30 years fixed rate mortgage, but ins and taxes are killing me. Any advice?

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In June 2006, I bought a house with a ready 80/20. The 80 and 20% is@6.65 is 8.1%. These rates are fixed for 30 years. I also gave $ 9K nearby, including costs. My insurance and taxes are escrowed and my mortgage payment to Wells Fargo. I live in Miami.Der the price of the house was $ 229,500, but the value is $ 185,000 according to Zillow.com and sinking!. My first mortgage payment of $ 1,800 / month, but jumped to $ 2,232 / month, I deliberately avoided because of possible increases in the arms, but even a fixed rate still increased by taxes and insurance Hat! Anyone have experience? How did you cope? I can not refinance because I have more than what the house is worth now have. In addition, it is not really blame the banks, the community and Staaten.Ich can probably apt. the size of my house for $ 1,000 less per month (probably with a sea view). I am seriously considering running. Is that a foreclosure affect your credit? All advice or ideas? Last year, the tax and insurance was about $ 3700.Kann I afford the payments, but I did not anticipate an increase of $ 400 per month in less than 3 years. And he disappeared each year. I have no reason to believe that it will stop. At some point I will not be able to claim this leisten.Ich an increase in my current environment, and what I planned for? Fixed fees were only $ 3,055 for 2008.

  1. Reply
    May 16, 2011 at 4:31 am

    Yes, a foreclosure damages your credit. And when you try and buy a new place the mortgage company will actually look at it as being worse that a bankruptcy because it shows you would not pay a house note off.

    They often are allowed to come against you personally for the shortfall in foreclosure.

    Zillow and all of the online services are terrible at guessing how much your home is worth. Call a Realtor and see what it will really sell for. Talk to the Realtor about a short sale. This will also hurt your credit but not near as much because it shows that you at least tried.

    You may have a thirty year fixed second lien, but I have never seen one. They are normally 15 years at the max and often balloon after five years.

    About the taxes and insurance. Call the tax authority and ask what your alternatives are. Often you can challenge the value they are taxing you on. If your value has really dropped as much as you say then your taxes would not normally go up. The insurance company may have some cheaper insurance you can buy.

    In my area a loan for 229500 plus the escrow account for taxes and insurance would be close to the 2232. Maybe the mortgage company screwed up when they first set up the escrow account.

  2. Reply
    May 16, 2011 at 4:50 am

    You over-bought, pure and simple. You handle it from Day One by planning for periodic tax and insurance increases.

    Forget what its “worth,” all you really need to know is can you afford to payments?

    Shop around for other insurance and start campaigning against all tax increases and try to get the local school budgets slashed.

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