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michigan tsunami · 12-15-2008, 05:38 PM

I am a small business owner in Michigan. I did a no doc loan (liar or self employed loan) in 2003 from CW with an interest rate of 5.25% for 7 years currently with a balance of $275000 adjusting in a year. I also have a heloc taken at time of closing of $50000 to avoid paying PMI. I currently owe $43000 on the second. Heloc was suspended earlier this year and principle payments were put into effect. I pay $1661 on the first, $485 on the second and taxes and insurance runs another $500 a month. I can't afford this payment anymore because like i said "I LIVE IN MICHIGAN" My house is upside down, with a value of $250000- $260000. I also have an SBA loan on one of my stores where if I default on my home or file bankruptcy I could lose my store. I have stopped paying credit cards and am being harrassed daily. There is only so much I can do. I am behind a month, almost two on my mortgage. The only way I see any light is if CW drops my principle enough to lower payments $800-$1000 a month. If they foreclose statistics say it will cost them $60-$100k. Am I asking too much to ask for a $60000 principle reduction with a fixed low rate? Or does anyone have a better idea? If so, How would I go about this?

12-15-2008, 05:38 PM	#1 (permalink)
michigan tsunami Senior Member Join Date: Dec 2008 Posts: 71 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Naca dropped the ball!! I am a small business owner in Michigan. I did a no doc loan (liar or self employed loan) in 2003 from CW with an interest rate of 5.25% for 7 years currently with a balance of $275000 adjusting in a year. I also have a heloc taken at time of closing of $50000 to avoid paying PMI. I currently owe $43000 on the second. Heloc was suspended earlier this year and principle payments were put into effect. I pay $1661 on the first, $485 on the second and taxes and insurance runs another $500 a month. I can't afford this payment anymore because like i said "I LIVE IN MICHIGAN" My house is upside down, with a value of $250000- $260000. I also have an SBA loan on one of my stores where if I default on my home or file bankruptcy I could lose my store. I have stopped paying credit cards and am being harrassed daily. There is only so much I can do. I am behind a month, almost two on my mortgage. The only way I see any light is if CW drops my principle enough to lower payments $800-$1000 a month. If they foreclose statistics say it will cost them $60-$100k. Am I asking too much to ask for a $60000 principle reduction with a fixed low rate? Or does anyone have a better idea? If so, How would I go about this?