I have an ARM mortgage, which matures in August?

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We tried to refinance, and our assessment is lower income than we have at home so they said we were to õnne.Ainult good news is that I have no pre-sentence payment, if I went somewhere m mujale.Ma “very nervous because I can not pay my payments go up. Any suggestions.
I have an ARM mortgage with Wells Fargo and my speed can be adjusted upward to 1.25 points in early next year. When I bought my home I had 100% financing, declining market value, but I do not have enough equity to refinance at this time. I called Wells Fargo and they told me that I could benefit from a mortgage modification. They told me to remind all of your monthly income and expenses (including any food safety for children, etc..) My question is whether they want to see that I can not afford a mortgage, he can not? Should I report expense of each of the last to believe that we are barely surviving, or should I report the bare minimum, so it shows that we are solvent and not by default? I have excellent credit and have never been late, I really can not afford higher mortgage payments. What they are looking for good change? All experiences and recommendations?

11 Comments
  1. Reply
    thomas p
    January 26, 2011 at 8:40 am

    Ask yourself if your earned income will increase over the coming years. If so, I would get another 3 or 5 year ARM in the dollar cost makes payment more affordable. Do you plan to move from your town in the next 5 years? And always be honest with yourself about your likely ability to retain your present job and your promotion and merit raise potential. Good luck. Fixed is still overrated, IMHO.

  2. Reply
    B
    January 26, 2011 at 9:18 am

    Sounds like you are having the same problems as millions in america!!! There is not too many options thats why everyone in your position is loosing their homes!!

  3. Reply
    John M
    January 26, 2011 at 10:04 am

    check on the adjustment mechanism. not all ARMs will adjust up right now. some of them are going back down. The loan documents will tell you when the loan adjusts and what it is indexed against.

  4. Reply
    Ryan
    January 26, 2011 at 10:12 am

    Do not refinance with an ARM, these are for people who expect to make substantially more income in the future, check to see what it resets to and proceed from there.

  5. Reply
    Em C
    January 26, 2011 at 10:50 am

    You cannot refinance, even somewhere else if you owe more than your house is now worth, according to the appraisal. For example if you owe 200,000 and the house is now worth 175,000, you are not going to be able to refinance the whole amount.

    I agree to check your paper work and see the terms of your current loan and hope that things change before August.

  6. Reply
    godged
    January 26, 2011 at 11:33 am

    Talk to your current lender about a fixed rate.

  7. Reply
    golferwhoworks
    January 26, 2011 at 12:20 pm

    they want to see all expenses so they can justify this as a sound move to keep you from defaulting so give them every thing down to the corn flakes you ate this morning

  8. Reply
    smartypants909
    January 26, 2011 at 1:10 pm

    An ARM is not intended to be your only mortgage. It is intended as a chance to raise your credit score so you can refinance at a fixed rate. Don’t let them give you the brush off. If they won’t refinance you, go to a mortgage broker and find someone who will.

  9. Reply
    I love watching cars turn left
    January 26, 2011 at 2:01 pm

    They are looking to see if you qualify for the new mortgage. With times as they are I am sure they will all they can to help you.

    Good Luck.

  10. Reply
    Kay
    January 26, 2011 at 2:49 pm

    As you know already that they are going to determine if you can keep paying the mortgage at reduced amount (modification). In order to determine how low to modify, they have to see what your family’s take home pay against all the household expenses. It’s better that you put all of your actual monthly expenses on a sheet of paper and go negotiate to modify the mortgage. The schedule of expenditures will help you also. You’d be surprized where your money is going thereby giving you information as to where you could really save. Make sure the loan is modify to fixed rate mortgage, not ARM.

    You are doing the right thing by talking to the bank in advance of potential hardship. Good luck and hope you could keep you house and your good credit rating.

  11. Reply
    ISABEL A
    January 26, 2011 at 2:50 pm

    Pretty much they need to see if you can afford to pay for the mortgage so you should make a list of your expenses before you call them to be ready for them that way you can give them some room just enough left over after paying the mortgage payment. Alll they really going to see if that you can make the payment.

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