(OT) house in trouble (bank no helpee)

OAKI4676

New member
well we bought our house 3 year's ago, a little to much, but was tired of looking and getting over bib. things were great till last nov. girlfriend lost job with county, got behind on small loan - 80/20. have put tile in, r/v gate and aproch, sprinklers, i work as a auto tech ie pay decreasing due to all the auto trouble. may g/f started work back at county. wee have been trying to get bank to work with us since feb, with no luck, not even a lower intrest rate. i know we are not the only ones but it looks like we are going to loose the place we call home. it sucks that with all the $ the bank got that they just do not care. any one have any luck with getting a bank to work with us --- bank,,, w/f. thanks in advance .........
charlie and lori
 

mrapisura

Member
I went in and they told me my loan didn't qualify because it would put me over 105% of value with refi. Now this depends on your loan according to the adviser I spoke with, but he did say that they may be changing the 125% which I would qualify for a refi, but they will tack on about $3,000 for fees and closing cost onto my loan. He said for me to call the number on your loan statement not the one online. Don't know if you did that, and they have interest rate reduction programs available, but it is a very detailed long process that not everyone qualifies for, but it doesn't require any fees or closing costs. I am going to try that route, so we will see. If I do qualify and they lower my interest rate, my payment will lower about $150. Keep trying and don't give up.
 

OAKI4676

New member
YEP! PRETY MUCH BEEN DOWN THAT ROAD, PAID 213 FOR HOUSE AND IT WILL SHORT SALE FOR ABOUT 69K. THE BANK ALMOST LAUGHED WHEN WE ASK FOR A REFI. WHATS BAD IS THE INTREST ONLY LOANS, OUR CREDIT WASENT BAD BUT NOT THE BEST. UNLESS WE FIND A MIRICLE IT MAY BE A SHORT SALE. YOU WOULD THINK THE BANK WOULD NOT WANT THAT, BUT MAYBE THEY JUST DON'T G.A.S
 

iboard2

New member
$213 to $69K..... Ouch! I dont think theres a lender that will loan on a house that's that far upside down....

Sorry, to hear the bad news and I wish you luck.

I am aware of some people that have been able to short sale to an investor and rent back from them. Unfortunately, you loose title to your house, but you lower your payments and stay in the home. Good luck!
 

fkbsar

New member
+1 for Loansafe.org

I did a lot of reading on there and also have a Wells Fargo success story posted there. Also try NACA.org (their information is listed in some of the posts on Loansafe) they are a nonprofit organization that will negotiate with the lender and service provider for you. It doesn't cost any money - none at all. You can do phone interviews with them and you also can either fax or upload your information to their secure database. I was in the same position (two months behind and went into default) and was trying to negotiate a modification on my own and contacted NACA as a backup in case the modification didn't go through. Luckily it did but I still faxed a copy of the modification to them and they said that it looked like a good deal. I wish you all the luck. I know I had many sleepless nights not knowing where to turn. Good Lucky!
 
Last edited:

robot2222

New member
screw it why would you want to pay 213 for a house worth 69 . it is just wood and nails . you think you wont be able to buy a home again you will i promise . it will be all 4 the best rent something you can afford and save your money there are too many homes in phx not enough buyers you will get a better home 4 less money down the road everyones credit got messed up good luck. i agree with you the banks messed this whole country up through the housing market and now we are helping them out with our tax dollars it is bs.
 

30reef

New member
I would have to agree with everyone here, it just plain sucks right now. Earlier this year, interest rates were at historic lows, but very few could qualify for a refi because of the depressed values. My own home has lost over 200k in value.

It might be ok to say just let the bank take a home back if they are not willing to negotiate, but that's not for everyone. Unfortunately, many are approaching an age where they might have been counting on their homes value to supplement retirement. I will be in my forty-somethings later this year and I think about it frequently. There comes a point in ones life when it is not easy to just start over.

I believe the media is partly to blame for the downturn in the automotive business. There is too much doom and gloom in the news. They need to leave it alone for awhile. Did I mention I work for GM?
 

Jayreefer

New member
Stop paying all together and in three months they will call you to see what they can do to help. Good Luck.
 

lurch

New member
<a href=showthread.php?s=&postid=15440260#post15440260 target=_blank>Originally posted</a> by Jayreefer
Stop paying all together and in three months they will call you to see what they can do to help. Good Luck.

+1 Its funny how fast they change there tune when you don't pay them. If they don't, screw them let them take it in the pants.
 

fkbsar

New member
Contact your lender and try to work out a loan modification. I ended up with a 4.875% mortgage and paying $100 less then I was paying before.
 

Saddler

New member
Yeah, you could try for a modification, but you won't get a principal reduction. You'd be theoretically more likely to get a principal reduction via a short refi - or a pseudo short refi by at least getting the piggyback loan to write it off as a loss for a small fee; but still extremely unlikely. I'm in a similar situation since I purchased in May '06, my percentage underwater isn't quite that high yet, but still bad enough at around 50%. Also, if you were to workout a refi which negated the piggyback loan, beware that you'd most likely be forfeiting your AZ "non-recourse" status. Banks don't have the bandwidth to take people to court over this right now, but if you lost your house in the future, they may be able to pursue this - just something to be aware of.
 

