Need some suggestions

[inventor007]

First time
Has anyone tried to get a loan modification at the same time trying to sell? Because of an injury our monthly income has decrease by a third. We know that we must sell and have had our house on the market for the last six months with no luck. Our realtor thinks if we can hang on until June the market will be better, our problem is we have gone though our savings and are now $1000.00 short each month. We have no car or credit car payments and still have about $200,000.00 in equity after having lowered our asking price several times by $100,000.00. We are over 60 years in age and can’t refinance because of income. Any suggestions?

[Moe Bedard]

Hi inventor007,

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

Is your servicer AHMSI?
What is the interest rate at?
Is it fixed or adjustable?
If adjustable, when is it adjusting?
Are you paying interest only?
What is the loan amount?
Do you have one loan or two?

[jraawern]

I would specifically ask a loan mod attorney on this


However, "if" you have $200,000 equity, the lender might find this out during the appraisal, and "prefer" a foreclosure, knowing full well that they will get back their principal -- plus "extra".You should really insist on selling, and if you have that much equity -- take a little less to sell it quickly.

In this market, it's almost guaranteed that it will take some time to sell, but if the price is right -- people will come. Even in this economy -- it's a great buyers market. As far as people not being able to get mortgage loans -- thats baloney! If people have excellent credit (Fico > 750), a recession proof job or pension, a little money down, and go "full doc" -- they will "easily" get a loan at 5.5%-6.5% fixed. I have 3 friends that are looking right now, and have been approved already. They are relishing the prospects of finding "great bargains" out there. Banks "still" want to loan, and make money, but they are not going to make any 'bad loans" (FICO's under 680,zero down,NINA loans) like they did in the past.Ask a mortgage broker and/or realtor to confirm what I'm saying.

As far as realtors, you "can" negotiate in this market. Some people are getting realtor comissions lowered to 4%, but you can also offer a stipulation, in the contract, that if a realtor sells in a "short period of time" (for example < 60 days) -- you can "offer them" a 7%-8% commission as a "huge incentive" for them to "aggressively" sell your house.Many realtors are lazy, but with an incentive -- they will 'kick butt' to sell your home.

I would "try" a mod -- but you're still better off selling if things are still going to be tight after the mod. Don't risk foreclosure, especially with all that equity.Banks would love to take your home if they can make money off it.

There's too much fear mongering going around, don't believe everything you hear! It's bad for some, but great for many.

If people don't buy anything -- the economy will only get worse!

[inventor007]

Thank you for replying to my thread.

Good information. I think your right about going for loan modification. We are going to take our home off the market and see what happens with a modification. There is a buzz going around today that in February fficeffice" />>>
President Obama is going to launch several new programs that will help people with adjustable mortgage and tax breaks for new home buyers. I guess we will see in February. Thanks again for your help.
>>

Our loan is with AHMSI
interest rate is 9.5% and adjustable
paying both interest and principle and only one loan
Loan amount $395,000.00