Indy Mac crisis and homeloan!!?
So... my parents purchased a home in 2004. Their monthly mortgage payments were $2400 per month, at the time were very affordable, my father was the bread maker.
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?
- jamesLv 41 decade agoFavorite Answer
I have no way of putting this nicely. Your mother is not a wise woman. When she divorced, she should have made your father take on the house. She has no way of paying for it and yet she kept it. She needs to sell it, even in a short sale. Maybe someone can rent it and cover the majority, if not all, of the mortgage. The bottom line, she needs to be out of it, yesterday. All of the ancillary stuff is irrelevant. She cannot afford this house. It is not the banks fault.Source(s): Commercial, Industrial and Residential appraiser. The debtor is salve to the lender
- ibu guruLv 71 decade ago
Out of the frying pan and into the fire... An interest-only ARM loan was a very foolish thing to do. She knew she could not afford the home, and she should have sold it while she still could. Too late now. It is unlikely that she can find a buyer at present, depending on where she lives and the condition of the house. But she should definitely try.
Can she rent the house for more than the mortgage, property taxes and insurance? Can you move in and contribute to the mortgage? Can she take in a housemate? Is there a "mother-in-law" set up where she could rent part of the house as an apartment? She has to earn more income to have a ghost of a chance of saving her home.
She is in so deep now that her only alternative may be to lose the house and get a little apartment.
- annazzz1966Lv 61 decade ago
If she wants to stop paying the high monthly payments, she needs to sell or give back the property to the loan company.