Posted on: 21st Apr, 2009 08:51 pm
My husband is retired and I just lost my job. We refinanced a year ago at 12% interest rate. We owe 119,000 but our house value as you can guess is much lower. What can we do?
Hi donaldyocum,
A 12% interest rate is pretty high, but you cannot refinance it to a lower rate as there is not enough equity in the property. In this situation, I think you can talk with the lender and work out a loan modification plan which will lower down your monthly payments. You can also send them a hardship letter stating that you can no longer afford the payments due to your husband's retirement and your job loss, so they pay due attention to your request for the modification.
A 12% interest rate is pretty high, but you cannot refinance it to a lower rate as there is not enough equity in the property. In this situation, I think you can talk with the lender and work out a loan modification plan which will lower down your monthly payments. You can also send them a hardship letter stating that you can no longer afford the payments due to your husband's retirement and your job loss, so they pay due attention to your request for the modification.