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Thread summary:

Mortgages: real estate, market, affordable, financial advisers, foreclosure.

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Old 09-21-2008, 09:44 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,117,377 times
Reputation: 908

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Quote:
Originally Posted by JerseyGirlinFL View Post
Thanks so much for your advice. I have just skipped my first mortgage payment, and it nearly killed me to do so. But as you said, thats the way to get the bank to talk to you. I am waiting now for the letters and the phone calls. I am working with a company who specializes in short sales and bank negotiating. This whole thing is a nightmare.
Thank you for your comments. I'll make sure to read your postings.

Hi,
be careful with those companies that "negotiate" for you.. you shouldn't have to pay ANYTHING and you can easily do it yourself.

Here's what you need to do. Call the bank and ask to speak to the loss mitigation department. Tell them that you can no longer meet your mortgage obligation with the adjustable rate.

YOu need to let the bank know that you are serious about doing the right thing here that's best for them and for you. Tell them that you would like to stay in your home if possible. Ask if it is possible to work out a loan modification.. particularly to lock in your rate at a fixed rate (that i s if you can pay at a fixed rate, particularly your initial fixed rate). And if they are offering any such help. Ask them if they are participating in the group of lenders that are working with the gov't on voluntarily restructuring.

if they are.. you will have to fill out Request for help paperwork and show income, etc. If you are self employed you need to show a profit/loss sheet and I think 2 months of bank statement. List all your monthly obligations including credit debt, etc. (they usually ahve a worksheet with a list of things and what you pay a month)

You will qualify if you show that your expenses exceeds your monthly income..

What you qualify for will depend on what they are offering.. loan modification, etc.

IF they are not offering a loan modification and they outright refuse (they will ask for the information first before they refuse.. atleast mine did) then bring up that you want to do a short sale. Since they already have your information they probably will approve you for it.. then you get your realtor. etc.

Key thing is to have a person assigned to you at the bak that YOU communicate with on a regular basis. They are more likely to cooperate with you no matter what resolution you come to with them if you re proactive. I do believe me being so proactive in my situation helped me in the end..

Again.. you do not have to hire anyone to do any of this for you! Short selling your house should not cost you a penny (but you won't get not even a penny either) ..

You can DM me and keep me posted if you life..

I'm at the end of mine.. I even had a federal lien that the bank wasn't going to do the short sale with it attatched.. but I fought.. becasue I basically told them I have nothing to loose at this point. i got them full appraised value for the house with 3 offers and if they passed this up then they would end up loosing a lot more in the foreclosure process. There just isn't enough time for me to get the lien removed without loosing the buyers that I have. We are now in contract and my buyers should have their commitment by Friday.. I"m in the home stretch..

I'm loosing my shirt on my house.. but atleast I'm getting out from underneath the most stressfull situation I have ever faced!!

Good luck.. keep me posted.
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Old 09-21-2008, 10:53 PM
 
52 posts, read 97,172 times
Reputation: 21
Quote:
Originally Posted by TristansMommy View Post
Hi,
be careful with those companies that "negotiate" for you.. you shouldn't have to pay ANYTHING and you can easily do it yourself.

Here's what you need to do. Call the bank and ask to speak to the loss mitigation department. Tell them that you can no longer meet your mortgage obligation with the adjustable rate.

YOu need to let the bank know that you are serious about doing the right thing here that's best for them and for you. Tell them that you would like to stay in your home if possible. Ask if it is possible to work out a loan modification.. particularly to lock in your rate at a fixed rate (that i s if you can pay at a fixed rate, particularly your initial fixed rate). And if they are offering any such help. Ask them if they are participating in the group of lenders that are working with the gov't on voluntarily restructuring.

if they are.. you will have to fill out Request for help paperwork and show income, etc. If you are self employed you need to show a profit/loss sheet and I think 2 months of bank statement. List all your monthly obligations including credit debt, etc. (they usually ahve a worksheet with a list of things and what you pay a month)

You will qualify if you show that your expenses exceeds your monthly income..

What you qualify for will depend on what they are offering.. loan modification, etc.

IF they are not offering a loan modification and they outright refuse (they will ask for the information first before they refuse.. atleast mine did) then bring up that you want to do a short sale. Since they already have your information they probably will approve you for it.. then you get your realtor. etc.

Key thing is to have a person assigned to you at the bak that YOU communicate with on a regular basis. They are more likely to cooperate with you no matter what resolution you come to with them if you re proactive. I do believe me being so proactive in my situation helped me in the end..

