Advice requested on my current situation - Mortgage Forum

divakarr · 02-02-2010, 01:00 PM

Hi,

I have a 5/1 ARM home loan taken out with E*Trade in September 2005 for a house that was worth $479,000, and obviously a first and second mortgage through them with the first mortage being 383,200.00 and the second mortgage for 71,800.00. After some months that first mortgage was sold over to Countrywide and is now with BoA. My first mortgage interest rate is 5.125% and currently has a principal 355,011.09 currently my payment is 2,493.93, which includes my property tax and the Insurance. I pay an average $100/month for my HOA. The second mortgage is currently pending 64,006.89 at the rate of 7.5% still with E*Trade and is for 20 years, the payment is $580.07/month. We are single income family with 2 kids one of my kid who needs help with ADHD or still to be diagnosed, who is currently undergoing both OT and Speech theraphy. Even though the insurance covers a lot we still need to spend a substantial amount of dollars to address his theraphy needs like equipments and tools specifically to assist him at home, due to his ADHD issue he goes to private school to address these issue. I draw a gross salary of $9250/month.

Currently my 5/1 will reset in September/October timeframe of this year. I don't know what I looking forward to at this time. I support my parents as well with some money every month who are abroad, I know that I cannot be account for it. I have a car payment and some credit card balances. We have been living by the paycheck at this moment, and in some dire situations we have started to even go into our savings, right now our savings are at around $8000 in total.

I am looking forward to understand and plan what I should be preparing for come September timeframe. Please Advice.

jakelabry · 02-02-2010, 01:19 PM

I don't know that there is much you are qualified for. The government programs look to reduce your total payment on your first mortgage only to 31% of your gross income. You are already paying only ~28% of gross for your first mortgage so they will most likely automatically disqualify you. The program does not consider any other bills/obligations you have or care that you send money to parents overseas, that you think your undiagnosed child needs to be in a private school - sorry if all this sounds harsh, but it is reality. Now if your interest rate adjusts in Sept/Oct, and that pushes you above 31% of gross on your first mortgage only, then maybe you might qualify for HAMP. That is if it's still around! You could possibly approach your lender for an in-house mod that will fix your interest rate at its current level but they will likely turn you down if you are current and tell you to come back when your interest rate adjusts.