Friday, December 10th, 2010
recentlyproduct
My wife recently lost her job, and our finances are too small to pay all of the first and second mortgages on our home. Is is smarter to pay some of the first mortgage, or all of the second mortgage? The first mortgage is with Indy Mac, second is with CIT. Anyone have any luck modifying loans with them? Since I am only one month behind with Indy Mac, they will not work with me. Thanks.
Paying "part" of your payment is not appreciated by the lenders unless you call first and work out a payment plan. Otherwise the entire amount you send them is credited to interest and does not pay down the loan at all. You want that loan to disappear.
Apx 4 out of 100 people who ask for a loan modification can get any help. Most of the modifications are to give you 6 months of no payments at all. This money is added to the "end" of your loan, so it is not a gift.
In some cases, the smartest move is to ask if they will accept a deed from you today. And you move into a small apartment or with family. You avoid a foreclosure on your record..
Mouse here for | | Related Links |
|
|
Technorati Tags: first mortgage, indy mac, loan modification, my wife, payment plan, second, second mortgage, Second Mortgages, small apartment, when money is tight is it better to pay some of your first mortgage or all of your second mortgage
There is an organization set up by the gvt called
hopenow.com
They restructure your mortgages.
BUT I think the new loan can not be more than 35% of your income or 42% of total debts. Give it a look.
/
References :
Paying "part" of your payment is not appreciated by the lenders unless you call first and work out a payment plan. Otherwise the entire amount you send them is credited to interest and does not pay down the loan at all. You want that loan to disappear.
Apx 4 out of 100 people who ask for a loan modification can get any help. Most of the modifications are to give you 6 months of no payments at all. This money is added to the "end" of your loan, so it is not a gift.
In some cases, the smartest move is to ask if they will accept a deed from you today. And you move into a small apartment or with family. You avoid a foreclosure on your record..
References :
Contact your lender IMMEDIATELY! They might be able to work out a payment plan, but they’re not likely to help you if you’re already behind with payments. You owe them the money, so it is up to their discretion as to whether they allow you to make part payments.
You might find it very difficult to modify your loans now that your income is even lower. They will not probably allow you to refinance your home loans. You are probably not earning enough.
You need to generate some more income in the interim. Your wife needs to be actively looking for work full time — that is, job seeking for at least 8 hours a day — and you might need to have a garage sale or sell some household belongings to generate some money.
Also, you could try getting a boarder or renter into your house to help with expenses.
You could try moving in with family and renting your house out, or renting a smaller place to live in and renting your house out to cover the mortgage.
Best wishes
References :
You have to start thinking S-M-A-R-T. What kind of cutbacks can you make? For example: I drink bottled water. Now at $1 a bottle on something that covers over 65% of our planet is not smart. So I bought one of those water filters that screw into your faucet. I have bottles that I refil over and over again. I take them to work. Do you have a lot of small appliances around that house that are always on? I cut my electronic bill almost in half by unplugging all the clock radios and night lights. I also bought some of those florescent bulbs that look a lot like a regular bulb. These things use 80% less electricity than regular bulbs. You would be surprised, but these small things add up. I know I was spending money on the water filter and energy efficient bulbs but these things will pay for themselves in a month providing they pertain to you. If you really need the money right away start cutting back on your food costs. Romain noodles cost a dime and they taste just as good as campbells chicken noodle that costs $130 a can. Ok no chicken in romain noodles, but you are probably just missing about 4 tiny pieces of chicken. Put a brick inside your toilet ‘chamber’. You will use a little lesser water each time you flush..Before you know it you will be ahead. Wanna be creative? Find yourself leaving lights on? Buy a motion sensor switch, the lights will turn on when you enter the room and will turn off (by a set amount of time) when you leave the room. I have one, they cost $15 at HomeDepot. Need new windshield wipers for your car? Who says you have to buy 2? You only need the new one on the drivers side, leave the old wiper on the passenger side. So remember you have to start thinking S-M-A-R-T! Yours truly seahorsehawrey.
References :
I do not know what State you are in but some State allow foreclosure to start as soon as you miss one payment.
If you know you do not have the income to make the mortgage payment. If you are a month behind that will lower your credit score.
Tell the lenders that you simply can no longer afford the house at the current payment and tell them if you can modify the loan you will have to abandon. But you need to be willing to abandon and starting looking at apartments or cheaper rentals.
Offer them a Deed-in-Lue of Foreclosure.
You can try Hopenow but they have been a complete failure. The main reason is that the Lender has volunteer to reduce the amount you owe on the house and many lenders would rather see the house go into forclosure than modify the loan.
References :
Recovering Loan Officer
Just went through the refi process to combine two loans into one.
Best of Luck