Foreclosure/morgage; help with understanding everything
I would like to explain my situation and see if you can offer me any information or advice or even direct me to where I can educate myself more about this.
I got an interest only mortgage at 103% because I couldnt afford a down payment in 2006. I also had to buy points (I cannot explain to you why bc it never made any sense to me...) I went back and forth on the phone with the mortgage broker running the numbers this way and that way until he found something that had a monthly payment I could afford. It was obvious I didnt have the income necessary and I should have known better. I was naive and just out of school. And I believed that buying a home was an investment. I was moving up in the world and it would work out.
It didnt. In 2010, I was laid off from an amazing job and it took 2 years before I secured another FT position- and this job pays $20,000 less than the one I lost in 2010. I was able to get funding through the Hardest Hit Fund that paid my mortgage and HOA dues for 18 months while unemployed. That funding just ended and I applied for a loan modification (the int rate is 7.25%). I called to check the status of the loan mod application and that is when they told me that the lowest interest rate they will modify is 7%. They also told me that they are not HAMP services. My mortgage was with Wells Fargo and they held it for 6 years and promptly sold it right after signing the deal with Congress. The next company had it for about 6 weeks and then sold it again to this company.
I was told that it didnt matter who ended up with my loan; that I would be eligible based on who sold me the loan to begin with.
Can you help me understand all this? Do I have any options to keep my home? If I cannot get this terrible loan modified or refinanced, I will lose my home. My credit isnt great, now, after being unemployed for 2 years. I did the best that I could and paid as much as I could.
Thank you so much for your help. I am so scared right now.
If you are trying to keep your home there are free places that you can go to get help that will walk you through everything. Go to www.hud.gov . find the housing counselors and they will be able to walk you through it. IF you can't modify, or the investor that holds your note does not want to modify, then your next best option is to short sell the home. If you need a realtor to help you do that, I have a few in mind. Your other options are to catch up on your mortgage and get another job, or rent the home out or even a room out to help with your mortgage payment. I hope that helps.