OfflineI have a question that I hope someone can help me with. I have a friend who, a few years ago when purchasing their house, used an interest only mortgage. Now the interest only period is up and her mortgage Doubled to about $4,000 a month. Does anyone have an idea of how I could help her lower that payment, still keep her house, and maybe even have me make a profit on it somehow as well. I dont want to sound greedy like im trying to make money off of her but I figure if I can help her keep her home and me make a little profit as well, it would be a win-win situation.
Any advice would help. Thank You in advance.
Tim
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This sounds to me like exactly the kind of dealings that put us in the market we are in today. Your friend most likely relied on the 'professionals' to recommend the best mortgage for her, without considering the consequences of the huge payment when the 'only' part ran out. Kinda like those triple play specials from the cable companies that are great until they run out and then they whack you! Anyway - I'm no expert here, but I think her only option is some type of refinance. Hopefully she has time to do this before foreclosure happens. Hopefully someone else will have some more ideas for you. I wish you both lots of luck in finding a solution.
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Hi,
The property is the answer,I am not getting all info!Worst case idea...A MOD.
Invest in yourself!
if she is able to do so. Has she miss any payments or is she current on her monthly mortgage payment? MOD like Rosefield suggested may be in order, but she has to find out all the details. If she doesn't under stand any financing terms then she needs to take somebody "experienced" along with her. So that she doesn't get herself back into the current situation that she's in. My 2 cents.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Refi?
Yes, but if there is no equity then.
You could do a loan mod with an attorney backed Co.
or they could do the mod themselves.
My friend did his Mod. You need a good Hardship letter.
and the rest of the paper work.
But I think this might end up being a short sale.
Getting the lender to take less then what is owed on all of the
loans, Leans and judgments if any. Hope this helps.
Think positive and make offers.
You need to tell us what the house it worth if it could be sold today to give you ideas what you can do. Not what the house was worth 6 months ago, or what the owner feels it is worth, or worth to the perfect buyer, what is could be sold for realistically, today.
Since she just bought it during the boom and did interest only I think it is safe to say their is no equity in it.
That leaves only viable option for you to make a profit on the house and keep her out of foreclosure - short sale.
Your friend's only option to make it affordable to own it - loan mod or refi if your friend can afford to pay principal.
Whatever your friend does don't have them pay thousands for a loan mod service unless there is some form of guarantee that comes with it. Most of the load mod companies just submit form mail for a ton of money and then tell you it wasn't accepted.
Very good information to take heed on concerning these MOD companies. It pays to do your homework (due diligence)!
Since she just bought it during the boom and did interest only I think it is safe to say their is no equity in it.
That leaves only viable option for you to make a profit on the house and keep her out of foreclosure - short sale.
Your friend's only option to make it affordable to own it - loan mod or refi if your friend can afford to pay principal.
Whatever your friend does don't have them pay thousands for a loan mod service unless there is some form of guarantee that comes with it. Most of the load mod companies just submit form mail for a ton of money and then tell you it wasn't accepted.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.