Saddler

New member
i agree with you the banks messed this whole country up through the housing market and now we are helping them out with our tax dollars it is bs. [/B]

Congress has tried to force the Federal Reserve to reveal details about how the money is being spent (Bloomberg has also sued for the info, but to no avail), but they can't due to the Federal Reserve Act of 1913 which essentially gave the Fed more power than the US Federal Government. Oh, did I mention that the Federal Reserve isn't part of the government? That's right, it's independently owned - largely by the same bankers who are bailing themselves out. And then there's that nice little move that Paulson over at the Treasury did by telling members of Congress that if they didn't vote for TARP, that the government would have to declare martial law because of the rioting of citizens in the streets when the Dow crashed down to 7300. Speaking of the Dow, did you know that it was bought by Rupert Murdoch 2 years ago. Yep, if you have enough money, you can buy the stock market itself.
 

chuy marquez

New member
How much are rent payments in your area. You may be able to work out a lease/option with the buyer if it went to a short sale and end up in the same home for a fraction of the cost.
 

tricketts

Animal House
I talked to my lender that helped me with my home and he said there are options out there you just have to keep at it. It also depends on your circumstances. He said he would certainly try to help you if you wanted it so if you are interested let me know and I will pm you his contact info. :)
 

Saddler

New member
Hey Chuck and Lori, sorry again about your situation. Dealing with this .... is extremely stressful. I'd say the first step is to step back for a minute just to set aside a couple of hours in the next couple of days to spend some time together for dinner and agree in advance to not talk about anything related to the house, finances, work, etc. Then you really need to look at your finances and decide how long (given current income circumstances) you can sustain living in the house without using credit to stay there. Actually, I'd say immediately register with loansafe.org and copy and paste your original post there. I first posted my situation asking for help just under a year ago. The responses that I got said that I'm lucky to be in a non-recourse state and that I should walk away since I'm also 80/20. Basically, they said don't hold out for principal reduction, cash is king in the near to not-so-near future, so consider cutting away ASAP. I haven't yet, I stressed and obsessed for a couple of months and talked to a FHA underwriter who was pushing to get me into a pseudo short refi, but when I read the good faith estimate, it appeared that I would need to put down $10k to complete the transaction. I confronted him about that, and he said that no, that should be covered by the lender somehow. But as far as I could tell it was clear that I'd be paying. And everyone I asked on the forum said that I wouldn't get that deal anyways because no lenders right now are walking away from loans for small fees or doing any type of principal reductions. I had hassled the underwriter with every detailed question by this point and didn't get definitive answers to questions that I needed to know as fact; e.g. - I said that I needed to see written proof that doing a refi won't change my non-recourse status. He over and over again said that he knew that it wouldn't, but when it came down to it he could only quote an article from an attorney that he had met in AZ, but he couldn't produce the article. Those 2 things kept me from pursuing the refi with him at that time; I just couldn't wrap my head around the urgency of applying right away. I said that values are expected to drop at least 20% more before hitting rock bottom (and the already have), so why not wait until the bottom to do a short refi? He said, well lenders may not be willing to do a lower amount, because that would just be too much to loose. And I just didn't reply after that. Now, I've been fortunate enough to be able to afford staying in a holding pattern this past year. I just decided that since I was able to do so, it was worth stepping back to focus on other things in life, and wait to see if any other options arise with time. If I do have to walk away by choice or by force, I will have extended the amount of time that I'll be able to clear a foreclosure from my record and get back into the housing market again. So to sum it up, my best advice is protect your relationship, utilize loansafe.org, don't go into debt to hold onto your home - in fact the first thing that I did last year was to reorient my thoughts of my "home" to those of my "house" and my "investment" and that's been key, don't put any money down to get a loan mod, any offer that you get should be not signed without running it first through the forums to get others' input, and absolutely pay a local real estate specialist attorney for advice before signing your name to anything (don't fall for urgency tactics by the bank, underwriters, etc.), be aware of your non-recourse status and ensure that you're not loosing that with any new deals, be aware that signing a mod now may prevent you from reapplying for another mod for a set amount of time, be aware that a refi not only may take away your non-recourse status, but a short refi itself will knock 150 points off your FICO score, and then if things go south again in a few months and you have to foreclose anyway you'll also take another 250 point hit (including the 30 days late hits). Best of luck.
 

psimitry

New member
<a href=showthread.php?s=&postid=15441149#post15441149 target=_blank>Originally posted</a> by chuy marquez
How much are rent payments in your area. You may be able to work out a lease/option with the buyer if it went to a short sale and end up in the same home for a fraction of the cost.

This is something worth considering. Some people I know have actually been setting it up so that their parents are buying the place at a significant discount and then renting it from their parents while their credit score recovers. In a few years, the parents can simply sell it back to them and you end up "paying off" 200k of a house in 5 years and never moving.

Of course, this doesn't help the people who went into it thinking they'd buy a house at the peak of a bubble on an IO loan and pull 50k cash out of their house in three years. But it's better than having to move into an apartment after living in a nice house for a year or two.
 
Top