Mortgage Forum

SuzieQ

I found this website a few months ago and am glad its around as I saw the writing on the wall for me coming to an end sooner than I thought. I will keep it short and sweet: I live in California. I got into a 3 year adjustable 3 years ago with the hopes of locking into a fixed when my credit got better. Wife and I had credit scores of mid 600's so we were not top tier according to the Lien Holders but we were told that within 3 years, we could refinance into a good rate since wer paid off our credit card debt that amounted to 80K. 1st with countrywide was 6.25% $468,000 2nd with HSBC (heloc) 12.1% $115,000 All credit paid off, credit score for her in low 700's and 780+ for me. Never missed a mortgage payment or been late, EVER. CW went to 7.5% this past January which made things real tight ($1000.00 extra a month), I called CW and they informed me that I could not refinance because I was at 95% LTV back then(2005) and now upside down by about 80K, if not more. They told me to pay the piper so to speak that they could do nothing. I get a notice last week that its readjusting to 8.75% July 1st of this year and I can't believe it, it will readjust every six months .75% to max 13.1%. Of course the loan guys either don't tell you or steer you away from the reallities. I can hardly afford what I have now and I am self employed and my business is directly related to the real estate market which has fallen as my business has taken a hit. I have taken about $8,000 our of savings already to cover the payments and don't have much left. I told the wife that a modification is our last hope or we are prepared to start all over again. I unfortunately do not have the time to put into this what it takes so I filled out the loan modification service form and the *Rosenbach Law Firm *contacted me and I hired them April 18,2008. They began a loan document review which was supposed to be completed week before last but I have not heard anything. I am not in desperation mode quite yet but I do not have the money for this increase in July. No QWR or anything has been sent yet to my knowledge and I see just how long this can take (2-4 months). I want to retain my credit score if possible but I cannot deplete my savings anymore. JS