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Foreclosure...loan default




Hi. My husband and I live in CA. We bought a towhome at 329,990 and it is now worth 210,00(?). We are now living in my parents empty house because our house has water damage etc..and I felt it was not helping my son's allergies.





My parents originally have given us 1,000 dollars a month to help pay. They can no longer since they are in a bind with homes. Also our circumstances have changed financially. We are drowning in debt. Our mortgage is 2400 a month. Fixed 30 year.





NO one will help us since it's fixed and we have not defaulted. I spent 5 hours on the phone with the lender, VA, HUD, etc...and really have no answers, but in our book to walk away.





Has anyone gone through this ?


The process ?


Owing taxes ?





Answer Question
 
Anonymous

Asked by Anonymous at 12:01 AM on Nov. 25, 2008 in Money & Work

Answers (7)
  • Continued....Sorry I had a weird glitch with cafemom.

    I am going to call back tomrrow again. I think one option is a loan modification, but I just don't see how it's going to lower our payments since we have a decent loan. Oh and I have already spoken to the refinance department too. NO luck since our home is worth nothing.

    So basically we have a home with damage ( mostly repaired) that we have outgrown, the neighborhood has gone down hill and I don't envision ever going back up to make profit.

    I feel so stuck unless we walk away. At this point considering we have our new van ( we need to fit 3 carseats) I guess we will have to suck up the hit on our credit if that is what it takes.
    Anonymous

    Answer by Anonymous at 12:04 AM on Nov. 25, 2008

  • I'm confused- you have a fixed rate loan, why can you no longer afford the mortgage?

    Just FYI, you will likely still owe, even if they foreclose the home. You could end up paying for the house and the taxes if they foreclose it, only you won't get to live there.

    I hope things get better for you.
    Anonymous

    Answer by Anonymous at 12:08 AM on Nov. 25, 2008

  • Get the new fixed loan based on what the ACTUAL value IS of the home right now, and use the current equity in the home as colateral down payment on the loan. Your only other option is bankruptsy, and ya really dont want to do that. You wont know what options you have till you talk to a reputable mortgage dealer. I hope it wll world out for you thoug. Have you tried talking to the credit card companies to get them to stop the intrest? or lower payemnts? The will usually do that but only if you ask.
    vbruno

    Answer by vbruno at 12:18 AM on Nov. 25, 2008

  • That is exaclty why no lender will help us since it was a fixed rate.

    The reason we can't afford it anymore is because we never could really afford the loan.

    We were given more then we could chew so to speak. 2400 is so much money. My parents helped us get the house by putting money down and then giving us a 1,000 a month to help pay. Their idea was that this would pay off in the long run with the market, but now things have crashed and it's predicted our home will never be worth it's original value. They can NO longer help us pay our mortgage so that is why. They have two homes and our in the same situation. One of theirs lost over 200,000 !!!


    Does that make better sense ? So without my parents helping to pay we can't afford it.

    Thanks for taking the time to reply :)
    Anonymous

    Answer by Anonymous at 12:22 AM on Nov. 25, 2008

  • What equity when the house lost 100,000 ?
    Anonymous

    Answer by Anonymous at 12:23 AM on Nov. 25, 2008

  • Talk to your lender about paying interest only for a set period. They may prefer to take that over taking back a property they cannot sell.
    gdiamante

    Answer by gdiamante at 1:59 AM on Nov. 25, 2008

  • My in-laws are going through the same thing right now. They refinanced which is what got them in trouble, they haven't paid the mortgage in 8 months (are currently looking for a house to rent) and the bank hasn't done anything. When the bank finally decides to foreclose they will have 3 months to get out.
    sammiesmom2000

    Answer by sammiesmom2000 at 8:29 AM on Nov. 25, 2008

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