Foreclosure - once again narrowly avoided

[War Wagon]

Have you ever had some speculators driving by your house checking it out while you were sitting on the front porch? Been there, done that. More than once. Keeping a roof over my head is a constant struggle, but I got a reprieve from Bank of America when they modified the loan, basically putting all past due amounts on the back end. Like I'm going to live that long. Thank you very much, you blood sucking leeches. I'm now current.

Of course, nobody who posts here has ever been in such a predicament... or would admit to it even if they were. We're all rock stars. Pretty shameful situation to be in and yes, probably brought on by some poor decision making.

Be that as it may, the Wags family and dogs won't be living under a bridge in the immediate future, but that possibility is always lurking... keeping me up late at night.

[PSUFAN]

Going through the process of mortgage refinancing right now. We'll be going from 6.25 down to 4 - really impacting our monthly cash flow situation. Last year we paid off all of our credit card debt. I guess things are going well...but who knows? Before long we'll be looking at college for the kids...

[Katy]

Wags, I'm glad things are looking up. I've been in similar situations like that myself. When I divorced husband number 2, (insert divorcee joke here), I had to take a bankruptcy. I'm not proud of it, but I had no choice. One of a million reasons why I won't ever get married again. I had to take the bankruptcy because he filed for bankruptcy after our divorce leaving me responsible for all the joint debt. I couldn't swing it and I made damn good money. Seriously, it was one of the lowest points in my life.

I know there's a moral to my story and it's never live above your means. That was something I was pretty good at before I finally woke the fuck up.

Anyway...glad to hear you're current, my friend. I hope you and the family have a Merry and blessed Christmas.

[SunCoastSooner]

Eh, after the divorce I had to sell my townhouse that was a rental. I was ill and I had a shit ton of child support to pay each month which precluded any possibility of being able to afford it. I sold it and actually turned a profit on it right before the bottom dropped out of the market...

[poptart]

Before long we'll be looking at college for the kids...

BEATINGS...




OUCH!!!

[War Wagon]

BoA bought out Countrywide, who bought my mortgage one month after the last time I had refinanced, in 2004.

And I know they're speculators - when they stop in front of the house and ask if this is the property listed in the paper as being up for foreclosure auction on the county courthouse steps next month. They seem surprised, as I guess my tidy little dwelling doesn't look like your typical foreclosure property.

I don't blame anybody but myself. Too many re-fi's, too much (non-existant) equity taken out to pay other pressing needs at the time. Inflated appraisals to get to a number, bullshit fees, all adding up to basically owing almost double of what I bought the house for in the 1st place 23 years ago, at double the mortgage payment.

But that was all doable... when I was working 50-60 hours a week like I did from 2002 thru 2007. These past two years, I'm doing good to get a 40 hour check... and damn lucky to still have a job when my company has downsized by 80%.

And it's not like I can just walk away from it. I'd have nowhere to walk to. A decent rental property would cost almost as much, if not more, to get into. Unless you want to live in the ghetto.

No, I'm stuck with it and need to bear the fuck down. I'm actually quite grateful BoA decided to cut me some slack. They didn't have to do it and I'm quite frankly surprised they did. Two years ago, there's no way, and I'd be out on the street.

My advice to any young homeowners just starting out is to never take equity from your home and never extend the life of the mortgage. Easy to say I know, but if I had taken my own advice, I'd have this dump paid off in less than 7 years, at a much easier payment.

Water under the bridge now, it ain't coming back.

[KC Scott]

Going through the process of mortgage refinancing right now. We'll be going from 6.25 down to 4 - really impacting our monthly cash flow situation. Last year we paid off all of our credit card debt. I guess things are going well...but who knows? Before long we'll be looking at college for the kids...

4%? Damn, that's a really good rate.
I just finished ours - moved to a 15 yr at 4.375% - no points and about $2,200 to close it.
Only raised the payment $190 per month from the 30 yr. - 6% we had.

We had BOA / Countrywide - they would only go to a 4.5% and wanted 1 pt. - No thanks.

-----------------------------

Wags - the Home equity money thing was a horiffic scam - and it was put out there for everybody trying to live beyone their means. Really ugly situation you described - good luck.

[Wolfman]

My advice to any young homeowners just starting out is to never take equity from your home and never extend the life of the mortgage.
No crap ! My first house bought in 1973 for $16 K and a 25 year loan. Paid it off free and clear, the only way to go. Bought the SWFL compound in 2001 for $190 K with a 15 year loan-- 6 years and 11 months to go. Our location is one that maintained a lot of its value and this could easily go for $300K on today's market. Location-location ? I hope i live long enough to pay this one off too. Loans on top of loans=bad idea.

[fix]

WW, you're by far not alone.

Anyone that is directly employed in the transportation/manufacturing field has been hit hard and felt the brunt of it for a longer period of time than most.

I myself redid my mortgage last year after a series of bad luck/bad timing and poor choices on my end occurred in the 2nd half of 2007 and continued to fuck me over in 2008.

2009's not been a prosperous one by any stretch of the imagination but I've managed to make every mortgage payment and survive at the expense of cutting out a lot of unnecessary expenditures. Credit cards were the first things to go.

2010's 1st half will ultimately decide for me whether I stay where I am or put the house on the market and downsize into something smaller in another location and try to ride out this shitstorm of a recession.

