Escaping Mortgage Disaster


Jam Piper Jam

Jam Piper Jam

Truth Seeker
How to Escape Mortgage Disaster
By: Keith Pandolfi, This Old House magazine, December 2007

1. Explain the situation. If you're about to miss a payment, call your lender pronto. "Talk to someone in the loss-mitigation department," says Elizabeth Razzi, author of The Fearless Homeowner. This person can help you design a payment plan with options like breaking missed payments into installments (though you'll probably have to fork over a fee for this service).

2. Stretch out your mortgage. Ask your lender if you can extend your amortization schedule. Switching from a 30-year to a 40-year plan lowers your monthly payments. Some lenders might even roll your missed payments into your new mortgage loan.

Read
 
I got an issue with my mortgage company for one of my rentals. My payment went from $540.00 a month to $795.00. They did an escrow analysis and said that my taxes increase. But, I found that they paid an old tax bill on the property, before I owned it, and charged it to my account.

I'm in dispute with them over this mess. If I don't get it resolved, I will refinance it with someone else.
 

Jam Piper Jam said:
How to Escape Mortgage Disaster
By: Keith Pandolfi, This Old House magazine, December 2007

1. Explain the situation. If you're about to miss a payment, call your lender pronto. "Talk to someone in the loss-mitigation department," says Elizabeth Razzi, author of The Fearless Homeowner. This person can help you design a payment plan with options like breaking missed payments into installments (though you'll probably have to fork over a fee for this service).

2. Stretch out your mortgage. Ask your lender if you can extend your amortization schedule. Switching from a 30-year to a 40-year plan lowers your monthly payments. Some lenders might even roll your missed payments into your new mortgage loan.

Read
Click to expand...



See if you can make payments between 2 pay periods in a month. Instead of paying the whole Mortage in one month see if you can pay half at the begining and half at the end.
 
I can't wait to get the fugg out of this mortgage....I never thought I'd say this, but renting was much better. :(
 
Warndalyn said:
I can't wait to get the fugg out of this mortgage....I never thought I'd say this, but renting was much better. :(
Click to expand...

I agree totally. Everyone keeps yelling about the taxes...shiiiiidddd all I got to do is claim some of my cousin's babies (like everyone else) and I'll get more than I get with this condo.

Like you said "less stress" and you can move whenever the fugg you want! I'm so tired of living where I live!! ugghhhh!! *sigh*
 
southsuburbs said:
I agree totally. Everyone keeps yelling about the taxes...shiiiiidddd all I got to do is claim some of my cousin's babies (like everyone else) and I'll get more than I get with this condo.

Like you said "less stress" and you can move whenever the fugg you want! I'm so tired of living where I live!! ugghhhh!! *sigh*
Click to expand...
Please don't get me started on taxes...I'll start crying, rat where I sit. :bawling:

I have been broker than broke, since I bought this damn house. :kaioken:
 
Them high arse property taxes in Texas are the reason I have NOT bought another house. The income tax deduction is not enough to cover it.
 
southsuburbs said:
I agree totally. Everyone keeps yelling about the taxes...shiiiiidddd all I got to do is claim some of my cousin's babies (like everyone else) and I'll get more than I get with this condo.

Like you said "less stress" and you can move whenever the fugg you want! I'm so tired of living where I live!! ugghhhh!! *sigh*
Click to expand...

You better get one of them wine heads and give him a case of Thunderbird and he will let you claim him for life. :lol:
 
CEE DOG said:
You better get one of them wine heads and give him a case of Thunderbird and he will let you claim him for life. :lol:
Click to expand...

Man, EVERYBODY does it!! I just found out about it like 3 years ago. I"m like, "how the heyal you go from no kids in 2006 to 3 kids in 2007?" LMAO
 
southsuburbs said:
Man, EVERYBODY does it!! I just found out about it like 3 years ago. I"m like, "how the heyal you go from no kids in 2006 to 3 kids in 2007?" LMAO
Click to expand...

I'm scared to even run that scam so I'm looking forward to whatever little tax deduction I can get.
 

Warndalyn said:
I can't wait to get the fugg out of this mortgage....I never thought I'd say this, but renting was much better. :(
Click to expand...

