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And no.. Idid'nt tap into equity. .i didn't buy with nothing down and I'm certainly a responsible person that pays bills on time. .I was just trapped into a bad mortgage product.
TM - you might consider contacting the local office of the United States Department of Housing and Urban Development (check for number at HUD.gov) - HUD may be able to assist in talking to your lender
For one.. I've made my mortgage payments on time for 2 years at a 6.95% rate on a $400K mortgage (adn this is a starter home in one of the cheaper neighborhoods on LI.. FYI). with my escrow my payments were approx $3300. I would say that I'm a good home owner candidate.
However, due to market circumstances and other circumstances I got trapped into a n ARM. I didn't care that my house was worth less.. that's not the problem. BUT I simply can not afford an over $800/month increase in my mortgage payment. I tried everything I could to work with the bank to modify into a fixed.. figuring that paying what I'm paying is far better for both parties than foreclosure.
And my particular company wouldn't do it.. so fine. .now I'm short selling. If I could, I would make the payments.. but I simply can't.. and killing myself to do it is just not worth it in the end.
You make it sound as if we've all won some magic prize!! or that we're getting a bigger cookie than you are! Believe me. you dint' want the stress, the heartache that I'm dealing with in this situation.. Be happy you can afford to make your payments ontime.. be happy that you get to stay in your home. Because I"m loosing mine.. AND all the money and hard work I put into renovating it.
And no.. Idid'nt tap into equity. .i didn't buy with nothing down and I'm certainly a responsible person that pays bills on time. .I was just trapped into a bad mortgage product.
My original post was not directed at you specifically but since you have presented so much info, I'll bite. Not trying to attack, but I personally do not know how anyone can get "trapped" into an ARM. You knew what the terms of the loan were when you signed the papers so you should have been prepared to deal with the consequences of a resetting note once the fixed period expired - that includes possibly having to pay an extra $800/month. If you weren't prepared for this additional burden, you should not have entered into an ARM. This was your decision, not the banks. I'm really not trying to be harsh, I just don't understand all of these people out there that are blaming the banks for their own poor decisions. We all have a fiscal responsibility to ourselves.
My original post was not directed at you specifically but since you have presented so much info, I'll bite. Not trying to attack, but I personally do not know how anyone can get "trapped" into an ARM. You knew what the terms of the loan were when you signed the papers so you should have been prepared to deal with the consequences of a resetting note once the fixed period expired - that includes possibly having to pay an extra $800/month. If you weren't prepared for this additional burden, you should not have entered into an ARM. This was your decision, not the banks. I'm really not trying to be harsh, I just don't understand all of these people out there that are blaming the banks for their own poor decisions. We all have a fiscal responsibility to ourselves.
I can answer that because you've asked respectfully. It's hard to see how it can happen when it hasn't happened to you.
By trapped.. I mean that conditions beyond my control OR that I couldn't have evenfactored INTO a worse case scenario happened to cause the ability for me to refi to dissappear. Now.. while I didn't expect my houes to keep appreciating as quickly as the market was .. I certainly didn't expect it to take a nose dive. I had over 10% instant equity with the appraised value from the bank and the loan amount. Add to the fact that I was also making renovations that should have helped improve it's value in a normal market. I was counseled or given the advice to simply pay my mortgage on time (duh!) and open some lines of credit to get my score up.. all of which I did and IT did. But then when I was at the point where I was ready to refi I suddenly found myself at 100% LTV. As a stated individual (because i'm self employed) they stopped offering mortgages with those at that LTV level. While my score improved.. they also raised the bar (my score was fine for where it was at prior to the "freeze up" as I refer to it). So.. I was trapped.
Yes.. I knew I wouldn't be able to afford the adjustments.. but so did the bank. I stated my income accurately I also showed them a years worth of bank statements. So they knew as much as I did that the adjustments wuold be out of my reach.. and especially now more than ever with how much fuel and groceries have risen.
Basically I'm a good honest person who pays her bills on time but had the unfortunate luck of buying at the wrong time. I make a good enough living to afford at $3000 a month mortgage but still loosing my home.
Iv'e tried all avenues.. hope now, HUD..all of them.. no one could help. I'm now in pre-foreclosure because I certainly wasn't going to pay more, even if I cuold, for a house I would loose anyway and my mortgage can only go up as the rates start moving upwards.
It's just a shame. Yeah.. perhaps I should have said either Fixed or nothing and probably would have gotten nothing.. but if the financial experts and geniuses of this country couldn't see this coming then i certainly couldnt' have known this could happen and that refinancing was not a possibility.
And I guess I was nieve with the thinking that if the bakn was giving me tis mortgage knowing what I know.. that they didn't think it a problem or didn't think that refi would be an impossiblity before I had the ARM kick in.
TM - another suggestion (maybe you have looked into it already) -
I had a client we just got discharged from Bankruptcy (13) - and got the court to approve a re-doing of their loan.
The court ordered the lender to reduce the amount of the loan to market value and to fix the interest rates.
Already consulted with an attorney on that.. and according to them it can't be a forced issue .. although if that home was my second home or ski chalet it could.. go figure...
Already consulted with an attorney on that.. and according to them it can't be a forced issue .. although if that home was my second home or ski chalet it could.. go figure...
***OK maybe i will try one more time , you stated that you have invested $80,000.00 In your home ,why then have you not protected your interest with the UCC-1 Filing that i talked about on this site about 6 weeks ago. other people in worse shape than you are still in their homes and working on the banks Making them do what you say they won't , put them in a position where they must listen . sadly it is working for some !
***OK maybe i will try one more time , you stated tyhat you have invested $80,000.00 In your home why then haven't you protected you interest with the UCC-1 Filing that i talked about on this site about 6 weeks ago. other people in worse shape than you are still in their homes and working on the banks to do what you say they won't , put them in a position where they must listen . sadly it is working for some !
UCC-1 does not work with residential / owner occupied properties
UCC-1 does not work with residential / owner occupied properties
I respectfully say that you are wrong . read the Article 9 of the UCC guidlines. If you know the differance between the all capitol spelling of your name ( your Debtor name , corporation ) and the upper and lower case spelling of your name ( the Live being , secured party ) Then you see how it is a legal filing and the banks are not challanging it.
I respectfully say that you are wrong . read the Article 9 of the UCC guidlines. If you know the differance between the all capitol spelling of your name ( your Debtor name , corporation ) and the upper and lower case spelling of your name ( the Live being , secured party ) Then you see how it is a legal filing and the banks are not challanging it.
And, I respectfully submit to you that your concept is not accepted by courts in my area -
In the end your like a guy that had alot of money in bear sterns a good company prior and then the bubble burst. Sorry to hear you are losing your home but be thankful that you can survive if you can get over this.Best of luck
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