My mortgage adjusted this month. I cant afford the payment. Anyone know about short refinance?

Asked by Shay, Stone Mountain, GA Wed Nov 7, 2007

My understanding is that you can short refinance like a short sell. My husband is very ill and I cannot afford the whole adjustable mortgage on my own. I am very nervous and I need some expert opinon on my next steps. I would like to keep my home but I am also realistic and open to the experiences you have.

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13
Ruthless, , 60558
Wed Nov 7, 2007
Here is local help from PRNewswire:
"Keeping Your Home" is a new online education course available from Consumer Credit Counseling Service (CCCS) of Greater Atlanta, Inc., a nonprofit credit counseling agency. Anyone can access the site by visiting http://www.cccsinc.org/, then clicking on the "Keeping Your Home" box.

In addition to the new web site, people can continue to call 1-888-995-HOPE, 24 hours a day, 7 days a week. This is a national hotline established by the Homeownership Preservation Foundation that helps homeowners who have fallen behind on their mortgage payments. The 24-hour hotline is staffed in part by counselors from CCCS of Greater Atlanta.

Good luck,
Ruth
4 votes
Lee Adkins, Agent, Alpharetta, GA
Wed Nov 7, 2007
Shay -
I am sorry to post again so quickly, but I have a real problem with anyone suggesting that you bring someone else into your home while you have a family member unable to work due to illness - additionally for me to imagine you taking time to find a tenant when you could be on the phone with a lender resolving the actual issue at hand. It is also highly unlikely that your original Realtor on your property can do much to help you - however much they may want to.

Ruth also has an excellent suggestion - CCCS is a non-profit and I have several clients who have bought houses AFTER going through the program and getting their debt under control - and it sounds like they have a division for this type of scenario -

to recap:
1) TOMORROW AT 9am call your current mortgage company, press 0/ask for a manager/whatever it takes to get a person on the phone who can help you - immediately!!

2) talk to another lender (or 2 or 3 or 4) - you can possibly refinance quickly and POSSIBLY skip a months payment as well

3) contact the CCCS program

additionally to clarify, a short sale is called a short sale because the amount of money paid to the lender is less than (short) of the actual balance of the mortgage due - short does NOT refer to the time frame and short sales are very often much longer since there's lots of red tape to cut


Best of luck to you - those responding to this post, please use your best judgement and give a second thought to your answers before hitting that button
3 votes
Ruthless, , 60558
Wed Nov 7, 2007
Shay:
Do NOT listen to Michael's advice to loose your house. What he is proposing has the same moral fiber as stealing. You could rob a bank and get $30,000 but is that the right thing to do? If you do as Michael suggests, it could haunt you for the rest of your life. It will ruin your credit and far more.

ARRGGGG! I just can't continue on this. I'm sure 5 other people will have posted better stuff by now. Call both banks immediately. Ask for a supervisor and keep going up until you get help. You would be amazed how friendly they will be. Send them whatever you can afford every month with a note explaining the situation.

Also, Mansur's advice is excellent. I'll try and find the list that the Chicago Tribune had for assistance in your situation.
Ruth
3 votes
Fred Lockett, , Malvern, PA
Wed Nov 7, 2007
You need a raise! Is there any chance you are in line for a promotion or a job change which will bring you more income? How about your kids helping out? If you have any room for a boarder - rent income is good!
2 votes
Mike Kelly A…, Agent, Santa Rosa, CA
Wed Nov 7, 2007
Shay, first off, you are NOT ALONE! Don't feel guilt over this predicament. You did not state your lender's name and that can be very important or if you have a first AND a second note on the subject property. Rachel is correct--do not delay--call your lender NOW! Better yet, call your Realtor who sold you the property and then call the mortgage broker/lender who originated the loan for you; misery loves company!

Now here's some of the buzz on the street. This is "buzz" which Realtors/Licensees share with each other. Lenders are taking sometimes 3-4 months before they file a notice of default (NOD) on delinquent payments for loans. This means Shay, you quit paying this month and they are taking 3-4 months before they send you a notice of default (NOD) which means you've got 90 days in which to bring your payments current. In the greatest state of California where we have non-judicial foreclosures and trust deeds, the process usually takes 122 days from NOD to Sale of the property on the court steps. One Realtor told me he had a client who was paying $3500/month for their Loan. They couldn’t do it any longer. They had a family to feed, car payments to make, life purchases for survival and family care. They quit making the $3,500/month payments and it took the lender 4 months to file the NOD. The home went to sale, sale was made, and Lender took the property back as they could not sell it off to an investor. The lender then sent a guy around 30 days after and offered them "keys for cash" if they would PLEASE vacate the premises! His client saved $3,500/month for 8 months and then the lender gave them $1500.00 for their keys! You do the math!

