Posted on: 10th Aug, 2010 09:26 am
hi all,
i'm just looking for a bit of advice. i'm in a home with a current mortgage of 425,000 @ 6.8% variable 5yr, which is about to approach the 5 yr mark, in ca. the current home prices in my area, hover around 180,000 to 225,000.
i consider myself a responsible homeowner, meaning i have a job and can afford the payments, in fact i like my home. however, i feel i am on the losing end of this. i have called my mortgage company and other banks and lending institutions and no one will refinance me to a fixed rate, nor modify my loan. the difference of the current home worth and current mortgage is too great for me to pay for it myself. i have checked and i certainly do no qualify for any of the obama plans. in addition my credit score is excellent.
point being, i can stay in the home for another 10 years or so and wait to see if it ever surpasses the 425,000 mark. (seems unlikely at this point). or purchase a new home and walk away from this one. i like my home, but if i'm on the losing end in the long run then i must make a business like decision. anyone else in this sort of position? advice?
thanks in advance,
art
i'm just looking for a bit of advice. i'm in a home with a current mortgage of 425,000 @ 6.8% variable 5yr, which is about to approach the 5 yr mark, in ca. the current home prices in my area, hover around 180,000 to 225,000.
i consider myself a responsible homeowner, meaning i have a job and can afford the payments, in fact i like my home. however, i feel i am on the losing end of this. i have called my mortgage company and other banks and lending institutions and no one will refinance me to a fixed rate, nor modify my loan. the difference of the current home worth and current mortgage is too great for me to pay for it myself. i have checked and i certainly do no qualify for any of the obama plans. in addition my credit score is excellent.
point being, i can stay in the home for another 10 years or so and wait to see if it ever surpasses the 425,000 mark. (seems unlikely at this point). or purchase a new home and walk away from this one. i like my home, but if i'm on the losing end in the long run then i must make a business like decision. anyone else in this sort of position? advice?
thanks in advance,
art
Hi Sara,
I like your answer, it does present another option for me that I didn't not know about. The decision I'm trying to make is predictive, I suppose. Meaning, I'm trying to decide if my property will ever reach or surpass the 425,000 mark before retirement in approximately 10 years.
On one hand I think of it as a business decision. In this mindset, I think that if my mortgage was part of a business that I owned, I would dump that part of the buisness without a second thought. It's a huge liablity. This is shown to me in the way the lender(s) will not refinance me.
On the other hand, I'm a responsible home owner paying a motgage that may never be financially benefical to me. It feels like living in a money pit, but my sense of responsiblity tells me to keep paying. My mortgage is not served by Fredie Mac or Fanny Mae. So what incentive is there for my lender to help?
I suppose I'm just speaking out loud. Any thoughts?
I like your answer, it does present another option for me that I didn't not know about. The decision I'm trying to make is predictive, I suppose. Meaning, I'm trying to decide if my property will ever reach or surpass the 425,000 mark before retirement in approximately 10 years.
On one hand I think of it as a business decision. In this mindset, I think that if my mortgage was part of a business that I owned, I would dump that part of the buisness without a second thought. It's a huge liablity. This is shown to me in the way the lender(s) will not refinance me.
On the other hand, I'm a responsible home owner paying a motgage that may never be financially benefical to me. It feels like living in a money pit, but my sense of responsiblity tells me to keep paying. My mortgage is not served by Fredie Mac or Fanny Mae. So what incentive is there for my lender to help?
I suppose I'm just speaking out loud. Any thoughts?
Hi artmontes!
Welcome to forums!
As your loan is not serviced by Fannie Mae or Freddie Mac, you won't receive the various options given to the borrowers by the government. Rather, as Sara has suggested, you need to contact your lender and negotiate for a deed in lieu of foreclosure. The lender won't receive any incentive for giving you a deed in lieu of foreclosure, so it would be completely the lender's discretion whether or not he would accept your request.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your loan is not serviced by Fannie Mae or Freddie Mac, you won't receive the various options given to the borrowers by the government. Rather, as Sara has suggested, you need to contact your lender and negotiate for a deed in lieu of foreclosure. The lender won't receive any incentive for giving you a deed in lieu of foreclosure, so it would be completely the lender's discretion whether or not he would accept your request.
Feel free to ask if you've further queries.
Sussane
If you like the home, and it is a roof over your head, why would you just walk away? Where are you going to live if you can't get a new home. I belive a new lender will make sure you are not delinquent on your current mortgage before they give you a new one. If you can keep paying for what you have no, just go ahead and do so. Would you stop paying for a bright red shiny Porshe that you originally paid $70,000 for a few years ago because its only worth $40,000 now? No one knows what the future holds, and life can get very scary when we try to look too far ahead into the future. All of your equity could return in a few years if you are willing to be patient, enjoy what you have, and stay put for a while..