Thinking about walking away here in FL and very confused - Loan Modification Forum

Angel.R · 08-20-2009, 08:54 AM

My story bought the house in 2005 for $275k in an 80/20 interest only mess.Like It 's worth now about $164k.I have two mortgages:
1st with America's Service Co. $225k-5.37%
2nd with Specialized Loan Service $55k -11%

I just missed my 3rd payment this month.I work as a tip employee in a resort here in Orlando,Fl and bad economy and tipping jobs right now don't mix unless you are a bartender I guess.My wife also works not as a profesional but she only brings home about $270 clean a week.I blame my self to getting into this situation as I was very naive when I was going into buying the house.

I just don't know if I should fight to keep the house,I do love the house and so my kids but I just can't keep up with the payments anymore and the cost of living.I guess what I'm asking here is for advice.

Should I try to hire a lawyer some how if I can even afford him and try to modify my loan thru them?

Should I just walk away,which is what I'm leaning towards too right now?

Short sale,maybe?

I have been reading a lot here in this forums and thank God I find you guys and thanks for the great work and time you put into this forum to help people.

I'm so confused and lost in all this mess that probably some things I just wrote might not even make sense so for that I apologize and thanks for the help.God bless!!!

Evan Bedard · 08-20-2009, 09:33 AM

Hi AngelR welcome and thank you for joining the forum.

I would definetely suggest going for a modification first. You can hire an attorney but make sure they have a good reputation and are located in your state. You can also go through a non profit like NACA which has helped many here on the forum as well:

Here is the link to the site.

https://www.naca.com/index_main.jsp?language=null

Angel.R · 08-20-2009, 09:44 AM

Thanks Evan!

dudeobides · 08-20-2009, 01:03 PM

Hi AngelR, Your story is similar to mine! Last March I found myself (80/20)facing a Reset on the first (200k)with a 20% (50k) piggyback loan for downpayment... I found loansafe.org and went to work to figure it out... All the info you need will be right here on this Great Site! With MANY willing to share. You have a reasonable first @ 5.37. Why not try a lienstrip? With the second amount being unsecured at this point you can Legally have it stripped in a Chapter 13. Bankruptcy! This housing thing Will not get better anytime soon. Even if things turn around your still in a hole for about 61k on your first. How many years at 3% will it take to get back to Not Being Underwater? I say Too Long. Let them keep the loanmod, I'd want my life back! See a good bk atty like I did... Good Luck

upside down in socal · 08-20-2009, 03:21 PM

Hi,

I have a 2nd with SLS and they have a very simple streamline modification. You go online and fill out the form and provide necessary documentation. Someone will contact you pretty quickly. They will likely decrease your interest 30%. If you want more than that you will have to fight, but the streamline is quick and easy. Mine was a done deal inside of 3 weeks. You should still try to modify the first. I signed with SLS right away and it gave me the hope I needed to continue on with the first.

Good luck with what ever you decide!

Enough Already · 08-20-2009, 05:57 PM

Hi AngelR,

Thanks for posting. It's hard to advise you about what to do. Only you can determine that for yourself. As Dudeobides said, this site has tons of great info, and lots of helpful people. My best suggestion to you is to read, read and read some more. Learn as much as you can, so that you can make the right decision for your situation.

I'm in FL too. At first we decided to walk away, but now we've decided to try for a short sale. If that doesn't work we'll be back to walking away. Here's a link to my thread: http://www.loansafe.org/forum/deed-lieu-foreclosure-do-you-need-help-walk-away/8806-walking-away-fl-recourse-state.html

FL is a recourse state, so you should definitely consult with an experienced real estate attorney before you make a decision.

Good luck to you, and please keep us posted as you go.

EA

Angel.R · 08-23-2009, 08:19 AM

Thank you guys for all your suggestions and help.I have started looking into NACA and might try them first.I also just received a letter for America's Servicing Co which is the bank that owns my first mortgage about options like modification,short sale,etc.

I do have a question about short sale though.When you go and try to do a short sale on the house.What are the consequences of this besides credit hit.What I mean let said I do a short sale and my house is sold.Is that it?Or I still will have other responsibilities?Like tax and other fees?The reason I ask is because I have been reading about short sale but a lot of people says is not the best way to go if I want out of my house.Thanks for the help guys!!

dudeobides · 08-23-2009, 10:17 AM

Hi Angelr .. From what I know about shortsales and fico scores, It's kindof a catch 22. They'll only go for that after your already behind 3 or 4 months and by then your credit scores are already in the Tank!

Angel.R · 08-27-2009, 07:24 AM

Hey guys as I'm trying to see if NACA will work for me if I decide to walk away from my house but stay there as long as I can to try and save some money for renting an apartment or a house I can afford.Will I get an eviction notice telling me when I need to vacate the house or I run the risk of one day comming to the house just to find out they have change the locks?I'm down here in Florida so what is the most likely scenario?Just want to be prepare as a last resort if NACA can't help me.Thank You!

