I refinanced my home mortgage three years ago from a fixed rate to an adjustable rate. One that defers interest each month, causing the balance to increase. This loan was clearly a mistake, as it ate away at my equity. That was before the housing crash. Now, my loan balance exceeds my appraised value by over one hundred thousand dollars. So, I am “under water.”
In October, 2008, my boyfriend moved out suddenly. I was left to make the mortgage payments on my own. At the same time, I had a decrease in work hours due to the poor economy. At the end of 2008, I fell behind in my payments.
Later, when I attempted to catch up, the bank wouldn’t work with me. They told me that I had to pay all past-due payments. They wouldn’t accept a single payment. In fact, they told me that it would be returned if I were to mail it. Consequently, I became further behind and still not able to catch up with past due payments plus new ones added.
In March, the bank announced they had a loan modification program called MAP. I faxed in all the information required and awaited the outcome.
At the beginning of April, I received a letter stating a short-sale request was being processed and I had seven days to respond. Otherwise, my file would be closed. By the time I received the letter, the seven days had passed. Since it was the weekend, I faxed a letter immediately to the bank asking them for the status of my loan modification. I explained that I had never requested a short sale.
Presently, I’m waiting for a reply and I’m quite fearful of the outcome.
I am worried that the bank is in the process of filing default. I don’t know where I’d live if I had to move suddenly. I’ve lived in the same house for 36 years. It’s an emotional issue as well as a financial one. I do wish there was a way that I could stay in my home while seeking a solution to my mortgage crisis.
I do believe that banks should do more to help homeowners rather than seek foreclosure. If banks can ask for bailouts, then why can’t homeowners get assistance as well? And shouldn’t government funding go directly to agencies that can assist the homeowner in trouble? I have contacted Hope for Homeowners and other government agencies. The experience was time-consuming and I did not find these agencies to be effective in saving my home.
I’ve contacted numerous companies who say they can save my homes for a large up-front fee. Since there are so many companies who are trying to scam homeowners, one does not know who to trust. I have come to the conclusion that I will need a company with lawyers on staff. Yet, there is still no guarantee and in many instances, fees are not refundable.
And what about filing chapter 13? Is a bankruptcy better than a foreclosure? This is also costly, I’m told.
And perhaps I should save my money to relocate if forced to leave. I have spent many sleepless nights searching for an answer.
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