Wednesday, April 18, 2007

Bad Sign

My mortgage person is missing in action.

After the appraisal flap, I take no news as bad news.

None of you have any idea how much of a serious monkey wrench has been thrown in my personal financial plans.

I anticipate my monthly mortgage payments will go up another $300-$400 dollars a month until I can find a new deal.

While I’ve started working on another lender, I’m battening down the hatches to prepare for the upcoming storm.

I should be able to ride it through for a month or two but if it’s extended for a longer period, I'll be in trouble.

Additionally, the mortgage adjusts every six months so God only knows how high that bad boy will go.

I’ll tell you one thing---I have no intentions on finding out.

Let's all keep our fingers crossed.

1 comment:

The North Coast said...

I have a very good idea how much trouble you will be in. Most people could not tolerate a sudden increase of $400 a month or more in their expenses, even less than you. This is very, very scary.

I mean, you sound like you are reasonably sane and sober with your money. For example, you have sense enough to know you can't afford a car. Neither can most other people in the $30K-$60K bracket, but they buy them anyway and spend $500 or month or more, usually MUCH more, paying for them and the things they need, like parking, insurance, gas, whatever else. Many of these people also took mortgages for 4, 5, and even 6X their incomes to buy stuff for $200K or more.

So, you see, there are a lot of people in very, very bad trouble, as you can see from the current foreclosure stats, which are harrowing. A rather large percentage of them are so far underwater that all they can do is mail in the house keys and walk away. You don't want to do that.

Your mortgage firm is no doubt a passle of moneygrubbing sleazes and thieves, as they all are, but they don't want yet ANOTHER house put back in their faces- they already have enough bad paper. They might be getting desperate enough to "work out" your current mortgage. They need to keep you in your place and paying for the current mortgage.

See if your current lender will "work out" the present mortgage, to, say, a 40-year fixed, or will adjust the payments, or something. A refi to a conventional fixed may or may not be possible,but it would serve them to help you avoid foreclosure and you really need the headway.