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Have you considered a 2nd job? I know you said you help your husband at his business. I don't know how much that brings in, but I'd suggest getting a 2nd job and then plugging away until you can sell or refi.
Yes.. getting a second job on top of helping my husband AND taking care of my son. The reason I can get a job outside of the business is because my mother in law came to live with us from Europe for awhile so that I can work more..both with my husband and outside of that.
It won't earn me enough to keep up with the mortgage adjustments though.. so the mortgage either needs to be amended, or I need to get out of it somehow..either short sale or it will end up in foreclosure. The ONLY hope is if they modify the loan to fix the rate!
This is a very good piece of advice given to me in High School from a dear teacher, after I blamed the multiple crappy cards I had been thrown as a teen on my problems.
"You are the only person that can help yourself. Do not blame or count on anyone else." It is called a "victim mentality", and I am guilty of using it myself in the past. I am NOT directing this towards you as an insult and I hope you don't take it that way. Once I was able to recognize this way of thinking and actively try to avoid it, my life was SO much less stressful.
Quote:
What is victim mentality?
A victim mentality is one where you blame everyone else for what happens in your world. (Another definition not as commonly used is one that says a person thinks the future only holds bad things for them.) If you do not get the promotion it is because Mr. Johnson was out to get you. Not because he found you playing on the Internet every day. Your best friend called and said she could not have dinner with you. She is always doing that to you; not showing. You'll show her. You won't invite her when you go out again! Instead of remembering she has just started school and you did call her at the last minute. Victim mentality.
Winner: 1. What have I got; 2. Makes thing happen; 3. How can I become; 4. Looks at the positive; 5. Finds ways; 6. Acknowledges responsibility; 7. Takes guidance; 8. Sees always wins ahead; 9. Listens more; 10. Creates goals for him/herself; 11. Learns from mistakes; 12. Forgives; 13. Long distance runner, patient; 14. Favors.
Victim: 1. What havent I got; 2. Waits for things to happen; 3. Why cant I?; 4. Focuses on the faults; 5. Finds excuses; 6. blames others; 7. Knows all; 8. Sees always losses ahead; 9. Talks more; 10. Creates obstacles for him/herself; 11. Loses from mistakes; 12. Holds a grudge; 13. Short distance runner, burns out; 14. Blames.
So the only option is not to have the mortgage company fix this, you have the power to fix it yourself!
Now, it looks like you now have built in childcare - which is GREAT! You said you spend over $800/mo just on insurance. With a PT job at many places, you can get insurance. Along with that $800 savings, working even 20 hours a week at $7.50 or so an hour should bring in another $500 or so after taxes, leaving you with an extra $1300 a month, which would cover the highest rate your mortgage could adjust to.
You will then have at LEAST enough money to cover the adjustment until you can refi or sell.
Now, what would be wrong with the solution provided above?
And I just want to add, I know it won't be easy. My husband and I have just taken on extra consulting jobs because we have credit card debt that we wish to be free of. It leaves us with a LOT less free time, but we figure it is better to work very hard temporarily to bring in the extra cash to be free of debt.
You could do this maybe for only a year or so while you try to figure out an exit plan.
TM - You have four bedrooms...give up one and rent it out. Better yet, rent both that are down in the basement. Put your son in your room, and your MIL in the other. You should be able to fetch enough to ride out the increase while you either try to sell, refi-, file chap 13, or whatever it is you next want to do.
BTW, just stop bashing CEO's, corporate America, etc. You did this in the healthcare threads, and now in the mortgage thread. But I digress...again, get renters in your house!!!
This is a very good piece of advice given to me in High School from a dear teacher, after I blamed the multiple crappy cards I had been thrown as a teen on my problems.
"You are the only person that can help yourself. Do not blame or count on anyone else." It is called a "victim mentality", and I am guilty of using it myself in the past. I am NOT directing this towards you as an insult and I hope you don't take it that way. Once I was able to recognize this way of thinking and actively try to avoid it, my life was SO much less stressful.
So the only option is not to have the mortgage company fix this, you have the power to fix it yourself!
Now, it looks like you now have built in childcare - which is GREAT! You said you spend over $800/mo just on insurance. With a PT job at many places, you can get insurance. Along with that $800 savings, working even 20 hours a week at $7.50 or so an hour should bring in another $500 or so after taxes, leaving you with an extra $1300 a month, which would cover the highest rate your mortgage could adjust to.
You will then have at LEAST enough money to cover the adjustment until you can refi or sell.
Now, what would be wrong with the solution provided above?
TM - You have four bedrooms...give up one and rent it out. Better yet, rent both that are down in the basement. Put your son in your room, and your MIL in the other. You should be able to fetch enough to ride out the increase while you either try to sell, refi-, file chap 13, or whatever it is you next want to do.
BTW, just stop bashing CEO's, corporate America, etc. You did this in the healthcare threads, and now in the mortgage thread. But I digress...again, get renters in your house!!!
First.. I have 4 small bedrooms.. My mother in law is in one of them.. and our office is in the other.. we have a Levitt house with no basement so our garage doubles as storage for our busines..
This is a very good piece of advice given to me in High School from a dear teacher, after I blamed the multiple crappy cards I had been thrown as a teen on my problems.
