Bad Loan. Need ideas

Anonymous · ‎06-29-2008

Hi,

I'm new to the boards and am facing somewhat of a difficult situation. sorry for the long post.

I'm in a little different situation with the bad loan thing than most.

My wife and I bought our house in Sept. 2006. At the time our credit (mainly mine) wasn't the greatest & I knew that.

Our home's purchase price was 235. We didn't have anything for down but were able to scrape up 5k for closing, etc. The interest rate is 6:75%. Really good for our credit.

On the day we were supposed to close the lender (countrywide) called and said that there would be PMI on the loan. Which we were expecting, but the PMI amount was $505/mo. the lender said if we can make a few payments with it like that she would get us refinanced early the next year. Feb-April 2007. Our payments are $2300/mo.

Since this was our first home, we were a bit dumb about it and said ok.

Well you all know what happened during that time. When I called back they said we need to get some equity in the home before we can refi.

here it is 2 years later. Thus far, we have been able to pull it off every month. And every time i call CW they basically blow me off.

I'm not sure we're going to be able to hit everything in July.

I cannot get anyone to listen and understand where we are.

Do I really have to miss a bunch of payments and tank my credit before they will listen to me? or even worse walk away?

I REALLY do not want to do either of those things. Right now we're obviously under water.

Any help / suggestions would be GREATLY appreciated.

Thanks!

Anonymous · ‎06-29-2008

I would check on line and with a realtor to see if you have any equity in the house. If you do, then check your credit scores 2 years of on time mortgage should help. Then go to zillow ( where you do not have to have a ding on your credit) and see what you are offered. the ratio of what your house appraises for vs mortage loan will determine if you do need pmi. If you can get a loan or a gift of money ( I.e. mom and dad or a credit union.) you will have the potential option of using that money for down payment so you will not have pmi. I have always thought pmi was a stellar rip off. perhaps someone on the forum knows a different way.

athensguy · ‎06-29-2008

It sounds like your DTI might be too high, but it might be a good idea for you to look into trying to get a refi with FHA if you are not upside down on the house.

DallasLoanGuy · ‎06-29-2008

az_gmgm wrote:
Hi,

I'm new to the boards and am facing somewhat of a difficult situation. sorry for the long post.

I'm in a little different situation with the bad loan thing than most.

My wife and I bought our house in Sept. 2006. At the time our credit (mainly mine) wasn't the greatest & I knew that.

Our home's purchase price was 235. We didn't have anything for down but were able to scrape up 5k for closing, etc. The interest rate is 6:75%. Really good for our credit.

On the day we were supposed to close the lender (countrywide) called and said that there would be PMI on the loan. noone can do what countrywide can Which we were expecting, but the PMI amount was $505/mo. the lender said if we can make a few payments with it like that she would get us refinanced early the next year. Feb-April 2007. Our payments are $2300/mo.

Since this was our first home, we were a bit dumb about it and said ok.

Well you all know what happened during that time. When I called back they said we need to get some equity in the home before we can refi.

here it is 2 years later. Thus far, we have been able to pull it off every month. And every time i call CW they basically blow me off.

I'm not sure we're going to be able to hit everything in July.

I cannot get anyone to listen and understand where we are.

Do I really have to miss a bunch of payments and tank my credit before they will listen to me? or even worse walk away?

I REALLY do not want to do either of those things. Right now we're obviously under water.

Any help / suggestions would be GREATLY appreciated.

Thanks!

have you looked into selling?

Retired Lender

Anonymous · ‎06-29-2008

Thanks for the replies...

From what I can tell we have no equity in the house. this idea is based on what other homes in our neighborhood are on the market for.

A house very similar to ours is on the market for $234,000. We currently owe $232,000 on it. & most of the homes I've seen in the area have been on the market for a very long time.

So i doubt equity will be of much help and I also doubt we would be able to sell it like this.

Anonymous · ‎06-30-2008

Try www.NACA.com They have a home-save program, don't know if your loan would qualify or not but worth a try. The great thing is no PMI and no Down Payment. Hope this helps.

fishbjc · ‎06-30-2008

$505 a month! That's robbery!!!! I LOATHE Countrywide! Good luck in getting this worked out.

DallasLoanGuy · ‎06-30-2008

fishbjc wrote:
$505 a month! That's robbery!!!! I LOATHE Countrywide! Good luck in getting this worked out.

c/w doesnt set the pmi payment.

insurance companies do that

Retired Lender

fishbjc · ‎06-30-2008

I'm aware of that...Countrywide is still scum.

Anonymous · ‎07-02-2008

@Anonymous wrote:
Try www.NACA.com They have a home-save program, don't know if your loan would qualify or not but worth a try. The great thing is no PMI and no Down Payment. Hope this helps.

This is an interesting website. I looked it up and it has a program for both homeowners who need help to stop foreclosure AND for people who want to buy a house with no downpayment and no closing costs. Sounds like both actions take a little time, but could save your home or could save you thousands when buying a home. Looks like it is targeted for lower income and middle income Americans. Another suggestions is to contact your city or county housing office. Most cities/counties have HUD offices or offices that assist with low income housing. Lately they have been holding seminars explaining to lower income people how to buy a house. You should check them out because these people will know about programs in your area. I do know that the emphasis right now is on preventing foreclosures because lenders realize that there are too many homes to sale and that they may get more money if they can keep the family in the home.