[RBBMWE46M3]

Originally Posted by Terrance28

You think if he could he would be in this mess? Its hard out there.

go ask G dub for a job.

[TwinTurboXI]

Couldnt you just talk to the bank and essentially get a new loan for a longer period of time. If you have not been deliquent on your loan yet, then you should still be able to do this option. You could drop your payments on the house and use the extra time you have to sell your house for atlease a little more money.

[Z22Z]

Have you thought about consolidating your debt so you have more to spend on your mortgage? If you consolidate your credit gets lowered for two to three years until you pay off your debt at a low interest rate. I don't want to sound like I am trying to sell you something but I work in this field and I hate seeing this happen to people. PM if you want more info on how it works.

[Scott howell]

Originally Posted by FStop7

$5k a month mortgage, ouch.

This is bad thinking. You're going to need your credit when it comes to getting another job, renting a more affordable place to live, or any other number of future events. If you take credit damage now it will haunt you for at least 7 years. That's a long time. You should do everything you can to preserve it.

Umm... hate to break it to you, but being unemployed puts you in a position of weakness in terms of bargaining. If you were employed in a lesser paying job and needed to restructure then you might have some room to work with them. But if you're unemployed and your savings are depleted then what kind of bargaining position are you in? The banks are being bailed out by the government, they'll just foreclose and take more gov cash.

What you should be doing is everything within your power to get another job and restore your income, it sounds to me like you're deliberately avoiding that.

What makes you think I'm avoiding getting another job?
For the record, I'm looking (see below)..

Also, I never had a job where my credit rating was checked, but that's not to say it won't happen in the future.

I also will never have to rent so that's a non issue.

If I ruin my credit now, will it matter, esp if I don't plan on getting another loan for a house or car in the near future.

Originally Posted by Spool

Rule of thumb for me is, my mortgage cannot exceed 50% of my monthly income...if you bought a house that expensive, you better be pulling in 10G's a month. Other wise, you're in a world of trouble on rainy days such as now. I live in a shitty house, small and in a minority filled neighborhood, but i know that if something were to happen to my job, i will have money left to bail me out until i am able to get on my feet again.

This is the problem with our economy, people used to buy what they think they are capable of affording, not what they can afford. Paying mortgage for 5 years they haven't paid anything towards the principal. Down the line they can't afford it, they have to foreclose it and that is way our economy is the way it is right now.

What is ur house worth and how much do you owe on the loan? tough time to sell a house right now and even worse since ur home is so expensive. i'd consider filing for unemployment and look for another job asap, in the mean time list ur home up for sale.

worst thing u can do is stop paying for the mortgage and have it sent to ur credit bureau, i dont know why u think that was a good idea in the first place. one bad item on the report will ruin ur future loan applications for sure.

And i did not sleep with my cousin, i just thought my niece through marriage was cute...big difference you gossiping a-holes

LOL! Sorry about mentioning your niece.

I filed for EDD and am looking for a job.

I have an interview for a job tomorrow that doesn't pay much but I'm going to take it if I get it for the time being. I'm not snotty that I can't take a job that pays me 1/4 or 1/5 of what I was getting paid before. I'll even take hourly jobs for the time being.

Originally Posted by Speedtrap

What I am saying is that you should be at the bank; NOT just making phone calls. Demand to speak to the bank manager.

Sell off your home for less is another alternative; as I am sure you can recover some of the money. No time to just ponder on whats going to happen next.

I'm going to look for a local branch tonight and if I find one I will drive over there.

Originally Posted by Maestro

Part of the problem is you probably dealing with some big bank not a local bank therefore the people on the other end of the phone could care less, plus you one of millions right now who are defaulting not because they lost a job and are having a little money problem, but because they dug themselves in so deep they can not see top.

Anyway, to my point, it is my understanding the banks are required by law to work with you if you come to them up front and say you will not be able to make your forth coming payments. If you approach them they have to work with you and try to come up with a plan that allows you to keep making some sort of payment and stay in the house. Now once you miss a payment of two that option is out the doors the bank can foreclose if they choose. Many times the banks hands are tied once that happens.

I have friend who is in banking and he was the one who told me the banks are required to work with you if you approach them before missing a payment. I would check into this, because they have the ability to reduce your payment to interest only for a period of time but this has to be arranged ahead of time.

