What would YOU do?

[bayareamommy]

I'm in serious need of some input as I am driving myself bonkers !

Brief history:
We have a loan with B of A and an equity line with SunTrust. Equity line is maxed out and payment is $332. B of A payment (10 yr. interest only which in a couple years that will change ) is around $1,900. We are upside down nearly 200k! Plus, the area that we live at is taking the hit the hardest....so it will take many, many, many years for it to get better in my opinion.

We already filed #7 BK due to being over our heads with bills and whatnot. We also stopped making payments on our loans for nearly 9 months.

We had moved out of our home (deciding to just let it go since B of A was not going to work with us) and so we were renting (not pocketing any income ). We are in active forclosure as of September 3rd, 2009, but nothing has been sent to us or anything like that. I was told about being active when I called B of A this week.

After being told by friends (and not by B of A) that we may qualify for the Home Affordable Program, we decided to move back to our home and TRY to save it.

We're confused about wether to even try. It seems like being $200k upside down is not worth the trouble. Plus, the modified loan (IF we get approved) is an interest only loan for 5 years only...to me, it just seems like rubish. And since our loan is not going to be reduced, we will be paying for a home that is not even worth what we owe! Plus, the area in which we live is one of the worst areas in the states that took the biggest hit (central valley...in California). To top it off, my husband would have to commute (almost 2 hours each way!) because the pay in the valley is pennies!

So with all of this in mind, we're confused and lost as to what to do . Part of us says ...try to save our home because what are the chances of us owning anything later in the future? And part of us says...hell no, not worth the commute, just start fresh and see what happens!

What would you do if you were in our shoes?

[Evan Bedard]

Hi bayareamommy,

We're confused about wether to even try. It seems like being $200k upside down is not worth the trouble. Plus, the modified loan (IF we get approved) is an interest only loan for 5 years only...to me, it just seems like rubish. And since our loan is not going to be reduced, we will be paying for a home that is not even worth what we owe! Plus, the area in which we live is one of the worst areas in the states that took the biggest hit (central valley...in California). To top it off, my husband would have to commute (almost 2 hours each way!) because the pay in the valley is pennies!

So with all of this in mind, we're confused and lost as to what to do . Part of us says ...try to save our home because what are the chances of us owning anything later in the future? And part of us says...hell no, not worth the commute, just start fresh and see what happens!

What would you do if you were in our shoes?

There is a chance to get your loan modified and remain in the property. The process will be difficult and take much time as well but the key is just to be consistent and stay on top of your case like white on rice. Every lender is completely overwhelmed with modificaiton requests so its important that you follow up at least once or twice a week. As far as being upside down that is not going to change as lenders are not offering principle reductions. I have seen maybe 4 in the past 2 years...

Have you started the process yet?

[bayareamommy]

Originally Posted by Evan Bedard

Hi bayareamommy,



Have you started the process yet?

Yes, I faxed over the application yesterday, the letter of hardship, and 30 days worth of paystubs.

But what would you do?

I guess, I don't trust our thinking right now. I feel as if we have been so stupid at making choices that I am tired of it all. And it is hard to get advise from family/friends becasue we are very "hush-hush" type of people that don't tell our difficulites to others...we don't like to burden people with our own problems. We all have problems and I don't feel that we should over-load others...only here on the web it is ok though .

[Evan Bedard]

Stay on top of your case as much as possible. Call in everyday until you confirm they have recieved the information you had faxed. OInce that is confirmed ask who will be your point of contact to get status on your case. Keep in touch with that person at least once or twice a week until the process is complete. Oh ya only deal with loss mitigation and NOT customer service or collections because all they will do is try and collect from you...

[ms4187]

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[heidi79]

Bayareamommy,

I think you made a great decision to move back into your home. At this point you need to look at your home realistically. Yes, you are way underwater, the bank will not lower your loan balance. If the value is your primary concern, then proceed accordingly.

On the other hand If you like your home, fight with BofA until the end to achieve a payment that you feel comfortable with, you definitely have a possibility of a modification with them. In the meantime, since you have not been paying, start to save whatever money possible in an account that you will not touch (beats paying rent!) They could take God knows how long with an offer for a modification.

Also remember that it could be a very long time before you're able to buy a home again if you walk away.