Between a Rock and a Hard Place
Posted 12 May 2009 - 09:51 AM
I was previously married and I kept the house in the divorce (not that I wanted it). I have 3 years from the date of the divorce to get my ex's name off the mortgage. I have a year left. This required refinancing or selling it. In addition to this problem when my ex refinanced the house before our divorce he did a 3-year ARM (where the rate is only fixed for 3 years and then it adjusts). This is set to adjust in September of this year. So basically I have until September to try and sell or refinance my house. This has become impossible.
Over a year ago I had a couple of Realtors look at my house and they both said that it would not sell in this market without taking a loss. I unfortunately do not have that luxury. In an attempt to increase the value of the house my FI and I remodeled the kitchen ourselves. Now since last summer we have been trying to clean up our credit and get all our ducks in order to refinance because FI is going back to school this fall and we want to wait till he is out of school to moved to a permanent location.
Over the last 5 months I have been working with 2 different Mortgage brokers and both have said that there is nothing they can do for us. Our credit is fine, our debt is fine but their appraisers say that my house will not appraise high enough to be refinanced as I now owe more than my house is worth due to the market. Even after I remodeled. I have basically had the door slammed in my face, nobody can or wants to help me. I have suggested to these brokers that maybe I qualify for refinancing through President Obama's new housing plan (it allows people in my situation that owe more than the house is worth to qualify for refinancing through participating lenders). Apparently nobody is participating, one broker said she had me pre-approved for the program through one of her lenders and then the lender "pulled out" of the program. WTF?!
So last week Thursday I called a new lender, hoping that with persistence and determination that someone out there has to be able to help me right?! He seemed really optimistic despite everything I told him about what I had been through so far. He said he would call me back later that day or Friday. It's now Tuesday. I think he went running for the hills. I emailed him before leaving work Friday afternoon since I had not heard from him and all he said was that he hadn't heard back from his corporate office.
I know I am pessimistic by nature but I am feeling so overwhelmingly defeated. I don't know what to do, I don't know where to go. If I can't get this done there is no way I will be able to pay my mortgage payment this fall. And I would likely have to cancel or downsize my wedding so I can use my wedding money to try and keep afloat. I am so stressed over this I can't sleep, I feel so anxious and sick. I just wish I could get out of this mess that I never asked to be in.
Posted 12 May 2009 - 10:18 AM
Posted 12 May 2009 - 10:23 AM
Posted 12 May 2009 - 10:38 AM
Danielle= Thanks for the suggestion, I will ask about that!
Posted 12 May 2009 - 11:02 AM
Posted 12 May 2009 - 11:07 AM
Posted 12 May 2009 - 11:51 AM
I wish divorces, and real estate, and finances period didn't have to be so complicated & messy. I hope things work out for you - just keep trying!!! Persistance pays off!!!
Keep us posted.
Posted 14 May 2009 - 01:34 PM
Posted 14 May 2009 - 02:42 PM
Have you talked to your lender about re-amoritizing the loan or options they have to help you? It costs them a lot more money to foreclose than to work with you-although it doesn't always end up that way.
Good luck and I hope you find a solution. This new program is still getting from the planning to implementing stage. Institutions are still figuring out how to provide and structure those loan changes. As time goes on it will be easier to work with but I don't think anybody knows for sure how it's going to work right now.
Posted 14 May 2009 - 02:50 PM
In the meantime, just try to stay positive and hope for the best.
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