Indy Mac crisis and homeloan!!?
My parents divorced in 2005 and my mother was left with the house and mortgage payments. My mother has a low paying job, and had to refinanced to lower her mortgage payments to $1,300. Throughout 2006 she refinanced again, because she had an ARM loan and jumped to close to $2,800. So her payments were $1,500 in a INTERESTS ONLY LOAN.
Until today 2008, she owes more than what the house is owed and valued at, by Sept 2009 she will need to pay approx. $3,800 per month, she works two jobs, and can barely afford her $1,800 mortgage. I've heard about the loss of Mitigation office & considering
She has never been late with her mortgage payments, and her credit score is close to 700, she has two loans out for this ONE home, currently under pre-penalty until Sept 09, no equity in the home. What can be done or be smart to do?