Posted on: 11th Mar, 2009 02:10 pm
My situation is almost the same as sunjunkie's. I have a condo that is underwater by around $180K. I have the same 80/20 split on interest only loans that are up in Mar 2010.
I cannot refi, and have asked that the ghastly American Home Mort. try to renegotiate my 1st. I am not holding my breath, as my income has stayed the same. They sold off my 2nd when they went BK, and charged me fees to do so!
That is a variable rate as well, and with the principle kicking in on both, and the 2nd being so variable, I don't know if I will be able to afford or not. The idea when purchasing was of course to build equity and be able to re-fi when the time came.
Now I can't, my condo is EXTREMELY underwater.
Is it best for me to walk away...and what happens to me with my 2nd if I do? :shock:
I cannot refi, and have asked that the ghastly American Home Mort. try to renegotiate my 1st. I am not holding my breath, as my income has stayed the same. They sold off my 2nd when they went BK, and charged me fees to do so!
That is a variable rate as well, and with the principle kicking in on both, and the 2nd being so variable, I don't know if I will be able to afford or not. The idea when purchasing was of course to build equity and be able to re-fi when the time came.
Now I can't, my condo is EXTREMELY underwater.
Is it best for me to walk away...and what happens to me with my 2nd if I do? :shock:
Hi Guest!
Welcome to forums!
If you walkaway from the property, the first lender will have the right to foreclose the property. He will first satisfy his debts by selling off the property and if there is an excess amount, then you can pay that to the second lender. If there is no excess amount from the sale of the property, then you will be liable to pay off the debts of the second lender from your pocket.
I would suggest you to speak to both the lenders and check out if they can offer you a loan modification. In this process, the lenders will give you an alternative plan to pay off the debts. Moreover, you will also be able to save the property.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you walkaway from the property, the first lender will have the right to foreclose the property. He will first satisfy his debts by selling off the property and if there is an excess amount, then you can pay that to the second lender. If there is no excess amount from the sale of the property, then you will be liable to pay off the debts of the second lender from your pocket.
I would suggest you to speak to both the lenders and check out if they can offer you a loan modification. In this process, the lenders will give you an alternative plan to pay off the debts. Moreover, you will also be able to save the property.
Feel free to ask if you have further queries.
Sussane
If you can afford the payments, then keep making them. The bank SHOULD work with you to help you because they would be facing a potential $180k loss. My guess is that you are not asking the right questions or stating your case in a way that they need to hear it.
Meanwhile, this will not help YOU, but others who have homes that are underwater may benefit from the DU Refi Plus program.
[Link deleted as per forum rules. Thanks.]
Meanwhile, this will not help YOU, but others who have homes that are underwater may benefit from the DU Refi Plus program.
[Link deleted as per forum rules. Thanks.]
I did contact my first mortgage holder and they are willing to put me into a 50yr fixed. However, that would add $900K onto the purchase price of my home and even if I did that to just buy me time, I'll still be upside down 10 yrs from now. I just don't see how my situation will improve, and it sounds like I just need to cut my losses and walk away now. I think I might have to do a deed in leiu and a BK. My 2nd, won't even talk to me unless I am behind in my payments.
It's true that lenders would provide you with any options if you are not delinquent on your payments. You can opt for bankruptcy. You can file Chapter 13 which will help you in saving the property but you will have pay the mortgage dues based on the new payment plan given to you by the lender.
I own a rental which is underwater by more than 70,000.
Even though the house is rented, it is still costing me over $800.00/month
The mortgage is up to date, but the payments are draining all of my savings.
Is there anything I can do.
I do not qualify for a short sale
Even though the house is rented, it is still costing me over $800.00/month
The mortgage is up to date, but the payments are draining all of my savings.
Is there anything I can do.
I do not qualify for a short sale
Hi Dave!
Welcome to forums!
Did you speak to your lender about deed in lieu of foreclosure? If not, then I would suggest you to do so. This will help you in getting rid of the property and you won't be responsible for the deficient amount resulting from the sale. However, your credit score would be badly affected and will get reduced by 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Did you speak to your lender about deed in lieu of foreclosure? If not, then I would suggest you to do so. This will help you in getting rid of the property and you won't be responsible for the deficient amount resulting from the sale. However, your credit score would be badly affected and will get reduced by 250 points.
Feel free to ask if you've further queries.
Sussane
I have an 80/20 mortage with a total owed of about 380,000 and the house valued at about 335,000 right now. I can barely make the two payments monthy. I have only paid once past the 15th of the month. I also have 40,000 in credit card debt. This all dates to me loosing my job for 8 months a little while back. I currently have a job but I am not sure if I should just walk away or hope the value comes back up. Six months after I bought it in 2006 the value went up to 419,000 but has now dropped about 80-85,000. What to do?
Hi Paul,
Considering the present market situation, I don't think the property prices will rise soon. On the other hand, if you walk away from the property, it would lead to foreclosure. I would rather suggest you to contact your lender and apply for a deed in lieu. If the lender accepts your request, it will help you in selling off the property and you will not be responsible for the deficient amount arising from the sale.
Thanks
Considering the present market situation, I don't think the property prices will rise soon. On the other hand, if you walk away from the property, it would lead to foreclosure. I would rather suggest you to contact your lender and apply for a deed in lieu. If the lender accepts your request, it will help you in selling off the property and you will not be responsible for the deficient amount arising from the sale.
Thanks
I bought my house in 2004 in San Diego. To date my house is worth approximately $315K and my mortgage balance is about $397K. I have a 7 year arm that resets in 3 years and two months from now. I am paying about $1K in principal down per month, which puts the balace in the $355K range at the time my ARM resets in 2013. SInce I am making significant payments is there any chance my lender would be willing to negotiate with me for a lower fixed 15 to 30 year rate?? I have called my lender directly in the past and they told me I was SOL on refinancing as long as I am underwater. Is there anything I can do to get mylender to renegotiate? Some help from someone educated in these matters would be appreciated .
hi guest!
welcome to forums!
as your property is underwater, you won't be able to refinance the loan. the lender will only help you with a refinance if you have equity in the property. i don't think your lender will be ready to renegotiate with you regarding your loan.
sussane
welcome to forums!
as your property is underwater, you won't be able to refinance the loan. the lender will only help you with a refinance if you have equity in the property. i don't think your lender will be ready to renegotiate with you regarding your loan.
sussane
My townhome is underwater. I owe 25K more than I can get for it. I have an 80/20 loan in which the variable rate will kick in next year and I'm not sure if I'll be able to afford paying. My previous renter and his pets destroyed the carpet, paint and screens plus outside needs painting - I estimate this will cost 10K. Do I fix it up and sell or rent the home and continue to loose money? Do I just sell the home for less than it's worth? Do I just walk away?
Hi Guest!
Welcome to forums!
If you cannot afford the property anymore, you can sell it off. However, after you sell off the property, you'll be liable for paying off the mortgage in full. If you do not pay off the dues in full, the lender will have the rights to sue you in order to recover the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you cannot afford the property anymore, you can sell it off. However, after you sell off the property, you'll be liable for paying off the mortgage in full. If you do not pay off the dues in full, the lender will have the rights to sue you in order to recover the dues.
Feel free to ask if you've further queries.
Sussane