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If you've read my other posts you know my story.. Briefly here.
I have a conventional Arm. Iw as considered and ALT-A borrower becasue I'm self employed.. and I went stated but not entirely without documention (they asked for 1 year of bank statements). I had a 6.95% interest rate paying about $3000 / month for my small home in Levitt for about 2 years. I did put money down . Basically the home was appraised at $450 and I had a $400k mortgage. When I went to refi, of course still self employed, score even BETTER than it was when I took out the mortgage BUT equity not there so LTV too high at this point and the product for self employed and now with the LTV was pretty much pulled from the mortgage shelf. Now trapped in an ARM that I can't afford the adjustments in.
Have been trying since August to work something out with the lender.. and hvae gotten NOWHERE. Apparently my mortage is in some kind of pool on the stock exchange.. (as a side.. they've hired wells fargo to service who then turned around and hired Midland to service.. as if that makes any kind of sense!!.. but anyway!) I'm still nowhere and in default.
Want to keep my home.. for lots of reasons. Honestly.. I really have been paying a "normal" mortgae.. not a low teaser or interest only situation.. so I really CAN afford it.. and have for 2 years ON TIME! I don't feel I deserve to put out. BUT.. because my loan isn't Subprime Im' not getting anywhere with re-negotiating the mortgage to a fixed interest rate (I've even said.. hey lets fix and extend the maturity to compensate.. NOTHING!!).
I've heard about Chapter 13 and that it is pretty much NOT a discharge of your debt.. I'm not looking to do that.. as I can meet my other obligations and have..and want to however,, could Chapter 13 force the issue with the mortgage company to modify the terms of the mortgage to a FIXED interest rate, etc? I haven't consulted with an attorney yet.. and thought I'd pose the question here to see if anyone knows the answer. BTW.. I'm in NY, in case you didn't know that.
yes, you can ask for a modification of the mortgage terms in a Chapter 13, and a court can force the mortgagee to take it, but usually a judge tries to let the creditor and debtor negotiate. Sometimes the threat of bankruptcy is all thats needed to renegotiate your debt so if your thinking of bankruptcy, consider threatening, through a lawyer, bankruptcy. (not on your own as it will be seen as an empty threat).
That being said, you have a decent interest rate, and I'm not sure what you could re-negoatiate. If your intent is to get the mortgage company to simply lower your balance due, a lower appraisal is not justification to a bank.
yes, you can ask for a modification of the mortgage terms in a Chapter 13, and a court can force the mortgagee to take it, but usually a judge tries to let the creditor and debtor negotiate. Sometimes the threat of bankruptcy is all thats needed to renegotiate your debt so if your thinking of bankruptcy, consider threatening, through a lawyer, bankruptcy. (not on your own as it will be seen as an empty threat).
That being said, you have a decent interest rate, and I'm not sure what you could re-negoatiate. If your intent is to get the mortgage company to simply lower your balance due, a lower appraisal is not justification to a bank.
My interest rate WAS 6.95 and now has adjusted to 9.95 increasing my payments by $800/month and could go as high as 12.95% at the cap as it adjusts every 6 months. I can't afford the first adjustment.
At first I was asking to just keep it where it was at.. I will consult and attorney and try to get it lowered.. even down to the low 6's would be best .. making my payment UNDER $3000 a month.
Thanks for the information. Now.. do I go to a Real Estate attoreny or one that specializes in bankruptcy?
Hope this will wake your lender up and make them work with you rather than foreclose.
Quote:
Originally Posted by TristansMommy
even down to the low 6's would be best .. making my payment UNDER $3000 a month.
Why would you do that? I thought that your home business was doing fairly well and you could make your current payments and even afford a small upward adjustment (say jumping to a 7% fixed or something).
Why do you now need to lower your interest rate below the introductory rate on your ARM just to stay out of bankruptcy?
Hope this will wake your lender up and make them work with you rather than foreclose.
Why would you do that? I thought that your home business was doing fairly well and you could make your current payments and even afford a small upward adjustment (say jumping to a 7% fixed or something).
Why do you now need to lower your interest rate below the introductory rate on your ARM just to stay out of bankruptcy?
