Ok, here it goes. I am going through a divorce. We own a home in Cheltenham that we owe 198k on. We have a first mortgage/second mortgage/ and

Asked by Elliot Matyas, Cheltenham, PA Wed Mar 3, 2010

equity LOC that equal the above ammount. The house is currently on the market but I would love to keep it if I can find a way to do so. Ideally I would like to find a way, interest only or some other method, to get the payment lowered for 2-3 years and rent the property while I put life back together. On top of it all I have had my income cut in half over the last year and credit score is an issue.
Everyone has heard of the miracle programs that allow you to pay 400 bucks a month on a 300k loan...Im not looking for pie in the sky BS but I am hoping there are options for people that are going through bad s#*t and figured this was a good place to get real answers/suggestions etc.
Please if you are a snake oil seller or BS artist don't bother! Im just a guy trying to not lose 30k on a home and find a way to stay close to my four month old daughter. Greatly appreciate any help and taking the time to read my rather long winded question.

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Gita Bantwal, Agent, Jamison, PA
Sun Mar 7, 2010
Go to http://www.hud.gov .There are credit counselors and other resources you can look up. Do you know how much rent you can expect ? Will it cover the monthly payments? If you rent it out make sure you get a tenant with good credit and good landlord reference.The others have already given you good advice about other options.
Web Reference:  http://www.gitabantwal.com
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Jeff K, Home Buyer, Bristol, PA
Fri Mar 5, 2010
Hi Elliot,

I would give Dan a call and setup a face2face to discuss your situation in detail and discuss options. I don't know him personally but I greatly respect his contributions here and he has an extensive background in business, before real estate.

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Odelia Aminov, , Philadelphia, PA
Thu Mar 4, 2010
Elliot- you really should have a clear strategy on whether you are seeking short sale or are able to close conventionally. The fact that you do not have the money to bring to closing below a certain sales price is one thing, but if you are consistently paying your mortgage- then from a lender perspective, they would want to see you keep doing that. Short sales are done when the owner cannot continue to pay the mortgage AND cannot sell the house without bringing money to the table. You do take a hit on your credit- but it gives you the chance to start again and rebuild, unlike foreclosures that basically kills your credit for 7 years.

I think you need to consider all details to be able to make a sound decision. And keep in mind, short sale is no easy matter. Lots of paperwork and frustration but worth it.

I hope this helps. Again- don't hesitate to contact me. I always seek to educate consumers in a real estate transaction so they can make an informed decision, even if we do not enter a business relationship.
Web Reference:  http://www.OdeliaAminov.com
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Dan Rich, , Doylestown, PA
Wed Mar 3, 2010

I would be happy to give you some guidance for your situation if you would like to contact me.

There are available options like loan modifications, term extensions, deferring principal and others, but you have to qualify. The general case is that after modification the lender has to be reasonably sure you can meet the new mortgage payment. If you can't a short sale may be the best way to go.

The miracle option you mention of "$400 a month on a $300k" loan is one of the key reasons default rates are so high. That would clearly result in negative amortization. If it's too good to be true, its not. If you want a realistic assessment I'll give it to you straight.

Good luck.
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Anne Rubin, Agent, Elkins Park, PA
Wed Mar 3, 2010
I work with people in your situation all of the time. I am uncomfortable communicating in a public arena about some of the personal things we may need to discuss. I have been helping home owners make decisions on what the best way is to mitigate their losses and their situations with debt for over 10 years. Please feel free to call me if you wish to discuss this further.
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Elliot Matyas, Both Buyer And Seller, Cheltenham, PA
Wed Mar 3, 2010
We are in the short sale boat if it comes to that. Would end up walking away owing a lot of money so programs like the one you mentioned are what Im looking for. I am planning on talking to my agent but figured it couldnt hurt to see if others have successfully gone through something like this in real life :)
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Odelia Aminov, , Philadelphia, PA
Wed Mar 3, 2010
sorry to hear about your difficult situation.
However, there are many homeowners out there that cant even afford to sell, because they owe more than they can get for the house and that is why we are seeing more short sales in the market place. There are loan
modification programs such as HEMAP that may be able to assist you, although you might have to show signs of financial distress to qualify. I'd be happy to talk to you more about this, though I strongly encourage you to talk to your agent first.
I specialize in helping distressed owners, so if you or anyone you know needs an exit strategy from a tough situation- please contact me at 215-360-7573 or email Odelia@odeliaaminov.com
Web Reference:  http://Www.odeliaaminov.com
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