Over my head in my mortgage what to do???

Question

I am at 100% LTV on my home. I cannot make the payment and live in California. I dont want to lose my home, but I dont have enough money coming in to make it. I refi'd my house, because I added to it and I got really ripped off, I went to court and sued the guy, but will never get the money. I refinanced the home in order to avoid bankruptcy, but now am in over my head. I am a single mom who works with 4 kids. Please help with advice of what to do??? What would happen if I couldnt pay my home loan anymore? Thanks.

I have a first and 2nd. The 1st interest rate is like 6.5 and the 2nd is 9.5 or so. Can I refi into 1 loan? Then I would be at 100% LTV.

Answer 1

If you can't pay for it, and you're already at 100pct LTV, you need to sell it as soon as possible. The fact is that you can't possibly come out owing any less by refinancing, as you're going to have closing costs that may run thousands of dollars for the transaction. By the time you do that, it's not likely your payments are going to be significantly different from what they are now.

If you don't make the payments, someone will foreclose. You'll lose the home, and they'll auction the property, and you'll have to make up any shortage, and additionally pay the bank's attorneys a few thousand dollars, plus other fees like appraisers, advertising, etc. Not a good option.

So, maybe sell it. Here's what makes that a realistic option. Say the home is (California? I dunno) $500,000, one loan of $400k, the other at 100k. If you go to foreclosure, the first mortgage will probably bid $410k (including expenses to cover) and the second will get nothing, and pursue you forever for the 100k. However, if it's still worth $500k, and you can realize $475k after commission and stuff, that's $400k for the first, and $75k for the second, and it's POSSIBLE that if you get an attorney that knows how to do a "short sale", you can get that second totally released and never hear from them about it again.

Get a good attorney, ask if they know about "short sales".

Answer 2

Yes u can refi. some people will refi you at 125% LTV........you can get a combined loan at 6.5 % it will be cheaper for you.

Shop around for Homeowners insurance at more competitive rates.

If your mortgage is already escrowed, UN escrow it and pay your taxes/insurance every year with your income taxes.This will make your payment cheaper. I live in florida. My taxes/insurance equals $500.00 more a month ON TOP of the mortgage. I pay $2150.00 monthly for a $236,000 loan.

Get a 2nd job or simply tell the man or men who fathered your 4 kids you need more child support. Tell him to make your car payment, or pay your 2nd loan.

Or get a second job and have the kids with their dad/dads when you work that 2nd job. DADS are FREE child care!!!!

Hope this helps!

Answer 3

You are close to foreclosing on your house (the reason I said that is, looks like one more worm's signature and the next monthly payment is not going to happen), It's quite a bit hard situation, really. but maybe you can rent it, even though you have to live in an apartment or try to sell the house now.although this is not a good time to sell the house, but you are stock. This is not an investment year for you nor not a good time to dream about housing. You just hang tight and let go of your dreams and say, there will be next time, definetely not this one. That or mark your credit bad. You could try to talking honestly to your bank or lender and beg if you must and see what they will come up with. Tell them you don't want your credit to go bad.

Answer 4

sorry, but you are in a bad situation. lending reqs have tightened up considerably in recent months, and with what you say here, you don't have enough wiggle room in equity to get another loan that would be of any benefit, even if you have great credit. a possibility (you may not want to hear, but keepin' it real...) is to sell your house while you don't have any mortgage lates, but it's important that your house appraise for at least your selling price. alternately, some thoughts:

1. is your house big enough for a roomate to take some of the cost?
2. what could your house rent for in your area? - meaning you and the kids move to a cheaper apt. while your renter pays your mortgage or at least most of it.

3. do you have a close friend/relative with good credit who might be interested in buying your home and letting you rent back?

there are some other ways that you might find relief, but i don't want to come off as soliciting business in this forum. talk to a real estate professional (not someone who only handles mortgages!) and get a clear idea of your options.

Answer 5

You need to call your loan company ASAP. They have a certain department that will help you figure out what to do. Ask if you can put one of your payments on the back end of the loan. Ask them if they have free credit counseling options. I think they will be willing to work with you since they really don't want to take your house. You can check with an attorney as the rules are different in states as far as foreclosure and posession.

Answer 6

Refing is not the answer, this is what got you in this mess in the first place. I would call the lender and see what options they have for you. I then would get it on the market asap, and try to find something more affordable for you. I wish you the best of luck.

Answer 7

If there's a 2d loan disaster, it won’t have an identical impact the sub-best loan disaster had because of the fact the FOMC (Federal Open marketplace Committee) at present has costs of activity set at close to 0 (0.25%). This wasn’t the case in August 2007 whilst the detrimental impact of the sub-best loan disaster first hit the inventory marketplace. The 60 minutes document avoids even pointing out the present US activity fee. in spite of what those so-stated as “experts” anticipate, why did CBS information stay clear of interviewing the two Republican and/or Democrat contributors on how the government intends on dealing with issues interior the U. S. housing marketplace? CBS additionally prevented interviewing everyone from the Federal Reserve. The FMOC would have been caught off shelter with the sub-best loan disaster, yet are the Feds fairly purely as off shelter with a million-2 years to administration fending off an ARM very own loan loan disaster? I don’t think of so, exceedingly with the %. of detrimental macroeconomic documents forcing them to act as a rely of urgency. If the housing marketplace is in accordance to 60 minutes “in loose fall” then how come the day purely before this Monday twenty 6th of January the %. of sales of before owned homes rose for the 1st time in view that September and inventory declined. that would fairly recommend an enhance in belongings call for. this text/document purely begs me to %. it aside and ruin it, yet regrettably, I don’t have time to realize this in the present day. you fairly would desire to question purely how lots effective CBS’s 60 minutes is with their document whilst they positioned a query mark on the tip of the headline. no rely what shape the marketplace is in, it’s continuously stable risk administration to a minimum of shop a share of your cash out of the marketplace.

Answer 8

Don't mess with your 4 childrens security.

You need to sell your house and buy something that you can afford. If you file bankrupsy or allow the house to be repossessed you will not be able to buy another home for them.

Answer 9

If you don't pay your payments within about 60 days, they will start foreclosure. Try and find someone to buy your property and then rent it from them until you can find a solution.

Answer 10

if you are not behind in your payments, you should re-fi immediately and get rid of the second mortgage....at this point you should consider an ARM so that you will reduce your payments now and have time to ride out your current financial difficulties...