The home was appraise lower than it was 2 years ago, and now our payments keep going up and up and we are each working 2 jobs for our house. We are not making this months house payment. I want to also know if anyone went threw this and how bad were they harressed? How was it going threw this? Thank you PJ
2007-09-28 02:52:15 · 9 answers · asked by mamaqueenie59 1 in Business & Finance ➔ Credit
I just went through this 6 months ago!
Contact your mortgage company immediately! They will work with you. They do not want to forclose on your home just as much as you do not want them to.
I must advise you to be careful when working out a deal if this was on a sub-prime loan. There have been many many people getting scammed by their lendor. Read the fine print as to protect yourselves. "Not all mortgage companies are doing this, I am only saying read, read, read."
There are also some programs out there that will assiat you depending on what state that you live in. Use the internet and see what is available in your area.
Good luck to both of you!
2007-09-28 03:09:34 · answer #1 · answered by rayham1978 4 · 0⤊ 0⤋
I work at a real estate company and my dad has 150-200 houses like this for sale.
If you have an ARM (adjustable rate mortgage) you need to get rid of that ASAP! The rates are going to adjust again in the next 6 months in 2008 so rates will be even higher. Refinance your house or do something.
See if your lender will do a short sale. Most lenders will because they rather have the money then the house. If they accept a short sale, youll be good to go but only if you can find a buyer for the home. If they dont do a short sale then keep payments up to date because if you lose the house, the IRS will be coming after you then. In order for the bank to write a loss on your property, the IRS sees that as a profit to you because you couldnt pay them back the money so it was basically a profit.
In Michigan, once your home goes to sheriff sale, you have a 6 month redemption but your home has to be occupied otherwise the bank can take the property.
Lets say you owe 100k and at sheriff sale it sells for 75k. By law, you only owe the bank 75k instead of the 100k but then you have to add the lawyers fees and interest on that.
You want to avoid foreclosure or do a short sale because on your credit report it will say you owe this company X amount of dollars so getting a future mortgage will be hard and your credit will be shot.
2007-09-28 05:12:42 · answer #2 · answered by Marshall 5 · 0⤊ 0⤋
You probably have Adjustable rate mortgage - this kind of mortgage is bad. You have to refinance now and I hope that you have a very good credit history. Your situation is exactly what others have. They signed up on ARM because they were affordable for the first 1 year, 2 years or even 5 years, but after those years depending on what the denominators they have, some will double some even will tripple and your life is gone.
While you can still do the high monthly payment, before it go higher (for sure it will) refinance now. now, now, now. go go go. Go to the Bank - not with these small lenders (they are the litch). Any bank - shop around them - then pick the one you like. Get a conventional 30 year fixed. You will pay a little bit for appraisal maybe 400.00. It's worth it. Go go go go.
2007-09-28 03:08:37 · answer #3 · answered by yahoooo! 5 · 0⤊ 0⤋
missing one payment won't trigger a foreclosure in most cases. Talk to the bank; they are not the enemy and actually want you to keep your house. THey may have suggestions. If you can't resolve them, try and see if they will allow a short sale that will get you out of the house without being stuck for a balance on the loan; or a deed in lieu of forerclosure.
Best of all; sell.
2007-09-28 02:57:08 · answer #4 · answered by wizjp 7 · 0⤊ 0⤋
You have been caught in the current housing situation. People bought homes they could not afford on ARM's and then the housing marked tanked and the interest rates went up...
You are on the wrong side of the loan... you owe more than the house is worth and the payments are going up..
Sadly, you are going to lose your house... it's just a matter of time.
2007-09-28 03:01:06 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Immediately talk to your lender, not a month from now, now tomorrow but today and tell them the situation and ask how they can assist you. I just heard many are even resetting loans for people in the exact situation.
Please call them today!
2007-09-28 02:57:31 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I would call the bank and talk to them. Tell them your situation and see what they can do for you. You might be able to refinance for a longer period of time instead of foreclosing. If your credit is good they will have suggestions for you.
2007-09-28 18:01:29 · answer #7 · answered by kim h 7 · 0⤊ 0⤋
Work with your lender. They are not in business of selling houses and really don't want your house. Work it out with them.
j
2007-09-28 03:36:50 · answer #8 · answered by The man 7 · 0⤊ 0⤋
With the market right now, they will try and keep you in the house, talk to your lender right away. sit down with them and nigitiate.
2007-09-28 03:00:04 · answer #9 · answered by Jamin 3 · 0⤊ 0⤋