Brent,
I 'm coming into the Mod game a little late and a bit uninformed but since I have been laid off once again I have been seeking this very simple advice you are offering so I can make a decision about what I want to do, need to do, or what you might suggest I consider doing after I provide more details.
Really, the biggest hardship (besides possibly having to move one more time) about this whole scenario is trying to figure out the players and their games. It's funny but although there is a price to pay, it can go either way, and ultimately It will be my decision if i want to accept their offer. I have a choice and where they think they will be deciding for me. It will be interesting to see the final outcome.
Things that brought me to where I am today, if nothing else all the factors that came into play are interesting; at least from my CSI thinking. I need to contact BOFA and ask if my loan is a freddie or fannie. I know they are carrying 100% (LTV) of a 40 fixed (mortgage) for the first ten 5.75% interest that rolls into the last 30 and I believe they can not sell it.
There is more..... TILA and RESPA play a part too, I think. I have a bit of a busy schedule tomorrow but they all seem to be that way with two young jacks (JRT's) these two are to smart as children.
(There was more but this is the most important part)
Signed,
CC
Dear CC,
Thanks for the email!
I know that times like this are tough and finding the right solution is never easy but don't be discouraged, there is hope.
I think the easiest thing I can suggest you do is to find out if your loan is a Fannie Mae or Freddie Mac Loan. I put together some videos on this subject that will come in handy. When looking at your options regarding an Upside Down Mortgage Refinance start with my videos. On Page 2 you have a choice to watch the videos or read the letter so choose wisely.
The videos will show you how to find out if your mortgage is a Fannie Mae Loan and what to do if it is a Fannie Mae Loan or if is NOT. Each situation is so different that it would be impossible to answer here but this is a great start to finding your answers.
Be in touch,
Brent
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Brent,
I have some questions:
We have a "new" twist on an upside down mortgage.
We were part of the horrible Jan 2009 floods. We have a 9.4 acre "farm". On it we have our main house (that we have spent tons of money remodeling), a one bedroom cottage (that we rent out as a "farm get-a-way") and 6 acres are planting in u-pick flowers and vegetables.
When the flood occurred it shut down the Cottage and we lost 6 months of rent (over $1500 a month), and the flood washed away all the seed crop (over $28,000) and covered 3 acres in 1-3 feet of weird clay mud. (The River runs along the south edge of our property)
So the cottage was shut down, we did not have any seeds to sell and received no help for the massive clean up and damage needed on the property. We received about $5000 from FEMA and flood insurance to fix the main farm house.
In Feb 2009 we contacted our mortgage holder, Ocwen (horrible, customer service in India) and told them we would run out of savings by May and it would be late fall when the harvest was in before we could catch up. They said no problem, they would do a loan modification and help us out.
By June (2 months late on mortgage) Ocwen was still holding out doing anything, but said these things take time and not to worry they would not foreclose, but we DID have the cottage reopen and the bookings were coming in.
On July 16, 2009 (exactly 3 months, 1 day late) we received an email from Ocwen saying we did not qualify, but they would do their "own modification". It was over $1000 more a month than we already couldn't afford on top of the original payment.
We contacted an attorney, he found out that Ocwen had been reporting us late every month, ruined our credit AND the modification they wanted us to sign was something he said no matter what DO NOT SIGN! It gave away all of our rights AND he told us they couldn't foreclose anyway since we were a farm and it takes approx. 2 years to foreclose on a farm.
All this was bad enough, then;
The EPA did sampling of soil on our property from the flood.
Late July 2009 they released their report. We have extremely high naturally occurring asbestos on the land. All that weird mud was and is filled with asbestos. When it dries it becomes airborne and had permanently contaminated our property and homes.
We had to shut the Cottage down (again, just when we were starting to make money), we had planted the crops, but now had to shut the U-Pick down due to the problems also with asbestos in the soil.
We have little children, we can not operate our businesses or farm. Our land is permanently contaminated with asbestos.
The EPA and the (City) County Health department say that our land and home are not destroyed since we can still live here (as prisoners in the house), if we do not disturb the soil and take our shoes off when entering the house. They are more concerned with the fact that all the agencies knew of the asbestos for many years, never required sellers to inform buyers (we brought the place in 2006) and might have to move all 500 plus families along the asbestos laced river.
SO...our mortgage holder has ruined our credit (bad credit mortgage), will not and (can not) take the house back, we can't sell it due to the asbestos, no agency will help us (FEMA, SBA, EPA, FSA and soooo many more) have all said no to helping us since "YOU CAN STAY, JUST DON'T disturb THE SOIL"
Our place was worth over $750,000 last year, now real estate people say maybe at $400,000, but they do not want to list it since they say it will not sell due to the asbestos. (That is a VERY upside down mortgage 2009)
It is not safe to be here. We've talked to banks about buying a new home, most (at best) think we are nuts since no "have to move" declarations have been made. We can't find a loan to get into a home, have horrible credit and NEED TO MOVE !
Suggestions? Thoughts?
How do we purchase a new home with this white elephant still in our name?
How do we get a new mortgage?
We want to move "home" to M. and leave (BLANK) behind!
We found a perfect home, right schools, down the street from friends and at the right price. $249,000 in (CITY).
We need a pre-approved loan, need to buy this home, move in, get the kids in school, (my husband will stay in (OTHER CITY) and keep working his good paying job) while I find employment in (NEW CITY), get everything settled, then he will look for work in the (NEW CITY) area also. We know the steps we have to take...
