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at the booming point of the economy, my wife and I refinanced all of our credit debt into our home. We had anticpated being able to sell quick and move into somthing more affordable. We are almost a year now into this mortgage payment and it is killing us, WE NEED HELP!

Contact your mortgage company. If they will allow you to sell under a compromise (or short) sale then you can. There are no laws that force them to allow you to do this- the mortgage company just does this if it appears it is in their best interest.

If they believe that their only other choice is to foreclose on you, and that at foreclosure they will also not be able recover all the money, and that they will not be able to recover any money by suing you to recover money you might have in a bank account, and if they do not believe there was fraud involved in creating the loan and no fraud involved in the sale (you are not trying to sell it to your brother or something)- then they may very well allow this short sale to happen.

They are going to ask a lot of questions and it will hurt your credit but it will be a lot better on your credit report than a foreclosure would have been. The bank will normally be much better off because they have much lower legal fees in a short sale.

I want to refinance and I don’t qualify for Home Affordable because I’m not Fannie/Freddie backed. I’m definitely high LTV but the estimate on Cyberhomes and Zillow is an almost 50K swing! They’re nowhere near each other. The high estimate puts me right at 95% LTV so it’s the difference between whether I can refi or not. I’m willing to pay-to-play to get an out-of-pocket mortgage appraisal. So my question is, will lenders accept this appraisal if this person is certified in my state? Or are they picky and only required to work with people in their circle?
Thanks for the info so far. I have heard about the FHA 95% cap that supposedly is available. I suppose the reason I want to do my own appraisal is so I don’t get started with the whole process and then have the appraisal not be good and tank the whole process.
Landlord, I am only seeking to determine if the appraisal will allow me to refinance so I don’t waste everybody’s time, including mine. That’s all!

Why are you so sure that paying would effect the appraisal? Fraud like this is exactly why they will not accept an outside appraisal.

Use Zillow and Cyberhomes for ENTERTAINMENT only!! They are not even close to being accurate.

Ok, so when my husband got transferred to Ok we were unable to get on-post housing and with 4 kids and a rottweiler we were unable to find an affordable apartment that would let us keep our dog. So we ended up buying a home and because of past financial troubles we had to agree to a 9.25% interest rate and the stipulation that we could not refinance for 2 years.

The 2 years is up in June. Should I refinance? Will I be able to with the way the economy is right now? We bought our home for about $15000 less than the home next door sold for and its in comparable condition and the same exact square feet etc. So our home should have gone up a little in value.

Do you think I should refinance, wait for a while or just stick with what we have (we plan to move in 2 years)?

Yes, you should refinance. The rates are very low right now. As long as your getting 2% or less on your refinance it is worth it. What I recommend is getting qualified with two lenders at the same time and let them know that you are seeking financing with another lender too, this will get them motivated to earn your business.

Like this they cannot play games with you at the last minute in closing. Tell them both that who ever gives you the best rate at closing this is who you will go with. Like this you will be assured the best possible rate and don’t let them intimidate you. It’s your money and your finances and make sure you get a fixed rate loan not any other type of loan.

Do not listen to them telling you that this will affect your credit rating either because this is what they want you to believe. The drop in your score will be so small you would need a microscope to see the difference.

I ran the numbers assuming your home is $200,000.00 dollars and if you refinance and get 3% less on your financing you would save approximately $10536.00 dollars in payments and if what you owe on the house is 20% below market value you can get the PMI insurance dropped and save even more. But remember that you have to figure out what your closing costs will be and subtract that from the $10,536.00.

So if your closing costs are 3%, that would be $6,000.00 dollars plus your title fees etc. So your total savings would be approximately $4,000.00 dollars. But at the same time it will put you in a better position if you decide to keep the property and decide to rent it and keep it as an investment which would be in my opinion the thing to do because this will be a nice retirement to fall back on. Real Estate investments outpace any stocks or market investments.

Also you will be more competitive in being able to get a rent payment that would cover your mortgage with getting a lower interest rate on your refinance. I hope this will help you make a more informed decision.

Good Luck

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Created a foreclosure prevention fund for homeowners.

Expanded eligibility for the refinancing portion of the Making Home Affordable plan to help Americans struggling with distressed mortgages refinance at lower interest rates, even if they owe up to 25 percent more than their homes are now worth.

Established a credit card "bill of rights".

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Don’t you listen to the neo-cons….you’re wrong. Don’t confused their blind hatred with FACTS! There’s no place for that here. As far as all the things he’s done, well he….he…..LOOK!!! A fake Birth Certificate!! (what was the question?)

Hello there-

Any help is greatly appreciated. My husband and I entered in to a contract for deed on my deceased grandparent’s home, owned by my Aunt and my Dad in 2008. We are 2 years in to the agreement and would like to buy our home with a more traditional mortgage to go ahead and give them the lump sum and get the home in our names. The contract was signed with the understanding that we would pursue this option within a year or so when we had a little more established credit (we were newlyweds and just moved to the United States at the time).