08-20-2009, 08:54 AM	#1 (permalink)
Angel.R Member Join Date: Jan 2009 Posts: 19 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Thinking about walking away here in FL and very confused My story bought the house in 2005 for $275k in an 80/20 interest only mess.Like It 's worth now about $164k.I have two mortgages: 1st with America's Service Co. $225k-5.37% 2nd with Specialized Loan Service $55k -11% I just missed my 3rd payment this month.I work as a tip employee in a resort here in Orlando,Fl and bad economy and tipping jobs right now don't mix unless you are a bartender I guess.My wife also works not as a profesional but she only brings home about $270 clean a week.I blame my self to getting into this situation as I was very naive when I was going into buying the house. I just don't know if I should fight to keep the house,I do love the house and so my kids but I just can't keep up with the payments anymore and the cost of living.I guess what I'm asking here is for advice. Should I try to hire a lawyer some how if I can even afford him and try to modify my loan thru them? Should I just walk away,which is what I'm leaning towards too right now? Short sale,maybe? I have been reading a lot here in this forums and thank God I find you guys and thanks for the great work and time you put into this forum to help people. I'm so confused and lost in all this mess that probably some things I just wrote might not even make sense so for that I apologize and thanks for the help.God bless!!!

08-20-2009, 09:33 AM	#2 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hi AngelR welcome and thank you for joining the forum. I would definetely suggest going for a modification first. You can hire an attorney but make sure they have a good reputation and are located in your state. You can also go through a non profit like NACA which has helped many here on the forum as well: Here is the link to the site. https://www.naca.com/index_main.jsp?language=null __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

08-20-2009, 09:44 AM	#3 (permalink)
Angel.R Member Join Date: Jan 2009 Posts: 19 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Thanks Evan!

08-20-2009, 01:03 PM	#4 (permalink)
dudeobides Member Join Date: Mar 2009 Location: florida Posts: 8 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hi AngelR, Your story is similar to mine! Last March I found myself (80/20)facing a Reset on the first (200k)with a 20% (50k) piggyback loan for downpayment... I found loansafe.org and went to work to figure it out... All the info you need will be right here on this Great Site! With MANY willing to share. You have a reasonable first @ 5.37. Why not try a lienstrip? With the second amount being unsecured at this point you can Legally have it stripped in a Chapter 13. Bankruptcy! This housing thing Will not get better anytime soon. Even if things turn around your still in a hole for about 61k on your first. How many years at 3% will it take to get back to Not Being Underwater? I say Too Long. Let them keep the loanmod, I'd want my life back! See a good bk atty like I did... Good Luck

08-20-2009, 03:21 PM	#5 (permalink)
upside down in socal Member Join Date: May 2009 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hi, I have a 2nd with SLS and they have a very simple streamline modification. You go online and fill out the form and provide necessary documentation. Someone will contact you pretty quickly. They will likely decrease your interest 30%. If you want more than that you will have to fight, but the streamline is quick and easy. Mine was a done deal inside of 3 weeks. You should still try to modify the first. I signed with SLS right away and it gave me the hope I needed to continue on with the first. Good luck with what ever you decide!

08-20-2009, 05:57 PM	#6 (permalink)
Enough Already Senior Member Join Date: Jan 2009 Posts: 438 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hi AngelR, Thanks for posting. It's hard to advise you about what to do. Only you can determine that for yourself. As Dudeobides said, this site has tons of great info, and lots of helpful people. My best suggestion to you is to read, read and read some more. Learn as much as you can, so that you can make the right decision for your situation. I'm in FL too. At first we decided to walk away, but now we've decided to try for a short sale. If that doesn't work we'll be back to walking away. Here's a link to my thread: http://www.loansafe.org/forum/deed-lieu-foreclosure-do-you-need-help-walk-away/8806-walking-away-fl-recourse-state.html FL is a recourse state, so you should definitely consult with an experienced real estate attorney before you make a decision. Good luck to you, and please keep us posted as you go. EA

08-23-2009, 08:19 AM	#7 (permalink)
Angel.R Member Join Date: Jan 2009 Posts: 19 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Thank you guys for all your suggestions and help.I have started looking into NACA and might try them first.I also just received a letter for America's Servicing Co which is the bank that owns my first mortgage about options like modification,short sale,etc. I do have a question about short sale though.When you go and try to do a short sale on the house.What are the consequences of this besides credit hit.What I mean let said I do a short sale and my house is sold.Is that it?Or I still will have other responsibilities?Like tax and other fees?The reason I ask is because I have been reading about short sale but a lot of people says is not the best way to go if I want out of my house.Thanks for the help guys!!

08-23-2009, 10:17 AM	#8 (permalink)
dudeobides Member Join Date: Mar 2009 Location: florida Posts: 8 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hi Angelr .. From what I know about shortsales and fico scores, It's kindof a catch 22. They'll only go for that after your already behind 3 or 4 months and by then your credit scores are already in the Tank!

08-27-2009, 07:24 AM	#9 (permalink)
Angel.R Member Join Date: Jan 2009 Posts: 19 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Thinking about walking away here in FL and very confused Hey guys as I'm trying to see if NACA will work for me if I decide to walk away from my house but stay there as long as I can to try and save some money for renting an apartment or a house I can afford.Will I get an eviction notice telling me when I need to vacate the house or I run the risk of one day comming to the house just to find out they have change the locks?I'm down here in Florida so what is the most likely scenario?Just want to be prepare as a last resort if NACA can't help me.Thank You!

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