But we need to get pre-approved (for a mortgage) (and have it go through) and purchase a home now.
Any help you can give us would be wonderful.
J.
Hi Jennifer,
That was a sad email that you wrote!
I wish I could tell you I had an answer but from what I can tell you don't need me you need an Asbestos Attorney to help you deal with the land issue and you need a Real Estate Attorney to help you with your lender.
Unfortunately with bad credit, mortgage loans is no longer available. The days of Subprime mortgage lenders has gone the wayside leaving people who have late mortgage payments on their credit report holding the bag while struggling to make it all work.
All that said, the only option you have at this point the pre-approval world is to get you current lender to remove your late mortgage payments and then, and only then, apply for a new mortgage. Until that time, rent a nice place, save money and great things will happen.
Sorry if that isn't what you were looking for. Upside Down Mortgage or not Renting is the only choice you have!
Be in touch.
Brent Lane
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Hello,
I am contacting you in hopes of some other insight on the Buy and Bail issue. I came across your article and this has been something my boyfriend and I have discussed regarding our home but know it is not ethical thing to do. It is hard finding the right solutions and trusting the correct people without getting yourselves in any deeper.
We live in (CITY NAME), one of the areas that has very high unemployment rate. I had purchased my own home as a single female in 2001, 6 months later I was layed off. The result after 7 years and being layed off a total of 3 times I had to sell my home thru a short sale.
My perfect credit was no longer and almost destroyed. I moved in with my boyfriend who had his own home in a not so great neighborhood. He was on the very edge and so it was the more decent area even having 2 correction officers, a probation officer, sheriffs sister and 2 retired couples just on our short block. It was a good street.
He has owned the home for 8 years and the area has now become bad having foreclosures and condemned houses all around our street. He purchased the home around 50,000.00, a good deal back then. Now houses around us are selling for under 10,000.00. We lived on a good street, but now the bad is moving in with a lot of crime. July 3rd of this year I walked in our home in the middle of the day while we were being robbed. The intruders were still in our home and I was very lucky to be able to get out before they could hurt me. They jumped out the back window while the cops were pulling up, they have yet to be caught. We still lost thousands of dollars.
So now we are in an upside down mortgage and cant sell because we would have so much more debt. I am afraid to leave the home feeling it's so vulnerable and everytime I walk in I don't know what I will find. I take the dog out and carry pepper spray with me because i've been harassed by other bad neighbors. My boyfriend had been layed off last summer and now makes a lot less than he once did, I just finally got a job this last May after a 15 mo lay off.
We are thinking of leaving our home but he doesn't know how long it will effect his almost perfect credit and how long it can take to restore it. I am still working with creditors and paying off my debts and have a low score just over 500. We find a lot of foreclosures for cheap in good places that we are interested in but don't think we would ever be approved for another loan.
If we do leave, we want to do everything right and in ways it wont hurt us as much as it could. But is that possible? We cant afford to sell it at what it would have to sell for, but we also can't afford to stay if we keep getting robbed and we dont feel safe here. We are in a situation that is more than just an upside down mortgage.
Would a bank try to help someone if they were in this kind of situation?
Would banks deny us down the road because we did this at one time?
We don't know who to talk to because we don't want anyone to know what we may be doing, We feel like we will be comitting a crime if we do this. Have you heard of this kind of situation from other people?
Thank you very much for your time and I hope you will have some insight on some of our concerns and what to expect if we go about this option.
Sincerely,
N. and C.
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Hi N. and C.
Interesting situation you find yourselves in.
Here is a great solution given your unique circumstances.
Given your Upside Down mortgage is so far Upside Down I would suggest keeping the property as an investment. I may be off base here but I would guess that since home prices are so low that the payment is more than affordable.
The Buy and Bail Rules say that if need to qualify for two houses if you intend to buy another home while owning a property with limited equity. At $50,000 on your current home and another $10,000 on the new property I am guessing you can pull that off! If that doesn't make sense, just go apply for a new loan and keep the old property on the loan application, full payment and all, and see if you can get pre-approved for a new mortgage. With Prices that low I don't blame you one bit.
I hope that answers your question.
Sincerely,
Brent Lane
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There are so many Americans who are facing financial issues. Job loss and cut backs are causing many families to feel the financial crunch. Topping that all off you have the slumping real estate market that has slipped in some areas 50% below previous highs.
The sheer number of upside down mortgages is mind boggling and banks are struggling financially to keep things together. So many homes are headed to foreclosure that's if they haven't lost their home or walked away from their upside down mortgage. So many people now have bad credit second mortgages just to make ends meet. This only compounded the issue digging you deeper into a hole with your Upside Down Mortgage.
I am here to give some of you a light at the end of the tunnel. There are a couple refinance programs available to those with an Upside Down Mortgages. Take a minute and head over to see which
Upside Down Mortgage Refinance Program is best suited for you.
There you will find a video clip of me and yes I know I am not the most beautiful man but what I have to give you is FREE. After you put in your email address I will send you to an book that I have put together with my attorney BUT if that doesn't suit you look for the No, thanks button and head straight to the videos. The first video alone will be worth the trouble. It will walk you through how you can qualify for the Fannie Mae upside down mortgage refinance program by showing you how to find out if your mortgage is insured by the mortgage giant. That alone is worth your time and could save your home.
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