Mortgage Forum

Joel Fraser

My husband & I bought our house a little over two yrs ago with an 80% and a 20% adjustable mortgage. At that time the house appraised for $250-, and the purchase price of the house was $189-. About 6 mos. later a mortgage broker called & said he could cash us out so we could pay off credit card debt....so we agreed. At that time the house appraised for $239. He said that first we had to combine the 2 loans into 1, which we would get very little if any money for, but then he coudl get us another loan for approx. $25,000. Well, he did manage to get us the first loan,but we had to pay a prepayment penalty and about $9000 in closing costs. It is an arm that is going to start adjusting in December. He never was able to get us a second loan (we did not benefit anything from the first loan). After months (approx.5mos) we finally settled with the company he worked for (they said he was an indept. contractor) for the amount of money they "made" on the loan, we were able to do this without any attorney (I think because they were very scare about complaints).But, now we have the arm coming due, and truthfully we don't fully understand even how it will work. But I do know the very first month my mortgage is going to go up at least $250, and it adjusts every 6 months.I called Washington Mutual since they sent us a letter reminding us of the arm coming due and ahtey sent me to loss mitigation ( I don't really know why since we have not missed a payment or been late on a payment) because I asked if we could restructure the loan. I am hoping that even if the interest rate goes up some, we can chagne it to a fixed. The girl I spoke with gave me a fx number (but didn't tell me what to fax) and also said that I should call back in the end of July, since the loan "was not on her computer screen yet". I am very concerend after reading some of the posts that this is how it started out for other people as well (who did not have good outcomes) My Husband has good credit in the respect that he has only had 1 late payment his entire credit history, it was 31 days late on mortgage payment about 3 years ago. But his score is not very good ( I think about a 650) because of high balances. My credit is poor, I have been working on it for the last 3-4 years and have no late payments in that time, but I also have high balances, and some old collection accounts, most of which I have paid.So I am afraid that it would be difficult for us to refinance because of our credit and also, I also don't know if my house would appraise for enough.So I guess I am looking for some feedback on what to expect, what to do, and how soon to do it. Any advice, experience, help would greatly be appreciated. I made my first call 2 days ago and that was also the last time I slept!!!Thanks