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Old 04-29-2008, 09:43 AM
 
3,884 posts, read 8,768,989 times
Reputation: 1472

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Ok, so I was one of those stupid people who bought my house and listened to my mort. broker who advised me on this ARM. She told me that I could just refi in a couple of years before the arm hit. Wrong! The market fell and I now don't qualify for a refi. My payments have already gone up to 2700 a month for a 240,000 loan. I am working extra jobs to pay this but I don't have any room for an accident or illness and it's making me very nervous. As you all know I can't really sell in this market without paying out of pocket, my home which was appr. at 400,000 when I bought, is now 250,000 in this market. Not to mention all the bank owned properties and rentals on my street make it impossible to sell my home like a normal person. My husband has just taken a a new job because of a layoff and there was a paycut. So, does anyone have any advise in how to refi with a late payment on my mortgage? Or any program that would help me keep my home until I qualify for a refi without an arm? I have good health insurance but I might loose it so I can still make my payments but I have 3 children so I don't really want to do this. How can someone make this bad economy, and housing situation mixed with a naive first time buyer work for them? I don't want to walk away from my home, Im on time now, and am trying to hold on for dear life! Any help welcome. I don't need the lecture of being stupid about the arm though, believe me, every month I learn that lesson over and over and over again!!!!! I don't know why they are aloud to give arms if there is no good reason for it. We have a speed limit for stupid drivers, and car seat law for stupid parents and I think we need a Arm law for stupid home buyers. lol All these bank owned properties are killing me!!!!! Im trying to do the right thing now by sticking with it and everyone around me is running away! Am I just being stupid again? Should I be running with them? I bet they won't even get bad credit because of the "Hard times" with foreclosers right now. It is really making me upset lately.
Mean while I get a late payment or two because Im trying to stick with it. And get hit hard on my credit. Please someone, calm me down. lol
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Old 04-29-2008, 11:04 AM
 
3,698 posts, read 9,998,886 times
Reputation: 2593
How much is your household income, and how much are your other debts? Are you making credit card payments and car payments? If you have car payments, how much are the payments, how much are the cars worth, and how much do you owe on them?

Is there anything that you or your husband can do to bring in some extra money? Do you have a job, or can you get one? Can you clean houses for $25 an hour, or watch neighbor's kids or something like that?

I'm not sure about how likely it is that you'll be able to refi any time soon, so if the house is that important you need to buckle down and increase your income or reduce your spending. It might mean driving a 12 year old minivan that you paid $3000 for and not going out to eat and not taking big family vacations for a year or two.
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Old 04-29-2008, 11:48 AM
 
Location: Bike to Surf!
3,080 posts, read 9,703,957 times
Reputation: 2977
Everyone else was buying on ARMS when you bought on an ARM. That should have taught you not to follow the herd.

Do what it take to keep the house, refinance when the market comes back up, abandon it only if one of those "contingencies" comes up. Try renting out a room, cancelling/cutting back cable/phone/internet, ride public transportation, shop at thrift stores, etc.

Hold on and when the lemming herd is sitting around with crappy credit whining about how they can't even get someone to rent a decent apartment to them, you'll still be in your house.
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Old 04-29-2008, 12:11 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,157,598 times
Reputation: 5685
I would try renting a room out to a college student who is responsible. Not sure what people can do besides work two jobs.
I did read that Bank of America is working with Countrywide to come up with a program to help avoid any further forclosures. Have you talked to your bank/lender? That would be the first thing I would do. Best of luck to you.
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Old 04-29-2008, 01:28 PM
 
