Mortgage Forum

Joel Fraser

Hi all.. I'm so glad to have found this website.. Not only for my family but for the thousands of hard working folks out there needing guidance and support in this horrible housing crisis... Sometimes just getting postive feedback, helps you get thru the day, ya know!!! Anyways, my story is alittle different but is ending the same as most.(unfortunately). So I'm looking for some advice if there is any to give in this situation. We have a house in VA. We had one of those funky 80/20 loans interest only With a 3yr arm. Of course from before purchasing the house I was against that type of loan but there was no other way to get approved for a home loan and at that time rent was almost as outrageous as a mortgage payment so we took the purchase of $399,000... (stupid us!) Not to mention everyone kept saying "buy stop renting your throwing your money away, blah, blah!!!. I feel even more stupid... We have excellent credit and very good paying jobs and I was still shocked, 1. we could barely afford anything in that area or the surrounding states.. (Thanks to the housing inflation crap.. they took it too far...) and 2 we could not get decent lending options.. it was crazy.. Well fast forward 3 yrs.. Well just short of 3 yrs. my husband had to transfer to TX. So we tried weighing our options. 1. prolong move until house sells, 2. one stays in VA and the other in TX until house sells, or 3 just go thru w/the move and put the house on the market for rent or sale which ever comes first.. Well seeing as almost 10 houses in my neighborhood where up for foreclosure or just weren't selling we decide on option 3.. Which was painful but seemed to have worked out for the best.. Anyways, to make a already long story shorter.. We tried renting it but our renters walked out after 3 months w/o paying.. So we tried the selling again. Finally we got an offer after 6months... Which we were so relived becuase just 4 months back our mortgage adjusted to a crazy amount and we were barely able to manage both households.. But w/gods grace we made it.. (somehow) So to some up to this point we have never missed a payment on any of our debt.. not on our mortgage, utlitlies or credit.. Never.. not once.. But of course because of the housing crisis our house is now worth crap.. So we have no choice but to request a short sale for $280,000.. We find a buyer and he's willing to wait out the approval process since he has a place.. Everything is great.. Well of couse our lenders (National City, both) decide to take their sweet time almost 2 months to approve everything and now we got to closing... BUT our second loan notifies us (vebally) that they will approve our short sale but will not forgive the debt.. I know I should be happy at this point and grateful things have been okay. They require 3K upfront at closing and also come up w/$1400 for closing costs... What.. But I don't understand approving the short sale, selling the house for more than what other in my neighborhood are going for (most are in the high $100's, were luck we got $280) AND still having to pay this lender for almost $80,000 for a house that is not mine.. *Are there any options our there to fight the second lender.. Our what should we do???* LIke I said we have never defaulted or late on anything ever.. We wont' be buying anything soon thanks to this fiasco but how can we get out of this second HELOC crap that the mortgage company is sticking us with.. I know its because we have a good record that they think we'll bend and pay.. But I'm so tired of being takin advantage and being the good ones over these monster that are scewing the economy... UGh!!!! :mad: