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Old 12-16-2009, 10:32 AM
 
Location: Baywood Park
1,634 posts, read 6,434,282 times
Reputation: 704

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I don't know what to do. Purchased home in '05. Value has dropped maybe 150k. Older home with issues. It had to be gutted and remodeled ( except the roof which still sags) 5/1 ARM through BofA, backed by freddie or fannie (can't remember which one right now) Mortgage is about 1000k more than what a comparable home here would rent for. Home was 365K, 25k for remodeling and the home is worth 220k maybe. It's near the beach in CA. I just can't imagine when I'll ever get my money back, or if? It's 900sq ft. with a sagging roof and no garage. As far as I can see in the foreseeable future, we'll always be paycheck to paycheck with our big mortgage. My unemployment ran out and there is only my wife;s income. We're about to miss our 2nd payment.
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Old 12-16-2009, 10:39 AM
 
Location: Plano, Texas
1,675 posts, read 6,794,401 times
Reputation: 697
All three options would be a good idea with the short sale leading the way. I would suggest that you contact your lender and let them know the situation. Then find a realtor familiar with short sales. Due to price declines in Cali, you should have no problem finding a realtor that knows short sales.

Keep in mind as you go down this road, there are many more people in worse shape than you. The worst thing you can do now is nothing. So, call your lender and explain situation and ask them what they can do to help.

Good luck.
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Old 12-19-2009, 07:56 PM
 
5,269 posts, read 12,664,261 times
Reputation: 3641
I'm not sure what your wife's income is but if you can't afford the house on her salary going the short sale route would be best for you. When you call your lender they will first ask you can you bring the account current. If you cannot they will then offer you a payment plan like a payment and a half. They will ask you questions about your chances finding employment. They will try determine if your situation is a long term problem or a temporary one. They will then determine your debt to income ratio and based on this they will either try to lower your rate for 5 years and increase it back up slowly over 5 years or they will extend your loan term up to 40 years. If your DTI is still to low they will suggest you go the short sale route. They will try to keep you in the home but will take it if they deem you simply can't afford it with modifications. Contact your lender now to find out what options you have. Good luck to you.
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Old 12-19-2009, 09:30 PM
 
Location: Fairfield, CT
6,842 posts, read 10,058,553 times
Reputation: 8323
I think the worst thing you can do is try to hold on to a house that you can't afford. You need to cut your losses. Short sale is the optimal of your limited options, because it puts you in a better position to negotiate something with the bank that won't ruin your credit. Be proactive and reach out to the bank, and put forth your best effort. If it doesn't work, you'll have to do a deed in lieu of foreclosure, whereby you turn the house over to the bank.

Best of luck with your situation. Times are tough. They'll get better eventually.
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Old 12-22-2009, 09:06 AM
 
Location: Maryland
21 posts, read 44,493 times
Reputation: 19
i know everyone is saying short sale to be your #1 option but, if i were you, you may want to work on a modification while it's listed as short sale and take whichever comes first. I am in the mtg and real estate businesses and am hearing great things from those that have been successful with modification.
if an offer comes around and is accepted by the bank then go that route. but, a modification may be approved before you get an offer then you can stay in your house. modification is easier with only 1 mtg and i know people that have had success with the bank lowering the principal amt and lowering interest so it's affordable.
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Old 12-22-2009, 03:02 PM
 
Location: Oxygen Ln. AZ
9,319 posts, read 17,904,297 times
Reputation: 5752
If any area springs back in the near future it would be CA beach properties. I would try to work something out with the bank and hang on to it. Best of luck to you.
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Old 12-23-2009, 04:11 PM
 
Location: Baywood Park
1,634 posts, read 6,434,282 times
Reputation: 704
Quote:
Originally Posted by dazzleman View Post
I think the worst thing you can do is try to hold on to a house that you can't afford. You need to cut your losses. Short sale is the optimal of your limited options, because it puts you in a better position to negotiate something with the bank that won't ruin your credit. Be proactive and reach out to the bank, and put forth your best effort. If it doesn't work, you'll have to do a deed in lieu of foreclosure, whereby you turn the house over to the bank.

