Comments on: Upside down on a mortgage

By: Diane

Diane — Fri, 28 Mar 2008 01:43:40 +0000

I bought a house 1.5 years ago and it’s upside down. I’m an emptynester and found out to my horror that this neighborhood is not safe. I want to get out and rent where I lived for 22 years…But I can’t sell. I think short sales are only for folks that are forclosing…and I’ve been late by just 1 -2 weeks. But I can’t pay my other bills or eat..or buy clothes. Any ideas on how to get out of this bad place The stress is killing me. A guy was on my roof and was taken down in my front yard.. Help…Ideas?

By: Mark

Mark — Thu, 13 Mar 2008 21:44:28 +0000

Many mortgage companies (at least in ATL) are offering 5.5% fixed rate. I am not sure how legit they are and what would be closing costs.

By: Yan

Yan — Wed, 12 Mar 2008 04:32:46 +0000

I am sure his ability to refinance the first loan is linked to his entire amount of debt against the house and not just the portion tied in the first loan so it would be a mistake to assume that paying off the second loan doesn’t help refinancing the first one.

What I would probably do in his case is bargain a different arrangement now, before the deadline is upon you and you are not in position to negotiate any more.

I hear a lot about the government advising banks to give people like this a bit of a slack. It essentially comes to banks losing some revenue at a cost of saving the business and economy. Each bank however has a different policy and you might be more lucky with some than others.

By: XynamaX

XynamaX — Wed, 12 Mar 2008 03:01:54 +0000

Lots of blame to go around, but it all comes down to not doing due-diligence.

People got out of hand with their mortgages and didn’t read the fine lines on the loans with “teaser rates” and adjustable rate mortgages.

I don’t understand why he’s paying down the fixed rate loan faster. It’d make more sense to pay off the higher principal loan, if he puts enough extra principal towards it, he may be able to refinance. The 15yr fixed stays the same.

-X

By: Alan Greenspan

Alan Greenspan — Wed, 12 Mar 2008 01:30:12 +0000

Your breaking my heart with your sob story. Should I feel bad for you because you strung yourself out on debt? Not…..

By: Mr. Debtbeater

Mr. Debtbeater — Tue, 11 Mar 2008 14:04:58 +0000

I can totally feel the pressure. My entire story on my blog is pretty much centered around the fact that we’re upside down on our mortgage and have very little room to pay it down on time before we can refinance or lose it.

We’re not in a panic, but we’re not far from it. We have the same decisions to make…pay the 2nd mortgage, or pay down the credit cards?