[SunCoastSooner]

Inflated appraisals to get to a number, bullshit fees, all adding up to basically owing almost double of what I bought the house for in the 1st place 23 years ago, at double the mortgage payment

This is why I got out of residential work as soon I had accumulated the sufficient log hours under my apprenticeship as a trainee appraiser and don't accept or solicit residential work unless it is on the basis of a trust or or imminent domain litigation which are rare. I also have a very strict clause spelled out within the appraisal that specificty states that this work is not to be used for the basis of a lending institution or as the basis for loan collateral.

Sadly having worked in the industry long enough I have to be honest with you that the prices were intentionally inflated by appraisers who did not have much choice in the matter. The market was so booming and the bank executives so demanding toward their loan officers to make loans with the economic state the way it was the loan officers in turn were more demanding they get certain numbers on appraisals that appraisers had little choice but to inflate numbers. If they didn't banks removed them from their approved list. Banks will deny this of course but I have done this work for nearly a decade and have operated in three states and through lending institutions all across the country that I can assure you this is what occurred. I'd love to go into greater depth on the issue but unfortunately I am currently packing to head to Oklahoma City because my grandmother passed away this morning and have to catch a last minute flight out of Pcola this evening. Maybe if the thread is still going when I get a chance at a later date I will do so.

[Roger_the_Shrubber]

WW, great GREAT advice!

I bought my house in 93 at 7.5% for 30 years, and in 03, re-mortgaged for 15 years 5%. So, whn I am 56, the house will be paid off completely.

I 'think' I am now paying 60% principle and 40% interest.

The worst part of the whole process is that the company you got the mortgage with, can sell that to another company, no questions asked.

I have no idea about accounting law, but that just seems wrong, since mine was sold to Fleet years ago, and they were absolutely corrupt. I was a day late in them receiving my payment, and those assholes called me and threatened foreclosure, after a DAY being late.(It was sent ona federal holiday) The reson was because I got this property( 1/3rd acre, 1800 sq.ft., two car garage) for $89K, WAAAAYYYY undersold. They wanted this BADLY, but they didn't get squat, but still acted like assholes, until I think Fleet went belly up. 60 Minutes actually did a piece on those jerks doing the same thing they tried on me. Since the start, I have been with my original local company, Washington Mutual, Fleet and now Wells Fargo. Washington Mutual STILL sends me shit telling me I had better pay more on my principal and warning me about late payments, and they haven't had the loan for 4 years! I love sending those letters back with lots of F-bombs and stick figure pics of me having....intercourse with their logo.
:D

[Mr T]

Why would anyone buy a house and take on a mortgage with terms you can't comply with?

Short term thinking or trying to keep up with the Joneses

[War Wagon]

Why would anyone buy a house and take on a mortgage with terms you can't comply with?

This non-smack forum thingy was a rrreally bad idea.

[KC Scott]

Sam - understand you're just asking the question, but think of how that sounds from Wags point of view.

We're really trying to keep this as a non-confrontational place people can share stuff like this if they want.

Thanks -

[Harvdog]

When I got divorced, my ex went out and ran up a ton of credit card bills on me and I didn't even know about it. I went to buy a stereo after I gave up half my shit to get rid of her and they told me my credit was bad. Huh? Needless to say, she totally screwed me over and I ended up paying it all back. It took 4-5 years to get a decent rating to buy a house. That was 12 years ago but what a major hassle. When I got re-married, my wife was an expert at fixing credit and took care of all my exes bullshit. Thank god.

I am thinking about the re-fi for 15 years. Where did you get 4.37%? I could swing that.

[KC Scott]

I am thinking about the re-fi for 15 years. Where did you get 4.37%? I could swing that.

Metlife Home loans - good luck.

[Mikey]

It would be nice to be able to pay off our mortgage in 15, but with one kid in college and one starting next year we've been trying to lower our payment as much as possible.

A couple of years ago we remortgaged at about 5.75% on a loan that was "interest only" at that rate for 10 years and then would lock in at the going rate on a 30 year amortization. Our payment was ridiculously low (or it seemed to be) for the house we have, but after a couple of years it was getting sort of scary because what the payment might jump to. We (or at least I) would like to retire here eventually and we would need an affordable payment to allow that.

When the rates took a dive earlier this year we decided to refi again, this time locking in a fixed rate for 30 years. We got it down to 4.7% - not the rock bottom but pretty close. Luckily our credit is good and we still had some equity in the house. We had to put a small amount down to get the l to v ratio to 80%. Our payment now is only about $100 more than it was with the previous loan, and the added "piece of mine" is well worth it. We will never refinance this house again.

[indyfrisco]

No mortgage on mine, but I do have a 10 year HELOC currently at prime rate (currently 3.25%). We have saved a ton going this route. Will have it all paid off in 2-3 years. Will drop it into a fixed once we start to get out of this recession, but as long as prime is below 5% I will probably stick it out since it is only a couple years away from being paid off. Finishing out the basementthis Spring. Hoping to not have to borrow from the HELOC to pay for any of it. Have not gotten a raise in 2 years basically. They bumped me 5% 2 years ago and about a year ago, instead of friing the dead weight we have here so everyone can keep a job, they did a company-wide 5% deduction wiping out my previous bump. Fuck the dead weight, but the board of directors felt they could keep their conscious clean if they just stole from everyone and not having to fire anyone.