Home Buying in 07410>Question Details

Al, Other/Just Looking in New Jersey

My wife and I move from NYC to Fair Lawn NJ in may of 2007 for our kids sake. I was layed off from my job and

Asked by Al, New Jersey Wed Apr 2, 2008

have been collecting unemployment to get by and our just about to run out. We have a savings that will carry us for maybe 6 months supplementing my wifes income. We're thinking refinace, however since i am not working, we may not qualify. We took a 90/10 for 30 years at 7% and 12%. What are our options besides giving up and selling?

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How much equity is in the house, Alvin?
0 votes Thank Flag Link Wed Apr 2, 2008
Dear Alvin,
Don't give up, there is a sloution for you.
First, you should go to your original lender and explain your current situation to them. They may be willing to renegotiate your loan with you.It would be ideal if you could roll the 2 loans into 1 loan at a better rate. Most lenders would rather do this than have problems down the road with a loan. That should be your first line of attack.
If that doesn't work, please contact me through my website, and I can give you some other suggestions.
What ever you do, keep making your payments on time, you don't want any bad marks on your credit records.
Good Luck

Sharon Kozinn
Web Reference: http://www.sharonkozinn.com
2 votes Thank Flag Link Wed Apr 2, 2008
My husband and I live in the Chicago area. He works in Paramus, New Jersey. So he has been flying to Paramus every week for work. We wanted to wait until the kids were graduated from high school before we moved to New Jersey. The last one graduates in June. We are starting to look for a house in the Paramus area. We do have a house here but we do not need to sell it to buy one. ( We would like to wait for the market to recover). I will be in New Jersey with my husband April 15. 16 and 17 and more trips in the future. My email address is marcia.hansen1953@sbcglobal.net.
1 vote Thank Flag Link Mon Apr 14, 2008
Alvin first know you are not alone as Hi said. Second chances are your home is not worth the amount you paid for it just last year so to refinance it would be very difficult if not impossible. If for some chance you do have equity in the home, figure you could borrow about 3.5X your wife's income for the year (pretax) if you were to refinance, but that is not what I would recommend. Keep in mind you will need money to care for yourself & family in case you need to move and you haven't found a new job yet..

Your options are either to find a way to continue to pay the mortgage and hold onto the home, throw your hnds up in the air and give up and walk away or possibly sell. I would look to sell to try and maintain my credit rating, so would call a couple of local realtors and just over the phone give them a total description of your home and ask for their best opinion of your homes value. They would most probably want to meet with you, , that's fine. With that value you can call your lender and explain your current situation. Let them know your willing to sell (f you are) and seek their permission for a short sale. They will most likely have a realtor or appraiser come out and look at your home and issue a Broker Preferred Offer. The mortgage company would welcome this since it would saves them the costs of foreclosing. The time to plan this is now not when your money is gone and your options narrowed!

PS The grant programs Sandra mentioned are only for purchases, so don't bother trying to find more information on them
1 vote Thank Flag Link Thu Apr 3, 2008
With a 90/10, you sound like you are already 100 percent financed and that 12 percent interest rate while only on 10% of the loan is very high. You have been in the loan almost a year so it is okay to refinance but you may have to work with the bank because your financial position has changed. You don't sound like you have a lot of options open to you. Besides a healthy cosigner, perhaps you would qualify for a government grant program since your income level has dropped. These are usually reserved for new purchases with Ameridream or Nehemiah (seller assisted downpayments); but check with a good mortgage rep about the income limits for such programs.
The worst case scenario could be that your home is now not worth the mortgage amount and if you can't keep up with the mortgage payments and there is no relief in sight, you might want to consider a short sale with the bank. This is where the home is sold below the amount that is owed on it. Today, you can sign off and be forgiven the difference in the amount and not even have to claim it on your taxes anymore. If you need further information about progressive mortgage programs, please contact me:
Sandra Bolcar
1 vote Thank Flag Link Wed Apr 2, 2008
you're not alone


good luck
1 vote Thank Flag Link Wed Apr 2, 2008
Sadly your situation is all too common. If I were you this is what I would do.

#1 - i'd quit paying the mortgage until I got a new job
#2 - keep everything else up to date as best you can (i'm willing to bet that the mortgage is your biggest debt)
#3 - once you have new employment file for chapter 13 bankruptcy. JUST YOU- not your wife.

Chapter 13 will allow you to cure the arrears on the the mortgage over time. And you will get to stay in the house.

#4 - KEEP TALKING TO THE BANK!!! In truth they're not going to give you any real help. But talking to them will keep the wolf away from the door for quite some time.

Best of luck!

You can save yourself a LOT of headaches
0 votes Thank Flag Link Tue May 6, 2008
Call Sean Anderson Mortgage Express 201-321-5039
He is straight with you..should be able to answer your questions..my clients are happy with him. Know him well. Also, what line of work are you in?

I lived in Fair Lawn for a number of years- nice town.

Brian Parkes
RE/MAX Elite
Web Reference: http://www.bparkes.com
0 votes Thank Flag Link Wed Apr 2, 2008
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