Unsolicited Modification

[justbroke]

For background, I asked for a modification prior to filing for Bankruptcy. The foreclosure sale was scheduled on a Monday and I didn't here from them by the Wednesday before, so I filed my Chapter 13 on that Wednesday. Wouldn't you know it, the next day I called about the mod and they indicated that they had approved it, but since I filed bankruptcy, they rescinded it!!!

So today, I called them to see if I could get a modification package sent to me so that I could attempt a modification again. The rep tells me "Oh, we just mailed you one yesterday". Nice! They were already thinking of me! Perhaps it's because they just escrowed all my taxes and I think they paid some (back) taxes they weren't supposed to. Anyhow, it's nice to see a bank actually taking active interest.

I'm telling you anyhow, I was thinking of surrendering, but if they will modify it... I might just keep it! Especially with the lien strip, I'm only about 5% underwater.

[DeadManCrawling]

Hi JB,

Good news, possibly. Think hard about other expenses associated with the home, though. We were offered 65k principal reduction and a zero interest 5 year term. But, our maintenance and utility costs were exceeding 3k per month. It made more sense to walk, for us.

Not saying that is the case with you, but be careful to account for peripheral expenses that could eat you alive in the next few years.

Best, and hope this works out however you need,

-dmc

[justbroke]

Yes, debt service on property taxes and insurance alone would make most people cringe (over $1,500/month). Electricity tops $850/month in the summer. So... yeah... it does have its issues.

I'm considering all factors. They would really need to give me a good deal.

[NoMoreCards]

You are right JB, that tax bill and electricity bill makes me cringe!

Best of luck in whatever you decide with the house.

It sure does figure how ironic things are sometimes. I swear the "powers that be" have a sense of humor sometimes!

[frogger]

Yes, debt service on property taxes and insurance alone would make most people cringe (over $1,500/month). Electricity tops $850/month in the summer.

I'm sure you'll do what is best for you, but I cringe hard over that $1500.00 per month fixed expense that doesn't even cover the house payment. I just don't want that much house anymore.

[AngelinaCatHub]

Yes, debt service on property taxes and insurance alone would make most people cringe (over $1,500/month). Electricity tops $850/month in the summer. So... yeah... it does have its issues.

I'm considering all factors. They would really need to give me a good deal.

Hey, JB:

We talked before about as well as what DMC said in his fantastic write up, about the future "super-glut" of houses about to occur. I would look right now about how the current market has hit the fan, and once those "phantom foreclosures" (as DMC brought out) hit, you may be able to get a house for pennies on today's dollars. I certainly would not confirm a mortgage now, but of course, you are closer to your own situation. 'hub

[justbroke]

Thanks 'Hub, frogger, and NoMoreCards. My chief problem with this place is actually the taxes and insurance! The house payment I could handle without any issue at all. however, the non-mortgage expenses are almost as much as the mortgage payment. (Yes, no kidding.) I mean, 3 years ago, I was affording this home as well as my vacation (turned rental) home and carrying cc debt without problems. Then a reduction in income and a (new) family/marriage changed my... demographic, so to speak.

I'm with 'Hub on this and perhaps just waiting out the market and finding a place without taxes at $1K/month. It's not even that much house, really. It's not a McMansion and is on less than an 8,000 square foot lot.

[forgotten]

It's not a McMansion and is on less than an 8,000 square foot lot.

If its not a McMansion then its not worth $1500 in property tax/insurance and $850 in electric.

[justbroke]

If its not a McMansion then its not worth $1500 in property tax/insurance and $850 in electric.

I agree.

In November, I determined that about $500/month is directly consumed by air conditioning units. Since I work at home and have a "computer" room as well, I keep the temp at 78F in the house. Yes, even at 78F, the bill is that high. I think electricity in Florida is just expensive anyhow.

[DeadManCrawling]

Very true. Our AC bill in the Tampa area ran over $ 1k per month in the summer. Very glad to be out of that albatross. I work at home, too, and this probably contributes, but the place had 22' ceilings in some areas. That is a LOT of cubic air space to heat and cool, and for zero benefit.

Good luck with your decision on this.

best,

-dmc

[justbroke]

DMC, I live in the same area. My great room is 22' (as well as my foyer). Great room is 20'x20' and has 6 (standard) windows (but with just glass) up top and 6 windows plus a door at the bottom (but they all have "window treatments". I know I'm cooling a lot of unused space. I just have no other way to keep it cool. You must have your thermostat set lower than mine!

(BTW, congratulations on becoming a Guru!)