Well hello from Minnesota here, just a little about my story in case yours sounds the same. Built a home at the height of it all in 2006, for 230.000. Builder had some in house mortgage group that sold me on a 80/20 loan. ARM on my 80 for about 186000 and 20 for the rest. Right now my 80 with
CW is at 7.5! Tried to refi about a year ago and got turned down due to no equity. Kept paying way too much for another year then. Work stop about last fall and is starting to pick up now. In Jan, I stopped making payments to
CW. In march a so called "mod" came fedex with a 2 year rate reduction to 5.49 p&i payments, of course no escrow added in. Then 2 days later the intent to accel. came. So they are attempting to scare me into a crappy deal. I've been using a lawyer and we wrote a letter to
CW and my investors that the 2 year rate reduction is a joke. In 2 years are all of us going to have our equity back so we can refi to fixed rates? doubt it. I've been fighting them tooth and nail and wont give up. Obamas plans are a joke, so far for a lot of people its made their payments hardly move, some have even gone up. I've decided that its a 30 year loan or I'm just going to use as much time here to save money and make NO payments to
CW just to see what happens. I'm not worried about having to leave my home. I think I'm more worried about staying in a home that I've paid over 60000 in glorified rent to these cheeseheads, and that I've lost about 70000 in equity. So sometimes starting over somewhere else really isnt that bad when you add those numbers up and think about the long term effects. Homes underwater are a liability for the owner and without ANY mortgage companies doing principal reductions, in the long run is it really worth it? I dont know but these are just questions I ask myself.
So anyways now I am 4 months without payments to
CW and almost credit card debt free!!! As things progress, I will let you know.