patrick.net

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I feel I am being forced/bullied out of my own home.
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But it's not your home until you own it free and clear. Until then, you and your bank own it, and you pay your bank for your enjoyment of the home. There's no requirement that your bank accept less than what is due.

Do the math. If your house payment is a much higher percentage of your income than is recommended for conservative financial planning, it's time to walk away and rent.

Amen, I agree that the banks are greedy scum suckers whose leaders should be put in jail and have the key thrown away....

But people seem to be forgetting 'you' bought into it hook, line, and sinker! My own parents walked away from their home for pretty trite reasons, but to them they are the 'victims'.

They could afford the payments, the interest was fixed and low and the balance was entirely due to them drawing out equity... but their selfish little baby boomer minds couldn't accept that because of the stupid things they agreed to their house was slightly underwater.

Why oh why was I so careful to buy only as much as house as I could afford, observe my spending scrupulously, skip vacations, big screen TV's, cable TV even... so as to always make my mortgage payments?

Maybe so I'd never have to write a sniveling, whiny "I'm such a victim" piece of tripe as this guy did. And I was a single Dad too. Get over yoursefl.

@ducsingle5313 I have to agree there is no bottom-line to this issue other than what you stated above.

I see all too often that most people do believe they "own" (a statement alluding to outrightly own) something (and the media have led most to believe they "own") yet if and when there is an outstanding debt lien obligation against the property in question (anything) it is an entirely different technical story unless the lender would waive their rights to any claim of ownership which in all honestly doesn't make sense to me nor would I do under the circumtances. The cry is one that is often played out today. IMHO people have to flip the coin, if I were the one lending the money and it wasn't paid (as agreed by the borrower) I would proceed in the same manner.

And I see we are here via comments also experiencing part of the irresponsible mentality that helped get this country into the financial mess it is in today.

Todd you are obviously overextended and have put yourself in a difficult situation. I know two people that have gone down different routes. One person was getting a divorce and just couldn't afford the house. He shortsold and lost his 50K downpayment. The other person has sat in the house for 24 months and hasn't made a single mortgage payment. However, the bank will be coming for his house at some point. He is storing away all that money for a rainy day. I guess he is lucky to live in California.

I would probably talk to a bankruptcy lawyer and financial planner to see what your options are. Maybe take on a renter for one of your bedrooms to help out with the mortgage.

Unless someone here says they are a professional in their field, this is only casual conversation.

Truthplease says

Unless someone here says they are a professional in their field, this is only casual conversation.

I'm a professional in my field! Just not THIS field. ha ha ha. Seriously, he needs professional advice.

Is this a forum for moralizing or advice? The question on the table is not what you think about the asker's judgment, but rather what can he do.

I agree with an earlier post, if BOA will not negotiate you appear to have few options: 1) leave; 2) raise the money somehow; or 3) bankruptcy. Depending on your state, a foreclosure can take between 6 and 30 months, during which time you can bank the money you would have paid BOA and make plans for your future.

Realize that without bankruptcy BOA will come after you for the difference between your loan amount and the foreclosure sale price. A prudent person would consider this when choosing where and with whom to keep his money.

Once you file for bankruptcy BOA cannot remove you from your home.

Remember and research that there are two forms of bankruptcy: chapter 13 (wage earner) and chapter 7 (liquidation). A discussion with a bankruptcy lawyer can answer your questions - call the state bar association to get the names of bankruptcy lawyers in your area.

You will have trouble getting credit for 3 to 7 years - the time it will be on your credit report. If you have a relative or spouse who is not a co-borrower then they can add you to their credit cards during the waiting period.

Pay no attention to the moralizers here, it's your life and what we think has no value except where it can help you. I wish you well.

Finally...just the reply I was looking for, as in one that actually relates to the info requested in my original post. Many thanks to you, fitzwise.

