Posted on: 10th Sep, 2009 07:49 pm
my wife purchased a house about 2 years ago with an arm that balloon's after 12 months so we are about to hit the balloon again for the second time. the balance is 90,000. her and i have a pre nup or separation of property agreement on file from when we were married. there is no 2nd mortgage.
my wife lost her job and only thing she owns is a car with lien from the finance company and this property. the property because of the real estate market is worth about 30,000 less than she paid. so the property is now worth 60,000 about. i have already been qualified or pre approved to purchase the property from her. she is current on her payments.
when the bank loaned on the property they listed the actual structure as no value because it was in dire need of repair or a tear down that was already gutted. there has been little improvement since.
it is a straight arm without any mortgage type insurance through a local bank where they keep the loans in house. i called them today and explained to them that i have been maintaining the payments for her due to her job loss and will not continue. i explained that i may be interested in doing a short sale for 60,000 but they would have to take a 30,000 loss. they are aware she is without job and they have no recourse other than take back a property in disrepair or seek judgment. i also told them before i would refinance an upside down property for 90,000 in my name than i would just send her to bk court to file ch7 and they would not be a debt we would reaffirming. i informed them that i’m trying to weigh our options. they said they will forward an email to the loan officer handling the account and the bank manager to see what is in the bank’s best interest and get back with me.
my wife lost her job and only thing she owns is a car with lien from the finance company and this property. the property because of the real estate market is worth about 30,000 less than she paid. so the property is now worth 60,000 about. i have already been qualified or pre approved to purchase the property from her. she is current on her payments.
when the bank loaned on the property they listed the actual structure as no value because it was in dire need of repair or a tear down that was already gutted. there has been little improvement since.
it is a straight arm without any mortgage type insurance through a local bank where they keep the loans in house. i called them today and explained to them that i have been maintaining the payments for her due to her job loss and will not continue. i explained that i may be interested in doing a short sale for 60,000 but they would have to take a 30,000 loss. they are aware she is without job and they have no recourse other than take back a property in disrepair or seek judgment. i also told them before i would refinance an upside down property for 90,000 in my name than i would just send her to bk court to file ch7 and they would not be a debt we would reaffirming. i informed them that i’m trying to weigh our options. they said they will forward an email to the loan officer handling the account and the bank manager to see what is in the bank’s best interest and get back with me.
You have to call you bank and ask for loan modification and show finacial hardhship to for them to modify your loan or reduce yoru principal
so that this is possible is good news.
She lost her job because she could no longer work the full time hours required because we had a disabled child. Are they required to do this or is this just something that some banks do?
The reason for the transfer of title to me is so that I do not jump on a loan for a house that credit card companies may end up suing her and getting judgment. We are still up inthe air about her options but do not want to ruin both of our finances if possible. So I will refi it or purchase it from her at a reduced amount if the bank is willing.
She lost her job because she could no longer work the full time hours required because we had a disabled child. Are they required to do this or is this just something that some banks do?
The reason for the transfer of title to me is so that I do not jump on a loan for a house that credit card companies may end up suing her and getting judgment. We are still up inthe air about her options but do not want to ruin both of our finances if possible. So I will refi it or purchase it from her at a reduced amount if the bank is willing.
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As you have already mentioned that they have promised you to put your case in front of loan officer and thus they will review it and find the win-win for both the parties.
If you refinance the whole debt on your name then it will safeguard your wife's credit but if you go for purchase option you may get (may!!! ) some monetary concession but you need to see at what cost you are paying for it.If this is ruining your wife's credit will you do that? I know your answer is 'NO'.
So better go for refinancing it on your name alone.
As you have already mentioned that they have promised you to put your case in front of loan officer and thus they will review it and find the win-win for both the parties.
If you refinance the whole debt on your name then it will safeguard your wife's credit but if you go for purchase option you may get (may!!! ) some monetary concession but you need to see at what cost you are paying for it.If this is ruining your wife's credit will you do that? I know your answer is 'NO'.
So better go for refinancing it on your name alone.
thanks for the response. Are all FDIC banks participating in this program or just some? Her credit is down the tubes anyway so that is already no longer a concern. It boils down to a busniess decision on family finances. The house is worth 60,000 and there is no point in paying 90,000 for it for me personally whether it be from her or anyone else. I'm pre approved but it will not appraise for anywhere close to 90,000 anyway. So it comes down to make a deal or let it go and cut the loss. Plus if we keep it in her name and refi it then credit card companies sue her then they will have the hosue to attach to and I do nto want to be on the house with her if that happens.
In my opinion, it will be in your best interest to go for a deed in lieu of foreclosure. This will help your wife in surrendering the property to your lender who will sell it off to recover his dues. Your wife will not be liable for the deficient amount which results after the sale of the property. Moreover, depending upon your state laws, she won't be charged taxes on that forgiven amount.
But sunnyca2009 usually one goes for a loan only due to financial crunch although reasons can be different. So, do you think sharing your financial hardships really helps?