Again.. you do not have to hire anyone to do any of this for you! Short selling your house should not cost you a penny (but you won't get not even a penny either) ..

You can DM me and keep me posted if you life..

I'm at the end of mine.. I even had a federal lien that the bank wasn't going to do the short sale with it attatched.. but I fought.. becasue I basically told them I have nothing to loose at this point. i got them full appraised value for the house with 3 offers and if they passed this up then they would end up loosing a lot more in the foreclosure process. There just isn't enough time for me to get the lien removed without loosing the buyers that I have. We are now in contract and my buyers should have their commitment by Friday.. I"m in the home stretch..

I'm loosing my shirt on my house.. but atleast I'm getting out from underneath the most stressfull situation I have ever faced!!

Good luck.. keep me posted.
Thanks again for your advice. The company I am working with is a legitimate one. I have a good 30 year fixed loan, so I don't need restructuring. I just need to get rid of one of my two houses! Right now, my house is listed at a low short-sale price. When I get an offer, my company will negotiate to get the short sale approved. Yes, this is the most stressful situation I've ever been in. But I blame the banks and the mortgage companies, I don't believe they didn't know what was coming.

Anyway, I am glad that you're almost through. Best of luck to you on the completion of the sale! Thanks again for your advice.
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Old 09-22-2008, 02:40 PM
 
24 posts, read 102,377 times
Reputation: 29
Hello,

I have a similar story to yours. My situation is that my income is pretty good, but sporadic. So, in lean times like now, I am subsidizing one house with savings. Now the savings are severely depleted and I've decided not to pay anymore on the old house. I feel your pain. Now, I'm worried what will happen when its all said and done.

Tristansmommy, what is a federal lien?
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Old 09-22-2008, 02:54 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,117,377 times
Reputation: 908
Quote:
Originally Posted by whatshouldido View Post
Hello,

I have a similar story to yours. My situation is that my income is pretty good, but sporadic. So, in lean times like now, I am subsidizing one house with savings. Now the savings are severely depleted and I've decided not to pay anymore on the old house. I feel your pain. Now, I'm worried what will happen when its all said and done.

Tristansmommy, what is a federal lien?
Hi.

IRS..

While renovating our house we also had a baby and well.. I'll admit some poor planning on our part. Being self employed we fell behind on our income taxes (we hadn't been self employed that long and i wasn't used to taking into account taxes.. not an excuse mind you.. ).. We had put every penny into our home When we were aware of it we had planned on taking care of it after we finished getting hte house done and refinancing into our fixed (we didnt' plan on taking any money out if we did that.. only to get the rate fixed).. then we'd have enough income to start paying off our back IRS debt .. But unfortunately when it rains it pours and the IRS put the lien on our property. It's not a ridiculous amount.. but big enough where I don't have that kind of money just laying around to pay it off at once. It is significantly less than the difference between the minimum the bank was willing to accept vs what they got for the house.. meaning they still got a nice chunk over what the bottom they would have taken for the house, to cover the portion of the lien i couldn't. I will be going to the closing table with some of the lien debt to pay it off ..

The house couldn't be sold without it.. there isn't enough time to get it removed before the short sale would have to be finished without losig the buyers and the deals we had on the table.. so the bank came to their senses and realized that it was smarter for them to take it and pay part of lien as a cost of sale on the house rather than lose the buyer and lose the good price they were getting for the house.

The positive side for me is that while I'm loosing $100K on my home between down payment and improvements by short selling and walking away with nothing.. I atleast got the IRS debt taken care of .. although it's a very small fraction of what i'm actually loosing..

Some hard and very expensive lessons learned.. but I"m already past it and lookign forward to moving to my new state and in the house we are going to rent (and hopefully someday buy.. once we recover from this whole thing!)
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Old 09-22-2008, 03:18 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,150,484 times
Reputation: 5685
I am not sure that most of the people walking away while dreaming of their next home purchase realize the catastrophic impact this has had on our country. We may not have a country left to buy moldy bread in let alone another house. Makes me sick.
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Old 09-22-2008, 03:25 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,117,377 times
Reputation: 908
Quote:
Originally Posted by MotleyCrew View Post
I am not sure that most of the people walking away while dreaming of their next home purchase realize the catastrophic impact this has had on our country. We may not have a country left to buy moldy bread in let alone another house. Makes me sick.

I understand that.. mind you I"m not walking away for the sake of just getting out of a house that is underwater. I would have gladly stayed, but i can't afford the payments any longer as I got trapped in an ARM.

