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My husband and I bought our first home in April of 2006, 2 year fixed then turns adjustable (04/08). We got really behind on our mortgage in Nov. 2006 (due to an unforeseen job change). Situation got straightened out and in 4 months we paid back 23K. Now were on time and fine. We are supposed to refi in April. Our rate right now is 9.33 (100% financing with mediocre credit). Purchase price on our house was 285K and it originially appraised for 315K. Our same house down the road just sold for $224K (gulp!!!). Our chances of refi are slim to none. I've heard that some lenders are being nice and changing the terms of loans. Has anyone heard this? Is it as easy as it sounds? My initial thought was to just let them take the house and file bankruptcy. That sounds awful and irresponsible but, I don't know what else to do. We are looking at a possible mortgage increase of 2800.00 per month, that's insane, can't afford it.
you should see if you can refinance now...before another house gets sold.
if it was a foreclosure...you may be in luck. sometimes appraisers dont use a foreclosure for a comp....but will use it if there's more than 2.
FHA will give you a 30yr fixed rate of 6.75% or lower.
You cant have any credit lates in the last 12months.
Quote:
Originally Posted by pamperedrachel
My husband and I bought our first home in April of 2006, 2 year fixed then turns adjustable (04/08). We got really behind on our mortgage in Nov. 2006 (due to an unforeseen job change). Situation got straightened out and in 4 months we paid back 23K. Now were on time and fine. We are supposed to refi in April. Our rate right now is 9.33 (100% financing with mediocre credit). Purchase price on our house was 285K and it originially appraised for 315K. Our same house down the road just sold for $224K (gulp!!!). Our chances of refi are slim to none. I've heard that some lenders are being nice and changing the terms of loans. Has anyone heard this? Is it as easy as it sounds? My initial thought was to just let them take the house and file bankruptcy. That sounds awful and irresponsible but, I don't know what else to do. We are looking at a possible mortgage increase of 2800.00 per month, that's insane, can't afford it.
My initial thought was to just let them take the house and file bankruptcy. That sounds awful and irresponsible but, I don't know what else to do. We are looking at a possible mortgage increase of 2800.00 per month, that's insane, can't afford it.
If you do have to file don't feel horrible. There are thousands of others in the same position. This happened in the 90's too....many people were forced to walk away because they were upside down. I am NOT condoning filing for bankruptcy but if there is no other option for you then you need to do what is right for you and your family.
Just keep in mind that if you do walk away or file, there will be severe repercussions on your credit for a long time, so it is not a decision to be taken lightly. Good luck to you:-)
Thanks... we're going to do what we can... foreclosure and br are a last resort as we really love our house and if the payment would just stay where it is, that would be fine.
A while back on this forum, somebody once suggested that it is better to sell to a willing buyer (via a drastically lowered asking price ) before the house and 'you' go through a foreclosure. Is this 'sound' advice or not?
That does make sense, if it will sell... We live in Parrish, FL and houses are not moving at all. Our neighbors had their home on the market for almost 2 years at a very low price and nothing, although I'm sure if it was low enough, someone would snatch it.... I also have a friend that's in the process of "auctioning" her home. I'm not sure what it entails but she's going to keep me updated on the process and how it works out. She's in the same boat I am.
That does make sense, if it will sell... We live in Parrish, FL and houses are not moving at all. Our neighbors had their home on the market for almost 2 years at a very low price and nothing, although I'm sure if it was low enough, someone would snatch it.... I also have a friend that's in the process of "auctioning" her home. I'm not sure what it entails but she's going to keep me updated on the process and how it works out. She's in the same boat I am.
It would be better than walking away but you will still carry the balance of the loan if you do not have enough equity/purchase price to actually pay it off completely. But it will not show badly on your cedit report. So if the auction or dropping the price low will help you save your credit I would go for it. Keep us up to date.....Good Luck
There is a Federal Stop Gap program to help you keep your home. I would not delay but find a bank offering this program before it bites you. Ask that lender candidly what your options are.
If you are going to lose your home because of low equity during appraisal, you need to have that information now, while you have the majority of time to regroup. Almost all of these loans are sold on the open market and are only serviced at local banks.
My hat is off to you guys for bringing your mortgage up to date when you were behind...It took a fortune to do that and it will carry much weight with your next lender.
Good luck...
i would call an appraiser in the yellow pages...and just ask the appraiser.
I have appraisers ignore a foreclosure....they use 3 comps to the subject.
If there is a lot of foreclosures.....then that's a different story
make sure to check if there were more foreclosures in your subdivision
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Originally Posted by Schousse
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