Official Upside Down on My Mortgage Thread

[det2orl]

Oh, I thought you meant buy when you said this. I knew it couldn't be right though.

Yeah, I can see how that might have been a bit confusing. But of course the mortgage company wasn't going to buy something they already owned.

[mtdman]

Wow. They must have written the loan off since you were a late payer then hired a collection company to get anything out of it. Great deal for you. Pays to be a deadbeat in this country time and time again.

No I worked directly with the bank on the payoff. But they did 1099 me for the write off. There is some kind of tax write off for that 1099 right now through the end of 2012 so I didn't get hit on that either.

As they explained to me, they had to get rid of their bad mortgages, the underwater ones in areas of big housing value drops. It made more sense for them to do that than foreclosures on people who were paying but not current. Like I said, they didn't do a whole lot of those offers, and they told me not a lot of folks took them up on it.

What was I supposed to do? Turn it down out of some noble sentiment, or take an incredible legitimate offer to pay off my mortgage?

[phillyfan]

No I worked directly with the bank on the payoff. But they did 1099 me for the write off. There is some kind of tax write off for that 1099 right now through the end of 2012 so I didn't get hit on that either.

As they explained to me, they had to get rid of their bad mortgages, the underwater ones in areas of big housing value drops. It made more sense for them to do that than foreclosures on people who were paying but not current. Like I said, they didn't do a whole lot of those offers, and they told me not a lot of folks took them up on it.

What was I supposed to do? Turn it down out of some noble sentiment, or take an incredible legitimate offer to pay off my mortgage?

Oh not saying you shouldn't take it. It's just frustrating that there is an actual real incentive for people who can pay their mortgage to slow pay it and just wait for handouts from the gov't or whoever else. On top of that I bet almost all of our 401k balances got whacked because the mutual funds we invest in own the mortgages that are getting written off.

[det2orl]

So, I wanna try and refi. I get a bunch of offers in the mail with mentions of great rates. How can I find the legitimacy of such offers or should I just go to a local mortgage company and begin the process there?

[the King]

So, I wanna try and refi. I get a bunch of offers in the mail with mentions of great rates. How can I find the legitimacy of such offers or should I just go to a local mortgage company and begin the process there?

I would call whoever services/owns your loan. In some cases they are more likely to work with you because the loan is already with them.

[phillyfan]

So, I wanna try and refi. I get a bunch of offers in the mail with mentions of great rates. How can I find the legitimacy of such offers or should I just go to a local mortgage company and begin the process there?

If you aren't underwater, just call around and find the best rate and lowest closing costs. If you are underwater, I'd call your bank like king said.

[mtdman]

Oh not saying you shouldn't take it. It's just frustrating that there is an actual real incentive for people who can pay their mortgage to slow pay it and just wait for handouts from the gov't or whoever else. On top of that I bet almost all of our 401k balances got whacked because the mutual funds we invest in own the mortgages that are getting written off.

I think most of that has already happened pretty much as soon as the crisis happened. The dumping mortgages actually helped those funds by getting rid of the bad debt. It sucks, but it happens in business. I have customers that pay their bill on time and never miss a payment. Great customers. Every so often I get a deadbeat that doesn't pay me. It's easier for me to just write off a small unpaid balance than take them to court. So the deadbeat gets away with free service, while the great customer is forced to pay full price. It sucks, but what can I do? Spend more money than it's worth to chase down $100? Same thing for the banks.

[det2orl]

I would call whoever services/owns your loan. In some cases they are more likely to work with you because the loan is already with them.

Ok, will do.

If you aren't underwater, just call around and find the best rate and lowest closing costs. If you are underwater, I'd call your bank like king said.

Nope, I'm current.

[phillyfan]

Ok, will do.


Nope, I'm current.

Is the value of your house more than your mortgage balance? That's what I meant by underwater.

[det2orl]

Is the value of your house more than your mortgage balance? That's what I meant by underwater.

Oh, then like pretty much everyone else I'm under. 179k/162k

[sseelhoff]

I feel like such an idiot. I bought my house on a 15 year mortgage 7 years ago, and made additional pricipal payments as well. I've lost equity, meaning it's coming out of my pocket, not someone else's.

How stupid am I?