We have great credit and plenty of income and the home’s purchase price makes for an extremely affordable and conservative first time home purchase. We have started the process with a few banks several times, and everyone generally seems to scratch their heads in bemusement. Here are my questions, if you dare :
- Is this a new purchase? Is it treated as a refinance (my understanding is no)?
- Do we cancel the agreement with my family first and then approach the bank?
- If so, how do we explain buying a home that we currently live in?

Just to add another level of complexity, my Dad is the WORST at paying checks in to the bank. We have always had money in the bank when we’ve written the checks, we’ve had the money when he’s taken them out, but the bank says they still show late, regardless of the date they’ve been signed. If this is a new purchase, then I’m guessing that it’s not a problem, but just thought I’d throw that out there. We have sent electronic checks from a while now, because at least then the money leaves our account the day it’s supposed to, regardless of when he cashes it.

Any suggestions?
Thanks-
Krystina

You would need to go to a lender and get a mortgage, not a refi.
It would be the same as if you were living in another place and found this place and wanted to buy it. You apply for a mortgage, either get approved or denied and enter into a sales agreement. Did you have a lawyer draw up this contract when you entered into this deal? Usually, a contract for deed will be like a sales contract only it is basically suspended until you can pay off the note.

What you want is to get a mortgage for whatever this house is selling for.

I purchased my house 3 years ago when the market was high; I have to say I love my home. I live there alone and the house is too big for me. It has 6 rooms of which 3 are bedrooms. I work two jobs to make ends meet; both of my jobs are at least an hour away from home. Locally I have a hybrid car but even so I spend around $500 a month in gas. I have been working a extreme schedule from Monday to Fridays from 8am to 5pm on my full time job(about 40 hours) and from Wednesdays to Sundays on my part time job (around 30hrs) That is 70 hours between jobs and around 20 hours of drive. This means I am awake for 90 hours weekly not counting errand time. I have to say I have cut back on a lot of things because I make just about to cover the bills. I have no health insurance, no TV, I haven’t finished school and I would love to etc. I just can’t afford all that by myself.

Here are the facts: I can’t sell my house because the house value is over $30,000 less of what I originally purchased not counting with all the updates I have invested.

I can’t stop working; I am always tired and sleepy… Actually I have fallen sleep while driving several times. I don’t qualify for the “Obama Making home affordable” due to a recent refinance on the house.

Here are the solutions I had tried to work out:

I have looked for a rental place in a mid pint for both of my jobs – rent is around 800 + utilities for a studio. I had put my house up to rent with a real state but it’s so hard to trust agents with your house, I have not had a good experience with realtors… I took the home off the market. The rent I would get from my house would be around $1,000.

I have also thought of looking for jobs near my house but there is nothing related on my field, (I am a graphic designer) If I find a job near my house I will have to settle for a lower income and a totally different field, but I will be home more time, sleep better, spend less in gas and be able to enjoy my house.

Thank you for taking the time to read my dilemma, all advices are greatly appreciated.

Thank you,

Mily

My suggestion is trying to absorb as much information as you can before making up your mind,here

http://www.HealthInsuranceIdeas.info

is a good one.

I made 34k last year. My fiance made 15k could have made more but she was on maternity leave for 4 months out of the year. If we qualify to buy a home we will be first time home buyers. In my community they have affordable housing subdivisions. The program funds qualified buyers 21,400 or 10,700 for a down payment assistance depending on your income. So I will have a form of down payment. Plus they give you an additional 17,000 dollar loan that does not have to be paid back. Unless you sell your home. I was hoping we would qulaify for atleast 160,000. I’ve had my job for 5 years with a pay increase each year. My fiance has had a few jobs in the past few years. I’ve read that first time home buyers have to have a minimum credit score of 620. Our credit scores are well above that mine 700 hers 720. I’ve had one deliquent payment 3 years ago. fiance is new to credit. She has only had a loan for 1 year. I owe 12000 on my car and she owes 3000 on hers. I owe 1500 on my tool box. That is the only debt we have. My payments on my car are 588 a month and hers is 140. tool box 100 a month. IN order to qualify for a loan should I refinance my car for a lower payment or sell it?? How much loan do you think we could qualify for?

Also…I pay1000 dollars in rent each month as it is not including utilities. And afford that just fine!!! 1000 dollars a month in rent is typical for our area.

I think you should hold off on the house buying and pay off all of your debts.
Once you have paid for the cars & tool box, lenders are more apt to give you a loan because you will at that point have an extra $828 a month that you are currently sending to your debts.
Also, while you are given a form of down payment, you should really try to have your own 20% to put down on your house. The interest will be lower & you could get a 20 year note instead for not much more.
Also, several lenders will not count your fiances wages because she is not your legal wife. Not always an issue, but it can be.
Good luck!

