Active duty military, current on loan, but underwater

[judey]

Hello, been reading here for a few days and found there's lots of info and people here to help figure out these mortgage problems. On top of that, I get the truth, for free.

Here's my situation:

I am active duty military stationed in Virginia. I am currently scheduled to PCS (move because the army says so) in July. This will get extended due to a deployment I've got coming up...but I will have to move by July 2010 at the absolute latest.

I bought a townhouse here in Virginia in 2006 and I currently owe $425K, while the value is currently $300K at best. Similar houses in my area have sold for even less. I have a 1st with Indymac for $340K I/O fixed @ 7.65% and 2nd with EMC for $85K fixed @ 10.75%. Both loans were originated by 1st American Mortgage, then sold off. EMC bought both and then sold the 1st to Indymac. I am not in a VA loan and I bought this house after being on active duty.

I am current on both mortgages, but I have run out of savings in order to do so as I had to cover two mortgages until my last house sold when the army moved me here. I originally planned to refinance to get better interest rates after the other house sold, but the market had bombed by then and my value was gone. However, I can make the payments without any issues. The problem is I'm stuck shelling out 56% of my net pay which I will not be able to do when the army moves me again and this place hasn't sold. On top of that, my net pay will immediately drop when I move by at least $1000, changing that to 66% because of the change in housing pay (DC area is about $1000 higher than other places). Therefore, I am trying to preempt the issue.

I have applied for refinance with numerous banks to no avail. And I have called both Indymac and EMC to refinance to no avail. I have also talked to both loan mitigation departments and both have told me that based on my finances, I can pay so they wouldn't approve me. Both also said that I could try a short sale, but there's no guarantee. Now, I have yet to submit any paperwork and I have only called each a couple times so far.

Just a few days ago, I was contacted by a guy that said while he couldn't find a loan for me, they have a program to reduce loan payments and interest rates by working with other banks. But, there would be a $499 fee up front and $5000 fee once approved. I nearly jumped on it, but while I was talking to him I mentioned that I had talked to the banks already and he freaked out. He wanted to know if I had submitted applications already, because if I had he wouldn't be able to do anything for me. Also, since I don't know what he knows, I might screw them up and get denied in which case I wouldn't be able to apply again for 12 months. But he did admit I could do it myself and save the money.

So, I decided to get more info and found this place. Unlike most people, I really do not have the option of just walking away even though I really don't have any of my own money tied up because I have a security clearance to worry about.

I'm interested to hear any suggestions on what I should do. I'm thinking that short sale is my only real option since I will have to move, can't refinance due to equity loss, loan is too large for VA, loan mods are temporary (not sure on this) and I risk my clearance and hence my job if it comes to foreclosure.

[judey]

One other thing, based on current rent prices, I would be lucky to get half of my mortgage payment if I were to rent it out when I move.

[Moe Bedard]

Hi judey,



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

Your first step would be to either find a Real Estate Attorney or Agent well versed in Short Sales in your area......with an attorney you can get a referral through the Virginia Bar Association............make sure they have done them before because with having a second.......you would need a good negotiator to handle any deficiency from the sale...........also ask each lender for a short sale package so you can gather the information that you would need for that...........the attorney or agent would be able to help you fill it out as you would also need to submit a listing contract with the packages.

Please keep us updated on your progress..............

[judey]

do you think short sale is really my only option?

i have already found an agent that specializes in military clients and short sales.

but i've been trying to figure a few things out:

are loan mods only temporary?
if I apply for a loan mod and get denied, can i really not apply for 12 months?
is this guy offering to do my loan mod for me for a total of $5500 likely just a scam?

[Moe Bedard]

judey,


I am not sure if short sale is your only option, you might have other options available, however, the only company I can comment on or that I know is not a scam and has and is currently working with numerous members on the forum is the service associated with this forum..........

just the way the person that you were speaking with reacted when you said you had spoken to the lender already in and of itself is suspicious to me.......



click on the link below for more information about the service that we provide........

Free Foreclosure Help - Loan Modification - Mortgage Help

Not only is it 2k less than what the other person was going to do for you given your loan amount but we also offer you a Loan Document Review for free along with the services..............