Loan Modification | Foreclosure Prevention

Melissa S asked:


Which one is best to do? wHow will the short sale affect my credit vs a modified loan?
ok, well i have never taken money out. my home was purchased at 448,600.
and is know worth 180,000. i am currently in a fixed interset only loan. in two years its going to ballon, and im not going to pay the morage this month in hopes of getting some help from them.

freewilly asked:



My project dont workout but every cent will need long term with low interest rates if can get onei want this money to keep it is in real estate that needs repair intend to invest in is in real estate that needs repair intend to keep.

My project dont workout but every cent will need long term with low interest rates if it for rental housing the property need of decent housing rent will be repaid and pay back such large amount if my project dont workout but every cent will need long term with low interest rates if can get onei want this money to 60000 depending on average.


loan workout

janvin21 asked:


Ok ineed an opinion about foreclosure or bankruptcy. I bought a house 21 months ago and theres a prepayment penalty that will expire this april 2008. We paying a whopping $3300 for a $345,000 loan, and there’s no equity on the house. We dont have late payment, but lately were having a hard time producing that money. I call my lender and I ask for loan modification and they said I have to be late in order to modified the loan. My question is what is my best option beside modification? I’m planning to do foreclosure cause we think that its cheaper for us to rent an apartment. What is short sale? Can we sell the house even though I owe more than its worth? or shall we just file a bankruptcy?

alexandrajo asked:


I requested a loan modification from WaMu and they denied for the reason that the loan is current. We’re struggling to make ends meet and the only reason why we’re trying so hard to pay our bills on time is because we don’t want to ruin our credit so that we can save money if in case we need to apply for another credit in the future. It doesn’t make sense to me why they would wait for us to ruin our credit before they can help us when that is exactly what we’re trying to prevent that’s why we’re requesting for a loan modification. I have been unemployed for 6 months and have been using my savings for bills, my husband’s income has also decreased because his company closed but luckily he found another job that pays him less than his previous one.
It’s not that I don’t like the terms of the loan. We are asking for help. And I think that with all the foreclosures that’s happening right now, WaMu wouldn’t want more. Our house doesn’t have equity, value went down big time.

C-ROD asked:


I have a 30 yr adjustable rate mortgage with the first 3 yr fixed rate of 6.8%, I have 1 yr since I refinanced. Is it a good time to refinance now that the rates dropped so much? Can I refinance even if I dont have any equity on the house?

What I want to do is lower my rate & my monthly payment, not get any money out it.

Please advice, I dont want to find myself in a place where I’m about to lose my house. BTW I live in NJ.

yishor asked:


I have Countrywide for 1st and 2nd mortgages, totaling $310K. I know my home isn’t worth more than $260K for a reasonably quick sale right now. I recently did a loan modification with them on both loans, trying to catch up, but my income dropped further, I’m behind again, and I’ve decided to cut my losses.

I don’t want to file for bankruptcy. I just want to get rid of the home loans and then get caught up on all of my unsecured debts. I’m worried that they’ll auction it off for ~$200K and then get a deficiency judgment to make me pay them the difference. What is the likelihood of that happening? Is there something in the loan docs that’ll tell me if this is even an option for them (or perhaps it’s in the AZ law somewhere)?

I make pretty good money (just under $50K) and they have proof of that from my recent loan modification. Is this going to make them want to or able to get a deficiency judgment against me?

Please list your answer and your source or credentials. Thank you!
Yes, they hold both mortgages.

I appreciate the advice about trying to keep the home, but I’ve weighed all the pros and cons and I’ve decided to cut my losses.

Please answer my question about the judgment if you have any info. Thank you.
razberryicet, thank you so much for that info! that is exactly the help I was looking for.