Real Estate Home Mortgages/modification


Mr. Beardsley, Here is my situation in a nutshell. 6 years ago my husabnd and I refinanced our mortgage with a cash out of $60000 for some much needed repairs. Mortgage owed went from $101,000 to $160,000. The next year my husband decided he wanted a divorce. He insisted the house be appraised privately and was appraised for $280,000. I bought out his half of the equity (approx $67000), increasing my mortgage amount to approx. $227,000.
Of course, since then, the value of the house has decrease to the point where I now owe about the same as the house is worth - no equity. I make my mortgage payment faithfully and timely every month but at the expense of other bills and needs. Now we have a new health insurance at work with a $4000 deductible. I am trying to put some money into a HSA to offset this huge deductible. I contacted my mortgage company (which I've had the entire life of the mortgage) to see if they could do a modification and was basically told that as long as I was paying my mortgage on time, I was not eligible for any type of special program and I do not have the equity in the home to refinance. Should I focus on paying my other household bills first and let myself get behind on my mortgage payments? I have excellent credit (782 last check) and would hate to jeopardize that but I'm at my wits end and no one seems to be able to offer me a viable solution. I'm not looking for a handout - just a lower interest rate! But a traditional refinance to a lower rate is not available d/t the lack of equity in the home. Do you have any suggestions for me?

Thanks for your question and I'm sorry for your current situation. If your loan isn't currently serviced by FNMA of FHLMC your options are limited to your current bank. Do not, I repeat, do NOT fall for the Internet ads or email telling you a company can arrange a modification for you   If your current lender is your local bank I would plead with them for a reduction in rate.  Other than letting yourself go delinquent, your options are very limited.  Sorry I don't have a better answer for you.  I wish you the best of luck and feel free to post any follow up questions.  Thank you for using
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

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Brian Beardsley


Most creative financing / conventional financing questions


Used to be on the All "list" Active in the business for 20 years, operating Mortgage brokerage for last 10

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