This is a recovery process for those loosing their home. I went from being a very proud homeowner who worked hard for her house and all that i did to it to taking 10 steps back and loosing my life savings in the process. That's not your fault, mind you.. it's just bad timing, circumstances and buying with the wrong product (ARM). So.. should I not dream about moving into my new home, picking myself up and fixing my finances, savign up and then buying another home in the future.. or should i just shrivel up and never dream of owning my own home again.. I worked hard to put money down on my home that I bought.. and I'll to work even harder to buy the next.. .. and learn from the mistakes I made when I purchased this one.
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Old 09-22-2008, 11:58 PM
 
52 posts, read 97,172 times
Reputation: 21
Quote:
Originally Posted by MotleyCrew View Post
I am not sure that most of the people walking away while dreaming of their next home purchase realize the catastrophic impact this has had on our country. We may not have a country left to buy moldy bread in let alone another house. Makes me sick.
I dont think you are putting the blame where it really belongs. The catastrophic impact on this country and its economy was largely and mostly due to what the BANKS did.. and don't tell me they didn't know better. I, as a homeowner not in the real estate or mortgage business or bank business had NO IDEA what was going on with banks and mortgages. I just thought it was a hot real estate market so I wasn't worried about my house selling. Even if the market came down, I knew that I could lower my price and sell, no problem. But I didnt know the banks were courting disaster! How could I have known that? Stop judging people. Start judging the banks who made tons of money then, & are getting bailed out now.
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Old 09-23-2008, 12:00 AM
 
52 posts, read 97,172 times
Reputation: 21
Quote:
Originally Posted by whatshouldido View Post
Hello,

I have a similar story to yours. My situation is that my income is pretty good, but sporadic. So, in lean times like now, I am subsidizing one house with savings. Now the savings are severely depleted and I've decided not to pay anymore on the old house. I feel your pain. Now, I'm worried what will happen when its all said and done.

Tristansmommy, what is a federal lien?
I am sorry to hear that you're in this mess also. What are you planning to do, a short sale?
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Old 09-23-2008, 09:03 AM
 
127 posts, read 378,714 times
Reputation: 103
Ok, not singling any one person out here but yes, the lenders share the blame and now we are all paying for it - but at some point, we are all responsible to ourselves. If you took out an ARM and cannot afford the higher payments when the ARM resets, how is that the Bank's fault? If you bought a home before selling your existing home, therefore assuming two mortgages, how is that the banks fault? Just because the housing market has been hot, does not mean it will stay hot. that holds true for any market. Why would you take a lender's word regarding what you can afford and what you cannot afford? Only you know your spending habits, the security of your career, and what you can comfortably afford every month - why would you let a bank dictate that for you? People need to think for themselves, educate themselves, and take responsibility for their decisions. When I bought my house, my lender told me I could be approved for almost twice as much as I borrowed. I knew damn well there was no way I could ever afford that kind of payment so I went with a mortgage I knew I could afford - it was my decision, not the banks.

Last edited by rtjr; 09-23-2008 at 09:22 AM..
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Old 09-23-2008, 10:22 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,117,377 times
Reputation: 908
Quote:
Originally Posted by rtjr View Post
Ok, not singling any one person out here but yes, the lenders share the blame and now we are all paying for it - but at some point, we are all responsible to ourselves. If you took out an ARM and cannot afford the higher payments when the ARM resets, how is that the Bank's fault? If you bought a home before selling your existing home, therefore assuming two mortgages, how is that the banks fault? Just because the housing market has been hot, does not mean it will stay hot. that holds true for any market. Why would you take a lender's word regarding what you can afford and what you cannot afford? Only you know your spending habits, the security of your career, and what you can comfortably afford every month - why would you let a bank dictate that for you? People need to think for themselves, educate themselves, and take responsibility for their decisions. When I bought my house, my lender told me I could be approved for almost twice as much as I borrowed. I knew damn well there was no way I could ever afford that kind of payment so I went with a mortgage I knew I could afford - it was my decision, not the banks.

When looking individually..yes.. you can't neccesarily blame the bank for your own personal situation because you signed the papers.

However.. when looking at the entire picture of what is going on with financial markets you can't blame the homeowners.. because ultimately it was the banks/ wall street that were at the wheel of the whole movement.. THEY were the ones that are/were responsible for who got what mortgage. So whereas the homeowner is responsible for only themselves.. the banks/wall street are responsible for the entire economy.

And basically.. they screwed the pooch!! BIG TIME!
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