Well .. I could afford my current.. but i could also use some breathing room.. It's tight.. and with the cost of everything else shoothing through the roof... I'm not looking for much more room.. but a little more.. heating oil was over $150 more a month than last year.. and my grocery bill.. gadzooks!!
i will be happy if I could just get it at the introductory rate.. but to get it down below that slightly.. not much.. would certainly be better. .. again.. would just try and the best I could hope for is to have it stay at the introductory.
Do you not think EVERYBODY in America is facing the same thing? Do you think you're the only one whose heating bill is through the roof, whose groceries are skyrocketing, who could use a little breathing room? Things are tighter for everybody, and many people are feeling a lot more pain than you.
I'm beginning to think you're a troll, because surely, nobody could be as selfish and self-centered as your posts indicate.
Under the current law, a Chapter 13 plan for adjustment of debts of an individual debtor may modify the rights of holders of secured claims, other than a claim secured by a security interest in real property that is the debtor’s principal residence. See 11 U.S.C. § 1325(b)(2). There is a bill pending before Congress (S. 2136) sponsored by Senator Richard Durbin (D-IL) that would amend the bankruptcy law to permit a Chapter 13 debtor to modify a loan secured by the debtor’s principal residence and provide for payment of such loan at a fixed annual percentage rate over a 30-year period; however it has a long road to hoe, and faces stiff opposition by mortgage lenders. Chapter 13 may still provide some relief by reducing the payments on your other debts, thereby making more money available to pay your mortgage.
The bankruptcy law is very complex, and even a simple case requires expert advice and assistance. You should consult with an attorney that specializes in bankruptcy law for specific advice and representation.
Under the current law, a Chapter 13 plan for adjustment of debts of an individual debtor may modify the rights of holders of secured claims, other than a claim secured by a security interest in real property that is the debtor’s principal residence. See 11 U.S.C. § 1325(b)(2). There is a bill pending before Congress (S. 2136) sponsored by Senator Richard Durbin (D-IL) that would amend the bankruptcy law to permit a Chapter 13 debtor to modify a loan secured by the debtor’s principal residence and provide for payment of such loan at a fixed annual percentage rate ove a 30-year period; however it has a long road to hoe, and faces stiff opposition by mortgage lenders. Chapter 13 may still provide some relief by reducing the payments on your other debts, thereby making more money available to pay your mortgage.
Well then truly I'm screwed huh? Because I dont' have a lot of other debt.. not enough that is going to make up for the jump in my mortgage payments as my reset kicks in .. because I'm not irresponsible and geting into all this credit debt..
Well, I guess you can rationalize pretty much anything.
So, earlier in your life you lived a lifestyle of running up credit card debt buying things that you couldn't repay.
Eventually those excesses came home to roost, wrecking your credit.
Then, when you tried to buy a house, your credit situation meant you couldn't get the house you wanted without accepting a loan that would adjust to an interest rate you couldn't repay.
Now that the housing market crashed and the interest rate adjusted, you are thinking about filing for bankruptcy and trying to force your lender to give you an even lower rate than the introductory rate on your ARM, not because you can't afford a higher rate (but still one below what you signed on to pay), but because it would be nice to have, considering the rising prices of other things you want to buy.
Do you not think EVERYBODY in America is facing the same thing? Do you think you're the only one whose heating bill is through the roof, whose groceries are skyrocketing, who could use a little breathing room? Things are tighter for everybody, and many people are feeling a lot more pain than you.
I'm beginning to think you're a troll, because surely, nobody could be as selfish and self-centered as your posts indicate.
Now you're resorting to name calling and personal attacks.
Re-read what I wrote.. I'm really only hoping for them to fix my interest rate at the introductory.. but will try for a lower..
When you want to make a salary, do you not ask for more than you may actually want in hopes that you'll atleast get what you want.. and the best case scenario you'll get the job for more than you were initially hoping for although not as much as you went in asking for?
Last edited by TristansMommy; 04-16-2008 at 04:28 PM..
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(as a side.. they've hired wells fargo to service who then turned around and hired Midland to service.. as if that makes any kind of sense!!.. but anyway!) I'm still nowhere and in default. 
