In dire need of help!!!! - Mortgage Forum

antonjosh · 02-09-2010, 10:25 PM

Hi everyone,

This website is a godsend. I’ve been reading the forums for several days now and I apologize for posting the first time and asking help right away. I didn’t know how bad the economy has put families in the brink of losing their homes. I myself have my own share of problems and would like to ask anyone’s help for guidance.

Here’s my story…

We currently have 2 homes. Let me call them homes A and B. Both houses are under my wife’s name only and she’s the only one on the loan. I was on the deed of Home A from the time we bought the house but made a quitclaim 2 months ago. I am not on any loan. I am not on deed of Home B, made a quitclaim in 06.

Home A
Primary residence current market price is $550,000 bought at $740,000
Negative by $190,000
Bought Feb 06 (5 yr arm interest only) resetting on Feb 2011
1^st loan Chase $591,000 – monthly payment of $3,143 and a due date 2/1/10 not paid
2^nd loan purchase line of credit Chase $110,000 - monthly payment of $330 and a due date 1/27/10 not paid.

Home B

Secondary residence (currently occupied by my in-laws and being paid by them and us) current market is $488,000 and bought at $312,000
Negative by $18,500
Bought Feb 03 refinanced on 2005 to interest only 30 year fixed interest only.
1^st loan BofA $412,000 – monthly payment of $2275 due date is 02/01/10 paid in ½
2^nd loan BofA Home equity line of credit $94,500 – monthly payment of $310 due date is 02/26/10 paid

3 months ago, my wife called Chase and asked for the loan mod department. They told her that she’s not eligible because SHE HAS 2 HOMES. Since we’re both from the field of healthcare and not familiar with these processes, we believed what Chase told us. Last December, a friend of my wife recommended us to her relative who was a broker and maybe we can discuss about our chances of short selling Home A and Loan Modding Home B. For Home A. He explained to us the consequences of short selling it. For Home B, he wants an initial payment of $500 to start the modification process and if approved, he will return the $500 but will charge us upfront for $3000. Selling Home B is not an option because my in-laws want to keep the house and they’ve been paying it for the past few years. Since he was recommended, we paid him $500 and waited. We were also advised to pay half of the payment due for Home B to initiate the loan mod process.

A month passed and nothing has happened, the problem was the $500 downpayment was not refundable. We decided that we will just loan mod both homes ourselves and ditch the $500 to avoid the hassle of dealing with the broker.

Here are my questions.

Are we eligible to apply for loan mod on both homes? Or just on our primary residence? Home B is not a rental because we’re paying for it.
If we are eligible for loan mod, how are we going to handle each loan?
Do we do the loan mod at the same time for both homes or should we do it one at a time?
How are we going to handle the HELOC on both homes? Should we ignore the HELOCs and take care of the 1^st loan or should we take care of both? I thought about ignoring it because the broker says they can negotiate pennies for a dollar. Can they foreclose on us because both Chase and BofA own the 2^nd loan?
For home A, we haven’t paid both loans, should we pay or wait for the call, in fact, the bank is already calling for Home A’s 2^nd loan and we haven’t gotten back at them because we don’t know what to tell them.
For home B, we paid the HELOC but paid ½ on the 1^st loan, is it a wise move for a loan mod request?
Both homes’ property taxes are not impounded on the monthly payment so we pay them when they’re due. We already paid half of the taxes due and expect to pay the other half this April. Do we still have to pay them when the due date comes?

We really love our primary residence (Home A) and Home B can’t be sold. Our current payment of 3143 + 330 = $3470 is achievable for our salaries but by Feb 2011, Home A is going to kick in to 4182 + 500 = $4682. We’re also having cash flow problems because my father passed away last October and we spent a great deal of money (no life plan) and I lost my part time job. I really appreciate any inputs on this thread. I can come and mop your floor the whole day if it’s necessary

Thank you!!!!

P.S. I APOLOGIZE FOR THE NUMBER OF QUESTIONS.

antonjosh · 02-10-2010, 08:28 AM

Still waiting for someone to respond....

kymmer116 · 02-10-2010, 12:19 PM

From what I understand and someone please correct me if I am wrong, in order to do a HAMP the home must be your perm residence. So I am not sure about you being able to do it on both of your homes. But I do think that some have had success w/rental properties. How much was your fist house bought at again? Not sure of the HAMP quidelines if they came down in that or not. I thought if you paid over a certain amt that was a DQ, but not sure. Check out the gov site to get all the specific requirements. Did you try calling HOPE??? Good luck!!!!

antonjosh · 02-10-2010, 12:23 PM

Quote:

Originally Posted by kymmer116

From what I understand and someone please correct me if I am wrong, in order to do a HAMP the home must be your perm residence. So I am not sure about you being able to do it on both of your homes. But I do think that some have had success w/rental properties. How much was your fist house bought at again? Not sure of the HAMP quidelines if they came down in that or not. I thought if you paid over a certain amt that was a DQ, but not sure. Check out the gov site to get all the specific requirements. Did you try calling HOPE??? Good luck!!!!

Hi thanks for replying! After spending the whole night last night reading the forum, I already got an answer for question 1 which means Home A can be modded because it's my primary residence but Home B may have a chance because of some people here who were able to loan mod their 2nd home, whether its an investment or rental property, although my 2nd home is considered an investment or rental, it is actually occupied by my relatives. I bought my first house for $740,000 but its currently at $550,000. Chase is already calling me for the 2nd loan which I didn't pay the first month dues 13 days ago but I wonder since they own my first loan, do you guys think they can foreclose me?

I will zap questiosn 1 & 2 then maybe some good samaritan can answer my other questions.

Thank you!