How bad can mortgage loan restructuring hurt your credit?
I am looking for a way to get out of a bad investment. I bought a house for 325 K and now its only worth $ 200,000, thanks to the current market. I owe the bank 280 K and its a negative option arm loan, so they let me pay less than interest. Soon the Bank will realize that this house is worth so little. The may force me to make a full payment and I will not be able to. The Rent I earn now barely pays the minimum payment. So I have 4 choices: 1) walk away, 2) Foreclose 3) Short Sale and 4) Loan Restructure. Do you think the last one will have the least or shortest impact on my credit? If I do it, I plan to pay the new loan on time forever. I plan to send many disputes to the credit bureaus until they erase the 90 days of skipped payments that I will have to do in order to get this approved.
I added even more details at www.blogsomebody.com. which contains full details in various posts
I dont think I’d like to be in my home for very long and I like the idea of having an option arm loan to lower my mortgage payment. However, my husband likes the security of a 30 year fixed because we will add more equity to the home. Are there any other alternatives? What about a 40 year fixed?