ObeyTheDog 0 Posted February 9, 2009 Share Posted February 9, 2009 and then if worse comes to worse you can go all out scumbag and get a 75k line of credit and claim bankruptcy <-- spelled right ?The happy face is spelled correctly. Unless you wanted angry face. Then, fail. Link to post Share on other sites
OrzyVibe 0 Posted February 9, 2009 Share Posted February 9, 2009 Ty for all the comments. I think I had made up my mind on a route to take.The credit loss from foreclosure is just too big of a negative.Also - I would be taking the easy way out.and possibly getting in the same boat with this new home. So here's what I'm gonna do.I will stop making payments anf force them to enter a loan mod with me. If a mod happens, then I can sell responsibly, and purchase responsibly.If they won't renegotiate a contract with me, I will then repay the missed payments , and deal with the dings on my credit (still not as bad as a foreclosure) and find some other alternative that may come available from our new administration in washington.Good man. This is the correct path forward. Ruining your credit is a HUGE mistake and one you would regret both in the short and long terms. Link to post Share on other sites
OrzyVibe 0 Posted February 9, 2009 Share Posted February 9, 2009 Op, I work for a subprime servicing compnay and can tell you some of the facts about your plan that you may not have considered.1.- Right now all FHA loans require a review of both you and your wife's credit. She can not get an FHA loan if you foreclose on a home.2. With the goverment essentially underwriting Fannie and Freddy I think it is possible for some of the FHA Guidelines to creep into their guidelines as well. Especially since defaults on Freddy loans are now at 7%. (a really big scary number, by the way)3. You made a deal, maybe a bad deal in hindsight, but your own deal. All of your noise about stated income and adjusting rates do not absolve you of responsibilty to honor your deal. If you choice to go down this path it is no more morally correct then guys who collude online. They can justify their actions in their mind somehow, but at the end of the day it is wrong. If the housing was still going up and you flipped the home for $100K in profit I don't think you would be whinning about unethical lending practices. You signed the application with your overstated income.You signed the loan docs.You signed the seperate disclosure that explained it was an ARM loan.You are responsible for that debt.Anything else is just rationalization.Truth. End of story. Link to post Share on other sites
Vandees 0 Posted February 9, 2009 Share Posted February 9, 2009 Boy I can't believe you're even considering a foreclosure option. Looks now like you'll want to "modify" with the mortgage company.If you are in such good shape financially, why not just try to refinance? A company won't modify with you if you can make the payments. I'd just put it on the market for about $210 or whatever you can get, then when you get an offer call the mortgage companies and tell them to take it or leave it. Companies lose about 30-40% on foreclosures, so a short sale will be the much preferred option. Your second mortgage probably won't be too happy about it however.Good luck, just don't take the scumbag route out. Have a little integrity. You signed the mortgage, make good. If the ARM went down 3% and your home value was up, I don't think you'd like the mortgage company trying to squirm their way out of it. Link to post Share on other sites
The Lobster 0 Posted February 9, 2009 Share Posted February 9, 2009 Boy I can't believe you're even considering a foreclosure option. Looks now like you'll want to "modify" with the mortgage company.If you are in such good shape financially, why not just try to refinance? A company won't modify with you if you can make the payments. I'd just put it on the market for about $210 or whatever you can get, then when you get an offer call the mortgage companies and tell them to take it or leave it. Companies lose about 30-40% on foreclosures, so a short sale will be the much preferred option. Your second mortgage probably won't be too happy about it however.Good luck, just don't take the scumbag route out. Have a little integrity. You signed the mortgage, make good. If the ARM went down 3% and your home value was up, I don't think you'd like the mortgage company trying to squirm their way out of it.If he is in decent financial shape, he has 0% chance of getting a short sale approved. You need to prove sufficient financial hardship for a bank to even consider accepting one (and then you have to run the gambit of not catching the loss mitigation specialist on a bad day, not getting a ridiculous valuation from the bank's approved appraiser, etc). 'Short sale' is one of the most misunderstood real estate buzzwords around. The banks make ALL of the rules when it comes to them, they are doing the seller a favor by allowing them, and you cannot force them into anything.(And just because he was able to get the house appraised at 210k once, doesn't mean it is either worth that much, you could get it appraised for that again, or that they could find a buyer for it at that price.) Link to post Share on other sites
