Mortgage Forum

Mike

Well, I feel stupid for being in this situation in the first place...but here goes. We bought our home in June of 2005. At that time our mortgage broker told us it was a 3 year interest only and that there would "be NO problem" refinancing at the end of the 3 years into a traditional fixed loan. Fast forward to January 2008...My husband takes a substantial pay cut and we decide to be proactive and call Litton. They tell us that they will look at our file and let us know in 60 days what they can do. Two weeks later I take a serious pay cut as well. At this point we call 955Hope. We realize after looking at our paperwork from closing we have a 3 year interest only that morphs into a 27 year arm...AGGHHHHH. I also found that the papers say on the application for the 2nd that we had never been subject to a bk, but we had, so that is a lie. We are pretty sure, as we remember it we signed a blank application. (YES, it was STUPID), but this was the lender that was in the office at the showhomes, and of course we thought we could trust him.The payment will go up $414 on July 1st, we will sink. They try and help, but it does nothing in the end because Litton told them the same 60 day runaround. By Feb, we realize that we are going to have trouble making our mortgage payment, so we again call the 1st (Litton) and the 2nd (GMAC) and explain the situation and ask for a loan mod or a principle writedown. The 1st says we can't help until you are behind, the 2nd says, no can do sorry. It is now April, we call Litton again and they say sorry, we know you are behind, but you have to be current before we can help you. I just received a letter yesterday saying that we are 60 days late and that 45 days from now, Litton will call the loan due in full immediately and that they will file foreclosure. We have been in a financial class since Feb 08 and are trying to make things work, but they aren't. We are looking for suggestions, as letting it go and rent is looking better by the minute. We don't want to lose the house, but we won't lose our lives trying to keep afloat with a company that will not work with us. We simply can't afford $2000.00 housepayments. We would NEVER have signed the papers to buy the house if we had known...but we didn't.