Hello all
I brought my house back in 06 when the market was at its peak, I went into a 5yr interest only loan. Now the value of the house has dropped of course and not to mention that my partner bailed out on me so now I am paying all the loan and bills (plus I have a child and pay daycare) I have been able to hold up for a while but I dont think I will be able to refi when time comes, so since everyone is getting help with their loans I wanted to know if I could do anything to get help as well? I have been told since I dont have any hardship that they cant do a modif on my loan. My brother had one done and they are telling me to dont pay the bill to show hardship what do yall think
Bad idea to let the loan go bad to try and get help. Is your current loan with Fannie Mae? Here is a link to find out.
http://loanlookup.fanniemae.com/loanlookup/
Follow the instructions and the web-site will look it up for you. If it is owned by Fannie Mae then there is a good chance you may be able to be helped. Keep in mind though that because your current loan is interest only there is a good chance the modified lender payment may be higher than your current payment. The reason for this is that your current payment may be less than 31% of your total income. If that is the case then your payment will most likely go up due to the fact that you are going to have to start paying principle. The good thing though is that it will be permanently fixed at that rate so if you are able to afford it initially then you should be okay.
If I were to have problems with the payments now I dont think haveing them go up is going to help is there any other options
I would try to sell to an investor that would do a short sale. I would not want to own a piece of property that I was upside down on. If the cash flow of the property will not meet the payments, then it is time to get out.
Find a buyer at a reasonable price and negotiate with the lending institution for a new rate and amount. All properties can be a short sale
redhawk