JB 007 asked:


A friend tells me to just foreclose … but I want to keep a roof over my head … All my earnings are going into the home, there is no savings and I just lost my job!

Lynn

Skye asked:


Here is my situation. I own my home and have a home equity loan that I assumed after my divorce. I owe $133,000 on my mortgage, plus $20,000 in a home equity loan that my ex took out and I had to assume in order to keep the home. My sons have bled me dry financially over the last 4 years, have had a car I bought for my son repossessed last year becuz he wasn’t making the payments and the car was in my name. I put my house on the market last week becuz my I want to start a new life with my bf who recently took a job transfer to Dallas Texas. I just found out last night that my mortgage company has hired an attorney to collect on my home and also was informed that on January 7th my home will be put on auction for what is called a fire sale! I am close to two months behind on my payments, and nobody has ever called me. I’m not sure what to do here. Do I walk away? Do I fight? What about the 20,000 home equity loan? Thanks to anyone who takes the time to answer this.

Monica

Kenetik30 asked:


my girlfriend has a condo in los angeles which is worth 300K. She tried to start a business and quit her job 2 years ago. well suffice to say the business is and was not going too well so she went out and got a home equity loan of 50K. She squandered that money and got 25K line of credit. Mind you she doesn’t have any income (REAL JOB) coming in except some money coming from her business and her credit lines.
I just found out she has an ARM mortgage on her condo which she was paying interest only and now it’s about to go up to 2500 dollars a month. She finally got off of her but and got a real job paying pretty well for L.A. and She decides to rent out the place and move in with a friend to help pay for mortgage, line of credit, and equity loan because she is upside down on the property. Now that she has a tenant in her condo, she is now trying to buy a foreclosed house with her friend. Is this possible with all the mortgage dept she has? She has only been working for 2 1/2 months.
side note:
she has a credit score of 801.

she pays all of her bills on time and in full.

she was late a couple of times on her line of credit loan.

Is this legal? Can this be done?

Shannon

Box asked:


I will try to make this short, it is complicated. We own 2 commerical buildings, and our home. We have been trying to pay down credit cards for 4 years now with Consumer Credit Counselors. Well economy is terrible, lost my job, and have taken a huge pay cut at my new one. We just quit paying on 3 of our 6 cards, so our credit will be bad. We have never missed a mortgage payment of any kind ever. Our adjustable rate home equity just doubled in monthly payment, and we can only see doom. We have a lot of equity in our commercial buildings with an SBA loan, but would not like to touch that now, (with our credit we probably couldn’t). We are going under, and will not declare bankruptcy for many reasons, just can’t. How can we get our cash flow better with bad credit? Can we talk anyone into combining our two mortgages? (our first is fixed with a great rate). We need help fast! What can we do?

JOHNATHAN

Rolleen asked:


My daughter and son-in-law and two small children moved to the US from Italy and have been living with my husband and me for the past 7 months. They want to buy a house, have $75,000 in cash to put down and I recently took out a second mortgage (fixed 15 year 6% home equity loan) for $160,000 to loan to them interest free so they can buy a house with cash for $235,000. But my husband and others are telling me it may get complicated with the IRS, etc.

We planned to have papers drawn up, like a promissory note, saying that they would make the monthly payments on the $160,000 loan that is under my name. And if they should die or move before the loan is paid off, the money from the sale of the house would go to pay off the $160,000 loan. Do I need to charge interest for them? They are actually going to be paying off the loan that is under my name and already has 6% interest being paid. Is the fact that it is over $100,000 going to be a problem with the IRS and interest-free loan’s to family? It’s not a gift because they are paying it off.

It’s all very confusing and I don’t want to get stuck with a big gift tax or imaginary interest tax or worse yet, get in trouble. Do I need a lawyer or can we just get a Quicken Lawyer software Promissory note and be okay? I trust my daughter and son-in-law to pay this loan that’s in my name. It’s just been hard for them to get a loan right now because of the requirements for 2 years residency, 2 years at one job and 2 years credit in US. Price of houses are down and I want them to be able to buy one now.

TYRONE

Chris G asked:


I had a business failure that caused a personal chapter 7 bankruptcy which was discharged in April of 2007. I currently have a tax lien on the home due to some IRS penalties, interest and taxes owed from the business. I’d like to get a home equity loan to pay off this debt as well as a credit card.

Our current mortgage is at 229,000.00 and the home is valued at approximately 380,000.00 and might be worth more. I need to get 75,000.00 to pay off all debts. I qualify for an FHA mortgage, but due to county limits I can only receive 281,250.00 which still leaves me 35,000 short of paying everything off.

Should I get the FHA mortgage and try to find a small home equity loan, or is there anyone that can deal with a larger home equity loan to pay this off. My credit scores rank between 637 and 661, my wife is between 682 and 704. I currently have a great job that I’ve had for 4 years and make over 80,000.00/year.

Please help.

Thanks.

CLEO

rubie00 asked:


When my house was worth something a few years ago I paid of an existing mortgage with a 30year fixed home equity loan. I also took out a small home equity loan for improvements. I had a ton of equity but now i don’t. House has been on market for 3 years since getting divorced and no offers. I have it priced well below what i owe but still cant lower it enough(don’t have enough money to pay the difference) My ex-husband lost his job so he’s unable to pay his portion on the vacant house. Can I do a deed in lieu of foreclosure on home equity loans? Is there a way to prevent oweing after foreclosure?
1) if it’s a first lien on the property by virtue of paying off the original mortgage, yes it can.
yes it is first lien

(2) Deed in lieu would be up to your lender; and you might still owe the difference between sale price and fees and what you owe.
which is why i’m giving my house back because i can’t come up with the difference of what i owe, what the house is worth and what i can sell it for. I owe 203k and its listed for 170k which after commission and fees i would need 40k to pay off loan. However, that would be that i actually got an offer. For the house to sale it needs to be listed around 159k

CLAIR

OP-lo asked:


I currently have a stash of cash in a money market earning 3.61% APY. I also have a home improvement project set to start later this month. I have enough cash to cover about 40% of the project. I also have a line of credit locked to prime, currently 5.25%. Should I take some of the cash to max out my Roth IRA and thus borrow that much more against the house assuming investments will earn 8% over time - or - should I minimize my home equity debt in the short term. My job situation is good but not great. I am also putting away 5% of my paycheck monthly into a Roth 401K. I have also considered the fact that I could refinance the equity loan into a new 30 yr mortgage after the project. The downside there is that I am currently at 5.25% 5 years in to a 30 yr mortgage. Thanks for your input.
FYI - even if I used 100% of my equity line, I would still have over 100K in equity on my home. I live just west of Chicago. Our housing market here has slowed but notthing like the devaluations of Florida or the west coast.

JARVIS