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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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A couple of loan questions...
I know nothing about these kind of loans so I thought I'd ask here if you don't mind. This is of course when things get better here at home, but right now we have a 30 yr mortgage with a 5.875% rate. REALLY good considering our credit scores weren't that good back when we bought the house. Anyway, I want to get out of the house ASAP for many personal reasons. Not big enough, robbery, etc. Well, since we have the 2nd mortgage (110% LTV) I was thinking that maybe we could take out a 5 yr ARM loan or Interest only loan for the time being so our monthly payment is a lot lower to help us get back on our feet and/or we're able to pay more than required so we can pay it to principal. What we need to do is get this 2nd mortgage paid off ASAP because we can't sell the house until this loan is paid off. The house is not worth what we owe unfortunately. Do you think this would work? The only reason I am considering this is because I know I WILL be out of this house before the rate shoots up. I am going to work hard at getting out of this house. Now things here in NC do work differently as far as restrictions are concerned. Here you don't have to have a down payment, etc. they are more flexible compared to getting a loan in NY. Anyway, what do you think? Also, if we did this would we be able to get another "home mortgage" loan shortly after that? Let's say within 6months-1 year of doing it? Thanks again and sorry if it's confusing! 
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Posted 1/3/07 2:38 PM  |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: A couple of loan questions...
An IO is not going to help you.
In fact, I dont think that you should refinance. You wont get a much better rate than what you have and it will cost you money to refinance.
I'm sorry if this doesnt help but i think that the best way for you to get out of there is to find a way to generate extra income....
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| Posted 1/3/07 2:55 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: A couple of loan questions...
I have no idea- but my husband would- would you like his email?
he is lic. in NC
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| Posted 1/3/07 2:55 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: A couple of loan questions...
Posted by lululu
An IO is not going to help you.
In fact, I dont think that you should refinance. You wont get a much better rate than what you have and it will cost you money to refinance.
I'm sorry if this doesnt help but i think that the best way for you to get out of there is to find a way to generate extra income....
that's true- it's a very good rate
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| Posted 1/3/07 2:56 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: A couple of loan questions...
Posted by lululu
An IO is not going to help you.
In fact, I dont think that you should refinance. You wont get a much better rate than what you have and it will cost you money to refinance.
I'm sorry if this doesnt help but i think that the best way for you to get out of there is to find a way to generate extra income....
i agree
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| Posted 1/3/07 3:07 PM |
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ckone
LIF Adult
Member since 8/06 3014 total posts
Name:
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Re: A couple of loan questions...
I also am looking to get out of my home and move within the next few months. I have a terrible ARM (changes every six months). In February it might go to 8% but since I am going to sell, we are going to hope that we can get out before August and only pay interest at that point (still very high Mtg. even if only interest). It costs money and time to refinance. You rate is great and I would suggest staying it the loan. I was told that it doesn't make any sense to refinance, even with such a terrible loan, by my currenly lender.
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| Posted 1/3/07 3:11 PM |
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kaklesmay
Love my baby boy!
Member since 9/05 1151 total posts
Name:
Kim
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Re: A couple of loan questions...
If you are going to be buying another home can you just take out a mortgage/HE Loan on that one to help pay it off?
example:
After selling you still owe: $25,000
New home purchase price: $100,000
New home loan + HE Loan amt: $125,000
You financed 110% of this home so would you be able to do the same on the next?
If you are going to rent I guess it doesnt apply. Just a thought.
Good luck
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| Posted 1/3/07 3:31 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: A couple of loan questions...
Posted by kaklesmay
If you are going to be buying another home can you just take out a mortgage/HE Loan on that one to help pay it off?
example:
After selling you still owe: $25,000
New home purchase price: $100,000
New home loan + HE Loan amt: $125,000
You financed 110% of this home so would you be able to do the same on the next?
If you are going to rent I guess it doesnt apply. Just a thought.
Good luck
not a great idea- because she still needs to pay selling costs on her first house and closing costs on the new house...
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| Posted 1/3/07 3:34 PM |
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Re: A couple of loan questions...
What's a HE loan??? 
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| Posted 1/3/07 3:37 PM |
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Re: A couple of loan questions...
I appreciate all your input. I'm just trying to find the best way to get out of my current house and I just don't know how!  The 2nd loan we took out was for $30K more than the house was worth to pay off the credit cards. So far in 2 years we've only paid off about $1,500 in principal on the 1st loan and about $1,200 on the 2nd mortgage. The only work we've done on the place is paint some of the interior, got new blinds in the living room and added a 6 ft stockade fence. The value of the house has probably only gone up about $3-5K if that.  I just don't know what to do???  Thanks for the help!
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| Posted 1/3/07 3:41 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: A couple of loan questions...
when you took out the second mortgage - they ere ok with doing that high of an LTV? Is it the same lender as your first mortgage?
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| Posted 1/3/07 3:46 PM |
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Re: A couple of loan questions...
Yes they were ok with that. Not many companies do it, but they do. I have my mortgage through GMAC and I got the 2nd mortgage through a subsidiary of GMAC. But that's now how I got the loan. There were a handful of companies that were able to do this kind of loan down here. We have a $150,500 1st mortgage and the 2nd one is $30K. We just made a bad choice in a house I guess that it's just not appreciating like we thought it would. We also didn't think we'd be robber or have these financial problems like we have now. If the robbery had taken place only 5 weeks earlier! We never would of taken out the 2nd mortgage.
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| Posted 1/3/07 3:54 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: A couple of loan questions...
Is there any way you can make your current situation more bearable for the time being?
Maybe do a budget an set realistic goals for when you would have enough money to move out?
Find ways to make some extra income? Even sell some things on Ebay?
Make some inexpensive home improvements around your current home?
