Posted on: 23rd Jan, 2010 04:44 am
hi,
i am an electrical construction worker and was injured in 2005. the injury was not enough to stop my regular $150k income which includes regular overtime which usually doubles and totals my income.
i had another injury while waiting for surgery on the first injury. this caused me to be out of the overtime loop for sure and my income was cut in half. i had bills up the yazoo. i was smart enough to carry disability insurance which paid for my auto loans totaling $1,200. i had to make this payment first then the insurance would reinburse me a month later.
this allowed me to make regular mortgage payments. the insurance ran out and now i had to pay the first and second mortgages totaling $2,900. i used the second mortgage to remodel my wife and my existing home. we were preparing the home to sell because of the extent of my injuries have left me permanently disabled.
well the housing market crashed at the same time we applied for a home modification program which did not reduce the monthly payment enough. we fell behind in our second and first mortgage. the mortgage company said to us that our home was only worth $200k down from $450k. our loans total around $395k with $25k in late payments.
i was told that they charged off the second mortgage. we feel that we should consider a dif because the entire area has lost half it's equity. the mortgage company wants to do a 4th modification on our property. we now make $85k and our auto loans will be paid off within the next 4 months. our only payments will be the first mortgage modified. the new amount is not known yet. what should we do?
i am an electrical construction worker and was injured in 2005. the injury was not enough to stop my regular $150k income which includes regular overtime which usually doubles and totals my income.
i had another injury while waiting for surgery on the first injury. this caused me to be out of the overtime loop for sure and my income was cut in half. i had bills up the yazoo. i was smart enough to carry disability insurance which paid for my auto loans totaling $1,200. i had to make this payment first then the insurance would reinburse me a month later.
this allowed me to make regular mortgage payments. the insurance ran out and now i had to pay the first and second mortgages totaling $2,900. i used the second mortgage to remodel my wife and my existing home. we were preparing the home to sell because of the extent of my injuries have left me permanently disabled.
well the housing market crashed at the same time we applied for a home modification program which did not reduce the monthly payment enough. we fell behind in our second and first mortgage. the mortgage company said to us that our home was only worth $200k down from $450k. our loans total around $395k with $25k in late payments.
i was told that they charged off the second mortgage. we feel that we should consider a dif because the entire area has lost half it's equity. the mortgage company wants to do a 4th modification on our property. we now make $85k and our auto loans will be paid off within the next 4 months. our only payments will be the first mortgage modified. the new amount is not known yet. what should we do?
You should apply for a deed in lieu of foreclosure with your lender by writing a hardship letter. It will be your lender's discretion whether or not he would accept it. If he accepts it, you would be able to get rid of the property and won't be liable for the deficient balance. However, your credit score would get lowered by 250 points.