Best of luck with your situation. Times are tough. They'll get better eventually.
Thanks. B of A has been hard to deal with. They offered 3 options. Modify to a 30 yr., I have a 5/1. It would actually raise my payment $200. I was told I had to be current to qualify for Making Homes Affordable and short sale. Doesn't make sense. I was told that they won't bring us to the 31% amount because of my unemployment isurance payment puts us under. I missed a payment because my unemployment ran out. But they said to call back if I know FOR SURE that I'm not getting an extension, then they'll talk. Doesn't make sense, it's only delaying the problem.
Quote:
Originally Posted by MotleyCrew View Post
If any area springs back in the near future it would be CA beach properties. I would try to work something out with the bank and hang on to it. Best of luck to you.
Thanks. I really do live in a nice area. Nice climate, next to the ocean. It's a desirable area. But just how long will it take? My mortgage is $1000 more tha what a comparable home would rent for. If I could save $10,000 a year, I might be better off. I've had this home for 4 1/2 years now and have NEVER been able to save a dime. I had to remodel it too, just to live in it. So it broke me. I'd been set had I stayed renting. A lot of people say to hold on because I have a piece of coastal CA.
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Old 12-23-2009, 10:12 PM
 
Location: Full time RV"er
2,403 posts, read 6,278,698 times
Reputation: 1495
Quote:
Originally Posted by CA central coast View Post
Thanks. B of A has been hard to deal with. They offered 3 options. Modify to a 30 yr., I have a 5/1. It would actually raise my payment $200. I was told I had to be current to qualify for Making Homes Affordable and short sale. Doesn't make sense. I was told that they won't bring us to the 31% amount because of my unemployment isurance payment puts us under. I missed a payment because my unemployment ran out. But they said to call back if I know FOR SURE that I'm not getting an extension, then they'll talk. Doesn't make sense, it's only delaying the problem.

Thanks. I really do live in a nice area. Nice climate, next to the ocean. It's a desirable area. But just how long will it take? My mortgage is $1000 more tha what a comparable home would rent for. If I could save $10,000 a year, I might be better off. I've had this home for 4 1/2 years now and have NEVER been able to save a dime. I had to remodel it too, just to live in it. So it broke me. I'd been set had I stayed renting. A lot of people say to hold on because I have a piece of coastal CA.
as i have been saying , file the UCC-1 for the value you have given to the property then . then sit and wait for the Bank to foreclose and move you out ! Thats when the fun begins , The Bank will try to sell and If the Escrow doesn't pay the claim then the Title Ins. Co. gets stuck with paying the bill ! and they do . and you get a chance to start over again . Yes your credit is shot, but is that not what got you in the mess your in. And just think you may get enough to pay cash for your next home. Need help in doing the filing then DM me for help.
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Old 12-28-2009, 11:11 AM
 
Location: 10940 Ben Crenshaw, Ste C
20 posts, read 64,000 times
Reputation: 22
I just met with a loss mitigation BofA rep in El Paso Tx. He said that BofA is trying to work with homeowners but if homeowner is able to make his mortgage payment, regardless if other debt, they won't even consider a short sale. Your first line of defense should be to contact an attorney and a real estate distressed property expert (they are familiar with the latest changes). I would never advise you to do a deed in lieu of foreclosure or letting the property go to foreclosure. You must be pro-active. Have you tried listing it?
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Old 12-29-2009, 11:58 AM
 
Location: Full time RV"er
2,403 posts, read 6,278,698 times
Reputation: 1495
Quote:
Originally Posted by yrusse1 View Post
I just met with a loss mitigation BofA rep in El Paso Tx. He said that BofA is trying to work with homeowners but if homeowner is able to make his mortgage payment, regardless if other debt, they won't even consider a short sale. Your first line of defense should be to contact an attorney and a real estate distressed property expert (they are familiar with the latest changes). I would never advise you to do a deed in lieu of foreclosure or letting the property go to foreclosure. You must be pro-active. Have you tried listing it?
OR! as i keep saying the UCC-1 filing is your best protection when all else fails as it appears it is !
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