Posted on: 17th Jul, 2010 05:41 pm
I qualified to purchase my primary residence for $385K in 2006 with a no documentation/stated income mortgage. My broker thought this was best, but it should be considered predatory. The mortgage was 100% financed, 80 @7.125% 5/1 Interest Only ARM, while the remaining 20 is @12% interest rate (principal and interest). Next year, that 5/1 interest rate will begin to fluctuate.
In 2008, my primary property was reassessed to $11K/yr and the property taxes increased by $250/month. My income was reduced when tenants living in my investment property stopped paying rent and I was unable to evict them timely. My base income is $95K or ~5,600 a month, but the rental income helped pay expenses.
In 2009, that investment property was foreclosed, negatively affecting my credit report. I've been requesting a mortgage modification on my primary residence since summer of 2009, but EMC/Chase has not declined/approved my application yet. Lots of run-around. I'm in imminent default since I'm still paying the mortgage within 30 days, but I'm struggling. Reviewing my finances, I can't keep the timely payments. All my savings is depleted.
My property is upside down now, worth about $345K. Do I have any options?
In 2008, my primary property was reassessed to $11K/yr and the property taxes increased by $250/month. My income was reduced when tenants living in my investment property stopped paying rent and I was unable to evict them timely. My base income is $95K or ~5,600 a month, but the rental income helped pay expenses.
In 2009, that investment property was foreclosed, negatively affecting my credit report. I've been requesting a mortgage modification on my primary residence since summer of 2009, but EMC/Chase has not declined/approved my application yet. Lots of run-around. I'm in imminent default since I'm still paying the mortgage within 30 days, but I'm struggling. Reviewing my finances, I can't keep the timely payments. All my savings is depleted.
My property is upside down now, worth about $345K. Do I have any options?
hi barbie,
if you want to save the property, then you need to convince the lender for a loan modification. however, if you want to get rid of the property, then you should apply for a deed in lieu of foreclosure. if the lender accepts your request for a deed in lieu of foreclosure, then you'll be able to save the property and won't be liable for the loan balance even.
if you want to save the property, then you need to convince the lender for a loan modification. however, if you want to get rid of the property, then you should apply for a deed in lieu of foreclosure. if the lender accepts your request for a deed in lieu of foreclosure, then you'll be able to save the property and won't be liable for the loan balance even.
Hi Adonis,
Thank you. I didn't want to get rid of the property just yet. I guess my only option is to beg for another year for loan modification.
Does anyone know how to expedite this process?
Thank you. I didn't want to get rid of the property just yet. I guess my only option is to beg for another year for loan modification.
Does anyone know how to expedite this process?