In 2002 I found myself in the same boat, however at the time I have one of those negative amortizing loans that now has gotten a bunch of people in trouble. The nice part of those loans is you can pay as much as you like and they have a minimum you must pay as well. Usually the minimum is below interest only thus the reason they are call negative amortizing. I got this loan for a number of reason other what most people did which was to buy a house more then they could afford. One of the reason I got it, it had a low interest rate at the time and I decide I did not want to put too much equity in the house.

Anyway, even though I could pay the minium I choose to pay at the full amortize rate even thought the interest rate on it continue to drop. Well about 2 yrs into the loan I got laid off and was out 9 months before I could find something. While I was out, I dropped my payments to minimum which saved me about $1000 each month and as soon as I got a job I ran my payments back up again. I tell you having the low payment options was a big help considering I was living of savings most of that time.

You are right, I'm dealing with a big lender - wells fargo.

I have a 30 year fixed hoping to protect me from future interest rate hikes, but in hindsight, should have taken an adjustable (at least for the short term).

Originally Posted by jaiman

This is the part that makes no sense to me. Do you mean you have enough cash that you think you'll never need a loan again? If that's the case pay off your current mortgage. Act like a man. You signed the papers, now live up to your word.

Or am I missing something?

I never said that. However, if I got rid of this money sink and live a modest life and take a job that makes a modest salary, I would never in my life need a loan again for a house or a car. What would I need a loan for? I don't need a Bentley Continental GT (I would love one).

Originally Posted by jaiman

Seriously? Do people actually spend that much of their income on their house? I make more than 150k annually and my mortgage is less than 3k a month. And i have my wife's income to help with the mortgage as well. I can't imagine being that highly leveraged!

Although i now think i know who the folks are with 750k homes buying furniture at Ikea.

Unfortunately, there are people who do - me! In hindsight, I should have never bought this house.

Originally Posted by clickclickboom

How about auctioning the house? This will provide a quick liquidation. Regroup yourself. Keep looking for a job. Think of it as a new fresh start.

Yes, I'm thinking of regrouping myself. I want to simplify my life. If I get rid of this house by selling it or foreclosing on it, I'll do it. That'll get rid of a money sink. I might even rent it out, but I'll get nowhere near $5k/month for it.

Originally Posted by Terrance28

You think if he could he would be in this mess? Its hard out there.

Thank you Terrance.

[Scott howell]

Originally Posted by TwinTurboXI

Couldnt you just talk to the bank and essentially get a new loan for a longer period of time. If you have not been deliquent on your loan yet, then you should still be able to do this option. You could drop your payments on the house and use the extra time you have to sell your house for atlease a little more money.

yes I could, but no one wants to talk to me. I'm looking for a local branch right now so I can go in tommorrow. No one wants to talk to me. I've heard this is common..... Why would they want to talk to me - I've never missed a payment and my credit score is high so I am at a low risk of defaulting. I fit the profile of someone who will empty my bank account to keep my credit rating in check.

Originally Posted by Z22Z

Have you thought about consolidating your debt so you have more to spend on your mortgage? If you consolidate your credit gets lowered for two to three years until you pay off your debt at a low interest rate. I don't want to sound like I am trying to sell you something but I work in this field and I hate seeing this happen to people. PM if you want more info on how it works.

I have no other debts to consolidate.

I am in contact with someone local who wants to help me with a loan modification. He was the one who said I fit the profile of a person who will do anything he can to keep his credit rating high. If I want to get the lender to talk to me, I have to miss a payment. I will take a hit on my credit rating, but they have help others get their mortgage loans restructured (loan terms extended, interest rate drop, or forgiving of a small part of the debt).

I know some of you think this is dishonest, but what's wrong with
1. loan term extension:

I won't be cheating anyone here.

2. interest rate drop:

The interest rate has dropped. If they modify my loan by dropping my interest rate, how am I cheating anyone?

3. forgiving a small part of my debt:

I love this option here. I can see people getting bent out of shape if I got part of my debt forgiven, but the way I see it my home value has dropped and the bank would lose more if I foreclosed.

Thoughts?

[FStop7]

How about you stop trying to weasel out of a contractual obligation and focus on restoring your income?

If you have money saved to pay your mortgage, then pay it. Why is this even a question? It looks to me like you're just trying to get something for nothing (debt forgiveness).

[Scott howell]

Originally Posted by FStop7

How about you stop trying to weasel out of a contractual obligation and focus on restoring your income?

Wise guy:

What makes you think I'm NOT trying to restore my income? I have an interview tommorrow and I will take what they offer me. Read my post above.

