need some advice

[rainedon]

Hi, maybe someone can give me some perspecitive on what to do next. The value of my home is $300k than market value. I put 20% down on a 6% 30yr loan. I'm current on my loan with a credit rating of 795. My income has be reduced and things are tight. When i call countrywide/boa.. i don't qualify for any help.. seem to have something to do with that i don't have a fannie or freddie loan... rather a private investor.. which i finally found out was Bank on new york. One of there loan specialist suggested i should liquidate my 401k so i could continue making house payments. I've never defaulted on any payment in my life.. on the other hand i'm not going tolerate getting pushed around by the financial industry... any suggestions? They basically wont' talk to me until i start missng payments.. do i really need to ruin my credit to start the conversation?

[CW California]

Raindon
I was in a similar situation as you and I just completed a modificatio thru NACA. My investor is also Bank of New York and I just finalized documents with a 2% interest for the life of my loan. I did not miss one payment. I currently have a credit score of 801 but the modification will probably be posted as "paying but on a modified payment". We do not know just yet how that will affect my credit but it won't be as bad as late pays or a foreclosure! To use NACA, go to NACA.com and click on the Homesave menu. It was a long grueiling wait but for me it was worth not to screw up my credit.

[Calli09]

Rainedon,

Under NO circumstances should you liquidate your 401k......bad, bad, idea! I do not know how long it took you to get it to where it is, but do not for one minute think this is a fix. It would take too long to replace that money, especially in these times of woe!! Leave it there, and use another avenue, NACA perhaps. Also, do not let the fact that you have never defaulted get in the way. I never did either, but it has come to that......so be it. Life goes on. The bank will say anything just to continue to get their pay. So, if you must default, do so, but you will be sorry in the future if you give up the 401. Good luck to you, this is a great forum for info!

[alikeith]

Per MHA guidelines, you should qualify for a Refinace, being you are current. What % of your gross income goes to your mortgage? is it over 31%

[rainedon]

Hi, my payments are less than 31% of my gross income... we have always lived within our means. I don't qualify for any loan modifications because we can well afford our payment. NACA has not returned any of my calls.. i filled out the on line app.. no response. Never defaulted on a loan in my life but the realilty is i didn't create this problem we are in.. the lending industry did. BoA basically wont' talk to me until i start missing payments.. so i'm going that path with no hope of getting help.. because when they look at my financials.. they say i can afford it and i don't need help. In general BoA have been a pain to work with... they are not there for their customer's benefit that is for sure.

What we are finding the banks are taking repossed homes and selling them to investors buying 100 home at a time at a deep discount..then put them back on the market... our same house down the street is selling for 260k asking price.. we paid 630k.

If anyone any further advice.. i'm open to hearing.. but like the guy said above.. its time to take a hit and move on.

[alwayshope]

Be persistant...it is frustrating but keep trucking....you are soooooo right we didn't ask for this, none of us did....stick up for what you beleive in. Best of luck to you. By the way things are forever changing so maybe in the near future there will be something they can do for you.

[rainedon]

thanks for the hopeful optomisim.. but i don't qualify on any level.. my numbers say i can afford my home... and no one will help me. I think i'll be hiring an attorney and do a strategic default.. i personally hate this but i don't see another option. No reply from NACA.. No help from countrywide/boa.

[Garry]

Don't believe what the bank says, check the numbers yourself. They will lie through their teeth when you are current. They did the same thing to me, now my house is in foreclosure because of their lies and run-around. Suddenly I qualified for the MHA mod, my income has not changed at all since I first tried to get help back in December.

[AzGryffindor]

Originally Posted by alikeith

Per MHA guidelines, you should qualify for a Refinace, being you are current. What % of your gross income goes to your mortgage? is it over 31%

You can only refinance an underwater loan (up to 125%) if your loan is held by Fannie Mae or Freddie Mac.

[rainedon]

thanks! my loan is held by bank of new york.. i don't even control that. i guess i'll have to miss a couple payments to let them know i'm serious. I personally feel bad about this.. but i not going to let them kick me around. They threaten me with the credit rating dropping like its of some value.. at the same time i have to ruin it to get help. There some logic for u.. later

[ama125]

Originally Posted by rainedon

Hi, maybe someone can give me some perspecitive on what to do next. The value of my home is $300k than market value. I put 20% down on a 6% 30yr loan. I'm current on my loan with a credit rating of 795. My income has be reduced and things are tight. When i call countrywide/boa.. i don't qualify for any help.. seem to have something to do with that i don't have a fannie or freddie loan... rather a private investor.. which i finally found out was Bank on new york. One of there loan specialist suggested i should liquidate my 401k so i could continue making house payments. I've never defaulted on any payment in my life.. on the other hand i'm not going tolerate getting pushed around by the financial industry... any suggestions? They basically wont' talk to me until i start missng payments.. do i really need to ruin my credit to start the conversation?

We withdrew from our 401K all last year to stay current while my husband tried to find another job. Where are we now? In pre-foreclosure trying to get a mod and owing the IRS for early withdrawal! Don't listen to those a*holes when they suggest liquidating your 401K! This is taken directly from the HAMP hardship affidavit:

My cash reserves are insufficient to maintain the payment on my mortgage
loan and cover basic living expenses at the same time. Cash reserves
include assets such as cash, savings, money market funds, marketable
stocks or bonds (excluding retirement accounts). Cash reserves do not
include assets that serve as an emergency fund (generally equal to three
times my monthly debt payments). I have provided details below under
“Explanation.”

Note that retirement accounts ARE NOT considered a cash reserve and they have no right to touch it! They should not even be allowed to suggest tapping into it in my opinion!

[rainedon]

yes.. i don't believe anything they say at this point. I've lost a lot of respect for the banking business. I'd never give up my 401k to the bank. I'm on the path as of tomorrow to start missing payments to get them to talk to me... we'll see.

Seems the best solution is to get a modified loan at a lower interest rate because i at least keep the modified mortgage interest as a tax write off.. we'll see.

thank you