Financing in Mesa>Question Details

Sean, Other/Just Looking in Mesa - Guadalupe and...

My house is worth less than I purchased it for, (I have no equity in it currently).

Asked by Sean, Mesa - Guadalupe and Ellsworth Tue Jul 8, 2008

I think I have what may be called a 3 in 1 arm, and I would be able to renegotiate it at the end of this year. I am paid an above average wage, but have been saddled with a higher than normal mortgage rate (7.7% combined). I am worried that I will not be able to refinance due to the upside down nature of my loan (without being handed over to a predator like Homeq/Wachovia). I am also worried that because I can't renegotiate that I will end up have a mortgage rate hike. I am fearing that I may be pushed into an eventual foreclosure situation. I wonder if I should bother working as hard as I am for something I may just loose anyway. Is there any advice for me out there?? I live in Mesa, approx Guadalupe and Ellsworth.

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I know of a company who will negotiate with your lender in order to lower your payment, loan amount, and possibly fix your interest rate. They are pretty amazing and every person I have referred them to have had their 2nd lender removed. They are superb; call me if interested.

BTW: They do not require a good FICO, equity, or extra income, etc.
1 vote Thank Flag Link Mon Sep 22, 2008
Sean, I hear this story on a regular basis here in Arizona. There is a viable option IF you meet the program requirements and that is the FHASecure. I have some information on my website you can look at or feel free to give me a call. It basically allows your current lender to take a short payoff OR subordinate that portion that you are upside down on, allowing you to keep your home.
Web Reference: http://tucson-fha-loans.com
1 vote Thank Flag Link Fri Jul 11, 2008
Sean,

As a mortgage banker, I would NOT take the advice of a buy and bail unless you want to take a chance of going to prison for mortgage fraud. I sincerely feel for you in your situtation. If you owe more on the home than the current value, you will not have a refinance option. I would try to renegioate your debt with the bank. Most mortgage company's have improved on helping with solutions that will be a win/win situation. What these "Buy n Bail" yahoos do not explain is if you lie on your new mortgage loan application, you have then committed loan fraud. If you get caught you could go to jail. It has happened in the past with people going to jail for mortgage fraud. We had over 300 people just last month in Arizona arrested for some type of mortgage/real estate fraud. I would not take my advice lightly.
Web Reference: http://www.garymiljour.com
1 vote Thank Flag Link Wed Jul 9, 2008
Sean,

Your first step should be to have an honest talk with your bank. They might be willing to renegotiate the terms of your loan, especially if you can demostrate a hardship. If that does not work try with some other banks, but remember than in order to refinance you will have to pay the difference between the current appraised value and what is owed - and probably some more.

If you have not luck with the banks, your second best options will probably be a short-sale. This will have an impact on your credit, althought it will not be nearly as bad as a foreclosure. You should do everything you can to avoid a foreclosure.

Hope this helps...
1 vote Thank Flag Link Wed Jul 9, 2008
Don't give up on the situation you are in!! Your current lender may be willing to convert your interest rate to a fixed rate as an option. Lenders really don't want to own homes, they want to loan money and the more they own the less they have to lend out, besides losing money on the foreclosure.

You could consider selling the home as a short sale, your credit will take a hit if you do short sale. Lenders are willing to work with home sellers today in many situations resulting in short sales.

The area you live in is also very likely to start rising in value in the future again. We may not see another 2005 for a long time if ever but it should start going up again.
Web Reference: http://www.McVinua.com
1 vote Thank Flag Link Tue Jul 8, 2008
Hi,
First of all, you are not alone. There are so many people in your situation. I suggest that you contact your lender NOW. Try to speak to someone in the loan modification department. It is possible that you can work out a loan modification that will help.
Best wishes,
Lisa Farmer
Gainesville, GA
1 vote Thank Flag Link Tue Jul 8, 2008
Paul Dunn has given a great answer.

Also, look at the information on the HUD website to see if you may qualify for the Housing & Economic Recovery Act.
0 votes Thank Flag Link Mon Sep 22, 2008
Don't be so glum chum!

You see, in America, there is a solution to ANY problem!

For you, the solution is to "Buy 'n Bail"! It's today's Fix 'n Flip!

http://online.wsj.com/public/article_print/SB121314811278463…

Remember, with under-the-bus capitalism, you can privatize profits and socialize losses!

So don't get thrown under the bus!

-Bus Driver
0 votes Thank Flag Link Wed Jul 9, 2008
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