Location: Full time RV"er
2,403 posts, read 5,628,859 times
Reputation: 1459
Quote:
Originally Posted by twiggy View Post
Ok, so I was one of those stupid people who bought my house and listened to my mort. broker who advised me on this ARM. She told me that I could just refi in a couple of years before the arm hit. Wrong! The market fell and I now don't qualify for a refi. My payments have already gone up to 2700 a month for a 240,000 loan. I am working extra jobs to pay this but I don't have any room for an accident or illness and it's making me very nervous. As you all know I can't really sell in this market without paying out of pocket, my home which was appr. at 400,000 when I bought, is now 250,000 in this market. Not to mention all the bank owned properties and rentals on my street make it impossible to sell my home like a normal person. My husband has just taken a a new job because of a layoff and there was a paycut. So, does anyone have any advise in how to refi with a late payment on my mortgage? Or any program that would help me keep my home until I qualify for a refi without an arm? I have good health insurance but I might loose it so I can still make my payments but I have 3 children so I don't really want to do this. How can someone make this bad economy, and housing situation mixed with a naive first time buyer work for them? I don't want to walk away from my home, Im on time now, and am trying to hold on for dear life! Any help welcome. I don't need the lecture of being stupid about the arm though, believe me, every month I learn that lesson over and over and over again!!!!! I don't know why they are aloud to give arms if there is no good reason for it. We have a speed limit for stupid drivers, and car seat law for stupid parents and I think we need a Arm law for stupid home buyers. lol All these bank owned properties are killing me!!!!! Im trying to do the right thing now by sticking with it and everyone around me is running away! Am I just being stupid again? Should I be running with them? I bet they won't even get bad credit because of the "Hard times" with foreclosers right now. It is really making me upset lately.
Mean while I get a late payment or two because Im trying to stick with it. And get hit hard on my credit. Please someone, calm me down. lol
HELP IS THERE. yes calm down .Check you direct messages you are not alone>
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Old 04-29-2008, 01:44 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,104,457 times
Reputation: 952
FHASecure is the only program that would help as a refi solution with the late payments. Unfortunately, many believe that this program is just window dressing due to some of the guidelines and how willing existing lenders are to work on these programs. Another option would be a loan modification. There are companies popping up all over the place now that specialize in loan mods (beware though, there are many fraudsters taking advantage of the current market conditions as well).
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Old 04-29-2008, 02:04 PM
 
Location: Martinsville, NJ
6,159 posts, read 10,913,272 times
Reputation: 3939
Quote:
Originally Posted by twiggy View Post
Ok, so I was one of those stupid people who bought my house and listened to my mort. broker who advised me on this ARM. She told me that I could just refi in a couple of years before the arm hit. Wrong! The market fell and I now don't qualify for a refi. My payments have already gone up to 2700 a month for a 240,000 loan. I am working extra jobs to pay this but I don't have any room for an accident or illness and it's making me very nervous. As you all know I can't really sell in this market without paying out of pocket, my home which was appr. at 400,000 when I bought, is now 250,000 in this market. Not to mention all the bank owned properties and rentals on my street make it impossible to sell my home like a normal person. My husband has just taken a a new job because of a layoff and there was a paycut. So, does anyone have any advise in how to refi with a late payment on my mortgage? Or any program that would help me keep my home until I qualify for a refi without an arm? I have good health insurance but I might loose it so I can still make my payments but I have 3 children so I don't really want to do this. How can someone make this bad economy, and housing situation mixed with a naive first time buyer work for them? I don't want to walk away from my home, Im on time now, and am trying to hold on for dear life! Any help welcome. I don't need the lecture of being stupid about the arm though, believe me, every month I learn that lesson over and over and over again!!!!! I don't know why they are aloud to give arms if there is no good reason for it. We have a speed limit for stupid drivers, and car seat law for stupid parents and I think we need a Arm law for stupid home buyers. lol All these bank owned properties are killing me!!!!! Im trying to do the right thing now by sticking with it and everyone around me is running away! Am I just being stupid again? Should I be running with them? I bet they won't even get bad credit because of the "Hard times" with foreclosers right now. It is really making me upset lately.
Mean while I get a late payment or two because Im trying to stick with it. And get hit hard on my credit. Please someone, calm me down. lol
Something's not computing for me here. Follow along please, and show me where I'm not seeing things right.
First, you said the house appraised at $400k when you bought it, and is now worth $250k. Is that new valuation based on an appraisal? Where are you that property values have dropped 40%? And in what time period was this?
If you were able to put down over 40% (which it appears you did, just doing the math) why did you need to go with a risky or adjustable mortgage product?
You said your current loan is $240k, and your current payment is $2700 per month. Now, even if you are paying 8% interest (which there should be no reason to do in the current market) and even in $500 per month were being escrowed toward taxes, that $2200 per month at 8% would pay off a $250k loan in just over 16years.
You could get a conventional mortgage, with a 30 year term, even if you had to pay that same ludicrous 8% interest, with a monthly P&I payment of $1760.

