I just want to clarify and say that we live in one of the most expensive areas of the country--$100,000 may sound like a lot but believe me doesn't cut the mustard where we live. The median income in our area is much higher.
Don't worry about posting your income. It sounds like a lot to most people (me included) but I understand about parts of the country. We are in a $480K house that sounds incredibly extravegent but not for this neighborhood which we specifically chose because the schools are good and it supposedly would hold its value. Then came my lay off and my husband's mandatory cut in pay and furloughs. We are struggling not only to make the mortgage but our credit card debt is much, much higher than yours.Our house has dropped some in value but the big issue is that houses in this price point simply aren't selling.
We, too, were turned down for a conventional refinance and a HELOC because our debt to income ratio was too high and they would not count my freelance income (not much but it is something). We couldn't get a modification because we weren't behind and we even thought about selling but found out due to same issues we would not qualify for a new mortgage even for houses $150 to $200K less than the one we are in.
Having said that my advice to you is to keep trying. Supposedly there are new loan products coming on the market all the time. The banks are still learning the rules and are very, very slooooow but they are writing refis under some new programs. Our mortgage is with Bank of America (took over Countrywide) and they have some deal where they don't look at debt to income, only that you have income and equity. We were told we can refinance our loan adding only $3K to principle and reduce our payments about $300 a month. Not alot or enough but every little bit helps.We have been waiting since late may to close. I am terrified something will fall through at the last minute but the loan officer said he has never had one of these loans tank. Good luck and keep calling.
I don't know if this will help you but you might consider it since you have been turned down for other avenues. And both these things don't cost you. OUT OF POCKET MONEY.
Not long ago I was watching this show on TV and one of the experts said something about this So it is not totally my idea. You have a copy of the appraisal from the bank right. Take your appraisal to your county property tax office and see about filing papers to get your taxes on your home reduced. If it is not worth what you are paying taxes on then you should not be paying that amount of taxes you are paying.. Yes in some areas
Hi Jenny and Maryanne! Thank you both for your input! It is so great to have a place to come and share frustrations and sorrows about a subject that is so taboo in our world!
Thanks Jenny for the encouragement to keep trying. We will. We're not behind on payments yet and i think we can make it through to next year without falling behind. Hopefully we will be in a better place at that time. I called our bank today, Wachovia (now Wells Fargo) and they said that they are only modifying Fannie Mae and Freddie MAc loans at this time--ugh!!! They said it was a government mandate. But that they will start modifying other loans by Mid-July or early August. I'm thinking it will probably be a couple more months, but will keep checking back.
Maryanne--great idea about the property taxes, but i don't think that it will help us. When we bought our home in 2004 it was appraised at $525,000, but the assessed value was $400,000--very common in our area. The tax rate is 3%, so in order to keep property taxes, ehem, "low" they assess the value of your home much lower than it is appraised at. Too bad our property taxes are still $12,000 per year! When we received our appraisal a few months back, it was appraised at $430,000. Much lower than what we payed for the home, but still higher than the assessed value. So I don't think the tax assessor
Hi Tami,
Don't worry about posting your income. It sounds like a lot to most people (me included) but I understand about parts of the country. We are in a $480K house that sounds incredibly extravegent but not for this neighborhood which we specifically chose because the schools are good and it supposedly would hold its value. Then came my lay off and my husband's mandatory cut in pay and furloughs. We are struggling not only to make the mortgage but our credit card debt is much, much higher than yours.Our house has dropped some in value but the big issue is that houses in this price point simply aren't selling.
We, too, were turned down for a conventional refinance and a HELOC because our debt to income ratio was too high and they would not count my freelance income (not much but it is something). We couldn't get a modification because we weren't behind and we even thought about selling but found out due to same issues we would not qualify for a new mortgage even for houses $150 to $200K less than the one we are in.
Having said that my advice to you is to keep trying. Supposedly there are new loan products coming on the market all the time. The banks are still learning the rules and are very, very slooooow but they are writing refis under some new programs. Our mortgage is with Bank of America (took over Countrywide) and they have some deal where they don't look at debt to income, only that you have income and equity. We were told we can refinance our loan adding only $3K to principle and reduce our payments about $300 a month. Not alot or enough but every little bit helps.We have been waiting since late may to close. I am terrified something will fall through at the last minute but the loan officer said he has never had one of these loans tank. Good luck and keep calling.
Jenny
Hi.
I don't know if this will help you but you might consider it since you have been turned down for other avenues. And both these things don't cost you. OUT OF POCKET MONEY.
Not long ago I was watching this show on TV and one of the experts said something about this So it is not totally my idea. You have a copy of the appraisal from the bank right. Take your appraisal to your county property tax office and see about filing papers to get your taxes on your home reduced. If it is not worth what you are paying taxes on then you should not be paying that amount of taxes you are paying.. Yes in some areas
Hi Jenny and Maryanne! Thank you both for your input! It is so great to have a place to come and share frustrations and sorrows about a subject that is so taboo in our world!
Thanks Jenny for the encouragement to keep trying. We will. We're not behind on payments yet and i think we can make it through to next year without falling behind. Hopefully we will be in a better place at that time. I called our bank today, Wachovia (now Wells Fargo) and they said that they are only modifying Fannie Mae and Freddie MAc loans at this time--ugh!!! They said it was a government mandate. But that they will start modifying other loans by Mid-July or early August. I'm thinking it will probably be a couple more months, but will keep checking back.
Maryanne--great idea about the property taxes, but i don't think that it will help us. When we bought our home in 2004 it was appraised at $525,000, but the assessed value was $400,000--very common in our area. The tax rate is 3%, so in order to keep property taxes, ehem, "low" they assess the value of your home much lower than it is appraised at. Too bad our property taxes are still $12,000 per year! When we received our appraisal a few months back, it was appraised at $430,000. Much lower than what we payed for the home, but still higher than the assessed value. So I don't think the tax assessor