“Dear Steve,
Upside down with home of more than $130,000 in Florida. Two loans, second being a HELOC at time purchase to avoid original PMI with Countrywide. BOA bought Countrywide and then sold second to Greentree. 30-year interest only at 6.625 on first and 8.125 on second. BOA will not work with with me as DTI is approximately 21%. This is not a retirement home and will take at least 15 years of consistent growth to break even. I am current and always have been. This is especially concerning as I had $13,000 in out of pocket medical I paid in 2011 for a sick child.
What are my options, if any, other than a short sale scenaro?
Scott”
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The Answer
Dear Scott,
Do you want the long slog answer or the deal with it all now and start over solution?
If your child is still sick then it might make a difference in what ultimate solution to pick.
But from what you shared, it seems like the mortgage, and especially since one or both are interest only notes, just don’t make logical sense at this particular point in time.
What is the value of your home, your first mortgage and your second mortgage?
Please post your responses and follow-up messages to me on this in the comments section below.
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Mortgage Debt
Response to my inquiry was thoughtful and prompt. In reviewing several other recommendations and posts, it is apparent consideration is given to the individual circumstances, rather than providing a boiler plate response to people who are often desperate, but deserving of consideration.
