Thursday, December 3, 2009

Turned down by the bank

Well, I figured it was a long shot. After four months, the bank finally made their decision about modifying our mortgage. No. It appears that we, A) technically don't make enough money to pay our mortgage, therefor they won't lower our payments (please explain that one), and B) despite the fact we "don't earn enough" have managed to make the mortgage payment every month, which means we don't qualify for assistance because we're not behind on our payments.

So if we stopped paying our mortgage, would they modify our loan?

I keep hearing so-called industry experts saying things like "talk to your bank before you get in trouble with your mortgage." Yeah, did that. Now what? They aren't interested in talking to anyone, and the programs that exist only help people with jobs, not people who are unemployed, or people who have those crazy, ballooning mortgages who can't afford the current payment. We were smart enough to stay clear of those, instead buying a house we could afford and locking in a good mortgage rate. It's always been a tight budget, but if we were working, we could afford our house. And we can't sell. The prevailing rent around here is the same as our mortgage, so why lose our investment and sell the house?

A friend said we should try again because banks are probably like Social Security: they always turn you down for benefits the first time. I supposed there's no harm in trying, but I won't hold my breath.


Terri said...

So frustrating. Trying again sounds worth it.

Mother of Chaos said...

Gah. Do try again - the banks themselves don't REALLY know what the answer is supposed to be.

It's a rotten hole to be in, though. Oh, I'm sorry, you were responsible when you took the loan, didn't get all equity-crazy in the meantime and have been managing to keep it together through the worst recession we've seen in generations? That means you don't qualify for any help! We only help people who were stupid, irresponsible and who have been blowing us off for months - with bonus points if we KNOW we aren't going to get anything LIKE what they owe on the house when we foreclose!

My word verification is 'mallit.' Maybe you need one?!

Elizabeth said...

Ugh. I've been trying to get some lower interest rates on credit cards, and despite a decent credit rating and never being late on paying minimum payments, the credit card companies are raising our rate to 29.9%! I think it's because the laws are changing early next year and they're really trying to ream even their "best" customers. The whole financial system is so cockamamie. It's like they almost want you to default. I hope you get this figured out -- maybe you should try a mortgage broker? I'm so sorry -- I know how stressful this all is...

leah said...

It just boggles the mind. Don't they realize they would be better off with getting a lower mortgage payment than NO mortgage payment? The financial system is a mess.

I have my fingers crossed that a second try will work. This economy just sucks.