Mortgage Trouble

Several years ago in AZ we were in this position because we were getting a divorce. We sold the house for less than we owed and had to pay off the second mortgage at closing. Fortunately I had enough in savings to do this. If I hadn't I would've gotten a loan from the credit union to pay off the mortgage.

I suggest that you talk to the mortgage company and find out what is possible so that you don't keep wondering. Just because you talk with them doesn't mean you have to do anything.

I live in NJ & we are going thru a short sale (just signed our 2nd contract - 1st one fell thru) today. It has been a little rough from the modification process til now, however we only had one mtge on the property. We tried 3 x's to get a modification loan and ended up getting a HAFA Short Sale Agreement which will forgive us for the difference of the balance due. In NJ the 2nd mtge is only entitled to $3,000 in a short-sale. Your best bet would be to speak directly w/the lender to see what your options are. Best of luck to you and keep your chin up.

Im not sure in your state but I was sucked in to the fast house who cares if you can't pay it times and guess what, I couldn't pay it! I have a foreclosure but I didn't have a 2nd mortgage. It took over a year for it to all be said and done and im screwed for a while but I just wanted you to know your not alone. If it happens life isn't over and you will get back on your feet!

If you want to hold on to your house - call your lenders see if they can will forgive some of your loans or somehow help you combined them. There are some goverment programs that lenders get tax cuts or cash from the goverment for you making a reduced payment on time - which the payments are based on your income. Also, some states have grant money if your income has decreased due to the current economy, but there may be a 5 yr stay requirement on the grant. But if you do start working on these programs it take us to 6 months to get them approved, but most of the time if you fall behind while working on gettign approved - they either rap the past due in your loan, or if it is the grant it can help you to get back on track.

I did one of the loan modification in Dec 2010 and got my loan from $650 to $420 a month (which includes taxes & insurance) with the help of the grant I now pay $195 a month on my house payment for the next 15 months and that can be extended if our situation doesn't changed since we are only using part of the total grant available.

I know to most a $650 loan would be a dream, but when you only make a few hundred more then that a month on unemployment it is a huge struggle. But I have to agree when I was working it was a dream, but stuff happens and we all have to find a way of adapting.

Good luck with whatever you choose to do.

My sister and BIL short-sold their condo several years ago in FL and not only was it a long and complicated process, it was also draining emotionally and financially. You have to show genuine hardship to BOTH mortgage holders to get out from under your house. They have to agree to allow you to list your house for less than what you owe (both lenders) and then they have to agree to any offers that come in. My sister got an offer on their condo and one bank accepted, the other did not. They went back-and-forth for 6 months trying to negotiate with the bank. In the end, my sister had twins and another house and the bank considered that enough of a "financial hardship" to allow them to sell the condo. They ended up taking a personal loan to make-up part of the difference and my BIL's credit (condo was in his name) is non-existent for another 5 years.

Talk with a lawyer and the lenders before making any decisions!

I luckily have not been through a forclosure or anything of the such but we had tough times and there were times I didn't think we would be able to meet the mortgage. At the time we had bank of america I called them to see about those "government" programs or any other program of the like and because we had not actually "missed" a payment or weren't technically behind no one was willing to help us out????? It makes no sense to me-there is help out there for the people who don't meet their obligations but for the ones that do even sacraficing feeding their families and call about getting some help you can't get the help because you aren't technically behind..........We ended up doing a streamline refinance where they don't check your credit, no income verification, etc. I don't think the program is no longer active but we got in right in time and reduced our interest rate and changed banks. We are now with Wells Fargo. Bank of America was a nightmare......so glad to be away from them. Anyways just thought I would let you know what happened to us-we were turned away when we asked for help because we hadn't technically missed a payment or behind........

Here's some short sale information from Dave Ramsey's website:

http://www.daveramsey.com/article/what-is-a-short-sale/li...

Hope it helps!! =o)

Blessings...

We only had one mortgage but we were in a high interest only ARM. We tried to refinance into a fixed rate for 4 years. We weren't asking them to reduce the loan, just get us into a fixed rate so we wouldn't lose our home. We were too upside down and didn't qualify for any programs. I told them that I'd hold while they found a program that we qualified for and they hung up on me. We tried to shortsale but the bank turned down two offers. They foreclosed. We live in a non-recourse state. If you shortsale