Hello all,
Good luck. I am deeply saddened by the downward spiral this housing dilemma has taken.
I am in distress as a result of income reduction due to the loss of hours at my job, and because I was ill advised at the time we entered into our house buying nightmare.
I have a fixed rate 30 year conventional loan @ an interest rate of 6.875% on a balance of $388,000.00. This coupled with $40,000.00 in debt leaves me completely insolvent. This house has fallen to $189,000.00 FMV and I am trying to find the right sequence to follow in order to resolve this horrible mess. Do I try to seek a modification first, then shoot for a short sale? Or, do I forego the modification and go directly to the short sale attempt?
I'm current to date on all payments. The 16th will be the late date. I do not care about taking a "hit" on the FICO score. It means nothing to me anymore as my whole outlook with regard to this messed up system has been transformed. I simply want to expedite this ordeal and find the right path back to sanity.
Anyone have a clue as to how property taxes and insurance is dealt with in all this mess? I have an impound account at
CW with less than what would be needed to make the next tax payment. How does the assesors office deal with this?
The only viable and longterm solution for me is if my loan is modified in the following way- principal reduction to current appraised market value with no taching on the difference to tail end of the loan. A reduction of the interest rate to current market rates and leaving the 30 years in place. I'm looking for what many would say is the impossible? Perhaps I am?
In the end I just need to know if a loan modification is even the next right thing to pursue? I already have what all of you are looking for. I am simply at a crossroads and need sound advice as to which road to start down and which one to avoid.
Okay, I'm putting out here. Wonder what will come back?
All the very best to you all! Thanks in advance for any and all help.
David