Nathan L asked:
I bought my house in 2005 with an ARM, knowing that I had to refinance within two years with a more conventional mortgage. I had received a promotion at work, but wasn’t starting the job (which paid twice as much) for another six months. So, for me, the ARM was perfect. I refinanced my home after two years into a 30 year fixed at 6 1/4% The plan was to upgrade after four years in the house, but because of the housing market tanking, I’m upside-down $30K. I’ve never been late on a mortgage payment and have good credit. How can I negotiate with my lender to get into a better home without taking a loss on the one I’m in?
I bought my house in 2005 with an ARM, knowing that I had to refinance within two years with a more conventional mortgage. I had received a promotion at work, but wasn’t starting the job (which paid twice as much) for another six months. So, for me, the ARM was perfect. I refinanced my home after two years into a 30 year fixed at 6 1/4% The plan was to upgrade after four years in the house, but because of the housing market tanking, I’m upside-down $30K. I’ve never been late on a mortgage payment and have good credit. How can I negotiate with my lender to get into a better home without taking a loss on the one I’m in?
I bought my house in 2005 with an ARM, knowing that I had to refinance within two years with a more conventional mortgage. I had received a promotion at work, but wasn’t starting the job (which paid twice as much) for another six months. So, for me, the ARM was perfect. I refinanced my home after two years into a 30 year fixed at 6 1/4% The plan was to upgrade after four years in the house, but because of the housing market tanking, I’m upside-down $30K. I’ve never been late on a mortgage payment and have good credit. How can I negotiate with my lender to get into a better home without taking a loss on the one I’m in?
I bought my house in 2005 with an ARM, knowing that I had to refinance within two years with a more conventional mortgage. I had received a promotion at work, but wasn’t starting the job (which paid twice as much) for another six months. So, for me, the ARM was perfect. I refinanced my home after two years into a 30 year fixed at 6 1/4% The plan was to upgrade after four years in the house, but because of the housing market tanking, I’m upside-down $30K. I’ve never been late on a mortgage payment and have good credit. How can I negotiate with my lender to get into a better home without taking a loss on the one I’m in?
*****I ask because during the presidential election (and listening to NPR), I kept hearing about “revaluing” mortgages to bring the market back. Was this political nonsense or is there any meat to this?
Delores
Bobby
You don’t. A decline in the market value of the house is not grounds for “renegotiating” the amount you owe.
Comment by src50 — August 22, 2010 @ 7:28 pm
Lisa
Sadly, you over paid for an over-priced housing market.
The loan is YOURS…as is. You’re “expected” to keep paying on a house that’s upside down…. but there’s no harm in ASKING.
HOWEVER, if, and ONLY IF, you are SERIOUSLY considering defaulting on the loan since you are upside down, call them and announce your intentions and give them the “chance” to negotiate. If they foreclose, they will have to sell it at CURRENT market value, so either way, they’re taking a loss. Better to do it on paper, than actually have to pay for the foreclosure and then real estate commissions.
IF they are actually willing to work with you, then expect a huge black mark on your credit file.
Comment by angels_harp_2000 — August 25, 2010 @ 5:06 am