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refi or modification? help

Posted on: 20th Sep, 2009 02:43 pm
I added a home equity line when I added on to our home due to our twins being born. As we added on to the house the payments went up and and have since refinanced but still cannot pay other bills while paying the 3375.00 a month mortgage. Now we have negative equity as we owe 539,000 and our house is only worth around 390,000. We are starting to use the credit cards more and more and are getting very scared. I have a good income but this payment is too much. Where do we go from here?
Ithink you need to start calling your bank and ask for loan modification

You cna try for refinanc, but sine you are under water that option may not be possible at all in this market
Posted on: 20th Sep, 2009 03:21 pm
Hi cwrest!

Welcome to forums!

As you've negative equity in the property, lenders would not be ready to refinance the loan. As sunny has suggested, you should look out for a loan modification. You should inform the lender about your financial situation and request for modification of the loan. The lender would decide whether or not he would consider your request.

Feel free to ask if you've further queries.

Sussane
Posted on: 20th Sep, 2009 08:10 pm
I think your only choice is a loan modification, you can try it yourself or hire a loan modification attorney. Of course, with the Attorney there is always their fee, but I believe worth it and much less then a the cost of a refinance.

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Posted on: 22nd Sep, 2009 08:30 am
These articlaes will be really helpful in how to go about askign for loan modification

http://www.mortgagefit.com/problems/hardship-letter.html

http://www.mortgagefit.com/blog/tag/hardship-letter/

Good luck
Posted on: 26th Sep, 2009 09:16 pm
loan mod might be the way to go
Posted on: 29th Sep, 2009 05:17 pm
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