douwant2tiemeup asked:
The bank rejected my modification and YES I was talked into a mortgage that I can’t afford. I don’t know what to do next.
The bank rejected my modification and YES I was talked into a mortgage that I can’t afford. I don’t know what to do next.
About the only option other than foreclosure is to do a short sale and try to recoup some of your money. Sorry for your loss but it’s happening everyday.Better to sell than have it listed as foreclosure on your credit. Good luck to you.
First let me say I am very sorry for your situation. I know the pressure of debt and have been where you are at in terms of being over my head with bills. The stress and pressure of it all is very overwhelming and I had to make some extreme choices to find my way clear.
Secondly I am going to assume that you have exhausted all your normal resources, i.e., loan from friends/family, refinancing, government programs, second job. I am also going to assume that you are looking for a creative real solution and are determined to do whatever it takes to save your house.
Right now the single most protected group of people from housing foreclosures are those serving in the military. There is even a program where if you have to sell your house at a loss due to a PCS (Permanent Change of Station) you can re-coup all or some of the loss back.
If you were to join a reserve component (I am in the Navy Reserves) you could request an immediate deployment. At this point you would be covered by service members civil relief act (SCRA). They would be forced to lower your interest rate to 6 percent and it becomes much harder to foreclose. The lender has to be able to prove to the court that you deployment has not affected your ability to pay. Get legal involved (free service for military members) and most companies will not even bother. It is way to much of a fight and yes, JAG will fight their ***** off for you. If you are looking for a HUGE life change then go active.
This will do several things for you, first, what I said above. Second, more of your income becomes disposable. If you are deployed the government will pay your expenses and your paycheck can go to the house. Also you will get BAH (Basic Allowance for Housing) which should cover your payments. Then you will become eligible for the VA home loan to refinance the house with much better terms. Something thing you can afford when you are back at your regular job.
There are a lot of other benefits such as the GI bill (Which you can now give to your spouse or kids if you are not interested in college). Extra money once a month if you go reserves and a free two week trip every year. (your one weekend a month and two weeks a year) Your job will be waiting for you when you come home.
I know this is extreme. I do not know a lot of other information, like family status, age, education level. Just know that not all deployments are to war zones. Even heading off to basic training opens up the time window and the VA loan.
I am a former active duty guy and now a very happy reservist (currently deployed). It might be a rough year but it could be a year that is worth it to save everything you have worked so hard to get. If it is even something remotely interesting to you, send me an email, I am a Sailor so I could only answer questions about the Navy and general service questions.
Oh… And I am not a recruiter. I could not actually help you join.