Lost job (and american dream), home equity went into default, GMAC decided they would rather take 80% drop to close it out rather than readjust. What’s the credit impact?
Posts Tagged ‘job’
Whats my home equity default payoff effect on credit?
Sunday, February 28th, 2010My daughter, only child, me a senior guy, wants me to move to Las Vegas….?
Friday, February 12th, 2010…I have some problems with that. Help me decide.
The pro, of course, is to live near my daughter, who is a great girl with a great job, heart and attitude. The city is OK with me. I am a widower and not getting younger and have no nearby family or friends. What holds me back? My current home is nice (but not much equity) would have to be sold in a down market. I can’t afford more that 00 per month tops rent or mortgage to start over. I do not like the Vegas weather of hot summers/cold winters. Add to that, I would have a sad, close-up view of her living badly with voluntarily nonworking husband. My daughter pays everything and is always in debt and chased by debt collectors. She has borrowed from me, but I am putting an end to that now. I do not have much hope this situation will change in the future. She complains all the time, but is unlikely to dump the guy. I cannot see me making this move, but at same time I worry about not making it, leaving her and me both far apart and alone. How would you sort out this mess?
What is the worst case scenario in this situation?
Wednesday, February 10th, 2010A friend went to a Finance Co. and got a 00 Home Equity Loan last year at a high interest rate. Well he got laid off from his job last month and probably won’t be able to make his payments. What is the worst thing that can happen? and what do you think would probably happen?
Can’t refinance without a job? Nor home equity loan? Divorced? Its complicated.?
Friday, February 5th, 2010I have a divorce settlement that left me with my house and my exwife relinquished the home. I have a tenant who pays my mortgage and everything is fine. Its just that when i want to make a move like
refinance, I am pretty sure i cant because i dont have a job (unemployed). Also i would like to get a home equity small loan but i feel like again it will be the same thing. Should it be this difficult for a home that is in good standing, i have great credit too. One of my problems is that the divorce doesnt take wife off of note. I even did a quit claim but still i am told i have to refinance to get her off the loan. But i cant refinance cause im not working…..do i got the vicious circle right or should i try a different banker?
Upside down in my house…what can I do?
Tuesday, February 2nd, 2010I’ve lost approximately 55% on my house (along with a huge amount of other people across the nation). For easy numbers, lets use 50% that I’ve lost. To break even, I now need to gain 100% on it’s current value. Using the "Rule of 72", assuming I gain 10% per year, it will take 7.2 years to break even. At the time of economic boom, I believe the average gain was 10% and that only lasted 6 years before the economic downturn. Under normal market condition, a gain of 3-4% per year, it will take me 24 years to BREAK EVEN on my house. I don’t qualify for a home modification because I’m not backed by Fannie or Freddie. I don’t qualify for refinance because my income is greater than 31% of my monthly loan payment (as long as I can keep my job). I don’t qualify for a "short refinance" because my loan to value is greater than 125%. Everything is pointing to 3 options…1) Keep making payment on a house that I will likely never have equity in. 2) Short sell. 3) Foreclose. There has to be a better option. I am current on my payment…which is probably why I can’t get anywhere with my banks. Does anyone out there know of an option I may not have explored already or am I just plain out of luck?
Jill – You’re point number 3 identifies EXACTLY my moral delima. I signed a piece of paper that said I’d pay my loan. However, if I were to refinance my house to current value, that would cut my monthly payment in half! That’s a lot of money.
Arbor Mortgage — do you have a source? I have a first and second. I was told both need to be with the same bank. My first bank sold both loans to two different companies. In addition, they said there are absolutely no programs available for a loan to value of greater than 125%. Basically they will only write off 25%. Do you have more information?
Arbor Mortgage — ignore my question "do you have a source"! I just realized Arbor Mortgage IS your source. I do still need more information though if you have it.
Default on Home Equity Line?
