I posted this in the foreclosure forum, but this boards seems more active. Sorry for the double post...
I messed up. I built a house a few years ago. I owe 410 on the first and 110 on the second. I overbuilt for the neighborhood, and the most I could probably get right now is 450K or so. Both loans are with BOA. The house is also in MO.
I am payed based on the stock market, and so my income has been almost reduced by 1/2. I went from clearing 15K to as it stands now, around 7 or 8. I called last month and got a loan mod. They reduced my interest to 5% for 3 years, and made it a 40 year term. They are also giving me a relief for 3 months, and tacking it on the end of the loan. My payments going forward are going to be 4000K for the next 4 months, and than 3600.00 after that. (I was short on escrow due to the taxes when I was building the house).
I am not, and have never been late on any payments in the past. My fear is with all my other expenses, I am not going to be able to afford this payment, even with the loan mod. I have incurred some credit card debt, have a son that goes to therapy, and car payments that are above what they should be. I have leased two cars, and of course upside down in another. I really don't have assets of much value. I have a bit in savings, but I don't want to get in a deep hole, and not be able to get out. I would love to go back to having a house with a 1100.00 payment. Our lives were so much easier than, and I could have gotten threw this. We just bit off more than we can chew, and were not prepared like we should have been for a crises.
I don't know what to do. I think the thing to do is to get out of this house. I have read things about short sales, but more negative than positive. I am asking for some advice, and for someone to lead me in the right direction. Thanks so much in advance for your help!
I messed up. I built a house a few years ago. I owe 410 on the first and 110 on the second. I overbuilt for the neighborhood, and the most I could probably get right now is 450K or so. Both loans are with BOA. The house is also in MO.
I am payed based on the stock market, and so my income has been almost reduced by 1/2. I went from clearing 15K to as it stands now, around 7 or 8. I called last month and got a loan mod. They reduced my interest to 5% for 3 years, and made it a 40 year term. They are also giving me a relief for 3 months, and tacking it on the end of the loan. My payments going forward are going to be 4000K for the next 4 months, and than 3600.00 after that. (I was short on escrow due to the taxes when I was building the house).
I am not, and have never been late on any payments in the past. My fear is with all my other expenses, I am not going to be able to afford this payment, even with the loan mod. I have incurred some credit card debt, have a son that goes to therapy, and car payments that are above what they should be. I have leased two cars, and of course upside down in another. I really don't have assets of much value. I have a bit in savings, but I don't want to get in a deep hole, and not be able to get out. I would love to go back to having a house with a 1100.00 payment. Our lives were so much easier than, and I could have gotten threw this. We just bit off more than we can chew, and were not prepared like we should have been for a crises.
I don't know what to do. I think the thing to do is to get out of this house. I have read things about short sales, but more negative than positive. I am asking for some advice, and for someone to lead me in the right direction. Thanks so much in advance for your help!
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