Nah, you're just frustrated that's all. Despite the headaches, there's nothing like calling something your own. Heck, when I sell this house in VA (with GOD's help), my new home in the metro Charlotte area will get almost paid off. My goal is to own my home outright by age 40.
 
Styles said:
Nah, you're just frustrated that's all. Despite the headaches, there's nothing like calling something your own. Heck, when I sell this house in VA (with GOD's help), my new home in the metro Charlotte area will get almost paid off. My goal is to own my home outright by age 40.
Click to expand...
True...my next home purchase will be much better, please believe it! :nod:
 
I guess getting into the wrong type of mortgage will make owning a house worse than renting a house. However, outside of falling into a mortgage pit cause of a horrible mortgage program, owning is the best thing since slice bread.
 
Da_Sperm said:
Introductory Teaser Rates!

People got mortgages with initial rates like 5 or 6%. Then the rates adjusted to 13, 14, 15%
Click to expand...
I know. I'm just thinking back to the thread in this forum about ARMs and the fact that they were said to be good financing modes (mortgages.)
 
Fortitude said:
I know. I'm just thinking back to the thread in this forum about ARMs and the fact that they were said to be good financing modes (mortgages.)
Click to expand...

No, don't think that they are not good financing modes, because there are some program ARMs that are better for some people needs. The ARMs that have crippled the housing markets are the loans that were given to less than credit worthy people with low introductory rates and the rates sky rocketed 10+ basis points.

If you have wrecked your credit and you get approved for a 100K house at 6.5% for 2 years, and after 2 years, your rate goes up to 12% to 16.5%, then you have a bad loan program. The only way this program is good if 1) you house value increases alot and you sell it within 2 years or 2) you clean up your credit and refi into a better loan within 2 years.
 
Da_Sperm said:
No, don't think that they are not good financing modes, because there are some program ARMs that are better for some people needs. The ARMs that have crippled the housing markets are the loans that were given to less than credit worthy people with low introductory rates and the rates sky rocketed 10+ basis points.

If you have wrecked your credit and you get approved for a 100K house at 6.5% for 2 years, and after 2 years, your rate goes up to 12% to 16.5%, then you have a bad loan program. The only way this program is good if 1) you house value increases alot and you sell it within 2 years or 2) you clean up your credit and refi into a better loan within 2 years.
Click to expand...

Exactly. Many folks got as much house as they could afford based upon those teaser rates. With credit policies tightening, they can afford a standard mortgage for the value of their principle. One sister I know bought a house she can't afford on a standard mortgage, based upon it being a new area and an agent telling her it was how white people did it. Buy a house in a new development on a five year teaser rate and just move when the rate is up. They do this and keep rolling the equity, building wealth. But the game is up if when the rate is up, the market is really slow, your situation changes or you can't get a refi to stay in the house.
 
So true, teaser rates and these mortgage brokerage companies have put the real estate business into shambles. I got an appraisal for a chick on Sat. I'm in MS, she wants to build a house in MS between two Jim Walter homes, one of which has been in the almost finished state for at least 5 years and just got "partial" siding added. I couldn't believe they want to build her a Jim Walter on 1 acre and want it to appraise for $175,000. This chick cannot afford it unless she just got some kind of settlement. It was obvious she had no idea of what she'd gotten into. I asked if she'd seen other $175,000 houses looked like. She said she didn't see any she liked. More like any she could qualify for. Looking at the blueprints, if this house appraises for more than $80,000 I'll be shocked. Guess they will be shocked too when they get the appraisal.
 
Many loan brokers got greedy and approved these loans simply to collect the fees. As soon as the fees where collected, they sold the loan, then it became another man's problem. The new man thought he could buy a loan and collect 15% interest for 30 years, but he quickly found out that the buyers have simply walked away from the house because they can't afford it and he is STUCK with a paper note he can't do ISHT with.

Owning a home is simple.
1) Your total debt (all revolving debt) should be more than 333% on your income.
2) You should have 6 months of reserves in liquid assets.
3) Your mortgage (mortgage + taxes and ins) shouldn't be more than 28% of your income.

If you are under these 3 things, then it doesn't matter what the interest rates are, you should be OK. If these 3 are not in place, then you are on the bubble and are in danger of TROUBLE. Realestate agents and mortgage brokers are NOT going to tell you this.
 
You must log in or register to reply here.
Back
Top