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Q: What is involved in a loan modification? Will it have an adverse affect on our credit? Has anyone been able to get a loan modification, either on or not on the government's new program?
Numbers: We bought our home for 359K in 2006, putting all the money we could down (about 145K). Our current mortgage amount owed is 231K. We tried to refinance twice and our home is now only appraised at 209K. We are too far underwater to be eligible for refinance even through the new government plan (which will allow you to refinance up to 105% of the value of your home, but we would need at least 110%). We have a student loan but no car loan and no credit card debt, just meager savings (less than one month emergency fund) that is dwindling. We are current on all our payments and have a good credit score.
Background on why we are coming up short: We were slammed last year with medical bills (despite insurance it adds up) when DH injured himself and had to undergo three surgeries. His "dependable county job" announced a few months ago (about a week after we found out that I'm pregnant) that they are no longer allowing any overtime (which was making our ends meet), reducing pay slightly, taking away holiday pay, increasing medical insurance cost to employees, and not giving any raises over the next three to five years due to a big county budget deficit (which makes my blood boil since they are literally cutting taxes for the wealthy who live there and then doing this to the people who serve them). My work is sort of freelance and they have given me much less than I had hoped over the past few months despite my requests and while I intend to get back to it very soon I am expecting a baby any day now. Oh and I finished my masters degree- hooray, oh wait- boo that means now we're stuck paying my student loans on top of all this.
Numbers: We bought our home for 359K in 2006, putting all the money we could down (about 145K). Our current mortgage amount owed is 231K. We tried to refinance twice and our home is now only appraised at 209K. We are too far underwater to be eligible for refinance even through the new government plan (which will allow you to refinance up to 105% of the value of your home, but we would need at least 110%). We have a student loan but no car loan and no credit card debt, just meager savings (less than one month emergency fund) that is dwindling. We are current on all our payments and have a good credit score.
Background on why we are coming up short: We were slammed last year with medical bills (despite insurance it adds up) when DH injured himself and had to undergo three surgeries. His "dependable county job" announced a few months ago (about a week after we found out that I'm pregnant) that they are no longer allowing any overtime (which was making our ends meet), reducing pay slightly, taking away holiday pay, increasing medical insurance cost to employees, and not giving any raises over the next three to five years due to a big county budget deficit (which makes my blood boil since they are literally cutting taxes for the wealthy who live there and then doing this to the people who serve them). My work is sort of freelance and they have given me much less than I had hoped over the past few months despite my requests and while I intend to get back to it very soon I am expecting a baby any day now. Oh and I finished my masters degree- hooray, oh wait- boo that means now we're stuck paying my student loans on top of all this.
