Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Honestly, I don't think you have many options. Underwater mortgages are hard to do anything with. Talk to your lender and see if they're willing to work with you since the odds of someone else taking you own via refinance are pretty slim.
If you owe about 51k on a property worth 43k, you have an issue. Refinances aren't an option with an underwater mortgage. Most places would only lend you about $39k for that property. That's significantly less than the $51k you need to get out of your current mortgage.
I gave you specific advice in the other thread you started:
Use these websites to discover who owns your loan. If one of the two giants owns the loan, you have options to refinance, perhaps, relatively regardless of value. I use those qualifiers because there are other components to Qualification.
And if you do not have a Conventional loan, please let us know if you have an FHA. VA or USDA loan.
The 7% may be high, but if he refinances back into another FHA loan, his MIP is going to go sky high, and his payments might actually go up. FHA has lifetime MIP now, and you might get yourself into a worse situation.
The 7% may be high, but if he refinances back into another FHA loan, his MIP is going to go sky high, and his payments might actually go up. FHA has lifetime MIP now, and you might get yourself into a worse situation.
Please give me a scenario in today's market where FHA+lifetime MI is higher than a lifetime 7% mortgage.
Some people prefer to pay them on their own, or even resent a lender or servicer for "keeping their money and earning interest on it all year," or they fear the dreaded Escrow Shortage.
Or people get a bonus in pay at tax time and prefer the lower monthly payment.
By and large, IMO, it is more convenient to have it all bundled in. Every opinion about this topic is valid, though.
And this is exactly what has just happened to me smh funny how I asked in this same thread before I purchased to try to get advice and prepare for it and it still happened to me
I am in my first year of purchase so I can understand it happening the first time.
I'm just wondering how I can prevent it from happening again.
And this is exactly what has just happened to me smh funny how I asked in this same thread before I purchased to try to get advice and prepare for it and it still happened to me
I am in my first year of purchase so I can understand it happening the first time.
I'm just wondering how I can prevent it from happening again.
When people focus on the escrow shortage, it's really focusing on the wrong thing.
Last year, let's say you had taxes of $3,000. That means that every quarter, you need to pay $750. Most people don't do well with large payments and instead deal with them easier as monthly payments. That's what your escrow does. Instead of paying $750 every 3 months, you put $250 into an account each month so that on the 3rd month, you have enough to pay the $750 bill.
When your taxes go up though, you need to pay more. That's all there is to it. If your taxes go up from $3,000 to $3,600, you're going to have to pay $300 per month.
The "escrow shortage" just means that if you were to keep paying $250/month, you won't have enough in your account to afford the tax bill in the 3rd month. Your escrow has nothing to do with it, your taxes and/or insurance are entirely the reason for it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
