Long term mortgage ride throughs?

[jdcat]

I've read a lot about mortgage ride throughs and am curious if there are any members here who have actually been doing a ride through for long time now? I've read about the intentions to ride through in past postings here but haven't seen much as far as reports of success with long term ride throughs. Curious I am!

[CCsAreEvil]

I don't have an answer for you, but I would bet there are "very" few who do ride-thrus and have stayed in their homes for years on end... especially in these times. I'm trying to understand "exactly" what you are asking? If you are asking if you are able to stay in your home for as long as you make the monthly payments, the answer should be "yes".

If you are asking "what happens if I want to sell it years from now?" Well, my guess would be that as long as you satisfy the "note(s)" (mortgage company(ies) on lien(s)), then you "should" be able to keep the "profit" on top after satisfying the note(s).

Of course, there should be no question that as long as your secured mortgage loans were included in your BK, you can walk away at any time. Which also means, you would be able to save the money you would otherwise be paying towards the mortgage for months... maybe a year+ some (would be best not to blow your cash on other things during this time?)? It all depends on how long the foreclosure process would be. I'd bet in these times, you are guaranteed to live at least 6+ months rent free.

We love our home and are going to do the ride-thru. We have a 2nd, which we intend to keep paying. If we actually plan to stay in our home for the "long" term, it would make sense to "settle" on the 2nd... hopefully for around 10-15% of the principal owed... because it would NOT make sense to keep paying on the 2nd for 5+ years... since paying 10% of the principal "breaks even" at around 3.5 years. Of course, it would be "best" to make that decision as early as possible since we'd be paying $300+ each month anyways.

We are probably upside down about $125k. IMO, it's still gonna take "years" to recuperate that. However! If we decide to settle on the "2nd" ($115k balance), then it might make sense to stay for the long run.

Sorry for the long post. But that's my story for now.

[jdcat]

Thank you for answering.

I'm just curious how the ride through turned out years down the road for people that are in your situation. I'm wondering if there were unforeseen issues that cropped up years later. What those issues could possibly be I have no clue, I'm just curious.

We have a house that will hit it's one century mark in 2011. My intention at this time is to reaffirm because we would never find another place with this much square footage (1800 sq feet) for less than what we pay ($688), but I'm getting a little nervous about that intention because of the age of the house and what it's going to cost in maintenance over the next 28 years. This house has been in my husbands family for almost 80 years and has been passed on through 4 generations, so there would be issues from family if we were to ever walk away from it. The sentimental value of this home is a living breathing thing in this family.

I'm actually thinking about a ride through if our lender doesn't push for a reaffirmation. It would be nice to stay until the kids are grown and gone then walk away if that would be in our best interest at that time. Or possibly sell and come away with a little bit from the sale if there was enough from the sale to satisfy the lender also. Who knows. We never know what the future holds.

I also imagine a scenario where mother nature damages the house and as of right now our property insurance would not cover the cost of rebuilding another house of the same size. I'm trying to weigh our options and decide if reaffirming is the best thing for our particular situation.

I guess all kinds of scenarios are possible and I was just wondering if anyone doing a long term ride through had come up against any issues and how things turned out for them. Did they leave? Did they stay till the mortgage was paid off? Did their mortgage ever get sold to another lending institution? If so what happens in that instance? I imagine there are all kinds of things that could happen over the years.

I wish you luck with your situation, and I wish me luck trying to decide what to do, LOL!

Thanks again CCsAreEvil.