Upside Down Mortgage

Archive for August, 2009

Mortgage Modification Federal

Question: Has anyone obtained Obama's new federal mortgage modification?

What are the pros and cons? How many years does it last? Do you have a balloon payment at the end? Ugh!

Answer: Call your mortgage company. My sister is doing a loan modification right now. You have a lot of paperwork to fill out. From what I know there is no balloon payment at the end. It lasts 30 years. I don't know what the cons are. She has to do it or she will lose her home.

Mortgage Modification Credit Score

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I purchased my home a little less than 2 years ago in Long Beach, California. I paid $255,000.00. I am now upside down because the house is now worth $210,000. The payments went from (114 HOA) from 1700 to 2000 per month in February. But, I don't really like the neighborhood. Lots of section 8 renters are moving in and playing loud Mariachi music and selling drugs. Police won't do anything. It is a terrible place and I did not know what I was getting into.

I have gone to Austin, Tx twice and really would like to move there. What should I do?

I am a teacher with a Master's Degree, but this is all that I could afford. I don't want to be a slave to the mortgage company and pay for something that is not worth it. I also am not above dinging my credit.

I don't feel sorry for ditching this place. The banks were bailed out of their poor choices. I am simply a school teacher who thought I was doing the right thing by buying a home. I will not continue the cycle of being a middle class person living in poverty...I'm going to take the advice of seeking legal council. The originator of my loan sold it to ( I'm quoting someone from their own company) pennies on the dollar. If they don't negotiate with me jut because I pay my bills, I'll take the 7 year mark and live in a tent in the friggin forest.

It makes me sick looking at people in my neighborhood that have like 8 kids and live in my same building on section 8 and I work like a dog and come home at 5:00.

Rant rant...boo hoo.. for real thanks for the advice everybody.

By the way, I tried calling and telling the police about the noise laws. They almost laugh at you. No joke.