Should I stop paying my mortgage in order to get help?

[victoriangirl]

Dear Moe;
I have just found this website after searching for months for someone honest who can help me with my loan, and I hope this will finally be the answer to my prayers! (I have been given very bad advise by greedy mortgage brokers in the past, and am now paying for it - literally!) I currently have an adjustable rate loan with Wamu, and I want to change it to a fixed rate because my balance is climbing every month. I can no longer afford the full principle and interest payment which keeps rising, so I have been paying only the minimum payment for almost a year, and my balance is growing and my equity is shrinking! Soon I will have nothing left and be upside down! I wanted to sell a year ago, but I was told I should wait, and then the real estate market crashed, and now I can't sell and I am trapped. I have been told that I can only get help if I am behind on my payments and facing foreclosure, but I have been moving mountains just to make the minimum payment so that I don't fall behind, because I thought that was the right thing to do. I am self-employed and can't qualify for a refi, and my savings is gone. I have been doing everything on your list of things to do (selling on ebay, cutting back on other monthly expenses, selling furniture, etc.) just to get by. Every month is a struggle, but I thought I was doing the right thing by keeping my mortgage current. Should I stop killing myself and let things go for 2-3 months so that I can qualify for assistance? I am a single mother, self-employed, and over my head! Your expert advise would be greatly appreciated!

[schwefls]

Good morning victoriangirl and welcome to our forum. I wanted to stop in say hello and let you know you are not alone, you are safe here, we have your back. Shortly someone will be reaching out to you gain some additional specifics/financials as they pertain to your mortgage. In the meantime please hang in there.

To provide meaningful suggestions, more information is required. Answers to the questions provided below will help:

1) State where property is located? I suspect California (a potentially good thing), but I'd like confirmation.
2) Is it your personal residence?
3) What is the name of your lender(s) and what is the current amount owed on each loan?
4) Were the loan(s) created at the time you purchased the property?
5) What is your estimate of the current fair market value of the property?

Daniel

[textocal]

Hi Victoriangirl,

Just to let you know there is at least one other person out there with your same problem. We have two loans with WAMU an 80/20 from our home purchase. Have also worked very hard to keep both loan currents and they are now adjusting to a point where that will be too difficult to do. We can't get WAMU to respond because we are not behind. They won't even return a call. When I call loss mitigation, they ask for my loan number, tell me I'm current and can't help and then hang up. Does anyone have any other phone numbers? That said we are also thinking that we should just stop paying for a month or two and see if that gets them to talk to us, but have worked so hard to improve our credit it would be extremely depressing. Let's keep in touch through this forum - as I come up with information as I work on this every day I will post it here.

Keep your head up, just remember we are in it together.
Textocal

[victoriangirl]

Originally Posted by ProfessorShays

To provide meaningful suggestions, more information is required. Answers to the questions provided below will help:

1) State where property is located? I suspect California (a potentially good thing), but I'd like confirmation.
2) Is it your personal residence?
3) What is the name of your lender(s) and what is the current amount owed on each loan?
4) Were the loan(s) created at the time you purchased the property?
5) What is your estimate of the current fair market value of the property?

Daniel

Hi Daniel;

Here is the information you requested.
1) Lake Forest, CA, which is in Orange County.
2) This is my personal residence.
3) My current lender is Washington Mutual. This mortgage was taken out on 6/27/2007 for $560,000. My current statement says my principal balance is now $576,703.39 with $17,560.24 in unpaid interest to date. I also have a home equity line of credit with Wamu for $46,400 which is maxed out.
4) I bought this house in May 2002, so this is not my first loan. This loan was a refi on 6/27/2007. I rolled a first and a very high interest second into this new loan.
5) In June of 2007 I had to have an appraisal in order to refi, and it came in at $758,000. According to Zillow.com my house is now only worth $631,500, but they are always too low. Last June they said it was only worth $675,000, so they were $83,000 off compared with my actual appraisal, so I am not relying on their numbers. There is a house on my street that is the same model and size as mine and in excellent condition, and it is currently on the market for $699,900. That is probably pretty realistic for right now.

I hope this is what you were looking for. Please let me know if you need anything else. Many thanks!

[textocal]

Hi, I just wanted to stop by and tell you to take a look at my thread Upside Down, Washington Mutual. In that thread *** gives some great contact information and Moe gives a sample QWR. I emailed mine out this morning and was contacted within hours not days. They are going to modify my loan from and adjustable to the original fixed rate. Hope this helps.