Easy Home Equity Loan

We have negative equity in our current home, so we aren’t able to sell it anytime soon. We are trying to rent our current home in hopes of purchasing a new home (with better terms) closer to work (I have an hour and a half commute one way!).

Here’s the problem: 30% negative equity, so I don’t think we qualify for another mortgage, especially since the second mortgage, when combined with the first, would consume 65% of total monthly income.

No car payments, no credit card payments, nothing…flawless credit 800+ beacon.

Could we, therefore, qualify for a VA loan (I have the pre-qualification from VA already) for a new primary residence? I think it’s an FHA requirement (the 30% equity or have a rental agreement and a bunch of other documentation) that prohibits another loan when the first is an underwater rental, but wondering if the VA loan route is an exemption to this policy.

In short, would a mortgage company be able to make a VA loan happen (though not required, I would also put 10%+ down and find a house being sold under appraisal), although I currently have another mortgage underwater and the two mortgages together would put me at 65% of gross monthly income?

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Ok we finally closed on our short sale this past January after a full year of torture from our second mortgage company Greentree. I have heard a lot of horrible things about them and that they are notorious for preying on the elderly and getting them kicked out of thier home. They bought our second mortgage so we didn’t really have a choice about it. So after 9 months of peace and quiet and trying to get our lives back together I get a phone call out of the blue yesterday from them requesting the balance of the mortgage. I was under the impression that they had settled for 3k out of 30k. Since they were not really supposed to get anything, due to the 100 that our first mortage Citi lost. So the guy was really nasty on the phone when I told him we were not able to pay. He asked if that was a refusal pay and I said I guess so since we don’t have any money. He then said fine then I can release this to claims or court or for lilitigation or something? I was panicked because we have a 16 month old and another 55k loan to pay off. So I called my realtor and he said don’t worry about it. That they are just using strong arm tactics and can’t actually do anything about it. Is this true? Can they take us to court and make us pay back the loan partial or full? Or are they trying to scare us into coughing up what we don’t have?
Thankyou so much for the answers so far. Unfortunately I didn’t really understand all of this while going through it. It was a very hectic year for us with moving from Florida to nj then to Pa. My husband came up first an I was packing up the house with our 6 month old, so when were near our realtor I was a little preoccupied the in January when we signed the final closing packet we were told to call with questions and had literally about two hours to sign it and drop it back in the mail to get back to fl intime for closing. We were so thrilled to be done with it that I guess it’s what we get.

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My wife and I are going to be filing for bankruptcy but our mortgage company has a "give it back to the bank" program that keeps them from foreclosing and they waive the right to sue us for any shortcomings once they sell.
The problem is that this mortgage company is the only one who has a deed on the property according to the county, but we have a second mortgage (or so we thought). The second mortgage was sold to another company and they never filed the paperwork with the county.
The question becomes if we can "give it back to the bank" without the second company staking a claim to the property?

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My wife and I are looking at all options for us to somehow refinance or adjust an upside down mortgage on our home here in California. We love our home & neighbors and would like to stay in it.

Ive read too many stories where people have spent thousands of dollars with lawyers, only to lose their money becuase nothing happens in the long run (KFI-640am in Los Angeles has one shady advertiser with a D- rating on BBB).

Ive done a bunch of research… there doesnt seem like too many options out there besides going directly to my mortgage company and pleading for help. Which through phone calls have said they arent interested in helping us "at this time".

The "Obama Plan" doesnt cover my situation since my mortgage is upside down too much.

Lastly, the HOPE program reduces the loan amount to the current house value, then does a refi, but also requires the home owner to give up 50% of any future equity in the house. The governments website of the HOPE program does not have much information on it. One glaring question I have that no one can seem to answer is: What if we pay off our loan within 30 years… do I still owe the government 50% equity after I pay off the loan (and if I sell the house)?

Does anyone have any good info about the HOPE program or any other options available to me? Any info would be greatly appreciated, thanks!
Ryan… do you want to know why I’m looking into this? BECAUSE I CAN ! Because the stupid politicians made these programs. The same stupid politicians that raped our country and gave all of our money to the Feds, to the Chinese, and to everyone else. The same idiots that nationalized our private companies.
So if we never sell, we never give up any earned equity?

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Sorry i have asked this question before, account trouble I am asking this in a diffrent account.

About three years ago we refinance our home, and took some cash out to pay bills mainly student loans. Sounded like a good deal at that time, well it was one of those inflating rates.. we tried to refinance and found out that we owed allot more then the place was worth. We talked to a realtor and he advise that the way over inflated the value of condo. We hired on attorney and discovered they forged the value and our income. He gave them the opportunity to refinance our home at todays value or else court time, plus but the interest charges towards the equity of the home. The mortgage company did that with out any question, they told us they will "eat the difference" this was about 56k they "ate". There was no discussion of tax during this. Will we get at W-2 for this, how ugly will it be during tax time. The lawyer fee was 5k for this. We live in Ca.

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I owe 70,500k on my first mortgage and 35,5k on my second mortgage.My friends are telling me not to pay my second mortgage because the company will not pay off the first mortgage to seize the property because it would cost too much with the whole tanking housing market. Is this true. What could happen if I stop paying the second? Will the second mortgage company pay 70,500 and eat the 35k to foreclose on my house? I am very leery about this! My friends said they did it and it worked. I just don’t know what to do. I already work two jobs and the bills are a DAILY struggle!

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I had 2 mortgages, 80/20, with one company.. I am current on the first, but defaulted on the second and the mortgage company had their own PMI on the second.. They filed a claim for it and the mortgage company was paid of, they actually sold it to AIG United Guaranty. They are calling me saying that they are going to foreclose on the property.. I owe the ,000. The first mortage is ,000 what will happen? How can they foreclose for 18 when I still owe 70?
I understand the second mortgage can foreclose the property, I stated that.. What I want to know is how common is it to foreclose for 18000 when 70000 is still owed. Doesn’t the 1st mortgage have priority?

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times have been tough as a single mom so I re fied for the 3rd time in 2005 I didn’t use my regular broker she was so busy she told me to just call my mortgage company and they should take care of me, well they sure did I got a sub prime loan, I have had been a home owner with 4 different homes since 1974, I had variable rate each time with no problems, sub prime was not even on the map for me until this last loan they fooled me with.. so I was really confused when it turned into a MESS and I was losing 620.00 per month off my equity!! I remember I had a clause that I can get a fixed rate from 2007-2012 for only 200.00 but when I called they gave me some OUTRAGEOUS interest rate not the going rate they said its not a new refi so its more I was so MAD! THEY lied to me about that too. FED UP I heard the rate went down called my broker left a message I NEED A FIX LOW rate NOW my company is being WRONG.. I called my company asking for a pay off price so I know how much to refi my for, they were like, so your getting a refi? I said yes and you all give me the run around with my fixed option I am leaving, I WAS SHOCKED they offer me a 4.74 fixed rate right then and there!! CAN YOU BELIEVE IT? for only a 200.00 fee I got so damn lucky I wanted to put this out there in case i can help anyone else.. call for a pay off price and shake them UP!! GOOD LUCK TO ALL!!!

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