Not in default trying to keep it that way

[drowningamongststress]

Im new to this posting thing so I hope Im asking in the right thread.

My husband & I purchased our house in 2003 in California with nothing down on a 80/20 loan, refinanced a year later to a 5 year fixed at 5.375%, took out a little less than 10k in the refinance, not including closing costs. Our situation is that our 5 year fixed is up Nov. 2009, when our rate jumps to 8.375% and our payment which is now $1640 (including taxes & insurance) will jump to $2100 (If I figure that correctly) not counting taxes & insurance which is something we can afford for only a short time, a very short time (maybe a few months). We have contacted our lender GMAC and asked if there is something they can recommend and because we owe more that our home is worth, there is nothing they can do. We owe $284 k and homes in our neighborhood are listed for $220 k but are not selling. We have never been late on our mortgage and have even paid $100 extra each month.

Looked into the housing rescue bill which sounds like it wont work for us as we do not pay 31% of our income to mortgage, we have $10k in credit card debt. Financing 2 cars and a travel trailer, have 2 teenage drivers, so we pay a good portion to auto insurance and other utilities. Is there any suggestions anyone can recommend?

Help

[Justin S.]

Hi!

A rate increase is definately considered a hardship and is something that the lenders will look at and concider. Depending on other factors with your situation, you may qualify for a loan modification that may be able to keep your rate and payment affordable for you. We would be happy to answer any questions for you and see if we can help you.

Justin

[Moe Bedard]

Hi drowningamongststress,

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

What you need to do is to ask GMAC for a freeze of the interest rate for at least another 5 yrs if not fixed for the life of the loan..........it would be up to the investor on the loan, however, it could be a possiibility..........GMAC is referring to a refi and most member's properties are underwater and not able to obtain one............so what you would need to ask for is a modification/rate freeze.

Start by putting together a solid hardship letter........click on the link for examples..........
Examples of a Hardship Letter

then call........
GMAC Loss Mitigation
1-800-799-9250


Please keep us posted on your progress............