Posted on: 21st Feb, 2011 01:27 am
we have been on time with all payments for four years now, somehow. when we bought the house we were making 70k a year , now were lucky to break 40k. we've paid 55k in interest and $800 of the princible. we got the house with no money down and planned to refinance 3 years into it. we have 8 years till the smaller loan will need a 30k balloon payment which isn't going to happend. we tried modifing 3 times but ocwen won't do it, and the house has lost too much value to refinance. what can we do to get out of this mess, or at least make it better. it seems we have to stop paying ocwen anything to get any help. please help!
The lender won't be ready to forgive the second loan and unless you refinance the mortgages, you won't be able to combine them. As the property has lost value, it won't have equity in it. In such a situation, you won't be able to refinance the mortgage. If you want to get rid of the property, then you can list the property in the market for sale.