Lindsey wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
WE are in a house that has no equity. We owe 40,000 more than our house is worth. We are making our payments every month. We barley make it every month. My husband would like to go back to school but not possible because we dont have the money. My husbands boss said he is going to cut my husbands pay again in a couple months. We wont be able to make the payment if this happens.
I asked if my lender would Modify my loan. They said no they wouldn’t because its in a bond series. (What is a bond series) My lender said to just short sale. I dont want to loose my house. =( I
Lindsey”
The Answer:
Dear Lindsey,
Credit counselors have a special phrase for this situation, “you’re screwed.”
While you might not want to give up your house, even with a short sale, the prognosis for keeping it is not good.
I think you’ll have to come to terms with the situation and sell the house with a short sale or face an almost certain foreclosure in the next year.
Letting go is often the hardest thing to do. You search and search for options but sometimes there just are not any to be had.
No lender is required to modify a mortgage and yours might be especially hard since no specific underlying investor exists or can be located to agree to it.
