Loan modification ended up being a 25 year IO ARM!?

Question

I went through a loan modification and had not been able to talk very often to the person working on it because they just hardly ever return phone calls. I got some documents via FedEx yesterday and the modification went through but it's for an 25 year interest only ARM. I don't know what to do now. I am in a house that is $300K upside down so I can't refinance. I also cannot afford (at all) to pay extra on it to pay into the principal. What do I do now? Anyone have any recommendations?

Answer 1

Cindy, what were you expecting? They offered you what they can, this sounds like it will give you the lowest possible monthly payments, and 25 years is a very long time.



If you can't afford an interest only house, which is as cheap as it gets, then you need to look into selling the house and buying something more suitable for you.

Answer 2

when you say "you can't afford", meaning that you are at the end of the rope.

i'll foreclose but before i do that, i will situate myself first in an apartment.

why, because if you start not paying on time, you might not have an apartment to lease because your credit will start to go down the hill.

if you foreclose, remember that you still have to pay some money towards the house but you do not have to pay the monthly payment. you are giving up on the house to the lender because you cant afford to live and own a house anymore. you are not alone. you can also file for a bankruptcy. get an attorney and ask for second opinion - you have to pay for attorney's fee as well.



refinancing is not all the time good to do. if make the house go upsidedown, waster, useless and become a burden instead of a shelter. that's what a lot of people use their house for which is bad.

Answer 3

I hope you are not dealing with Wells Fargo or Bank of America. They are about to put thousands of Families in the street through Foreclosure. Try Making Homes Afforadble 1-888-995-HOPE, they maybe able to help you. Good Luck.