Expert Advice Needed - Please help.

[krk123]

Hi All,
I am a new user to the forum and really like the idea of people sharing their experiences / suggestions..

Here is what I am going thru..
I brought my house in CA in Dec 06, for 480K with a first of 384 and a second of 67500. I later re-financed the second to 90,000 in June 07. My house is currently worth may be 330K. I am under 150K. My wife lost her job yesterday and it is going to be really tough for me to make the payments with just my income alone. Till now I am current on my payments. My first with taylor, bean and whitaker and my second is with a credit union. I dont see any signs of my wife getting a job in the next 3-4 months.
Any advice on how I can handle the situation. Can I contact my bank and ask for any help to reduce the payments by doing a loan modication ? any help will be great..thanks a lot.

[Moe Bedard]

Hi krk123,

Welcome to the forum and thank you for joining................


The modification given would be up to the investor on your loan......a modification can lower your payment but the investors are not lowering principle balances on first mortgage liens.........some have been offering principle deferrment, which takes some of the principle and put it in a balloon payment at the end of the loan.

For TB&W.............
you must complete an application for assistance and return it to TB&W. It is important that you return the application with all of the requested documentation. If you do not include all of the information requested in the application this will likely cause a delay in the review of your case.
Call a counselor at 1-800-530-2602................click on the link below for the info..........
Taylor, Bean, & Whitaker : Homeowners : Payment Assistance

[angel83]

can you explain exactlty what a balloon payment is?

[Moe Bedard]

it is just that.............a large lump sum balloon principle payment due at the end of the loan term............

just like if they amortize a loan over 40 years but it is due in 30........this lowers the payment but the remaining balance that is not paid by year 30 would be due in one lump sum balloon payment.

[angel83]

ouch..that could hurt. Would be better if they just added it to the end after say 5 or ten years and then included in the monthly payment