topic Re: I truly believe there is no hope in Mortgage Loans

I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 16:59:41 GMT

hello all - I have been fighting for years, and I truly am ready to give up. I am fighting to improve my credit score(s) and I am losing the battle. I have ZERO late pay's and a mortgage that we USED to be able to afford. Utilities, groceries, fuel, have all gone through the roof, salary stayed the same. My mortgage company (NATIONSTAR) will NOT help us because we need to be in default before they will even lift a finger. My home value is upside-down close to 100K and I can't refinance. We really don't know what to do, my wife is disabled so she cannot help with income needs. I don't even see why I am trying to keep good credit scores if no one cares.

my "good" credit scores are: EX: 645, TR: 645, EQ: 670

I am hanging by a thread here... I need real help at this point

Re: I truly believe there is no hope

Anonymous — Thu, 03 Sep 2009 17:24:11 GMT

You did'nt really say what it is your wanting to accomplish- are you wanting to stay in your house or walk away?

The reason most people are trying to improve/keep thier scores is so they can get a mortgage. If you are happy with your house and are wanting to stay there for the foreseeable future then I would say don't worry about your scores so much.

If you are wanting to walk away from the house then stop making payments and start saving that money up to move somewhere else.

Either way bad credit does'nt last forever. Even the worst of credit can be improved to a decent level within 2-3 years.

Re: I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 17:38:10 GMT

sorry.. I should have mentioned that... I want to stay in our home. It's perfect, we've been here since it was built new 3 years ago, and have suffered escrow shortages and the econo-bomb. The escrow shortages have caused our mortgage to increase by several hundred dollars a month. It's been awful. We also have 2 accounts which are killing us in interest and they are not going down at all. We have called the mortgage company - no help. We have called the 2 trouble accounts (Lowes/GEMB & Beneficial) - zero help from them.

I don't want to knowingly destroy my credit, but there is no benefit to keeping up the fight if no one will help either way.... why try?

Re: I truly believe there is no hope

Anonymous — Thu, 03 Sep 2009 18:04:52 GMT

What are the payments on the credit cards? If you were to let them default would the difference be enough to make your mortgage payments?

Re: I truly believe there is no hope

ShanetheMortgageMan — Thu, 03 Sep 2009 18:05:03 GMT

You might want to check out the website http://www.loansafe.org/forum/, it's a place for homeowners to go and get advice on preventing foreclosure and getting a loan modification. From what I've heard NationStar isn't too cooperative, but things change so hopefully you can find the info you are looking for at that website.

Re: I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 18:15:38 GMT

I am trying to be responsible here... and my first and foremost goal is to pay the accounts that I created. The problem is (for these specific 2 accounts) both are interest run-away accounts. The interest rates have exceeded my ability to pay the accounts down. They also reduced the credit limit on me as well, so now they "appear" maxed. helpless situation.

The savings by going 'default' on these accounts would yield endless harassing phone calls, ruined credit, and the inability to obtain any credit in the near future.

Isn't there anything a creditor would do in good faith to help customers repay their debt? I'm not asking for a miracle here, just a redecution in interest rate so I can make a dent. this is crazy.

Re: I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 18:17:46 GMT

I have been here (http://www.loansafe.org) Great forum (just like this), but when you get right down to it and call up Nationstar, they simply will not help.

I am not a Fannie or Freddie loan either... straight up FHA. I WISH is had a fannie or freddie loan intiially, but my good credit standing didn't allow me to "qualify" so I ended up with a traditional 30 yr FHA loan. Lucky me... no one helps us "normies". See? there IS no hope.

Re: I truly believe there is no hope

Anonymous — Thu, 03 Sep 2009 20:11:13 GMT

Yeah, i understand. A lot of people are in similar situations, including lenders. I'm not sure if you're just venting or if you're asking for assistance with your situation (damage control) but i'm not sure there are any other options if your lenders won't work with you.

Can you pick up a second job maybe to get rid of the debt and correct the escrow account? More income is the only real solution to saving your credit that i can see.