Sunday, January 17th, 2010About a year ago my family experienced a horrible financial hardship when I lost my job. We also lost our home in foreclosure during this time as well. When we were in good standing thoguh we had a 10K dollar home equity line that we had used to "fix up" the home. This was a secured debt tied to our home as is customary. When the house went into foreclosure, the bank that issued the home equity line was only paid 1500.00 by the first mortgage holder instead of the full 10K. Why this happened I have no idea, since the contract verbage states that if I default they take possession of my home and can go as far as auctioning it off if need be to collect.
Recently I have been receiving calls from the bank that issued the home equity line want to set up payment arrangements with me to pay this debt off. We do not have the money to amke these payemtns since my current position literally pays 40% less than I was amking prior to my job loss. The bank has also threatend to file a judgement against me and possibly garnish my wages. My question is this: If the debt was secured with my home, and the bank did not collect when the house was sold/ went into foreclosure thne what rights do they have to file a judgement or even try to collect? IN other words can they actually sue me or are they simply trying to get me to sign off on an "unsecured" loan so that they can actually hold that document over my head??? ( this option is on the table at present) Please help…. we are in a desperate finacial time already and surely can’t afford to pay any more than we already are. It is a struggle just to "eat" and pay the utility bills not to mention a 250.00 loan payment.
Thanks-
The home was located in Mississippi
Should we walk away because the only loan mod on the table is NOT GOOD at our age!?
Sunday, January 17th, 2010We bought five years ago in prime, BUT we (thought) we bought smart! In a nutshell, we were "nearly harassed" by our bank to refinance after only one year and had long discussions about our being "too conservative" and needing to "use the equity in the house to update it and double your money." Of course we didn’t expect to double it, BUT people were doing just that all around us (even triple!). Now, at the end of our 3-year adjustable rate mortgage (originally had a fixed of only 5%!) and lost one job, the second one’s pay got cut, etc. etc. we were still okay! Cut back to a VERY LEAN lifestyle without cable TV, etc. etc. etc.
The ONLY thing the bank (the servicer because it’s now a Freddie Mac loan) is willing to do "to help us" is change our loan to FORTY years at 3.75% which seems like a great rate, BUT they’ve tacked on ,000 in "fees!" And by charging us fees AND adding ten years, what exactly are they "offering us?"
This house is worth 3,500 but the certified appraisal from March 2007 was 8,500 (that the bank itself paid for). NO ONE is selling in our neighborhood. They sit on the market for a year, then foreclose…
My question to anyone out there who can offer a "numbers opinion" is this: The total debt now including the equity line is 0,000! In 12 short years we’ll be 60 years old and only be 1/4 of the way through the loan, probably not making the same income! If we do get better jobs and have to move, say in three years, we HAVE to foreclose to get out of the house… better to do it NOW and start repairing credit before we’re SIXTY?
Using average projections, etc… this house won’t even let us break even and move in five years… more like ten but the cost to stay… even more by then, the roof, etc. could bankrupt us anyway… We have to decide tonight whether to take the deal or just foreclose and start a new life, be it full of headaches and lawyers for a couple of years…
We just lost another ,500 in the past 30 days…
Walking away IS an option because "most" lenders are not going through with the costs associated with judgments and civil suits since it’s obvious we’re broke if we lost our only property…
If they do sue us, so be it. We have nothing and can easily live a cash/simple life just to be out of this nightmare that’s been going on since January!
The big question is… On a house worth 0,000 TODAY and losing more every month, how can we justify a brand new 40-year loan for 6,000 AT AGE 48. The age is key… Thanks again.
Short sale does not do less harm to your credit report since nowadays, most of the lenders are requiring you to sign a form guaranteeing the shortage! This makes it so that they don’t even HAVE to sue you! You’re agreeing to it! The same goes for "Deed in Lieu!" Basically, if you can’t stay in the house, you should foreclose once you REALLY learn all the legal details! The lenders are pushing the HYPE around short sales and deed in lieu only because it helps THEM! With the hundreds of thousands of foreclosures in this country, it’s only a matter of a couple of years before there are all kinds of "new loans! foreclosures okay!"
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