What have I done. stopped paying to get a modifacation but I have pmi....HELP (insurance) - City-Data Forum

chrome1 · 08-03-2010, 09:22 AM

Please anyone advice

. I have a home that we have never missed a payment on until recently things have gotten tough. I filled bankrucpty about a year ago and the house was not on it. My house payment is way too high and I am upside down. So a friend mentioned to stop paying the payment and they will offer me a loan modification which would really help because I have a 7.25 intrest rate I did this but then realized that I have PMI

insurance... so what happens now? My house is probably worth 165,000 and we owe 179,000. I just got a letter and it said they would consider taking it off if we have we were not 30 days late with a apprasial which is not even worth it anyway cause it seem like were upside down....... I think it will be 30 days late in a couple of days!!! So am I unable to get a loan mod if i have PMI?

WOWAddict · 08-04-2010, 06:57 AM

I would get the appraisal. That is not really that upside down. My guess is your looking at Zillow or something to estimate your house worth or a recent sale. If that is the case an appraisal may find your house is worth what you owe and you could refinance. Especially if your house is in good shape and has extra features compared to the rest of the neighborhood.

hiknapster · 08-04-2010, 10:52 PM

HOLD UP. You can have your mortgage modified, PMI or not. In fact, most folks in trouble have PMIs. It's common. Also, there are special programs if you are upside-down. Don't panic.

This is the official website. Don't get involved in anything else. There are a lot of scams out there. Read this website very carefully. It will tell you EXACTLY what to do. Take a deep breath. It's okay.

Making Home Affordable - Home

Wmsn4Life · 08-05-2010, 07:28 AM

Yes, the LAST thing you want to do is just stop paying. It will get their attention, but not any attention that you want.
Having worked in collections before

, I know that the lenders at least want to hear from you. You should contact them and let them know what's going on and ask for help. Make whatever payment you can, even if it's not the full amount, to show that you are trying in good faith.
Don't just stop paying. That is default.