2007-09-18 06:38:38 · 7 answers · asked by tom e 1 in Business & Finance ➔ Renting & Real Estate
Congrats. You are upside down. One option is to continue to pay an down the house long enough for the value to go up and the loan to go down through payments before the ARM portion set in. Unlikely to happen.
You will have to suck it up. You got greedy and bought a house you couldnt afford.
The other option is to walk away from the house and ruin your credit.
2007-09-18 07:19:38 · answer #1 · answered by Bob D 6 · 0⤊ 0⤋
I would immediately get in contact with a Housing counselor. When those ARM's adjust, you could end up in some serious payment issues. You may be able to avoid foreclosure if you work with your lenders NOW. If you want to keep your home, that is what I would do. See the link below from The office of HUD (Housing and Urban Development).
If you want to move, then I would work with your lenders to do what is called a "short sale". Either way, continue to make your payments and do what you can to reduce the ARM's future rate now. Don't wait, it may take some time for the process to be finished. Good luck!!
2007-09-18 13:55:31 · answer #2 · answered by dramboldt 2 · 0⤊ 0⤋
BEND OVER - cuz life isn't going to be so pretty for you in the very near future.
When promises of GREAT RATES make us all starry eyed, that's usually an indication that there's some sort of hidden downfall. And you've just figured out what yours is.
SHORT SALE - unless you can afford to double your mortgage payment when the rates increase.
2007-09-18 15:10:47 · answer #3 · answered by Roland'sMommy 6 · 0⤊ 0⤋
First, Contact your lender (s) to discuss your financial situation and options. Do not be afraid to talk to them. They do not want to own any more property and you do not want a foreclosure on your credit report.
Second, Discuss your alternatives with your tax advisor or find an advisor who can explain the options to you from a tax and credit standpoint.
Third, if you are looking for an investor to purchase your property, or negotiate with your lender, go to HouseBuyerNetwork.com to see if they have representation your area of the country. It is a reputable company and the service is free.
Good luck.
2007-09-18 14:05:20 · answer #4 · answered by Christiane 3 · 0⤊ 0⤋
ouch, you're in a bind. you can refi, but it may end up being a higher rate than what you have now. I think you should just eat it until you can get your principal down far enough to refi. there is no real out for you. but talk to a broker to see if there's anything they can do for you. sorry.
2007-09-18 13:47:28 · answer #5 · answered by droolie_da_dog 4 · 0⤊ 0⤋
Looks like soon you will either be paying a whole lot more or renting because it is going to get worse
2007-09-18 20:04:59 · answer #6 · answered by Pengy 7 · 0⤊ 0⤋
this is called upside down in your mortgage and the only thing to do is pay the payments as they change
2007-09-18 13:47:08 · answer #7 · answered by troyboy 4 · 0⤊ 0⤋