Seeking some advice on Refi

[Steve S.]

I had no idea that I would end up keeping my home after three years, but sometimes life takes a different turn for us.

Approx three yrs back bought the home in question, retired from the gov two yrs later and bought a business in another state. Rented the home in question while we set up the business with intentions to sell home in question. 6 mths later my daughter was in a tragic accident that left her with a brain injury (is recovering well). A yr and a half later we moved back to the house in question due to family and friends able to aid in daughters recovery and the home was larger to accomodate wheel chair and other med devices.

We have an ARM which adjusts every 6 mths. Even though the adjustments have not substantially exceeded the pre-adjust payment YET, I wanted to refi before they eventually do. Additionally, I wanted something that is more secure since my wife and I have paid over $40K of our savings for med bills and we're not done.

So I gave the mortgage servicer a call and they informed me that even though my credit is outstanding I need to show 2 yrs worth of returns...which I don't have. The Refi rep said that he could connect me with the modifications Dep't to see if they could help me. When I talked with the Mod rep, he said I was current on my loan and that he can't help unless I'm late.

I've read multiple threads in this forum which really reinforces what I have heard in the media about the ever increasing restrictions on refi documention. Part of me wants to say what the hell good is paying your bills and having good credit for...Furthermore, I should've not adhered to the initial mortgage lender's advise that an ARM would be advisable if your only planning to live in the home for 3 yrs AND it will save you some money. I wish I had her taped.

My plan is to become late on my next mortgage payment and see where this drives me. The only thing that's really holding me back is losing my credit rating. Is it an automatic reporting once I'm late or do I have to plead to them for mercy?

I can't sell the other home, because that home is attached to my business and it's our bread n' butter except for the retirement check.

Comments and advise welcomed.

Thanks

[Moe Bedard]

Hi Steve,

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

Who is your servicer?
What is your interest rate at?
When is it adjusting?
Are you paying interest only?
What is the loan amount?
Do you have one loan or two?

[Steve S.]

HI *** and thanks for the welcome!

Who is your servicer?

First Horizon on both & secondary is a HELOC

What is your interest rate at?

5.75% on Pri, 6.0% on HELOC

When is it adjusting?

Every 6 mths, and 2nd adjust is Mar 09

Are you paying interest only?

Yes, IO ARM

What is the loan amount?

260K on Pri, 65K on HELOC



Thanks ***

[Moe Bedard]

Well the bad news is that for a modification as well, First Horizon requires.........

Most recent two years of tax returns (which you indicated that you don't have)
Letter stating your delinquency situation and the nature of your hardship
Most recent two pay stubs

and then you have to contact them and ask what options the investor on your loans would have if this is the route you want to give a try...........
1-800-364-7662

most on the forum are not in a position to refinance their homes.........they are either underwater.....or credit is shot.....which is why most of the information you will see is regarding modifications, short sales, or deed in lieu of foreclosure.