Friday, January 2, 2009
Called my Lender
I called my lender today to see what options I have. Unfortunately, not many. They are holding my loan as I guessed, but any modification or refinance has to conform to an 80% Loan to Value limit. As you know, I owe way more than the current value. I tried explaining to the gentleman that it was in their interest to offer me better terms, I'm not sure he understood why! Unfortunately he was a lowly peon and I'll have to go higher to get any real help. I have the name and number of his manager, who was away at the time. My best hope is that Fannie and Freddie start allowing no-appraisal refinances. A precedent like that may convince my lender that these are extraordinary times and conventional practices need to be re-evaluated.
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4 comments:
Love your blog... read all of it this morning. I'm in the same boat out here in AZ.
So much of the blogosphere coverage of this is so condecending... I appreciate your sympathetic coverage. I've often said that we did the exact same thing everyone else did, just with exceptionally bad timing, in retrospect. Its nice to see someone else with those same thoughts.
Thanks for your blog. It is a good outlet for some of us. I am in the same crappy situation in Florida, having bought a home at the worst time (two years ago) and am underwater. I did the right thing, 15% down and a fixed rate FHA loan but foreclosures have caused a downward spiral in property values here. I can afford my payments provided I can keep employed at a decent income, but the feeling of being "trapped" and unable to move is very unpleasant. I bought the home wanting to do some improvements, new kitchen, etc. but now I don't want to throw more money into the pit.
@Colin - my sympathies that you are stuck in the same boat I am. There are a lot of people here with us sadly. Our only crime was buying at a bad time, I was a first time homebuyer and didn't have the advantage of experience. For some reason I have to learn all my lessons the hard way! The feeling of being vilified is common, you're not the first person I've heard it from. I hope something works out for us.
@Jo - If unemployment sky rockets then this will get even uglier. I think my job is safe, whatever that means. I need to throw some money at my money pit, 80 year old houses need work just to stay upright!
Great blog! Thank you. To echo Jo, this is a great outlet.
We are underwater too and our lender is doing so poorly they are not taking on new mortgages or refi-ing old ones. Credit cards bills are getting higher, mortgage is much higher than it should be... I'm stressed, wife is stressed (and pregnant and due yesterday - literally) kids are seeing our stress... just a vicious circle. No one will help us. Obama won't lower the rates. Freddie Mac et al is doing nothing and the lenders with money are holding on to it now that THEY got their bailout.
I'm thinking jingle mail may be our way to go. A foreclosure is bad but certainly does not carry the same stigma it did even 5 years ago. If we let go of the house we could rent for 1/4 of our mortgage and pay off all of our debt in 18 months. As it stands right now we're just burying ourselves even more.
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