What do you mean I'm trying to weasel out of my contractual obligation? Should I keep paying until my money runs out then go through foreclosure? Doesn't it make sense to start the process while I still have cash in the bank and in the process, if I get a job and a loan modification to boot, would that upset you?

Originally Posted by FStop7

If you have money saved to pay your mortgage, then pay it. Why is this even a question? It looks to me like you're just trying to get something for nothing (debt forgiveness).

I guess you're right, mortgage is much more important than food...

[benton0311]

I'm kind of in a similar situation. My son has fallen very ill and my wife will be
forced to lose her job because of having to provide extra care for him.

She's been out of work for months and I've taken a few months off of work to help get things taken care of with him. This is in addition to the extra medical expenses. We had pretty good insurance and it has covered most of everything but we're getting hit with all the odds and ends they don't cover. At over 4 million dollars total, those odds and ends are starting to add up. Then we'll be losing our insurance when she loses her job.

Long story short, our income has come down to ~ 40% of what it was then add in medical bills. Then take into account that the value of our home has crashed and we can't sell it. Now because of the economy we can't sell our cars either unless we straight up give them away.

My current plan is to negotiate some time of forclosure or deed in lieu of for the house. We won't be able to afford it in a few months and even if we could, we can't maintain it. We've found some lawyers and independent companies that specialize in mortgage negotiations. Then:

1. Rent a real nice apartment. This is preferred because it is very difficult if
not impossible to maintain a house with all the care my son needs.

2. Buy another house again in a few years when the market bottoms out and hopefully my son is better. I won't need a great credit score because I'll use my VA loan benefits (no credit required). I don't anticipate buying any new cars in the next few years. If I do it'll be something cheap that I can pay cash for. I've got ~ $40k of credit line I don't even use so I don't think thats an issue.


While I don't know the OP's full situation I do know what it's like to be on the other side of the fence now. I could have very easily have been the one to criticize and demand an explanation of why he should look to get out of a debt. But sometimes crazy things happen, far beyond your control or what you could ever plan for. To those being critical, ask yourselves if you could afford your expenses without significant income for a year or more. Seems to me the old widsom of only saving for 6 months out is out the window and it's probably more of a year and a half or more. So if you've got 150-200k in your savings (not total assets) then go ahead and rant.

[Hawkeye]

Originally Posted by Scott howell

I know some of you think this is dishonest, but what's wrong with
1. loan term extension:

I won't be cheating anyone here. I don't see anything wrong with this, they make more money in the long run anyway.

2. interest rate drop:

The interest rate has dropped. If they modify my loan by dropping my interest rate, how am I cheating anyone? If you actually refinance then it's okay but I doubt they would just drop the rate free of charge.

3. forgiving a small part of my debt:

I love this option here. I can see people getting bent out of shape if I got part of my debt forgiven, but the way I see it my home value has dropped and the bank would lose more if I foreclosed. This is the one I have a problem with. If that was the deal people would have (and probably do) get houses they cannot afford then ask the bank to help them pay for some of their house (for nothing in return). I see it as blackmail if you are saying "You'll lose more if I default than if you help me." I am not implying that you planned this in anyway

Thoughts?

Oh, and haha, I said it was okay Spool, go for it!

[SDTopless]

just a thought...

do u think you'd b able to tough out the payments on your house 'til the market gets better (n then sell ur house)? 1-2+ yrs & during that time you'll b mitigating your losses w/ a lesser paying job. plus, u can expect to earn more @ that job & u can restructure ur budget/lifestyle. by that time, u'll have some good equity too

[txusa03]

I am no expert so here we go. Even if you find a job, it will not pay as much as your previous job so at the same time see if you know anyone who would want to share a room or two in your house. If you can find someone to share a room, that is a second income as well.

GL with your interview tomorrow.

[bolinp78]

Right now would be just about the worst time that I can think of to try and sell a house.

[Hawkeye]

Originally Posted by txusa03

I am no expert so here we go. Even if you find a job, it will not pay as much as your previous job so at the same time see if you know anyone who would want to share a room or two in your house. If you can find someone to share a room, that is a second income as well.

GL with your interview tomorrow.

Assuming you are single, haha! I am having a college friend move in with me for a while, thought it would be fun and I am really not using the extra rooms anyway... thought a little mod money (and by mod I mean savings ) would be nice.

Then again I'm 24 and single

[Scott howell]

Well, good news guys. I got the job on Monday and started working that same day, but the pay is almost laughable. It's ok because it's better than nothing. I never got a chance to go to well's fargo mortgage center branch. Yes, I did find them and they're all over the place. Thanks to the guy who suggested it.

