Posted on: 23rd Aug, 2009 07:24 pm
i am facing a quite challenging situation at this time. as a single mother, i purchased a house two years ago with a good credit (717) but no savings at all. i thouhgt that i would make at least $150,000 two years later (for real!) but the market started acting up. anyway, i ended up with two interest only mortgages that i could barely pay for every month on top of all my other bills and debts. i refinanced six months ago, thinking that i could still afford the new payment, but it seems even worse. i got a very high rate due to a quite low credit score (620 at that time). it helped me skip one payment, but only one...
i manage to pay all my bills on time and never had any late payment, but last month was extremely hard to face.
my house now needs some serious roof repair estimated at $7,000.
if i try to sell now, i may still owe on it due to high competition in the neighborhood and all the repairs, in addition to closings costs.
i am trying to refinance again, but with now about 636 my credit report, a high debt to income ratio, no savings at all, not to much equity, i do not seem to be very attractive to lenders. the mortgage alone represents 72% of my income.
wow!
i am humbly looking for some sound advice, the one i did probably did not get in the first place.
thank you.
i manage to pay all my bills on time and never had any late payment, but last month was extremely hard to face.
my house now needs some serious roof repair estimated at $7,000.
if i try to sell now, i may still owe on it due to high competition in the neighborhood and all the repairs, in addition to closings costs.
i am trying to refinance again, but with now about 636 my credit report, a high debt to income ratio, no savings at all, not to much equity, i do not seem to be very attractive to lenders. the mortgage alone represents 72% of my income.
wow!
i am humbly looking for some sound advice, the one i did probably did not get in the first place.
thank you.
Hi sleuth,
You will have to decide whether or not you want to save the property. If you want to save the property, then you should apply for a loan modification and check out if the lender agrees to it. This will help you in reducing your interest rate which will in turn help you in paying off the mortgage dues. However, the lender would increase your loan term in this process.
If you decide not to save the property, then you can apply for a deed in lieu of foreclosure. In this process, you'll have to surrender the property to the lender and the lender would sell it off to recover the dues. Due to market situation, there would remain a deficient amount from the sale of the property. The lender will forgive that amount.
Thanks
You will have to decide whether or not you want to save the property. If you want to save the property, then you should apply for a loan modification and check out if the lender agrees to it. This will help you in reducing your interest rate which will in turn help you in paying off the mortgage dues. However, the lender would increase your loan term in this process.
If you decide not to save the property, then you can apply for a deed in lieu of foreclosure. In this process, you'll have to surrender the property to the lender and the lender would sell it off to recover the dues. Due to market situation, there would remain a deficient amount from the sale of the property. The lender will forgive that amount.
Thanks