Housing Situation WWYD

So we are one of the people that got a mortage when we shouldn't have, bought at the height of the market and had a crazy interest rate. At the time, we didn't know any better.

About 2 1/2 years ago, we called the mortgage company and said I was out of work and it was getting tough to make the payments. Can they do anything?

They said "NO, you aren't behind yet"

So, we missed some payments.

Applied for modification...denied.
Applied for short sale...denied.

This has been the process for all this time now. Our financial situation has turned around. We are trying to save the house.

Our final modification request was denied. The mortgage company doesn't want to lower the interest rate (right now we are looking at almost 10%). And they only want to extend the terms 6 months on top of the original mortgage.

When they work the numbers our mortgage with taxes and insurance will be almost $4000.

$4000 on a house that probably isn't worth $300,000 right now.

When the bank ran our financials without changing the interest rate, we fall short each month about $300. So they said if there is anyway to come up with some money they would reconisder it.

The judge we met with doesn't like that fact that the mortgage company won't work with us anymore than extending the loan out 6 mths. She has requested official paperwork for them because she wasn't happy with the laywer's response.

Anyway...when we explained that there is no other money and that a $4000 mortgage payment is knd of out of our league especially since the house needs a ton of work (most is original from 1950s, there is a leaky roof and now we have mold in the basement and extra garage pantry, half the windows don't open, the tub in the one bathroom doesn't work, etc)


She asked why are we trying to keep the house if it needs so much work?

I was quite suprised on her reaction.

Honestly, if we fight for the house and have to pay close to $4000 there is no extra money for repairs..some that need to be done a lot sooner than later.

Got us thinking, what do we do? Do we try to keep the house and make do?

Or do we let it go and look elsewhere?

WWYD?

Re: Housing Situation WWYD

How have you been paying the mortgage since you bought the house? Did one of you lose your job?

Re: Housing Situation WWYD

We were paying it. Then I lost my job. Since then I have gotten a job and my husband has received a nice raise. Our income is more than it was then.

Our original mortgage is less, but once they add in all the backpayments it goes up a ton.

Re: Housing Situation WWYD

I guess you might consider renting for a few years until you can get your credit back up and save for a downpayment and closing costs

Re: Housing Situation WWYD

Re: Housing Situation WWYD

I just wanted to see if we were nuts enough to want to pay $4000 a month for a house that needs maybe $100,000 worth of repairs.

We are ok with renting. But I just wanted to get some opinions on this before we make any decisions.