2006-12-10 12:53:25 · 7 answers · asked by Lindy 1 in Business & Finance ➔ Personal Finance
do you have any equity on your home? how long have you been paying a mortgage?
Can you refinance? I think it is the best option....there are all kinds of loans out there...
go to a area bank to see what kind of mortgage help they can offer..do not go through mortgage companies..they have no interest in you..as much as they say it..do all your banking with banks in your community...the best way to go....
2006-12-10 12:59:17 · answer #1 · answered by sleddinginthesnow 4 · 0⤊ 0⤋
I assume that you can't refi either due to bad credit or due to not enough equity due to declining home value.
Since you cant refi, you should look at selling. Can you get enough to pay off the mortgage(s)? If not then seel for whatever you can and then owe the rest to the bank.
You need to calculate what you can quick sell for vs what the bank will sell for. And then see which has you coming out owing less money.
Remember if the bank forgives you debt, then you will owe taxes on this amount. For example the bank forecloses and sells for $200,000 but you owe $300,000. And the bank doesn't make you pay the missing $100,000 back. The the IRS will tax you as if you made $100,000. So losing home to the bank is not a good thing.
You can contact a real estate agent and see what the lowest priced home is in your neighborhood then price your below that to quick sell.
Also in some states, the bank cant come after you for the difference in what you owe from losing house, like in the above example where you would still owe $100,000. In states like CA, you dont have to pay that missing money if if was for the original purchase mortgage. But in states like Nevada and Arizona, you still are on the hook for that missing money, so you need to speak with a CPA and a BK attorney to find out what to do for your best interest.
You dont want to end up owing a ton of money and having it on your credit report for the next 7 years and have to have your wages garnished on top of that.
Be aware that if you refi'd your home and then took the money and blew it, you may also not be able to file BK, or if your income is too high as well.
You need to speak with an attorney and CPA.
2006-12-10 23:54:27 · answer #2 · answered by Chrisusc 2 · 1⤊ 0⤋
Perhaps the adjustable rate was the problem. Can you refinance to a fixed rate lower? Do you have 20% equity in the place to drop the PMI? Do you have any expenses that you can cut or curb? You might be better off trying to sell the house to just break even before they foreclose. Can you rent out an extra room for extra income? Have you checked your credit report to see what damage you have? Can you somehow increase your income (overtime, part time job, part time business)? Do you have any retirement income you can access? (it's not advised unless you have no other options to protect your home if you love your home)
Can you take an equity loan to pay off other debts that are stopping you from paying the mortgage and homeowner expenses???
2006-12-10 21:04:08 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I am sorry to hear it. Without delay ask to see your lender and discuss the problem. It should be possible to pay interest only, until your earnings rise and can increase the payments. Then you must go into a siege mode and buy nothing that is not really unavoidable.
Also can you borrow from family and friends at no interest for a while to offset some of the mortgage?
2006-12-10 21:40:35 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Sell your home for more than your mortgage and pay off the bank or whoever, bankruptcy, or let them foreclose. Thats about all you can do, really. Went thru the same thing myself.
2006-12-10 21:01:13 · answer #5 · answered by Rob 2 · 0⤊ 1⤋
Sell the place -- fast. At least you can save your credit rating.
2006-12-10 20:57:41 · answer #6 · answered by Anonymous · 0⤊ 2⤋
sell it to a relative and let them land contract it back to you.
2006-12-10 21:04:59 · answer #7 · answered by Anonymous · 0⤊ 1⤋