Today I actually dropped by, but the lady told me she couldn't do anything for me and I had to call the number on my mortgage statement. I told her I've been doing this for three months and they haven't done a thing. She just told me to "keep trying". Yeah, some help she was...

So i called them and was redirected through 3-4 depts trying to get to "Loan Note Modification Dept". I end up in collections again (as always). This time I got some a "brotha" on the line that was really cool (unlike the other assholes that weren't nice to me -- I kept telling them I am not late on my mortgage and I'm in good standing - back then). This time I didn't pay my last month's mortgage.
Guy says we can only talk about payment plans after the 15th. I asked why, but he wouldn't say. I then realize the 15th is when I am assessed a penalty and I am technically "late". I guess I'll call back on the 15th.

Still, no one is willing to work with me until I'm technically late.

Originally Posted by benton0311

I'm kind of in a similar situation. My son has fallen very ill and my wife will be
forced to lose her job because of having to provide extra care for him.

She's been out of work for months and I've taken a few months off of work to help get things taken care of with him. This is in addition to the extra medical expenses. We had pretty good insurance and it has covered most of everything but we're getting hit with all the odds and ends they don't cover. At over 4 million dollars total, those odds and ends are starting to add up. Then we'll be losing our insurance when she loses her job.

Long story short, our income has come down to ~ 40% of what it was then add in medical bills. Then take into account that the value of our home has crashed and we can't sell it. Now because of the economy we can't sell our cars either unless we straight up give them away.

My current plan is to negotiate some time of forclosure or deed in lieu of for the house. We won't be able to afford it in a few months and even if we could, we can't maintain it. We've found some lawyers and independent companies that specialize in mortgage negotiations. Then:

1. Rent a real nice apartment. This is preferred because it is very difficult if
not impossible to maintain a house with all the care my son needs.

2. Buy another house again in a few years when the market bottoms out and hopefully my son is better. I won't need a great credit score because I'll use my VA loan benefits (no credit required). I don't anticipate buying any new cars in the next few years. If I do it'll be something cheap that I can pay cash for. I've got ~ $40k of credit line I don't even use so I don't think thats an issue.


While I don't know the OP's full situation I do know what it's like to be on the other side of the fence now. I could have very easily have been the one to criticize and demand an explanation of why he should look to get out of a debt. But sometimes crazy things happen, far beyond your control or what you could ever plan for. To those being critical, ask yourselves if you could afford your expenses without significant income for a year or more. Seems to me the old widsom of only saving for 6 months out is out the window and it's probably more of a year and a half or more. So if you've got 150-200k in your savings (not total assets) then go ahead and rant.

I'm sorry to hear about your situation. Yes, I thought saving for six months of income is all you need, but that's not the case. I've used up a large portion of my savings just trying to stay in good standing with the bank. Somethings gotta give so I'm not about to run out of money and then foreclose.

The "it's as simple as that" crowd that tell me "if you have money saved to pay your mortgage, then pay it" are sort sighted at best.

I never, though I would be in this situation. I can get out of it by simply selling my house and lose 100k, which might not be a bad idea at the moment, but if I can keep it, I'd perfer that.

Originally Posted by SDTopless

just a thought...

do u think you'd b able to tough out the payments on your house 'til the market gets better (n then sell ur house)? 1-2+ yrs & during that time you'll b mitigating your losses w/ a lesser paying job. plus, u can expect to earn more @ that job & u can restructure ur budget/lifestyle. by that time, u'll have some good equity too

if I could somehow refi or get an adjustable rate I could. I'm sure I'll get a better paying job in the near future to allow me to do this. IN the meantime, I'm expecting the worst and hoping for the best.

As to restructuring my life, yes, I'm seriously thinking about that. I am thinking of selling the 335i so I can have a buffer for unforeseen things to come if the economy doesn't do well (which will of course pull me down even further).

Also, taking a $100k+ hit might not be so bad because I can buy a house for less in the future! The $100k hit will free up my money so I can start saving and if and when I buy a house in the future (this is assume I want to) I might be able to get an equivalent house for perhaps $50k-$100k less than what it was worth at the top of the market.

Originally Posted by txusa03

I am no expert so here we go. Even if you find a job, it will not pay as much as your previous job so at the same time see if you know anyone who would want to share a room or two in your house. If you can find someone to share a room, that is a second income as well.

GL with your interview tomorrow.

