losing my home to an A.R.M. (mortgage, credit)

[patmac]

Ok folks, I'm losing my home to a &*%$##!! adjustable rate thing. Oh my gosh, I just got the letter. I have been paying the bills according to a "repayment plan" they set me up on, but now they are saying, "Sorry, you didn't/don't qualify for that 'repayment plan' we originally set you up on." I want to just let the house go back 'cause I am so pissed at them, but at the same time, I need my home (three small children). Plus, I could just "short sale" it and get out from under it. BUT, a dad-gum apt. is like a thousand a month, NO GARAGE, NO YARD !!!! What in the World am I gonna' do now? !

[artemis]

check Dave Ramsey's site, he has been addressing these kind of issues lately.

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

[gbone]

Originally Posted by patmac

Ok folks, I'm losing my home to a &*%$##!! adjustable rate thing. Oh my gosh, I just got the letter. I have been paying the bills according to a "repayment plan" they set me up on, but now they are saying, "Sorry, you didn't/don't qualify for that 'repayment plan' we originally set you up on." I want to just let the house go back 'cause I am so pissed at them, but at the same time, I need my home (three small children). Plus, I could just "short sale" it and get out from under it. BUT, a dad-gum apt. is like a thousand a month, NO GARAGE, NO YARD !!!! What in the World am I gonna' do now? !

Patmac, I'm a little confused. You recently started posting on here and I thought I remembered one of your posts so I looked it up. In that post you said that you didn't believe in using credit cards, and if you didn't have cash for it then you didn't buy it. You also made reference in another post about a house you were getting ready to buy. Another post said you were a District Manager. These posts, compared to your post today, sounds like two different people talking. How did you get into financial problems if you only pay for things if you have the cash? How can you talk about a house you are about to get and then post today about losing your house to an ARM?
I would appreciate any clarification.

[akm4]

Good for you gbone, for lookin it up. I just read this OP and thought it sounded phony as can be.

[patmac]

I'm not phony as can be, you people can talk like whatever you want over the internet. I said in my first msg on here that, yes, I am a District Manager for a dad-gum insurance company and I'm not making squat. It's straight commission and I have a product (Health Insurance) that people need, but don't neccessarily want. That is half of the problem. The other half of the problem is that I have an adjustable rate mortgage. The original payment was $864/month in November of 2004 when I closed on the home. NOW, it has adjusted like four (4) times and the payment is $1,651!! I cannot re-fi because of an unseen car wreck (I was on foot and a car hit/clipped me and drug me for a mile: 75 staples in my head, two broke ribs, separated shoulder) so my credit is still damaged because of not being able to work for four months. No work, no commission. Hence, the losing my home. Also, NO I do not have any credit cards. I never have, I never will. And yes, I pay for things with cash. I have a 2004 Dodge Stratus (paid for) and a 2002 Expedition (paid for). My appliances are not financed at sears, my furniture is not financed at Rooms to Go. If I need a new washer and dryer, water heater, I buy it. BUT, have no control over this a.r.m. on my home. I do not have $150,000 cash. And in reference to a home I'm looking to purchase, I do not remember that, but MY FATHER and I want to start "flipping" homes. His credit, my labor. I hope that clears things up ("clarification").

[patmac]

please gbone, tell me where I mentioned the purchase of a new home. I just went through all of few msgs of mine and I did not see that. I would appreciate any clarification.

[artemis]

Patmac, is there any chance you can sell one of your vehicles?

Perhaps the cash from that sale can tide you over for a bit.

[akm4]

My mistake. I apologize.

[gbone]

Originally Posted by patmac

please gbone, tell me where I mentioned the purchase of a new home. I just went through all of few msgs of mine and I did not see that. I would appreciate any clarification.

Patmac, on 11/29/07, in another thread you state, and I quote, "I have a three bedroom home......that is around the price that I'm buying". I read that to mean you were buying a home. I apparently misunderstood what you intended to say. I was just basing my comment on what you said.

[#Littledog]

I'm so sorry you're having these financial problems. Medical costs and being out of work with an injury can definitely change someone's financial profile very quickly. I would consult with an expert before making any big decisions. Dave Ramsey is an excellent resource.

One thing Dave Ramsey would recommend is to get a hold of some cash ASAP if you don't have an emergency fund. That means you will have to sell some stuff, pick up random part-time jobs (are you fully recovered from your injuries?), maybe dip into any retirement savings. I know it sucks and it won't be fun for a while but you need to get out of your "debt snowball" (as Dave would call it). That's great that you don't have credit card debt and your cars are paid off. You are already far ahead of many others who are in your situation. Whatever you do, resist the urge to take out a loan or open up credit cards to get out of your situation. That is robbing Peter to pay Paul. But it sounds like you wouldn't do that anyways.

Can you sell your house? I'm not sure what the market is like in your area. Our friends just got out of a $2300/month mortgage they couldn't afford. They sold their house and are renting a small cottage from a friend for $525.00/month. They have 3 children under the age of 5 years. Their other house had four bedrooms and 3 full baths and was about 2800 square feet but they couldn't afford it! Their rental home is 2 bedrooms, 1 bath and under 1000 square feet but they are sooooo happy because they have no more financial stress. You can do it!!! If you sell your home and rent, it will only be temporary until you get back on your feet again. Children are resilient and you are teaching them an important lesson about how to problem solve out of a problem (vs playing the victim card). Renting an apartment or a small house is better than living in a homeless shelter or out of your car! Maybe you can find a place that will allow you to be an apartment manager and you can get a reduced rent payment.

Best of luck to you!