I have a mortgage loan that every month I have 4 options, on how to pay the fist one is minimum payment but it

Question

puts me in a negative, of about 700 a month, 1at 1647.00
2 2400.00
3 2700.00 I have a 50.000.00 of down that I gave on the house, and the 2nd option of payment which is 2,400.00 is getting difficult to me to pay, is it really bad paying the 1st option on this difficult time I am having now, am I hurting my loan alot, please let me know what to do, this is a wahington mutual loan. thank you

Answer 1

The other answers are good...be honest with yourself as you read them. My suggestion is to contact your WaMu representative, explain your situation, and ask the rep for advice. Mortgage holders seldom want the property back, and if you've been "good credit" up until recently, they may be able to work out a new deal with you. Negative amortization--just say no! If your situation is temporary and the rep isn't any help, figure out how much you need to borrow until your situation improves, and ask family for a loan with interest that begins when things get better. Treat this loan in a professional manner.

Answer 2

If your current inability to pay the amortizing amount is just temporary , then by all means pay the lower amount until you are again stable (then pay extra to catch back up) If ,however,
you do not anticipate being able to make the larger payments at all then you will need to make some difficult decisions regarding your situation IE, sell property&down-size.
time is your enemy here as you will need to access how much equty you have now (and how much left when it does sell in this slow market) how much $ will go to A realtor,etc.
I have been through this exact thing ,These loans are bad and so many of us got into them, then proceeded to "paint ourselves into A corner"

Answer 3

You should pay as much as you can so you will pay it off someday. Negative amortization means you could be paying forever and going in the hole more each month. If you have a temporary hard time like unemployment the options will give you a chance to short them a month or two but you shouldn't choose that very often.