I have just read through all of your previous questions & believe the last thing you should do is buy a house right now. Also, you have asked some form of this question over the last four months and most of us say the same thing. Has something changed over the last few times? This post says you can afford the $1000 rent just fine & a few months ago you couldn’t afford a prescription & had to buy an over the counter remedy. While I think the money is not your only issue here, I think there are some other things to be dealt with before you two sign up for a house together. Too many other issues are asked about here that need your attention first.
I wish you both the best of luck…

I own a home and the amount of my mortgage is going to change within the next year to an amount I will not be able to afford to pay. I know that it was my dumb error for getting this loan so you don’t need to remind me of that but at the same time I truthfully did not know this would happen otherwise I would not have gotten the loan. The person who did my loan did not explain the loan to me correctly and I was too trusting. Anyways because the house market is going down I can’t find anyone to refinance me into an affordable loan and I also rented out the house just recently which is making it harder for me to refinance it as well. I am worried that when my house payments go up I am not going to be able to afford to pay the difference on the mortgage (I already have it rented out for higher then it should be rented for) and then my house is going to be foreclosed on while I have renters in it. Any tips, suggestion, or help would be greatly appreciated. Thanks

OK, it seems as if you’ve learned your lesson on reading and understanding contracts before signing them or having a lawyer review them first so I’ll spare you the drubbing on that issue.

And you can ignore Landlord’s post about mortgage fraud. There’s no need to refinance to a commercial loan product when you decide to rent out your personal residence. As long as your intent was to occupy the home as your personal residence when you took out the loan then you’re good to go on that score. Normally you prove that intent by actually moving into the home and living in it. The law recognizes that intentions change over time and you cannot be penalized for changing your mind. Even government backed (FHA & VA for example) loans are legal as long as your intent at the time you took out the loan was to occupy the property.

What you need to do now is prepare for the financial onslaught that is coming. At least you have time to get ready for it, since you know when the increased payment will kick in. Hopefully you have some idea what it will be as well.

You’re going to need to be able to swing the shortfall between the rental income and the mortgage payment as well as other costs such as repairs, etc. Look into additional sources of income or ways to cut personal expenses. Bank as much as you can in preparation for the increased negative cash flow that is heading your way.

As you get closer to the day when the higher payments are set to kick in — 3 or 4 months would be good, more would be better — contact the lender and see how far they are willing to work with you to avoid foreclosure. If property values are sagging in your area, they have a vested interest in your success as they will be big losers too if the property goes to foreclosure.

Don’t deal with the lower-level customer service folks, they have little or no authority to act. Seek out someone in the Loss Mitigation department. It’s their express job description to minimize losses to the lender and they do have the authority to act or at least a direct line to the ones who do. Ideally you’d like them to convert your loan to a fixed interest loan with a manageable payment. Direct conversions are possible though they may not admit to such at least initially. Part of loss mitigation does include maximizing profits so you want them to see that their best chance at a profitable relationship is to be reasonable with the rates.

If they aren’t interested in a direct conversion, see what they will do with a fixed rate commercial re-fi. That would be your second best approach but will involve costs that you’re better off avoiding.

Whatever you do, continuously remind them that working with you to avoid foreclosure is in THEIR best interest just as much as it’s in your best interest.

Of course, don’t even THINK of contacting the scumbag spammers who have posted above about companies that can help you out. They’ll just take your money and leave you in worse shape than you are right now.

not the refinancing, but the payment modification? How long did it take to get approved? Was it a long process?

Well the time it takes for a HAMP Modification to go through really depends on the servicing company of your mortgage….There are government counseling services that will help you with your HAMP Modification for free, so what ever you decide do not pay a third party to do your modification for you…(http://www.makinghomeaffordable.gov/counselor.html ) So if you are looking into modifying your mortgage there are many perks in doing so, you just want to be as accurate as possible when reporting your income and expenses, be patient with the process, because a lot of these mortgage companies are so large that they are not able to handle the number of requests they are receiving due to the current economic status…any other specific questions?

We purchased our home for 420K over a year ago. Planned to refinance and lock into a better loan. Unfortunately, when we went to refinance the value of our home went down conciderably. Worth only 300K now, or currently loan is terrible and unaffordable, unable to sell to get out from under this… and my spouse lost her job. We fear that foreclousing is our only way out. What will we still have to pay or be on the hook for? Is it possible to buy a more affordable home in 6 months to a year? Thanks!

How much $ you will be responsible for depends on your state. You have to remember that the bank gave you 420k and you spent it. It was real money. In some states you will owe the differance between what it sells for and the amount you were given. Some states allow you to declare the differance as income and the bank gives you a 1099 to show your "profit". If they sell it for 300k you claim an additional 120k income on your state and federal income tax.

Don’t be thinking about buying another house. This isn’t going to happen. By foreclosing you are documenting that you are perfectly willing to $crew teh bank out of the money they gave you. No others are going to let you do it again to them as long as it appears on your credit report. It will be for 7 years after you get it all squared away.

Avoid foreclosure any way you can. You can sell the wifes car since she isn’t working, maybe yours too nad get something reasonable. The money from that may hold you until the market finishes evening out. (I think in 2 years)