Upside Down in Home What do I say to the Mortgage Company? More likely to renegotiate if I am behind?

Asked by Launie Fuller, Brooklyn Park, MN Thu Dec 11, 2008

My partner passed last November and left me the house with a newly refinanced mortgage $213,000 at 7% in justhis name. I can not qualify for this loan but could make the payments of $1600 with a renter and stay living here. I have to live somewhere but home needs Kitchen, Bath siding and windows, exterior landscape work to the tune of about $50,000 in order to sell for something over 213k. Should I wait til they foreclose and I have to leave, take the money I would save and put it into something else less costly, hope for recovery and continue to make the payments? I have about 20k in a Roth IRA I could buy something smaller that may appreciate?? or invest it in ?? Are his credit cards a debt against the home I inherited? I would like to stay here. I would like to have someone renegotiate the loan at fair market value so taxes would be in line and I could have a little bit of equity to do the necessary repairs.

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Manu Kapoor, Agent, New York, NY
Thu Dec 11, 2008
I'm sorry to hear about your partner, but life has to go on & u need to solve your situation with proper legal way. You did not mention if u r on the deed & if u are your loan could be modified & if you want, i could intro u to a legal team who do this. Also you would hv to provide with income dox & all financials.
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Gail Gladsto…, Agent, 11743, NY
Thu Dec 11, 2008
You need to speak to an attorney for most of your answers. Logic would dictate that if you were not married, you are not responsible for your partner's debt unless you were also on the credit cards.

If the house was left to you, I assume it is transferring to your name. If you allow it to forclose, it will hurt your credit and you will not be able to purchase another home.

You certainly can try to have the loan mitigated, but keep your expectations low as to what loan mitigation means and how the lender defines mitigation.

Do not pay anyone to mitigate it for you; that is not necessary. You will have to provide a hardship letter to the lender, along with your financial information. Explain the situation and see what they can offer to you.

Please discuss everything with an attorney.
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