Mortgage Forum

Joel Fraser

My husband and I dumped our life savings into our first home last year. Because we had average credit (from our college days) we went with First Franklin in a sub prime loan at 8.75% 2 year ARM with a 2 year prepayment penalty (planning to perfect our credit and refi after the 2 year period). I was the primary wage earner when we qualified for the loan. I was a LO for APEX Financial, who shut their doors months after we purchased our property, so I am now struggling to earn any income at all and my husband has to work day and night to make our payments. We are struggling to make our $4K payment every month, plus bills, etc. Our 10K credit card is at 11,800... beyond it's max. Our home value has come down significantly to where we are upside down. My concern is that when the loan adjusts, we will not be able to refinance and will lose our new home (and the 80K life savings) that we dumped into the down payment and improvements, plus the $4K per month that we have been struggling to make just to pay the interest on our loan. I wonder if there is anything we can do to get our lender to lock us in and lower the payment or rate to even a 7.75%?