Thanks! I'm trying to get someone to rent a room now and I'm considering moving out of my house to rent the entire house. I already started moving stuff into the garage. If I do the latter I'm hoping to keep the garage and having someone just rent the house. The garage is detached. Might be a deal breaker for some.

BTW, I got the job!

Originally Posted by bolinp78

Right now would be just about the worst time that I can think of to try and sell a house.

Yup, I can't think of a worst time to sell it than now and in the late 80's-early 90's.

Originally Posted by Hawkeye

Assuming you are single, haha! I am having a college friend move in with me for a while, thought it would be fun and I am really not using the extra rooms anyway... thought a little mod money (and by mod I mean savings ) would be nice.

Then again I'm 24 and single

You're off to a good start. I rented my rooms out for over a decade when I was in my mid 20's and it was great in terms of helping with the mortgage and mods!

Thanks guys for all your support and great advice!
I'm surprised no one here has gone through foreclosure or went through the process of getting a loan modification. I guess it's embarassing to talk about.


Scott

[spectrumphoto]

Where to Begin...

If you are going to F up your credit then you should go balls out and go full bankruptcy including foreclosure. It has easier recovery in terms of your credit down the line. Your Mortgage on your credit file is the single most important line item, period. It is not like missing a credit card payment, keep that in mind.

Missing one payment may get the banks to talk but they are not going to take drastic measures to help you (like changing your loan terms or debt adjustment) because you missed on payment. It will take missing 3+ payments before that will even be considered, then you will be in full foreclosure. Most likely all they will talk to you about will be adding a few hundred dollars a month to your existing payment to make up the missed one.

I am confused because in one breath you say you have equity in your house but in another you say you will take a $100K hit if you sell it. If you have equity at all in your home then you should just quick sell it, hell even if it is a break even deal as this will save your credit at the very least any you can move into something more feasable for the time being. If you are foreclosed upon then all that equity you did have will go away anyways and you will not see a dime as at auction the bank will sell for outstanding balance in current climate. You cant think it as being I'm losing a $100K because thats how much value my house has lost this last year (hell mine has lost almost $200K this year, $30K in December alone) as almost all houses have lost value. You have to see it as equity vs negative equity.

Refi you are kind of screwed unfortunately. Only other options are to hunker down, sell off excess things like cars, boats, ect. Stop eating out, turn off cable. It is time to downsize and get rid of gadgets and really live minimally. I still make a good income, but it is not what it was and has been down the last few months so naturally I am cutting back as a precaution, more nights at home, less dinners out, no toys... Its nothing to be ashamed of, infact it will be the wisest thing you can do.

Protect your score as best as you can and if you really think you can't do that then you should go for broke full bankruptcy. Without the income and without the credit score you will not be going anywhere financially anytime soon.

[jlaw]

If you are not completely upside down, you would be insane to consider foreclosure. Sell the house.

[Z22Z]

have you thought about renting out the house and getting yourself a nice apartment for a while until you can get back up on your feet? this way you don't loose the house, have help paying for it, and you don't take a credit hit.

[shipill]

find a new job !

[ska///235i]

I'm not good at advice, but good luck man...hope everything goes well

[RBBMWE46M3]

I also will never have to rent so that's a non issue.

never have to rent? then what are you worried about your mortgage for?

[Scott howell]

Alright guys, here's an update. My loan is going through my lender's loan modification program and is in review now. This is the good news.

One event that makes this a bit tricky is that I am getting married soon. If they approve the loan modification and I marry afterwards, that's not an issue. If they approve the loan modification right after I get married, will I have an issue? I think I will as I have to include my fiancee's assets and salary into my financial statement. We keep everything separate as of now, but once we get married the lender will expect me to combine them and this may affect the outcome of the modification. I think I'm screwed.

Scott

[StrifeM3]

Originally Posted by Scott howell

Alright guys, here's an update. My loan is going through my lender's loan modification program and is in review now. This is the good news.

One event that makes this a bit tricky is that I am getting married soon. If they approve the loan modification and I marry afterwards, that's not an issue. If they approve the loan modification right after I get married, will I have an issue? I think I will as I have to include my fiancee's assets and salary into my financial statement. We keep everything separate as of now, but once we get married the lender will expect me to combine them and this may affect the outcome of the modification. I think I'm screwed.

Scott

No do not disclose you are getting married, unless they find out. Only disclose your information of your finances for it should get you a better modification because you are doing the mortgage yourself. You are not screwed neither....