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upside down mortgage refinance options

Question: Foreclosure: Walking away from my house?

This is the last thing I want to do, but I'm afraid I'm out of options. I live paycheck to paycheck and have enough debt to dip into credit cards monthly to pay utilities. My wife just lost her job and there's no way we can pay our credit card bills and mortgage. We bought our home in Colorado in 2001 and we're now nearly $100K upside down with our 1st and 2nd together making it impossible to refinance. If we walk away, I know her mom will let us stay at her house until we're back on our feet. I understand many of you will judge me for bad decisions, but I'm really looking for constructive responses. Here are my questions.

1. Can the lender come after my assets or garnish my wages?

2. What happens to the 1st and 2nd mortgages?

3. The other drastic option would be a credit card relief company. Is this worse than walking away from my house?

Thanks in advance.

Answer: If the house is worth less than you owe then yes they can come after you for the remaining amount. I would look into a consumer credit company before walking away from your house as long as you can still pay your mortgages. Also you have to think about how long you will be staying at your moms if you walk away. You won't be able to buy another house and some apartments might not take you either. Or you could lastly talk to an attorney and see about filing bankruptcy.

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Mortgage Default Options

Question: Credit Card Default Advice Needed?

My husband and I have 75k in credit card debt. We have been managing to pay everything on time, and I got a second job last year to help pay down our debt. We set up a budget and had been following it each month.

My husband has recently become disabled and we now are unable to pay the credit card debt. We have to pay our mortgage and household bills first. I have contacted the credit card companies and since we are not currently behind, no one will work to make payment options.

Should I make smaller payments to each card, or stop paying all together and try and save money to negotiate a settlement?

Thank you!!

Answer: You have to make financial statement of your assets, liabilities and income. Then consider whether you can sell assets including your home to pay off your credit card debt. If you do not have assets then I think declaring bankruptcy would be an option. Consult with credit counciller and a lawyer.

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Fha Loss Mitigation Options

You know what a mortgage is, how it works, and what to watch. But when you ask for help mortgage, your lender about words to do as much sense as alien jokes. That's what makes the process of loan modification of confusion for many property owners and why many of them simply give up.

But you do not need to be a financial expert to make the right decisions. A knowledge of the loan modification and loan industry can help you better understand your situation, and know exactly what your lenders. Here is a list of terms you're likely to encounter in a loan modification, and what they mean for you.Here are Loan Modification loan modification glossary of terms.

Amortization: The repayment of a loan (typically a mortgage) through regular payments. Payments are determined by the duration of the loan, the remaining capital and interest rates.

Annual Percentage Rate (APR): The total cost of the loan, including interest, mortgage insurance, points, and other related costs.

Adjustable-Rate Mortgage (ARM): A type of mortgage loan whose interest rate varies depending on market conditions. This means that your payments in May to increase or decrease from month to month. Most weapons have a stopper that prevents the payment of the amount of the increase beyond certain levels.

Debt-to-income ratio (DTI): The relation between the amount you pay on the loan to your total income. Lenders use to determine whether or not you can easily pay the loan. According to the Federal Housing Administration (FHA) mortgage payments should not exceed 29% of your monthly income before taxes, and your total debt (including credit cards and other loans) should not go over 41% .

Deed-in-lieu : An act that goes into your property to your lender and the settlement of your debt. It does not allow you to keep your house, but it helps you to avoid foreclosure proceedings and the associated costs.

Equity: The amount of interest you have in your property. It is calculated by subtracting the amount you still have your house at fair market value.

Fair market value (FMV): A price for your home to discuss the current market conditions. FMV assumes that the buyer and seller acting freely and have all relevant information on the deal.

Fixed-rate mortgage: a type of mortgage that uses an interest rate fixed for the life of the loan. This gives you more stability as a borrower, as your payments remain the same irrespective of the numbers.

Foreclosure: A process that your property is sold and the proceeds to your lender, which allows them to recoup their losses if you default on the loan.

Forbearance: An agreement that your lender modifies your payment plan to help you progress and avoid foreclosure. This means reducing your monthly payments in May or suspend for a period of time. Contrary to the amendment of the loan, this is usually temporary and is often used as a loss mitigation option.

Good faith estimate (GFE): An estimate of the total cost of the loan, including all closing costs, lender fees and insurance costs. All lenders are required to give you a GFE within three days after your loan application.

About the Author:

Sarah Anderson is author of Direct Software.For more information about Loan Modification visit http://www.directcapitalsoftware.com

Article Source: ArticlesBase.com - Loan Modification Terminology, Dictionary of Loan Modification

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