Copyright © 2009 - Mortgage Refinancing - is proudly powered by WordPress | Log in
Compositio Theme is created by: Design Disease brought to you by PremiumThemes.com
Refinancing Home Mortgage
I purchased my house in a suburb outside of Detroit in 2004 for $147k which was one of those awesome 105% loans where the concessions paid for my closing costs.
The issues starts where my wife lost her job at the end of the first year of us owning it (causing us to go bankrupt on some credit card debt) but I could still make the house payments on just my income. Since then, gas is 4 to 5 times as much as it was then and of course inflation on food and everything else. So after being a stay at home mom for 4 years since she lost her job, we were behind one mortgage payment and she was forced to go back to work and our two children are now in child care and/or school.
We’ve already gave up all of our “luxury” stuff with the exception of cell phones and broadband internet. The cell phones though have no data or extra features, just 700 shared family minutes. We don’t leave the house except to go to work (an hour away each of us). We eat cheap foods that’s caused me to go up 2 pant sizes… We only eat out at McDonald’s and we order from the dollar value menu… Our cars are paid off but in order to afford the house while she was looking for a job we had to get a credit card to supplement the income so we have about $5,000 in debt to Discover at 22% APR.
Now back to the house. We haven’t made any improvements on it (since we can’t afford the house in the first place let alone another loan) and the homes in my area/city are selling now for $70k on a short sale (some of them are bank owned but most of them are short sales). The homes in my area that are selling over $70 (but under $80) have garages and I unfortunately do not have one…
The deal is we would like to stay in this house if we can get Countrywide to agree to a forgiveness of debt since my mortgage is for 6% and I know I wouldn’t get approved for that again with my bad credit from the bankruptcy but last we tried to work with them they wanted us to be 2 months behind in our payments before they would talk with me about it (ruining my credit that I’ve recovered since bankruptcy). So I tried to refinance the house but they would only refinance what the house was worth leaving me with almost 40% negative equity to have to cover out of pocket… I lastly got approved for a mortgage (before my wife was back to work) and found a house I wanted but found that in order for me to move into the new house they wanted me to have my old one sell first to make sure I wasn’t renting out the new one since it was so much cheaper than the one that I owned (not in value but in mortgage amount)…
What do I do???
This is about mortgage information questions.
Copyright © 2009 - Mortgage Refinancing - is proudly powered by WordPress | Log in
Compositio Theme is created by: Design Disease brought to you by PremiumThemes.com
5 Responses to My home’s worth 1/2 of my mortgage! Question resubmit with more details. ?
Tom P
May 29th, 2010 at 3:09 am
First, Countrywide will not likely forgive you your debt. If they did, the $70,000 in debt that would need to be forgiven will be considered taxable income by the IRS.
If your mortgage was for $147,000 at 6% your monthly payment excluding taxes and insurance is less than $900 per month. I know times are tough, particularly where you live, but I suggest you try to get a second job and your wife a first job. A minimum wage job will cover your entire mortgage.
Good Luck.
satarnag01
May 29th, 2010 at 4:03 am
Like I stated before. Look into either a loan modification or see if the new FHA loan for people facing foreclosure will work for you. Both options should allow you to reduce your loan balance and maybe rate. I’ve seen Countrywide do a loan mod where they reduced the loan balance and gave a 30yr rate of 5.25%.
You could also short sale the house to a family member or friend you can trust and pay their mortgage and buy it back when you repair your credit in 7 years.
Good Luck
Dataminer
May 29th, 2010 at 4:26 am
Here is a program that might help
Ed Atun
May 29th, 2010 at 5:14 am
The newspaper analyzed Countrywide’s offers to people who were in trouble and saw that the offers were more expensive than just keeping the current loan; which is a joke because people were calling and seriously needing help. Countrywide was adding all sorts of fees and just adding them to the end of the loan. Nothing was forgiven and no money was saved. It is not just Countrywide; most lenders are not offering very much help. That may change in the future.
You might consider just signing the deed back to the bank..
TheShortSaleGoods.com
May 29th, 2010 at 6:07 am
You need to get the loan modification to work. That may look like letting yourself get an extra month behind, or it could look like working with a company like Mortgage Mitigators, http://www.mortgagemitigators.com, to have them work to get the bank to reduce the principal on your loan. If your property is really that far upside down, it should be possible. Countrywide is one of the more difficult lenders to work with in general. But it could still be possible.
Since this is your primary residence, ignore anyone who talks about tax implications. You won’t get taxed for a discount in the principal on your primary residence.