Mortgage dilemma....

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Joined: 03/16/15
Posts: 53852
Mortgage dilemma....

Dh and I have a split mortgage on our house. Our first mortgage is for $305,000 at 6.5% and our 2nd mortgage is for $82,000 at 10.5%. We have a 3 year prepayment penalty which would bring us out to October of 2008. We also took out a home equity loan for $30,000 at a rate of 11.5% or some ridiculously high rate like that but at the time we needed the $$. Unfortunately they did not do a complete appraisal, just a driveby. So I tried to refinance the mortgage in with the home equity loan about 2 months ago and had them come out to do an actual appraisal...well, now we owe about $30,000 MORE than what our house is worth. My question is what can we do about this besides coming up with the $$ to pay off the equity loan??? Is there anything??? We are paying $2800 on our first and 2nd mortgage and $388 on our equity loan right now and it is literally KILLING us!!!!

Joined: 03/16/15
Posts: 53852

Hi, I don't know what you can do ... can you rent it out for what you owe total in your loans?? If so maybe renting it out and renting a lower priced place would work...then put all the extra money into the principle.

Or maybe you could somehow find a way to increase the value of your home? (but pls dont take more loans out to do that lol)

Im sorry you're in such a pickle. I wish I knew the answer but no one responded and I wanted to just offer support Smile

Joined: 03/16/15
Posts: 53852

Thanks for the support:) It is much appreciated. My husband keeps telling me all will work out so....I'm forced into waiting to see:)

Joined: 03/16/15
Posts: 53852

Wow, that sounds a bit overwhelming, sorry you're going through this. My only thought was is there any way to find another source of income, maybe renting out a room or taking in exchange students?

Joined: 10/19/03
Posts: 2

This seems to be happening alot lately. I work for a Mortgage Broker in MD and we do loans for TN, MD, VA, PA, & DC..this seems to be a recurring problem...Unfortunately there isn't a whole lot that you can do except get a 2nd appraisal but that can be costly or try to find a lender that won't require an appraisal. If you live in one of the places that I named send me a PM:)