Cash is King – Upside Down Mortgage Solutions

July 18, 2008

HOPE NOW Fails to Deliver, Now What? Part 1

Here is yet another email writer/reader and my response!

(Note: thank you all for writing in and if you do write, please be patient, I DO get back to everyone but it takes time to get through them all)

I think you will find this to be one of the best emails I have had as it covers quite a bit of information that is relevant to many people!

Brent:
(I have made a few edits to help bring across the point better)
Hi. I read you WEB site and hope you can be some help to me. I too am in an ARM that re-sets to a higher payment that I cannot make. I’ve worked With HOPE NOW to create a budget to show to my lender – Nation Star – that I will not be able to make the new payments. I have not had positive results with Hope Now or speaking with my lender.

My lender states only 6 months freeze is allowable and Hope Now is basically not worth the trouble or efforts I made with them to date. Adding to my troubles is my house value has dropped considerably my appraised value was $490,000 and it currently valued at $309,000. Real Estate market in my part of California is a long wait for new and even foreclosed homes, so a short sale may not work for me.  I even tried to use FHA loan with my current lender (Nation Star), but was told I did not have enough equity and the application was turned down.

I am wondering what my options are and I am waiting to see if this new FHA law I heard on the new will be of any help. I would like to stay in house. I can make the current payment – its’ hard- but I can do it. Any suggestions from you are greatly appreciated.

Sincerely-

John

Follow along and read learn how to handle things when the

HOPE NOW Program FAILS!

Hope Now

Mortgage Rate Freeze

Upside Down Mortgage

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2 Comments »

  1. Refinance does not solve the problem of a bad mortgage signed at the first place. But it might still be a relief from it. So it can certainly be considered.

    Comment by Debra — August 2, 2008 @ 4:44 pm | Reply

  2. Over the past month I’ve been reading tons of articles and advice columns about the housing crisis. None, seem to give advice on my particular situation. I brought a piece of rental property for the sole purpose of selling it at some point to pay towards my enormous student loan expense. Well being inexperienced I brought into a loan with a 80/20 2 yr ARM. This place has been nothing but trouble since I brought it, from horrible tenants, to it just being a money pit, to the association being dead broke. Here are my issues:
    1. At this point in time the apartment is empty and I cannot afford the $1079 a month mortgage on my own without a tenant. Even when I have a tenant, I can only charge so much for rent and end up paying a portion of the mortgage out of pocket anyway. So when the ARM adjusts I know I won’t be able to afford it regardless.

    2. I keep being told about these short sale options but even if I was able to qualify for one with my lender, I’m told I’d be hit with a huge IRS bill and I don’t qualify for the debt forgiveness bill because this isn’t my primary residence.

    3. Even if I make it to the 2 year mark and I sell it without a prepayment penalty, I still am upside down in the mortgage so I’d end up having to pay the difference regardless.

    It seems no matter where I turn I hit a dead end. It’s getting to the point where walking away from it is seeming like a better idea every day. I can’t financially manage this property as it is, and it’s going to get worse in March of 09 when the rate adjust. I can’t even sell it and refinancing seems out of the question when I owe more than it’s worth. Is walking away really my only option here?

    Comment by Daphne — August 3, 2008 @ 2:10 am | Reply


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