Hello! We need any recommendations to reduce our ARM which is currently 9.875%. It was expected to go up June 2008 and every six months thereafter, but we were able to get a slight modification through ASC which isn’t much at 8.5% with no mortgage payment due for 2 months.
The catch with that is that they tack on an additional $5K plus to our loan balance. We live in Arizona, our current balance is approx. $291K on our single family residence which is owner occupied. Due to the housing market, our current market value is approx. $250K which is less than what we owe. When we originally got into this loan, we were told that we would be able to refinance in 2 years and that 2 years is up.
Who would’ve thought the housing market and overall economy would get to where it’s at now? We’ve been told that it would be nearly impossible to refinance our house as we owe more than what it’s worth. It has also been recommended that we just “walk away” from this house and just purchase another house since housing is more affordable before our credit gets shot. We have never been late with our mortgage and it is current.
We have only 4 more days to sign the documents provided to us by ASC to accept the loan modification but we would like to know if there are other options out there. Dropping it down to 8.5% fixed is not much of a modification along with the $5K added on to our balance.
It still seems that they are trying to suck every nickel and dime out of us that they can. Any recommendations or referrals for assisting with the loan modification or preferably refinancing options would be great. Thanks!
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