Mortgage Forum

Joel Fraser

Hi all, I've got a question about my mortage. We own (live in) a house on the Missouri side of Kansas City with a first and a second mortgage. The first is an ARM and the second is fixed, they are both held by HSBC which purchased them from the original lendor. The ARM is due to reset in May 2009 and will raise my payment about $850 a month which we can't afford. Here's the (big) problem, we owe about $350,000 on both mortgages ($305,000 on the 1st and $45,000 on the 2nd) but our house will only appraise for $310,000 maybe $320,000. Our combined income is $100,000 a year (salaried) and our credit score hovers around 750 with all the reporting agencies. I've got about $5,000 in cash and another $12,000 in a CD that is set aside for my son's college. In over 12 years of credit history we have had no judgements, bankruptcies, foreclosures, collections, back child support, tax liens nor have we ever had a late payment on anything. We pay about $700 a month in credit payments and $550 for 2 vehicles. What are my options for getting out of this mess? I only want to refi to get out of the ARM, I have no intentions of trying to skirt what we owe. Thanks for any help!