Call us; if we're unable to give you the sound advice you need, we will refer you to someone who can.
Susan Drew & Marie Goodloe
Realtors GRI CRS CDPE
Keller Williams Realty Pacific Estates
2883 E. Spring St. Suite 100
Long Beach, CA 90806
If you have a 5 year adjustable, your current rate will go up but no more than is allowed by your yearly cap (usually) or your 1st adjustment cap (which could be pretty high).
In this case, you can continue paying the same loan, but your payment will be much higher.
If you have a balloon mortgage - 5 year fixed, then all is due at once after 5 years - it is a major problem. I suggest for you to see a couple of good mortgage people to seek their professional opinion - some mortgage brokers have a variety of products, unlike large banks. You might be able to refinance still. If you can't because of the credit issues - you can improve your credit in a few short month. If you are unemployed, call an attorney and try to work out a modification of your loan.
If you have too low equity (so your Loan to Value ratio (LTV) is too high to refi - you can pay down the loan (by cashing your 401K in, or borrowing some money to do same) and refi then.
Hard money lenders are an option that might work for some people. However, their programs are pretty dangerous - large fees, large interest rates, and also - while you really pay interest - all balance comes due at once in the end of the term, so it is also a balloon mortgage. Just be careful with those!
Hope this helps,
Beachfront Reatly, Inc.
However, even under those circumstances they can't just step in and take the home. You have a redemption period once they begin foreclosure during which you can pay off the balloon payment or sell the home, pay off the note, and pocket whatever equity is left over.
So they can't just take it all. You have options. If you want to stay in the home, you can continue to pursue a refinance but if no one can refinance you then you can put the home up for sale or try and negotiate a modification with Wells to keep paying on the mortgage or convert the existing loan to a fixed rate loan.
Either way, you should hire a professional to help you negotiate things. Either a real estate attorney or realtor, depending on whether you want to stay in the home or not.
Best of luck!
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
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Why don't you qualify for a refi? A loan mod is an option, but banks have not made these easy to obtain. If you have no other good choices, then consider selling the home. Better for you to keep the equity rather than have the bank take it.
If you want a free consultation, do not hesitate to contact me directly.
Yes WF can take it all. If they will not help you. Consider speaking to a Direct Money Lender. They have a number of sources for funding that may help keep you in your property.
If I can be of further assistance.
Rodriguez and Associates Real Estate
Call me if you have additional questions 562-508-3148
I would definitely speak to your lender. and perhaps some other lenders. They may consider a loan modification, or you might qualify for a HARP2 refinance, which was set up to help homeowners with difficult loans (and who may even be upside down on their home) and does not require income qualification in most cases.
Since you may have good equity, in a addition to conventional lenders, you might want to check in with a couple of hard money lenders. They may consider loans where there is enough equity in the property. Good luck to you!
If you need any further assistance or would like to know the approximate value of your home, feel free to contact me.
Thanks, Karen McEniry, Realtor
Coldwell Banker Beachside, Realtors