I was beginning to feel like a Protestant in a room full of 83-year old Catholics. You know the ones...those that can do no wrong (nor have they ever) yet are hellbent on pointing out your 'sins' regardless of what (if any) knowledge they have of the context of the situation at hand, such as:

-when I actually purchased my home (12 years ago and 7 yrs prior to divorce, when my now ex-wife and I had one child vs. three at time of divorce)
-what I've done to honor the mortgage that I entered into (worked 2 jobs for the past four years to supplement the lost income through divorce, prior to being laid off at job #2)
-suffered a 15% pay reduction at job #1 in Feb 2009
-applied for Making Home Affordable Program, with a less than favorable reply from BOA. Their offer equaled nothing more or less than a $55.00 reduction on my 1st mortgage's monthly payment. How is this helpful or sensical?? Somehow, BOA doesn't seem to recognize my second mortgage payment (80/20 mortgage) as a monthly cost/debt/liability. Rather interesting/convenient...

The bottom line here is that I'm not looking for a loophole, sympathy, or anything related to such nonsense I am also not "sniveling".
What I am looking for is some friendly advice on how to honor my commitment to the lender in these difficult financial times. My children and I have roots in that house and that neighborhood; something I don't plan on changing anytime soon, and that I am willing to fight for. Unfortunately this requires some understanding and willingness to compromise (ever so slightly) on the part of the lender. Given the current state of the real estate market, am I asking for a lot here? Not really.

Maybe it's time to take up a new hobby, Moralizers, in place of scouring forum websites to validate your so-called self-worth. Not necessarily an effective use of one's time, IMHO.

Pay no attention to the moralizers here, it's your life and what we think has no value except where it can help you. I wish you well.

Spoken like a real American! If the house goes up keep it and extract equity...if it goes down screw the banks (that really means everyone else). And to think people wonder why the culture has gone to s..t!

I bet you would be a natural on a date or in the drittel reich.

Have you had your motgage checked for fraud? Go to www.livinglies.wordpress.com. Do not pay the bank any money unless you are sure there is no fraud. BOA cannot be trusted and neither can Freddie Mac. Many people are suing and winning title to their homes because of the fraud. Do not sign anything unless you have discussed it with a knowledgeable lawyer. We have lived in our home for 2 years without paying any mortgage because our mortgage is full of fraud. We were put through 7 "fake" foreclosures. The lawyers trying to foreclose on us are being investigated for fraud. Study. Study. Study! Good luck!

I'm not interested in screwing the bank or anyone else. Correct mem if I'm wrong, but with a home loan mod (which is ultimately my goal, but somehow doesn't seem likely based on my dealings with BOA so far) the financed amount doesn't change, the terms are just extended or 'stretched' i.e. a 30yr loan becomes a 40 yr loan, resulting in lower monhly payments. Have I been misinformed?

Have you received a notice of default yet? If not, you've got several months ahead of you. First thing is to ask for a loan modification, perferably under the HAMP program. If you don't qualify for HAMP, ask for an in-house modification.

While you are doing that, make an application for arrears assistance from Keep Your Home California. That is good for up to $15K. There is also an unemployment assistance program that will pay your mortgage for 6 months. Hurry though, before program funds are exhuasted.

Most important, keep in touch with the trustee. Bank will tell you one thing, but it's the trustee that controlls the sale.

Good Luck.

todd5704 says

the terms are just extended or 'stretched' i.e. a 30yr loan becomes a 40 yr loan, resulting in lower monhly payments. Have I been misinformed?

You are correct. The interest rate and the term are adjusted until your total payment (PITI) is 31% of your gross income, and the back end ratio is around 43%.

You will almost always get the 3 month "trial" modification, but then get blown out on the conversion to a "permanent" mod. Best to have a back up plan.

todd5704 says

-applied for Making Home Affordable Program, with a less than favorable reply from BOA. Their offer equaled nothing more or less than a $55.00 reduction on my 1st mortgage's monthly payment. How is this helpful or sensical??

I assume they also rolled the arrears back into the loan, allowing it to be reinstated, no?

-Somehow, BOA doesn't seem to recognize my second mortgage payment (80/20 mortgage) as a monthly cost/debt/liability. Rather interesting/convenient...

Did you apply for a second lien modification after the 1st was approved?

You've got some options, but also a fair amount of work to do.

how much do you own on your loan? Is it even worth saving at this point, or you are better off strategically defaulting and living there for 2 years rent free saving for the downpayment?

Nor bank nor taxpayers owe you a house, if you can't afford something you don't buy it. It's that simple.