"You are the only person that can help yourself. Do not blame or count on anyone else." It is called a "victim mentality", and I am guilty of using it myself in the past. I am NOT directing this towards you as an insult and I hope you don't take it that way. Once I was able to recognize this way of thinking and actively try to avoid it, my life was SO much less stressful.
So the only option is not to have the mortgage company fix this, you have the power to fix it yourself!
Now, it looks like you now have built in childcare - which is GREAT! You said you spend over $800/mo just on insurance. With a PT job at many places, you can get insurance. Along with that $800 savings, working even 20 hours a week at $7.50 or so an hour should bring in another $500 or so after taxes, leaving you with an extra $1300 a month, which would cover the highest rate your mortgage could adjust to.
You will then have at LEAST enough money to cover the adjustment until you can refi or sell.
Now, what would be wrong with the solution provided above?
Here are my options..
The part time job will only be able to ride out the first extenion.. not the ones that will follow.. if that. Secondly.. part time job health insurance benefits are NOT free..so they come out of yoru paycheck for one.. secondly.. they do not offer enough coverage that is required (I'm a juvenile diabetic) .
Here are my options:
1) Continue conversations with the mortgage company in hopes that they'll come around. but.. in the meantime:
2) consult an attorney to figure out what is the best way to get out from under this mortgage with as little damage to myself as possible and with teh ability to purchse in atleats 5 years somewhere else. Those options may requre me to file a chapter 13.. and then work on repairing my credit after that.
But of course I will need to consult an attorney and I have an appointment for a consultation with one already.
BTW.. the free childcare in my mother inlaw is only for 6 months.. as she has to return to her country as conditions of her visa.. so that only buys me 6 months.. for now.
I really came on asking 2 specific questions.. the first was is it worth the fight and should i just give up.. and the second was a specific question about chapter 13.. if anyone had the answers.
Despite what some want to thinkI have been working on doing something about it from all angles for quite some time. I'm not just sitting here doing nothing...
But I thank you for your input. I don't believe it's anyone specific fault.. I believe it's circumstances and timing that caused this entire debacle.. that and not knowing that this type of event can occurr. I did everything I was supposed to d adn did it right...as was outlined to me.
My 'blame' for the banks is more frustration for the fact that they are not trying to resolve the issues with people like myself in this situation. A lot of this doesnt make much sense to me and their actions seem illogical at this point. It woudn't matter if Iwas the only one in this mess..but I"m not. While it seems like as mall percentage, it certainly was enough to put our entire economy in a tailspin. I'm frustrated that the banks are being stubborn and not trying to work with those of us who may have gotten to this place.. but are trying to hold on and NOT walk away from their obligations. All my actions have been to try to resolve this issue without any assistance from outside sources monetarily between me nad hte bank.
BUT.. if he programs are available that will work for me.. I'd be a fool not to take them and to do what is best for me.. after all any of you would do the same for you and yours.
Here are my options..
The part time job will only be able to ride out the first extenion.. not the ones that will follow.. if that. Secondly.. part time job health insurance benefits are NOT free..so they come out of yoru paycheck for one.. secondly.. they do not offer enough coverage that is required (I'm a juvenile diabetic) .
My father paid $30 or $40/week for full coverage. It is worth investigating. How much do you need to make monthly to cover the maximum adjustment? $2k? $3k?
On a $400k loan
8%: $2935
9%: $3218
10%: $3510
11%: $3809
12%: $4114
13%: $4424
So it looks like the max adjustment would be around $1500. Easy to get that PT if you knock out that obscene insurance payment, even easier FT.
What are your skills? Can you type? Use Word/Excel/PowerPoint? Management experience at all?
6 Months of free childcare is more than what most have, now is the time to work as hard as you can and save as much as you can while you have it.
Also, in relation to the original question, do you have a HELOC? That will not fall under the tax forgiveness.
The banks are running scared right now, too. They are losing billions of dollars and the are laying people off left and right. They screwed up their own finances by making loans they shouldn't have made and now they are making cuts and changing their spending habits to recover.
What may seem like an obvious solution to someone with an ARM that is about to reset is not as obvious from the perspective of the bank who loaned the money out. They are already out more money than the house is worth, which was their mistake. They should not have loaned you as much money as they did. I don't think banks should ever loan more than 90% LTV. But you asked for it, and they gave it to you because you both assumed that real estate values were going to continue to climb like they did before.
They assumed that even if you stopped making payments, they'd still be able to sell the house and get their money back. You assumed that you'd be able to refinance the ARM before the adjustment hit. You were both wrong, and you both didn't make contingency plans in case the real estate market slipped or interest rates climbed. You were both speculating. Unfortunately for you, you were speculating with your home and your family's future instead of with money that you could afford to lose.
The bank needs to show its shareholders that it isn't making those mistakes any more. Unfortunately, that means that they are going to hold you to the contract that you and your husband signed. They can't just change the terms of the contract, which is what you are asking them to do. You have to negotiate a new contract. And because you used up your equity and you have no savings you're not in a position to negotiate the best deal.
Have you tried going to the bank itself to sit down with someone face to face? Explain to them that this is a problem for both of you and see if you can figure a way out of it. If the person you are talking to can't make that decision, ask him or her who can and make an appointment with them. This isn't something that you should be doing over the phone.
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