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| Posted 1/3/07 4:02 PM |
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CaidensMommy
My 3 Miracles!
Member since 5/05 5777 total posts
Name:
Melissa
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Re: A couple of loan questions...
Posted by lululu
Find ways to make some extra income? Even sell some things on Ebay?
Make some inexpensive home improvements around your current home?
Well we both work 2 jobs already so that's out. I'm working on selling things on Ebay, though unfortunately we don't really own anything that's worth anything considering we've never had money to buy nice stuff.
I want to do the inexpensive home improvements on the house, but I don't know what else we can do? We need to do more painting, but that's not going to add more money? I also would like to redo the hall bathroom since it's small I don't think it will cost that much. We only need to paint, new counter/cabinet, mirrors and floor. I don't know what else we can do? I would love to redo the kitchen but that's WAY too expensive. The cabinets are older and dark so I would like to do something with them and then replace the ugly white countertop and walls with new countertop and tile backsplash. We could leave our fridge which is only 2 yrs old and worth $1600. We'd probably have to replace the stove and dishwasher to make it match. I just think the kitchen would be too much money. I don't know!!! I wish we knew someone who could do the work for us. It would save a lot of money. The only people we know live in NY and we're in NC. Any other suggestions? Thanks!
Message edited 1/3/2007 4:11:17 PM.
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| Posted 1/3/07 4:10 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: A couple of loan questions...
how long have you owned the house?
can you put an apartment in the house for some extra income?
is it just the home bills? or do you have other debts? if you cant afford your house working 4 jobs and you only have your mortgage and expenses, you need to go over every penny you spend (which im sure you have already done)
have you thought about moving back to NY (not selling your house) getting jobs here (which would probably pay more) -paying your mortgage still on your house until you are on your feet and can move back?
i know that sounds drastic, but im trying to think outside the box.
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| Posted 1/3/07 4:36 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: A couple of loan questions...
Do you have a recent appraisal Are you sure the house is not worth what you owe
Do you have friends or family with good credit that would be willing to buy the house from you and let you live there to rent it....and put your name back on title once you are on your feet
The mortgage broker contact I sent to you does this alot for people in NC.
He is doing a "bail out" now for a woman in NC who unfortunately missed 2 mortgage payments so her credit is really horrible now. She had over $150K in equity though so she is "selling" her house to an investor and the investor is taking out 12 months of mortgage payments plus a cash payment of some negotiated amount (not cash out of pocket but money from the equity in the house). After 6 - 12 months of no mortgage payments and supposedly using the money to get her credit back in order, the renter (prior owner) will have her name put back on title and "buy" her house back.
Maybe you can do something like that with a family member or friend as the investor
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| Posted 1/3/07 11:28 PM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: A couple of loan questions...
I know this is against what most people would suggest, but since you want out of your house - it is an option.
Apply for 0% CC and write checks from the CC out to the 2nd mortgage. You may need to get a few 0% CC to get to $30K (and be careful about minimum payments - if there are enough cards it could be more than your 2nd mortgage)
that way you CAN get out of your house and start renting until you gwet back on your feet. One thing about having CC debt, is that the companies cannot take your house away if you default. But DO NOT default - as the interest will shoot up.
I'm not saying this is the best option or what I would do, but just presenting you with it. Honestly, I would get rid of my computer, internet service, cable service, sell any car that had payments and buy a real junker, cut back on utilities as much as possible, walk whenever I could to save gas, eat only pasta and ground beef, etc. Don't put any extra money into your 1st mortgage - put every dime you can into the 2nd mortgage to increase the principal as fast as possible. I would like to leave my house, but it's just not the right time in the market and sometimes you have to make major sacrifices.
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| Posted 1/4/07 8:45 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: A couple of loan questions...
Posted by MrsT
The mortgage broker contact I sent to you does this alot for people in NC.
He is doing a "bail out" now for a woman in NC who unfortunately missed 2 mortgage payments so her credit is really horrible now. She had over $150K in equity though so she is "selling" her house to an investor and the investor is taking out 12 months of mortgage payments plus a cash payment of some negotiated amount (not cash out of pocket but money from the equity in the house). After 6 - 12 months of no mortgage payments and supposedly using the money to get her credit back in order, the renter (prior owner) will have her name put back on title and "buy" her house back.
OMG- this is a mortgage SCAM- they will give her back the house with 0 equity in it- please tell her NOT to do this-
( when the "investor" owns the house- he takes out a HELOC and pulls all the equity out of the house)
My DH was telling me he keeps coming accross people that this has happened to them and it's very upsetting
This is the "newest" trick in the book!
Message edited 1/4/2007 9:13:56 AM.
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| Posted 1/4/07 9:13 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: A couple of loan questions...
Posted by Beth1210
Posted by MrsT
The mortgage broker contact I sent to you does this alot for people in NC.
He is doing a "bail out" now for a woman in NC who unfortunately missed 2 mortgage payments so her credit is really horrible now. She had over $150K in equity though so she is "selling" her house to an investor and the investor is taking out 12 months of mortgage payments plus a cash payment of some negotiated amount (not cash out of pocket but money from the equity in the house). After 6 - 12 months of no mortgage payments and supposedly using the money to get her credit back in order, the renter (prior owner) will have her name put back on title and "buy" her house back.
OMG- this is a mortgage SCAM- they will give her back the house with 0 equity in it- please tell her NOT to do this-
( when the "investor" owns the house- he takes out a HELOC and pulls all the equity out of the house)
My DH was telling me he keeps coming accross people that this has happened to them and it's very upsetting
This is the "newest" trick in the book!
yes - there was an article in newsday about a deer park couple that got scammed out of their house this way.
I wouldnt do it -
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| Posted 1/4/07 9:22 AM |
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