Re: I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 20:23:05 GMT

helpless venting is probably more like it. I work for a major bank and I put in (no joke) 75-80 hours a week salary. I get great pay, but it's all gone on payday and I cannot move the balances on Lowes or Beneficial and the mortgage is killing us. I am really stumped at how to fix this. There's only so much energy to fight this before you just want to give up.

Re: I truly believe there is no hope

Anonymous — Thu, 03 Sep 2009 20:24:11 GMT

Just a thought but have you thought about contacting CCCS for help with your cards? Not debt settlement but the real CCCS. If the interest is the problem they may be able to negotiaite a lower interest and payment-at least you could make a little head way. You can call them up and talk with them for free and see what they have to say.

Re: I truly believe there is no hope

rmonoson — Thu, 03 Sep 2009 21:23:38 GMT

hmmm... no... I haven't thought about the CCCS. Can you PM me a solid URL for that? I googled it and got a million hits...(not really, but I got a lot).... also, would this go on my credit, I am protecting my score like it's my last piece of food in the pantry.

I am not asking for a handout here... I am making payments and on time... but I am only paying of the darn interest every month. For example, my Beneficial loan is at 20.03% on a 10,500 balance. I humbly 'accept' $170 in interest charges a month! We called and practically begged them to change the interest, they literally (literally) laughed. If I could take out a new loan to cover the Lowes and the Beneficial at a competative interest rate we absolutely would, but no one is lending money right now.

Re: I truly believe there is no hope

Anonymous — Thu, 03 Sep 2009 22:43:58 GMT

Another thought might be a debt consolidation loan. We did that last year, nothing was behind but we wanted to put everything into one payment with a lower interest rate. After rebuilding our credit over the previous years we ended up with credit cards at 29%! Yikes

The only problem is the credit union we went through sent a letter along with full payment requesting our cc accounts be closed. We didn't realize that at the time so we called all the cc companies and requested to have them re-opened. Most of them obliged but 1 or 2 declined.

It's not going to hurt you in the sense of late payments but will hurt average age of accounts and possibly utilization if they won't re-open the accounts. Regardless, our utilization was so high we ended up with boosts in our scores despite some accounts being closed.

Our scores were very similar to yours at the time, possibly a bit lower.

ETA - I mean a loan you'd obtain yourself through your bank or credit union, instead of going through a credit consolidation company

Message Edited by ladyofnight on 09-03-2009 03:43 PM

Re: I truly believe there is no hope

Anonymous — Sat, 05 Sep 2009 20:42:37 GMT

Sounds like you called one, definitely try calling Lowes. Sometimes as a last resort credit card companies will agree to lower the interest rate if you close the account. Sounds like it might be worth it in your case. Definitely check the budget for extras. If you can go without cable, cut back on eating out, scrap the newspaper, skip Starbucks, cheaper cell phone plan, anything like that.. even for a few months, maybe you can come up with enough to at least get to the principle on those cards.. If it were me I'd worry about slashing the debt and keeping the mortgage current and the scores will come naturally. Good luck!

Re: I truly believe there is no hope

Anonymous — Tue, 08 Sep 2009 14:33:09 GMT

You always have options;

How big of a Hit do you want to take? That is the real question..

- Consolidating the Debts to a lower payment is a good option if you can get a loan..

- Perhaps you can go to credit counseling and offer to get on a payment plan for all of your un-secured debts to shave some of the interest off..

- Since your house is your most important asset, you can let the un-secure debt slip into default, its not as bad as a Bankruptcy, you may lose 100+pts, but you keep your house.

- This is America! File Bankruptcy and keep your house.. dont re-affirm anything, but make a deal with your mortgage broker to keep making payments.. Get rid of EVERYTHING else (unless you have a car you want to keep, but dont reaffirm that either), take the hit, be mostly debt free and if you work hard at it, in 24mo you can have your credit right back to where it is now.. If you do this, make sure you have everything you need Shelter and Transportation wise for the next 24 months planned out.

If you dont mind.. can you post what debts you have and how much for us? You dont have to be specific, just something like CC1 - $10.4K, CC2, $4.3K. etc..