Sheiky 0 Posted February 9, 2009 Share Posted February 9, 2009 Odd co-incidence -http://freakonomics.blogs.nytimes.com/2009...estate-dilemma/ Link to post Share on other sites
thelivewire 0 Posted February 10, 2009 Share Posted February 10, 2009 Good luck with the mod. They typically offer you a repayment plan first, decline and ask for the mod....also see if your loan is a Freddie Mac loan. Freddie sent out a mass modification program where you can qualify if you have a freddie mac backed loan or take advice from people who don't do it every day all day for a living...:-). If you go past 60 days late, you might as well FCL because your credit will not recover quickly from a ninety day late on your credit report...good luck. Link to post Share on other sites
phlegm 6 Posted February 10, 2009 Share Posted February 10, 2009 I have a friend who is called Jake the Torch, Wont go into details but he has bailed more than one out of thgeir troubles. Link to post Share on other sites
Loismustdie 0 Posted February 10, 2009 Share Posted February 10, 2009 Do what is best for you and your family. Period. All this noise about honor and integrity and "you signed it" is straight up bullshit. Legally, you can walk away. Legally, you can default on every debt you have, regroup and pay the 10 year consequence. Completely legal, and no shame in it whatsoever. You're responsibility is to you and yours and nothing else in this world. Link to post Share on other sites
dapokerbum 0 Posted February 10, 2009 Share Posted February 10, 2009 Ty for all the comments. I think I had made up my mind on a route to take.The credit loss from foreclosure is just too big of a negative.Also - I would be taking the easy way out.and possibly getting in the same boat with this new home. So here's what I'm gonna do.I will stop making payments anf force them to enter a loan mod with me. If a mod happens, then I can sell responsibly, and purchase responsibly.If they won't renegotiate a contract with me, I will then repay the missed payments , and deal with the dings on my credit (still not as bad as a foreclosure) and find some other alternative that may come available from our new administration in washington.I have to say when I first read the OP I was apalled that a rational human being that you seemed to be would actually be able to go thru with that "plan". Turns out you do have a brain and I applaud you for taking a better route than our financial genuises in washington. Next time remember to always read the fine print.Or I will hunt you down like a dog and kill you and your family and burn your house down and piss on the ashes. Link to post Share on other sites
dlingdling 0 Posted February 10, 2009 Share Posted February 10, 2009 Do what is best for you and your family. Period. All this noise about honor and integrity and "you signed it" is straight up bullshit. Legally, you can walk away. Legally, you can default on every debt you have, regroup and pay the 10 year consequence. Completely legal, and no shame in it whatsoever. You're responsibility is to you and yours and nothing else in this world.Except for the fraud part. Link to post Share on other sites
Merby 3 Posted February 10, 2009 Share Posted February 10, 2009 Op, I work for a subprime servicing compnay and can tell you some of the facts about your plan that you may not have considered.1.- Right now all FHA loans require a review of both you and your wife's credit. She can not get an FHA loan if you foreclose on a home.2. With the goverment essentially underwriting Fannie and Freddy I think it is possible for some of the FHA Guidelines to creep into their guidelines as well. Especially since defaults on Freddy loans are now at 7%. (a really big scary number, by the way)3. You made a deal, maybe a bad deal in hindsight, but your own deal. All of your noise about stated income and adjusting rates do not absolve you of responsibilty to honor your deal. If you choice to go down this path it is no more morally correct then guys who collude online. They can justify their actions in their mind somehow, but at the end of the day it is wrong. If the housing was still going up and you flipped the home for $100K in profit I don't think you would be whinning about unethical lending practices. You signed the application with your overstated income.You signed the loan docs.You signed the seperate disclosure that explained it was an ARM loan.You are responsible for that debt.Anything else is just rationalization.This Link to post Share on other sites
dapokerbum 0 Posted February 11, 2009 Share Posted February 11, 2009 Do what is best for you and your family. Period. All this noise about honor and integrity and "you signed it" is straight up bullshit. Legally, you can walk away. Legally, you can default on every debt you have, regroup and pay the 10 year consequence. Completely legal, and no shame in it whatsoever. You're responsibility is to you and yours and nothing else in this world.No wonder I don't like so called "christians"Nice heart ... if that is really what you believe. Link to post Share on other sites
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