Part of the reason why I am staying in this unhealthy marriage is because I don’t have anywhere else to go (literally) and I don’t want to ruin my credit (now that it’s starting to improve) by just walking away from the house. We bought a new house almost eight months ago. Neither of us can afford to pay the mortgage alone, and it’s too early to refinance the house. Even with refinancing the house it still won’t reduce it enough to where either of us would be able to afford it. I would love to stay in the house and make the payments, but I can only afford around $800 or $900 per month maximum (and we’re paying $1,525 per month including insurance and taxes). We are with Countrywide. Does anyone know from experience or from working in the real estate or financial industry what can be done? If I want to keep the house will they work with me to come up with an affordable monthly payment, or will I be forced to sell it or walk away. We’ve made every payment on time.
2007-11-26 05:09:17 · 13 answers · asked by Hoping he will bless me with #1 4 in Family & Relationships ➔ Marriage & Divorce
We paid $138,000 for the house and have a 5.5% fixed interest rate on an FHA loan. The term of the loan is for 15 years. Principle and interest is somewhere around $1,100 and the insurace and taxes are around $425 combined. That together equals $1,525.
2007-11-26 05:15:11 · update #1
You can file chapter 13 and keep your house with lower payments, you can refinance and depending on what your interest rate is now, if you can get it alot lower (unlikely) it will lower your house note, but not by half. Chapter 13 will not lower it by half either, but it would be considerable I would think without knowing your numbers. Otherwise, sell it and split it, or rent a room out, then you would be paying only half.
Edit: refinance for a 30 year loan. At this point its not about what is smart or more expense in the long run, its about keeping it, affording it, and keeping the payment low.
2007-11-26 05:13:11 · answer #1 · answered by cindy h 5 · 1⤊ 1⤋
I'm not in real estate or financial industry, but I have a feeling you will have to sell. I am in the same boat. My lawyer told me that I do not qualify to refinance. The only option that I can see is have your husband deed the house to you. When you refinance, take the equity in the house that you do have which won't be much and also have a family member help you put more money down towards the house. The family member will have to co-sign the loan, so that you will be qualified for the new loan. You will need to get a 30 year loan to make your payments lower to around $800 or $900. I currently have a 30 year loan with payments at $850 a month which includes all taxes, insurance etc. I can't even get an apartment for that much. I'm still in the middle of property settlement agreement and my family said they would help me with the house, so I won't lose it. You need to talk to someone about refinancing. They maybe able to give you more options that I'm not aware of.
2007-11-26 05:20:21 · answer #2 · answered by janetrmi 5 · 0⤊ 0⤋
If you are in that tight a situation and you have the money to refinance then do so but get an interest only loan where you only pay interest and no principle. Not recommended if you plan on keeping your home a short time because unless the value goes up you will have to lose money to sell it.
2007-11-26 05:15:08 · answer #3 · answered by Older Guy 3 · 0⤊ 0⤋
Best thing you can do for yourself is go to counseling about "WHY"you stay in an unhealthy marriage for the "HOUSE":
Keeping the house is NOT worth it... GET rid of the house...Besides your home is too new for anyone to offer you anything short of a LOAN SHARK rob you loan....
Country wide Home loans just got bailed out due to all the bankruptcys people submitted from loans they had with them...
Since your loan is so new there really isn't any kind of loan out there for you..
YOUR priority is to get to counseling and find out why a house means more to you than your peace of mind in this unstable rocky marriage...Once you address that you will see alot clearer about what to do...
Good luck
2007-11-26 05:22:28 · answer #4 · answered by Dog Rescuer 6 · 1⤊ 0⤋
Well, personally I wouldnt recommend it, but you could refinance and do an interest only mortgage. I will repeat that it is a bad idea though, since your payments will only go to paying interest and nothing else.
Otherwise, I dont see how you can make such a drastic cut to your mortgage payment.
EDIT- You could refinance and make it a 30 year mortgage. that would cut the cost considerably, but increase the overall interest that you pay.
2007-11-26 05:13:53 · answer #5 · answered by rushmore223 5 · 1⤊ 1⤋
This house is not a "home". This decison is about more than affording a place to stay. There's a lot more going on. Think it through. Don't rush to a decision based on sentiments.
2007-11-26 05:38:12 · answer #6 · answered by Anonymous · 2⤊ 0⤋
Have your husband leave and then take in a roommate and charge them 1/2 of the payment and get them to pay 1/2 utilities and such . good luck and god bless.
2007-11-26 05:14:17 · answer #7 · answered by Kate T. 7 · 1⤊ 0⤋
See if you can switch from a monthly payment to a bi-weekly payment. That will save you a bunch of money.
2007-11-26 05:37:36 · answer #8 · answered by Jack01 1 · 0⤊ 0⤋
1500 is cheap for a house... u and your husband should both get 2nd jobs... this way, you could afford the mortgage AND you will be out of eachothers hair.. which might actually save the marragie..
2007-11-26 05:16:06 · answer #9 · answered by Latin G 5 · 2⤊ 0⤋
See if you can rent a room. But otherwise, they will probably not work with you. Many many people are losing their homes right now because they couldnt afford them to begin with.
2007-11-26 05:12:13 · answer #10 · answered by sahel578 5 · 4⤊ 0⤋