture for allrig
Interest rate is fixed at 6.125. My wife and I are both forced to work as much overtime as possible. Things have been slow at my work so my income has decreased a little bit. Not alot of time to spend with our two small children and our relationship is showing signs of fatigue. Not to mention that repairs that were made to house after the home inspection have begun to fail. i.e.(roof, black mold in bath) Thanks for your time.
  • April 24 2010
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How has your financial picture changed since the time of purchase?

What is your loan to value?

What is your credit score?

If you're in a good position, you might be able to refi.  You're best bet is to talk to your bank about modifying your loan.  If that doesn't work I'd suggest you contact a Mortgage Broker licensed to do business in CA to see if you're able to refinance into a lower interest rate or maybe an interest only program.
  • April 23 2010
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Profile picture for DaveAndersson
If the loan modification doesn't work out, then a short sale or deed in lieu of foreclosure may be the best options.
  • April 22 2010
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Speak to your bank asap and see if you qualify for a loan modification.  They will require you to prove hardhip as to why you can't afford the payments.  Has your interest rate gone up?  Has your income decreased?

Naima
  • April 22 2010
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