So, what difficulty are you actually having?
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Old 04-29-2008, 09:52 PM
 
Location: CNJ/NYC
1,240 posts, read 3,644,963 times
Reputation: 408
Quote:
Originally Posted by Daddys///M3 View Post
FHASecure is the only program that would help as a refi solution with the late payments. Unfortunately, many believe that this program is just window dressing due to some of the guidelines and how willing existing lenders are to work on these programs. Another option would be a loan modification. There are companies popping up all over the place now that specialize in loan mods (beware though, there are many fraudsters taking advantage of the current market conditions as well).
I second this.
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Old 04-30-2008, 01:12 AM
 
3,884 posts, read 8,768,989 times
Reputation: 1472
Quote:
Originally Posted by Bill Keegan View Post
Something's not computing for me here. Follow along please, and show me where I'm not seeing things right.
First, you said the house appraised at $400k when you bought it, and is now worth $250k. Is that new valuation based on an appraisal? Where are you that property values have dropped 40%? And in what time period was this?
If you were able to put down over 40% (which it appears you did, just doing the math) why did you need to go with a risky or adjustable mortgage product?
You said your current loan is $240k, and your current payment is $2700 per month. Now, even if you are paying 8% interest (which there should be no reason to do in the current market) and even in $500 per month were being escrowed toward taxes, that $2200 per month at 8% would pay off a $250k loan in just over 16years.
You could get a conventional mortgage, with a 30 year term, even if you had to pay that same ludicrous 8% interest, with a monthly P&I payment of $1760.

So, what difficulty are you actually having?
Well, the property did appraise at 380,000, we bought it from my parents for 255,000. My mother had a stroke and my father was just told he had late stage Alzheimer's. Our credit was actually not bad or good. We didn't have much. Our mort. broker, a friend of the families, said after the appraisal we could borrow more but we were trying not to over tax ourselves and get in trouble so we declined. We just borrowed what was owed on the house with some extra for my parents because of my fathers medical bills. The other houses of this type were selling out of control for between 300 and 400,000. We have a interest rate of 9% and our payments went from 1850 to 2700 in the last year. Now, Im getting my houses worth, not from another apprasial, but from the prices they are selling them out on my street. The last 3 that sold were foreclosures and sold for way less than I could ever sell mine. 2 were abandoned early and one tried to stay and failed. But my area was one that was selling at inflated prices a couple of years ago. My only saving grace is that we didn't borrow on that "fake" equity we had back then. Most people who left had bought during the boom, my buying at that time was just a fluke. I was a first time homebuyer and trying to take care of my parents. My dad has since past, bless his sole. I have done all the things people have suggested I do. 2nd job, sold a car and work with one instead of 2. I have 3 children and a grandma already at this house so renting a room would be impossible. I already garage sale, and am slowly trying to improve my credit with a small paid credit card and this mortgage being on time. I live in Phoenix though and it was hit a lot harder than other places. People's equity fell about 40% in my area, some are worse and some are better. My score, despite my efforts is still at 620. Im trying to get it at 640 or over so I don't have to deal with another subprime lender. I hope by next year I will be able to refi and actually pay what most people would pay on a 240,000 mortgage. How often can this arm keep going up? It seems like there is no regulation and they don't care if you can't afford it or not. I guess Im wondering if it can just keep going up until Im forced out or is there a cap? I was and am so naive. I try to talk to them about it but to tell you the truth I can't understand a word of what they are saying in India. Don't mean anything by it, I just really can't carry on a conversation with them. They don't want to answer what I ask about either.
So I thought I would try here, but still, I don't know exactly what to do. I don't want to be a hud home, isn't that a bad thing? I'll just keep hoping I beat it before it beats me I guess. Thanks everyone.
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Old 04-30-2008, 01:14 AM
 
3,884 posts, read 8,768,989 times
Reputation: 1472
Quote:
Originally Posted by TwiloMike View Post
I second this.
ha ha, That's what my friendly mortgage broker did to me already. It was my fault on not being educated but how do you know they are not being truthful. The info on these things is hard to understand and writen in Alien. It would take a year to really be able to be ware.
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