Upside Down On My Mortgage
help!!! i recently got divorced and i was trying to get my home refinanced and was told that i owe more on my home than what it is worth. i have an arms and facing my note going up in october more than 9.5% along with many costly repairs that i just can afford any suggestions. :-(
You may find an investor here who can help you out if you give more details.
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i would love your opinion on this matter what other information do you need?
ICarter,
While this is a very tough situation, there are solutions available. It really depends on if you want to stay in the house, if you can afford the house, the condition of the house, and the market value of the house. Possible solutions include a short sale, private financing, mortgage modification, rehab (to return the property to market value if repairs are lower FMV), etc.
Since most of the necessary information is personal, I sent a private PM requesting info for further advice.
-Chris
[addsig]
Thanks Chris,
I really can't afford the repairs and continue to pay this mortgage. I am not behind on the payments. How do I conduct a short sale. would this screw up my credit? Is it worse than a foreclosure? Foreclosure is something that I have considered doing.
ICarter
A short sale is a much better solution than allowing the home to go into foreclosure. I'm not sure if a home can be shorted before it goes into the foreclosure process, but I see no reason that the bank wouldn't allow it if you could justify it and prove it is in their best interest. I have SSP's book at home and know this was answered in there somewhere and will look when I get home.
The basic process for doing a short sale is simple. You need to find a buyer or realtor who is familiar with the process and negociate a sale price/contract with them. They will need a letter or authorization to speak to the mortgage company to explain the situation. They will also need financial information to justify your need to dispose of the house and confirm that you are unable to pay for it. Once this information is submitted, the bank will order a BPO to determine the home's value. Based on this figure, they will accept, deny, or counter the offer from the buyer for your home. The bottom line is, the buyer is able to purchase your home at a reduced price and you're saved a foreclosure on your credit report. It is a win-win situation
-Chris
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can you please explain how you could have an A.R.M. that's going up to 9.5%?
Chris, if the short sell is accepted by the bank, will i be responsible for the difference. Like i owe 112041 and if a buyer buys it for 85000 will i have to pay the difference. Would it look bad on my credit? How long does the process take? Would I need to contact my mortgage company first?
Thanks a bunch Chris!!!
Rebecca, Hi
My interest rate is 9.5% already. It will be going up in October higher than that .
Thanks so much Chris for this information. I will contact them on tomorrow. I have your number on the PM and i will contact you tomorrow or thursday to let you know how it went. Would this be something that you would be interested in or do you know of another company.
Thanks again for this information Chris.,
You're welcome.
I wouldn't be able to tell you if I was interested in the house until I've inspected it and spoke with the mortgage company. However, even if I'm not interested in the home, I will make sure you get put on the right path to get your life back on track.
-Chris
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Just to make sure you understand, a bank won't consider a SS until the Loss Mitigation Dept. is involved, and that won't happen until you are at least 2-3 months behind on your payments. So the answer to your question is "Yes". If you are current on your payments and stop making them to do a SS, it will affect your credit score. It's not worse than a foreclosure, but it is one step away from a foreclosure, provided the SS is successful. It's a slippery slope to go down if you don't have to, because waiting at the other end of an unsuccessful SS is Foreclosure.
Sometimes though, it's the only way out. Good luck.
Quote:
On 2004-08-10 20:30, ICarter wrote:
I really can't afford the repairs and continue to pay this mortgage. I am not behind on the payments. How do I conduct a short sale. would this screw up my credit? Is it worse than a foreclosure? Foreclosure is something that I have considered doing.
ICarter
[addsig]
This is way off of the short sale idea that everyone else is talking about, but have you thought about leasing optioning the property out or finding an investor in your area that does that, or that will buy it subject to the existing financing? This would get you out of your situation without harming your credit at all. One of the plus sides of lease option investing is that you can still make money even from a house that is upside down.
Just a thought.
Candace
Hi Candace,
I thought about a lease option, but there are alot of repairs that I just can't afford to make right now. I really don't think anyone will lease a house for a high amount of money giving that the interest rate is going up in October.
Quote:
On 2004-08-11 14:43, newcreation wrote:
This is way off of the short sale idea that everyone else is talking about, but have you thought about leasing optioning the property out or finding an investor in your area that does that, or that will buy it subject to the existing financing? This would get you out of your situation without harming your credit at all. One of the plus sides of lease option investing is that you can still make money even from a house that is upside down.
Just a thought.
Candace