Hi All...I will try my best to be brief, but I really, really need advice. We were discharged from a Ch 7 10/08, included the house. We missed 3 pymts then moved into a rental in July '08, primarily out of fear and desire for stability. Have been checking county site daily, as NOD came in Dec then nothing..assumed would have sale date by now. Saw on county site that NOD had been cancelled May 5th!
Called lender in panic, was advised because of CA senate bill blah blah some loans didn't have everything done properly so now f/c process starts ALL over, so another 4 mos, basically. Then said, oh, did you know you may qualify for the Obama MHA plan? Went thru financials and told me we would qualify..would have to sign some docs, provide some info, they would lower house pymt to an amt that is even lower than rent we are paying, for 5 yrs, and would include taxes/ins! This stunned me.
Our loan balance is $546k with year's worth of missed pymts, and property taxes. There is a $65k 2nd, but since we bk'd that, the lien would just sit there, I think, until we tried to sell or refi. We would make 3 trial pymts and then mod would go into effect. This has just blown us away, we are nervous, don't know if we should walk (run?) or take a chance at getting the home I thought we'd retire in, back, at an amount we could afford. Not even sure how a mod on a bk'd house would even work! I am trying to be logical, make smart financial choice, for once, w/out emotion. Homes still very much underwater there--selling for around $415-$425, depending on if new (they just started building in this development again) or house just f/c'd, flipped, and then re-sold.
Any thoughts/advice? Are we completely insane for even considering this? Oh, and our rental lease is coming up next month, so timing is good at least for that..We had hoped to become homeowners again in a few years, but realistically, not sure where that money would come from..
Called lender in panic, was advised because of CA senate bill blah blah some loans didn't have everything done properly so now f/c process starts ALL over, so another 4 mos, basically. Then said, oh, did you know you may qualify for the Obama MHA plan? Went thru financials and told me we would qualify..would have to sign some docs, provide some info, they would lower house pymt to an amt that is even lower than rent we are paying, for 5 yrs, and would include taxes/ins! This stunned me.
Our loan balance is $546k with year's worth of missed pymts, and property taxes. There is a $65k 2nd, but since we bk'd that, the lien would just sit there, I think, until we tried to sell or refi. We would make 3 trial pymts and then mod would go into effect. This has just blown us away, we are nervous, don't know if we should walk (run?) or take a chance at getting the home I thought we'd retire in, back, at an amount we could afford. Not even sure how a mod on a bk'd house would even work! I am trying to be logical, make smart financial choice, for once, w/out emotion. Homes still very much underwater there--selling for around $415-$425, depending on if new (they just started building in this development again) or house just f/c'd, flipped, and then re-sold.
Any thoughts/advice? Are we completely insane for even considering this? Oh, and our rental lease is coming up next month, so timing is good at least for that..We had hoped to become homeowners again in a few years, but realistically, not sure where that money would come from..
You bring up all the things I fear... I have been keeping a mental list of the pros and cons and the big unknown, then screwed in another few months is certainly at the top of the con. I don't fully understand what happens at the end of the 5 yrs (yet) we are still researching all of this, other than the interest rate then begins to gradually rise by 1% per year until it reaches the rate that had been set on the day the mod began. I THINK. Still trying to muddle thru all of this. On one hand, if I picture us literally living in that home until they carry us out in pine boxes (which was our original vision) then it can make sense, and another thing is considering it a "5 yr goal" because we have no debt other than the cheap cars we bought shortly before filing that will be paid off w/in that timeframe also, and I will be returning to work by then (I am currently a SAHM w/3 young children). I thought I was a-ok with the rental thing, and then of course I started 2nd guessing that as well and added up the rental $$ over the next 5 yrs, yada yada. Thanks for listening, and any and all input is very much appreciated. I am not simply trying to rationalize, I am really trying very hard to make good choices.
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