NOW!! Big Caveat here!! You need to talk to a CPA, the Lender and see what YOU can do to keep your home. That is understood and highly recommended!

BUT--don't drive your family to the brink of financial ruin because you can't make your house payment! The CEO of Merrill Lynch, who's company had to write off 40 BILLION $$$$ due to his incompetence and recommendations to purchase CDO (credit debt obligations) got $161 Million to LEAVE HIS COMPANY!! No, he didn't loose his HOME!
'Nuff Said!??
2 votes
Christopher…, Agent, Hemet, CA
Sat Nov 10, 2007
Short refinances are not something that most lenders or Realtors are familiar with and many lenders will not openly discuss this possibility with clients. Your current lender is not the one to go to for help in a short refi situation. You will have to qualify through another lender (Preferably a major banking institution) Major banks, once approved, will help you negotiate a short refi with your current lender. Again, you must qualify (Loan brokers are not the answer here typically). Barring that, you will have to consider selling your home through traditional method or, if you have negative equity, through the short sale process. If none of these avenues are possible, contact your own attorney or find one through a legal assistance center in your city.
A short refi can be a great tool if used properly and done with the assistance of someone who really knows the process. If your situation requires a short sale, be vary careful of your choice in Realtor. Not many will have the experience with this process and make pretty convincing claims to the contrary. Do your research up front...know the answers and ask those questions to your Realtor. If they don't have the answers and do not know how to find them or attempt to BS their way though the conversation...move on.
1 vote
Ruthless, , 60558
Wed Nov 7, 2007
Christopher:
Thank you for posting that. Now you have to go through and copy and paste that to about 100 other questions like this.
Ruth
1 vote
James Dudley, Agent, Suwanee, GA
Wed Nov 7, 2007
Shay,

That is correct! Your best option is to contact your current lender and see if you can work out a Re-Fi through them.

If that does not work out for you I have a great mortgage broker who could shop around your home loan with over 100 different lenders to see who can give you the best deal.

Let me know if you need any more assistance or would like the number to the mortgage broker.
1 vote
Rachel Pajac…, , Seattle, WA
Wed Nov 7, 2007
Call your lender today. Tell them the situation, and ask them to refinance your loan and lower your payment. --Do not delay. Countrywide is doing that for many of their consumers.
1 vote
Fred Lockett, , Malvern, PA
Wed Nov 7, 2007
Some questions... First is your husband likely to recover soon? Is he covered for medical expenses? Do you have relatives who can help you? Is downsizing to a smaller, less expensive home a possibility in your town?

Generally, is the increase in monthly payment substantial and will your monthly shortfall go on past your "cushion" of savings?

If sort term, don't tell the lender. Use some savings and ask friends, even strangers for help. If you have PayPal I could send you 50 or a hundred, others here might too. It adds up.

If long term, then maybe the boarder idea, or a raise/new job. Or else you better think about downsizing or moving in with a friend or relative. Tell your lender and ask that they don't trash your credit. If you need to sell and buy a smaller place or change jobs, your good credit is even more important. Best of luck.
0 votes
Adelina Rotar, Agent, Knoxville, TN
Wed Nov 7, 2007
Shay:

I'm sorry that you're going through a tough time. I hope your husband will get better; I bet it is hard on you.

Fred has an interesting answer. Time for a promotion? Change companies where you get paid more? Extra bedrooms for a tenant? Here in Knoxville, TN you can get anywhere from $200-$400 per bedroom depending on the house and location.

What I would add to his answer is this: Call your lender anyway...if your mortgage went up, you may qualify to get get it refinanced. First and foremost call your lender. Period. See how they can help. You aren't the only one that has this problem, and I'm sure they have dealt with it before. It is cheaper for them to try to help you than to let you go into foreclosure. Second, try the ideas Fred gave you. You never know, maybe you will get a raise. I hope that you will call your lender and get some answers. Please let us know how things go. I really wish you the best.
Adelina Rotar
Web Reference:  http://www.RotarTeam.com
0 votes
Lee Adkins, Agent, Alpharetta, GA
Wed Nov 7, 2007
Shay -
I am sorry to hear about your situation. As Rachel mentioned - your first and IMMEDIATE step should be to contact your lender and explain the situation. Banks/Lenders are NOT looking to add any more foreclosures to the rosters right now -

If they give you the runaround or take too long, contact another lender within a week - not a fly by night or "stop foreclosure" person but someone you have heard of. I have a number of lenders I work with who I know would at least try to help you and get you some quick solid answers.

Please let me know if I can help you or send you their contact information.
And keep us posted on your progress when you can.
Web Reference:  http://leeadkins.net
0 votes
Shay, Home Seller, Stone Mountain, GA
Wed Nov 7, 2007
Some have asked my lenders name. EMC collects the mortgage but Bear Stearns owns the loan. Also I have a 2nd with GMAC. Does that help?
0 votes
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