Posted on: 07th Nov, 2010 12:28 am
hi,
in march 2007, my ex and i bought a house together in texas. we split up in july 2010. our agreement (written/signed) was that if we broke up that he would buy me out or we would sell the house.
well, now he says he cannot afford to buy me out or make the house payments by himself much longer and the house is now under water by about $150k. we have our loan (1st and 2nd) with wells fargo. the 1st lien is a 5 year arm (interest only) arm @ 5.75% with a balance of approx $530k. the 2nd lien is a 10 yr fixed @ 7% for about $100k. we will be on our 4th year on our arm on march 2011. we have never been late on our payments.
my question is what can we do to reduce the payments so that he can afford it. my ex has spoken to wells fargo about some kind of loan modification and they gave him the run around by saying that they cannot do loan modifications because we have a jumbo loan etc. no other bank/credit union wants to refinance (or so my ex says) because the house is under water. i don't want to be responsible for this loan any more because of our agreement and i no longer live in the house (since july) plus i have my own house expenses as well as other family obligations.
also we would sell if you could , but now we cannot afford to sell and i have heard that wells fargo does not do short sales either.
i feel like we are stuck! is there anyhting that can be done to get us out of this mess. help!
thank you in advance.
in march 2007, my ex and i bought a house together in texas. we split up in july 2010. our agreement (written/signed) was that if we broke up that he would buy me out or we would sell the house.
well, now he says he cannot afford to buy me out or make the house payments by himself much longer and the house is now under water by about $150k. we have our loan (1st and 2nd) with wells fargo. the 1st lien is a 5 year arm (interest only) arm @ 5.75% with a balance of approx $530k. the 2nd lien is a 10 yr fixed @ 7% for about $100k. we will be on our 4th year on our arm on march 2011. we have never been late on our payments.
my question is what can we do to reduce the payments so that he can afford it. my ex has spoken to wells fargo about some kind of loan modification and they gave him the run around by saying that they cannot do loan modifications because we have a jumbo loan etc. no other bank/credit union wants to refinance (or so my ex says) because the house is under water. i don't want to be responsible for this loan any more because of our agreement and i no longer live in the house (since july) plus i have my own house expenses as well as other family obligations.
also we would sell if you could , but now we cannot afford to sell and i have heard that wells fargo does not do short sales either.
i feel like we are stuck! is there anyhting that can be done to get us out of this mess. help!
thank you in advance.
Your husband can refinance the mortgage in his name if he has equity in the property and take advantage of the lower rates. However, if the house is underwater, then hardly anything can be done. Both of you will have to keep on paying the dues in order to save the property. Or else, you can sell off the property through a deed in lieu of foreclosure. However, it will have a negative affect on your credit report and lower your score by 250 points.