Quote:
Originally Posted by Kmvguy83  Ok here is my story
We have purchased the townhouse at south florida when the price was at the peak. This is our primary house and me and my wife moved in right after we got married.
House was 450k when we purchased it. I was at zillow yesterday and house value plunged, as of yesterday it said 288k.
We are making enough to pay the mortgage at the moment but because of the large sum of mortgage we do not have money saved up for our future, we've been married 2 1/2 yrs and it's scaring me to have a baby because we have nothing saved up for it.
Currently my 1st mortgage is arm and 7.5% adjustable. We are with countrywide (bank of america) And we also have second mortgage as well.
Would loan modification help us out?
What are the choices?
Please give me advise on what to do.
Thank you in advance
Phil |
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Hello,
You have to ask your lender if you can do a repayment plan, loan modification, special forbearance plan or you may want to consider selling your home called Short Sale, or give it back to the bank by giving them a Deed in Lieu of Foreclosure, or have it Foreclose, You have to write them a letter stating you are in financial hardship and can not afford to make payments. You can also call NACA to ask for their help. I’ve seen a lot of success story about it.
As far as short sale in Florida the lender must agree to sell the distressed property for less than the borrower owes on the mortgage. Since the lender accepts the short sale net proceeds as full satisfaction of the mortgage, the borrower is “forgiven” the difference between what was owed on the mortgage and the net proceeds of the short sale. That difference will be considered income by the IRS and taxed accordingly unless an exception applies. Make sure you ask
CW to put in writing that the deficiency judgment is forgiven.
Under the Mortgage Forgiveness Debt Relief Act 2007 which is now extended through 2012, taxpayers who were forgiven part of their mortgage on their primary residence can likely avoid tax liability by including Form 982 with their tax return. You must have a purchased money mortgage and never refinanced or you are insolvent at the time of the sale of the house, must be your principal residence for 2 out of 5 years..
In Florida, the lender may obtain a deficiency judgment against the borrower for the difference between the sale price and the amount owed on the borrower’s loan. Lenders do not usually pursue deficiency judgments against the borrowers, unless the borrower has substantial assets, because lenders realize that the costs involved are more than they can probably collect against a borrower with no assets. Also, the lender does not want to spend time and money finding the borrower to serve them after they have moved out of the house.
In Florida, mortgages must be foreclosed by filing a lawsuit in court. Florida is unusual in that the state has passed few statues regulating foreclosures.
Thanks,