i have a morgage loan of 40 years for 480,000 but my home is not worth close to that, i think is worth close to the 300,000. I have never miss one payment but is getting harder and harder to came up with the monthly peyment to the point that i dont think i’m going be able to keep up with the loan. What r my options? thanks in advance.
i have a 6.50 interest
Good Question,
One thing you DON’T need, is to hire any loan modification companies.
What you want to do is contact your bank as soon as possible and set up a meeting or phone conference. Tell them exactly what you said here and answer all of their questions.
More than likely they will work with you and at the very least reduce your interest payment.
Many banks now have a user-friendly form online.
Good Luck!
I wrote an article that I think you should read BEFORE you spend any money trying to have someone "help" you with this you should do some reading because this is something you may be able to fix yourself. Take the time to read my blog at: http://www.acaciacoinc.com/blog
References :
Good Question,
One thing you DON’T need, is to hire any loan modification companies.
What you want to do is contact your bank as soon as possible and set up a meeting or phone conference. Tell them exactly what you said here and answer all of their questions.
More than likely they will work with you and at the very least reduce your interest payment.
Many banks now have a user-friendly form online.
Good Luck!
References :
You have a problem like a great many folks. Before you default call this number to see what options are available to you; 888-995 HOPE.
References :
When did you buy the home? Is it a fixed rate or an ARM?
Unfortunately, many people are in similar situations, which is what the housing crisis is all about. People bought at high prices and are now seeing a low, and they bought with adjustable mortgage rates assuming that they could just refinance in a couple years. Normally, in this situation, you could try refinancing in order to bring your monthly payment down. If the value of your home is that much lower than the price of your loan, it’s unlikely that anyone will do a refinance for you.
At this point, your options are to 1) talk to the bank and tell them your situation, see if there’s anything they can do, 2) stick it out and hope that things get better, or 3) try to do a short sale or let the house be foreclosed upon, which will result in you losing the house, possibly owing money, and with your credit score shot. Unfortunately, it’s just not a good place to be in, but when you take on a mortgage like that, you are giving your word that you are going to pay it all off, and when you don’t, there have to be consequences.
References :
It doesn’t matter if you are ‘upside-down’ unless you need to sell. Really, it doesn’t.
People are ‘upside-down’ all the time on car loans and it doesn’t freak them out.
I think the following is the most important part of this answer:
The bank never agreed to be your financial partner and assume risk with you. The bank agreed to lend you money and you agreed that you would repay it. If you are able to do so, you should. If the property was worth 125% of what you paid for it (i.e. a 25% profit) would you be looking to share that with the bank? Why do you think they should take (or even share) YOUR loss? People walking away from upside down mortgages really have the potential to completely sink the financial sector!
You can’t walk away with no penalty. That’s because you borrowed the money and YOU agreed to pay it back. When you don’t pay it back, it shows you are irresponsible with money and not a good credit risk.
There are four levels of things you can do if you have to sell. The farther down the list you get, the more damage it does to your credit.
#1 – come up with the difference out of pocket at closing. Not terribly attractive, but does no damage to your credit.
#2 – get the bank to agree to a ‘short sale’. From a bank’s point of view a short sale is a loss mitigation technique – meaning they think they’ll lose more if they don’t do this. This is why they have means testing for a short sale and why you already have to be delinquent in payments.
#3 – deed-in-lieu of foreclosure. A ‘voluntary’ foreclosure. Saves the bank attorney fees and a court date. Trashes your credit. Similar to qualifying for a short sale, you have to be in distress for a bank to agree to this.
#4 – full foreclosure. The bank hires and attorney and goes to court to gain ownership.
In cases 2, 3 and 4 there is a deficiency. They can come after you for the balance. In some states it is difficult for them to do so and they may choose to forgive the balance. If they do, they will almost certainly send you a 1099 next tax season where the amount forgiven counts as income to you (and now you have a real tax problem). If the amount isn’t forgiven, they can go to court and seek a deficiency judgement against you. After they get this, they can garnish your wages to get repaid (and garnish any tax return, etc., you might be owed).
Several answers mentioned the modification programs. They don’t address negative equity. All they address is current payment level. They work with you to reduce interest to get your payment back to an affordable level, but do nothing about negative equity. Negative equity drives this type of behavior, even though it shouldn’t.
good luck!
References :
40 years???? why did you ever get a 40 yr mortgage – walk away is your only option – expect foreclosure and credit ruination, maybe bankruptcy
References :
Don’t give up.
this will help you.
References :
http://www.thenewstartmortgages.com
If you had no problem making the monthly mortgage payment, what has changed that cause you to be unable to make the monthly mortgage payments today?
Did you lose your job, working less hours or some other reason for you not making your monthly mortgage payment?
Your home being worth less today than it was yesterday is not a reason not to pay your monthly mortgage. You have to pay either rent or a mortgage, so which do you chose?
Property values every so often adjust, the same with the stock market their are adjustments in stock every now and then. Eventually your house will appreciate in value. The question is when? Don’t panic because all your friends and neighbors are telling you that you are losing and now is the time to get out.
What are you going to do when prices go up. Your monthly mortgage payment will be higher because you will have to pay more to purchase a house.
If you are having financial problems you should immediately contact your lender. You want to speak with someone it their Loss Mitigation or workout section.
Once you are speaking to someone in one of those departments outline you financial difficulties. Find out if they have a program that wll fit your financial situation as it is now.
For any financial or tax matters you should contact your financial advisor or tax consultant.
I hope this has been of some use to you, good luck.
"FIGHT ON"
References :