We are again trying to refinance our home. Just after a couple of months, the comp value (hearing this from a lender), went down again another 50 grand.
I heard that Bush signed a Housing Bill. Who the heck is this suppose to help? And what does this entail?
We are on an ARM right now and when we got this loan, it was only because we were under the understanding, and reassurance that we could refinance to a fixed rate. Now we can’t.
If this ARM on our house takes place, we cannot afford the fluctuating pmt. And God only knows what kind of pmt it will be. And it will start to take affect in January.
I talked with my dad tonight, and he read somewhere that ppl are losing their homes all over because of this. He also said that he read somewhere that some ppl are buying second homes, and walking away from their first because of how the housing market is. How is that possible?
Is it possible to walk away from one house, and buy another?
This is really straining and emotionally draining on my husband and I. Not to mention putting a damper on our relationship. How can we get through this? How has anyone gotten through this?
Help please…any advice will be welcomed. Thank you.
Thanks to everyone who has extended such kind words and who has sent me a personal message with extra detail info. I really appreciate it, and I wish there was a way I can give ‘best answer’ to each of you, as you all have great advice! God Bless you all!
Anthony
Vicki
Can you sell it legally? If you can, do so. It’s better than foreclosure. You might take a loss but you can probably structure payments, etc. and you won’t have that millstone around your neck.
Comment by Precious H — September 9, 2010 @ 12:37 am
Jason
I saw a news story on ABC about walking away from one house after buying another. Big problems with that: if your credit stinks so much you cannot finance another house; you’re worried about being a bad credit risk for many years (7-10 years); but the biggest one I see is in the future when the industry recovers — and it will, everything is cyclical — these lenders are going to investigate and probably charge those who walked away from their 1st homes with fraud.
Go to a credit counseling organization that is non-profit. You can also try and negotiate with your mortgage lender, and the sooner you do it the better. They are not as likely to help someone who stuck their head in the sand too long.
Good luck to you. Keep in mind you are NOT alone in these difficult times/
Comment by northernbornsoutherner — September 9, 2010 @ 3:41 pm
Rhonda
You and a lot of other former homeowners.
Your dad is correct, people are losing homes all over the country because of your exact situation. They bought houses they didn’t need with mortgages they couldn’t afford using money they didn’t have. When the adjustable rates went up, they couldn’t make the payments and fell behind on the mortgage, leaving the lenders little choice but to foreclose on the house.
If you can’t refinance the home, the only way to avoid foreclosure on a mortgage you can’t afford is to sell it and be smarter next time. You might have to eat a large chunk of the decreased property value, but at least your credit won’t be completely ruined.
Comment by Big Sky 23 — September 10, 2010 @ 5:12 pm
Terri
I emailed you at your regular email address, not through YA.
Jennifer
Comment by Fed Up and Fighting Mad — September 12, 2010 @ 1:17 am
James
Listen to your Dad!
Comment by GWB — September 14, 2010 @ 10:48 pm
Milton
What some people were doing was buying another house with an affordable mortgage, and then letting them foreclose on the unaffordable house. Of course this has to be done before your credit is tainted. Because the value of homes has dropped, you can get a comparable home for alot less. Other than that, I would try to find out how you get help on that plan Bush passed. Go to your states website and check through the departments listed and pick something that has to do with finance. They may be able to point you in the right direction. Problem is, if you lose the house, you still have to live somewhere and pay rent. Maybe the bank may have some information on your options. Call a bank you don’t deal with. Good luck.
Comment by canam — September 16, 2010 @ 11:35 am
Colleen
IF you can sell it and get enough to pay off your mortgage at the closing ..and still get another less expensive place to live …. I’d go that route , IF time permits …
If not; talk to an attorney about Bankruptcy as there IS a type of Bankruptcy that you file where you remain in your home ……
Granted; it won’t do your credit any good BUT; You and your family would still have a roof over your head …. and you can always rebuild credit with time … I’ve been here !!
Good Luck and god Bless !!
Comment by HIGH SHAMAN — September 19, 2010 @ 9:55 am
Carolyn
This is going to sound like an advertisement but its not. I just came across this today actually. Its way to much info to put here but you can email me and Ill give you the full story.. This is my personal email. I used to be a broker. I have to say that now because every time someone sees my email address they think i’m trying for business or something.
Comment by James O — September 20, 2010 @ 2:47 pm
Lori
Oh G…I am so sorry…we refied in January to get out of the exact same situation….and after n8 years in this house we have to carry PMI again because hubby is a carpenter and can’t show enough income…so I feel your pain.
I did have a friend years ago walk away from a condo in Orange County LA…but she was single…now has a house with hubby…she is on deed but not mortgage…
Sellingng might be prudent, but not so great if you are “upside down” like we are too…. Things are so volatile right now…talk to your mortgage guy…with today’s developments, all of this advice may be old….
Comment by Stacie's Mom — September 20, 2010 @ 9:32 pm