Internet's first get-out-of-debt community - 134,000 members

I have an Arm...going up on 6/1 to 9.65. I can afford my current payment that is a 7.99 rate but the 300 increase next month will basically not allow me to eat...just pay bills and buy gas to get to work. I tried to get Countrywide to freeze my rate...laying out everything but they declined. I tried a refinance thru my credit union but the appraisal came back 195k vs the 208k I owe. Two years ago...the broker I got the loan thru had my home appraised at 245k. I know it has not decreased this much...and I can' afford to keep trying to get an appraisal that will come up with the magic number allowing me to refinance. The appraisal two years ago probably was too high...they the broker was very aggressive in saying they are helping me and that I could just refinance before the rate increased. Obviously I can't do this. I love my home and did contact this company called Debt Advocacy Center. They believe they can help...but can't help me until I am behind on my payments. I have never been late on my mortgage...but next month I have no choice to either just pay 2-300 less or nothing. I can't afford the total payment.

Should I stop paying the mortgage...will the mortgage company even care to listen again. Has anyone had this Debt Advocacy Center help them or anyone like them? I don't want to lose my home...and I can afford the old payment but are these mortgage companies so greedy that they don't care.

I am going to one of these NACA seminars on Saturday, 5/31 and maybe will get some help / advice there. I hate this having no plan or answers...stress is tearing me up.

Appreciate any advice or help...

Posted: Tue May 27, 2008 11:33 am Subject:

Did you use a realtor when you bought your home? If you feel the house may appraise for a higher amount than the first appraisal but don't want to waste any more money to find out you could contact your realtor you worked with and have them give you their honest opinion as to what they think your house could appraise for. This would give you a good idea as to whether or not its worth trying again.

A lot of people will think I'm crazy saying this but if you have a 401K or retirement plan that you can borrow against you really might want to consider doing that to pay your balance down to an amount that you can refinance. Heck I'm sure your probably not earning more then 9.65% on that. Most people have actually lost a lot of money on their retirement this past year.

You might also try some other desperate measures like trading in your vehicle if you have a high payment on it or even refinancing it to a longer loan to make your payments smaller. You could even investigate what vehicles would be cheaper to insure.

Just a few ideas. I hope they help and best of luck to you. Maybe someone else will come along with some more advice for you.

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Internet's first get-out-of-debt community - 134,000 members

Will be late on my mortgage 6/1...arm is increasing..help...

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