Mortgage Consulting
Severe Upside Down Mortgage without help in sight!?
I live in a small town south of San Jose, California. My wife and I bought a home there in 2005 when market was about to "peak". We took out a two-year adjustable jumbo loan with less than 10% down payment. The current total for a first and second Mortgages is $ 635,000 and foreclosures in our area is through the roof. Our largest loan of $ 535,000.00 is also interest and not scheduled to DJUST again until 2010. Comparable houses in the neighborhood go for $ 390,000 to $ 420,000. Although the market corrects, it may never reach the value of our existing loans. We are considering to go away and take the financial consequences that my result. We have a medium credit to good credit, but our feeling is that we throw a lot of good money on a poor investment. My questions are: 1 What must we consider whether we choose to talk away 2.Is a service or consultant who can help, the third Public support ideas? Thanks
Not very good news for you my friend, so take it easy and not be ashamed is important. Stay stable to keep your main job. Keep your family together and close to you for support. There is no lending solution for your situation. There is no gov't subsidies to help unless you are housing foster children, charity etc. .. even then it is very difficult to get a grant. Your lender may choose to adjust your loan, but it is entirely up to them. This discussion is worth having in the at least to see what they offer. There are scams going around that advertise bits of truth (buy again in 24 months, fix your credit, eliminate debt on credit, etc.) there is NOT worth your $. You can do a better job of fixing your credit (free) than they do. FNMA and FHA is changing their guidelines for to adjust to so many people send their keys. Five years since foreclosure is likely to be the new minimum (today it is 24 mos). I would suggest keeping your mortgage payment the next few months (until the Trustee Sale ~ 120 days). Use the $ to paydown all your credit card for $ 0 – $ 25bal (keep them open to help your credit) paydown / off your auto loan, etc. and rent a nice house near school or work. Good luck to you!