Never a late mortgage payment, but I have ..?

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My husband and I bought my first house at age 20. We were stupid and had an ARM. We lived in our house 2.5 years and have never been late paying the mortgage. Since I am a full time student living in my student debt of our revenues are crazy big. So we can not refinance. I even contacted our current mortgage holder (American Service Company) and filled out the paperwork for a loan modification. But they said that the debt of our income is too high and we were denied. I asked, “So you prefer foreclosed on the property where we keep our current pace, we have never been in arrears?” I do not know what is my question. I think I want to know if someone a think it’s a crazy game of CSA? You’re right. But how can I hate not work. The man is already running about 65 hours per week.

5 Comments
  1. Reply
    Real Estate Guy
    April 30, 2011 at 12:05 am

    you are right, it doesn’t make sense on the banks part. However, no matter what you need to make the payments.

    I would suggest getting a part time job. MANY students work and go to school full time. Or get a full time job and go to school part time.

    Husband can also work more.

  2. Reply
    Matt K
    April 30, 2011 at 12:54 am

    The bank cannot simply allow every ARM holder in danger of foreclosure to modify their existing loan agreements. Otherwise, why would they offer the products in the first place – if they are not going to enforce them?

    Do you have any savings? The new payment amount is generally calculated using the unpaid principal balance + the new interest rate + over the remaining term in substantially equal payments.
    As such, if you can make a large principal payment before your “change date”, then the new payment amount COULD be lower – depending on how much higher your interest rate would be too. Just a suggestion.
    Finally, keep trying to suggest a modification or even a short sale. Sometimes, lenders will not negotiate when you are current – which it sounds as though you are at present.
    Best wishes

  3. Reply
    chatsplas@sbcglobal.net
    April 30, 2011 at 1:40 am

    You are in a bad situation. I agree that you need to get a part-time job so that your debt ratio won’t be so bad.
    The new stimulus plan has programs for mortgage refinancing, so there may be some help there. Talk to your bank and ask what you have to do to make them willing to refi you. It really isn’t in their best interests to foreclose on you. Talk to more than one person there. They usually have customer assistance people who are more flexible, and maybe you can get a loan modification.

  4. Reply
    A Real Realtor
    April 30, 2011 at 1:56 am

    You are putting bandaids dear on shotgun wounds.

    You are going to rack up so much student loan debt that the job you have when you graduate won’t even be enough to make the payments…do you realize that you can NEVER bankrupt a student loan?

    You also exaggerated your question…the bank never told you they would foreclose, you threatened to stop making the payments, and that is a natural occurance, but they CANNOT foreclose RIGHT NOW.

    I suggest you lay-off the student loans for now, get a part-time job, and kick some money toward the mortgage and student loans until you pay it down enough to go back and refinance on a fixed.

    I know, it’s not what you want to do, but you are too young to be ruining your credit.

  5. Reply
    mortgagerome
    April 30, 2011 at 2:11 am

    Every bank has differetn qualifications for loans. It is great to talk to a broker because brokers have access to tons of banks and if there is a program available for you we will have it. Let me know if you have any questions or are interested in seeing some numbers. You can contact me at my email jreynosocfg@yahoo.com

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