I Can't Afford My Home, What Should I Do?

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  • MF
    Jul, 2012
    mlou
    we are getting a divoces after 30 years, don't know what to do with the house. we owe more on it then it worth.neither one of us can afford the payment.any ideas on what to do?
    0 Votes

    • BA
      Jul, 2012
      Bill
      First of all, remember that any agreement about the mortgage loan must be done together with the lender. It is not enough to draw up a divorce agreement which transfers the house to one party, because you will need the lender's agreement to release a borrower. Make sure that the divorce lawyer does not just agree to a clause that one party will take care of the house and the mortgage.

      Is it possible that one party can refinance the house with the HARP mortgage, which would allow for lower payments? You could then decided on how to divide up all the property, considering one side is picking up a house with negative equity.

      Your other option is to speak to the lender about a short sale or deed-in-lieu of foreclosure. You will need to negotiate the deficiency balance. Check with your lawyer regarding your state's anti-deficiency and non-recourse laws. Also check with the lender regarding principal forgiveness and terms to repay the deficiency balance. You can try to negotiate with the lender an agreement to split the deficiency balance, although most lenders will oppose that.
      0 Votes

  • TW
    Mar, 2011
    Tom
    Good luck with HAMP. The Administration's outgoing TARP director just said he would give HAMP a D+ in helping people to avoid losing their homes. Case in point, my income was slashed 60% from the time I took out my mortgage 4 years ago. My wife finished school and after graduation she worked for about 4 months to raise our son (our decision). I am now making 40% less than when I took out the mortgage and we can barely afford our bills--actually in the hole each month. I have applied for HAMP almost half dozen times and never gotten anywhere, been rejected for a loan modificationa and can only get a forebearance, which could really mess up my credit rating. Relying on these programs for help is setting yourself up for disappointment. I have one or two options left, including cashing in an IRA to pay off a secondary mortgage (used 4 years ago instead of PMI) or I simply walk away.
    0 Votes

  • BA
    Mar, 2010
    Bill
    You appear to be an ideal candidate for the Home Affordable Modification Program. It has no affect on a person's credit score, to the best of my knowledge.
    0 Votes

  • 35x35
    Mar, 2010
    Lori
    My husband and I bought a house in October 2009 we were just fine money wise then in January we had to take a pay cut and now the mortgage payments are a little more than we can handle what can we do without messing up our credit?
    1 Votes