I'm at a loss...

[admiren]

What is the name of your state (only U.S. law)? KS

I purchased a 10-year old home in April of 2005 for approximately $210k. Due to my employment situation at the time, I had to take a first and second out. In November of 2007, I refinanced with cash out to 98% of the home value approximately $230k and consolidated my 1st and 2nd mortgages into one. At the time, I thought it was a good idea to listen to the loan guy and do a 3/1 ARM to keep my payments relatively low. Since that time, I took a $20k a year paycut and am now struggling to make ends meet. I have not been late on a mortgage payment, but eating PB&J every day is getting to my wife and I. After doing some research, I found that home values in my neighborhood have depreciated about 10% over the last year giving us negative equity in the house. I want to get out of this ARM and lower my payments from the $1,800 / mo. level they are at now. Do I have any course of action that could get me out of this ARM and lower my payments? Thanks in advance.What is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by admiren

What is the name of your state (only U.S. law)? KS

I purchased a 10-year old home in April of 2005 for approximately $210k. Due to my employment situation at the time, I had to take a first and second out. In November of 2007, I refinanced with cash out to 98% of the home value approximately $230k and consolidated my 1st and 2nd mortgages into one. At the time, I thought it was a good idea to listen to the loan guy and do a 3/1 ARM to keep my payments relatively low. Since that time, I took a $20k a year paycut and am now struggling to make ends meet. I have not been late on a mortgage payment, but eating PB&J every day is getting to my wife and I. After doing some research, I found that home values in my neighborhood have depreciated about 10% over the last year giving us negative equity in the house. I want to get out of this ARM and lower my payments from the $1,800 / mo. level they are at now. Do I have any course of action that could get me out of this ARM and lower my payments? Thanks in advance.What is the name of your state (only U.S. law)?

**A: short answer- NO. Longer answer- No Way.

[JETX]

Originally Posted by admiren

Do I have any course of action that could get me out of this ARM and lower my payments?

With all due respect to my esteemed colleague and friend HG.... the 'correct' answer is yes. You have the right to contact your lender and see if they are willing to allow you 'out of this ARM and lower your payments'.
Of course, it would be entirely up to them.

[HomeGuru]

Originally Posted by JETX

With all due respect to my esteemed colleague and friend HG.... the 'correct' answer is yes. You have the right to contact your lender and see if they are willing to allow you 'out of this ARM and lower your payments'.
Of course, it would be entirely up to them.

**A: yes, that is one option. Thanks JETX.
OP, please post back and let us know what the lender tells you.

[admiren]

Your answer, albeit brief, was what I expected. I am going to contact my lender and see if there is anything I can do or hope to win about $30k to pay down the principle and refi. Thanks.

[FarmerJ]

One or both of you may have to just find part time employment to bring your income up to make it easier to keep up with the payments if you really dont want to risk foreclosure. If your really willing to get a extra income going then see what other ways you can find to reduce debt while your waiting for the market to recover and trying to get new mortgage terms. The market may be tough now BUT if your willing to work it out /wait it out it isnt going to stay that way for ever , it just will mean youll have to stay in the home longer.

[nextwife]

Originally Posted by admiren

What is the name of your state (only U.S. law)? KS

I purchased a 10-year old home in April of 2005 for approximately $210k. Due to my employment situation at the time, I had to take a first and second out. In November of 2007, I refinanced with cash out to 98% of the home value approximately $230k and consolidated my 1st and 2nd mortgages into one. At the time, I thought it was a good idea to listen to the loan guy and do a 3/1 ARM to keep my payments relatively low. Since that time, I took a $20k a year paycut and am now struggling to make ends meet. I have not been late on a mortgage payment, but eating PB&J every day is getting to my wife and I. After doing some research, I found that home values in my neighborhood have depreciated about 10% over the last year giving us negative equity in the house. I want to get out of this ARM and lower my payments from the $1,800 / mo. level they are at now. Do I have any course of action that could get me out of this ARM and lower my payments? Thanks in advance.What is the name of your state (only U.S. law)?

Add some cash into the deal and refinance. Look at local brick and mortar lenders. If wife is not working, she should be, to help qualify you both into a better mortgage. Of you have no cash to add in, she could work to add in cash to reduce to LTV ratio on the loan.

[GeoNOregon]

To expand on jetx's answer, if your mortgage company is willing to adjust int &/or principal, you may qualify for the federally guaranteed re-fi's Congress recently approved.

Look into & learn the details.