So, this post may be a bummer, but I’m hoping that its more of an eye-opener for others that may be struggling with keeping their homes in this economy.
In June 2010, I decided that I could no longer afford my condo as I moved back in after a recent break-up. As I have a low-balance (because I bought my home at a low price), the high mortgage payment fluctuates from $872-$945 a month not including assessments. Thats mainly due to an embarrassingly high interest rate at 7.5%. Yes, friends. Do not rub your eyes, I wrote 7.5%. When interest rates across the country are at a all-time low (around 4.5% in some areas), I’m sitting pretty with a balance of $102,000 and a 7.5% interest rate. Rip my eyes out.
I stopped making payments and waited to see what my mortgage company had in store for me in terms of the foreclosure process. There are a lot of maintenance items that need to be done to the condo that I’d love to get all nitty gritty with and DIY up a storm, but until I know that I will continue to officially own my condo at a competitive rate…there’s no way I can start any projects. This has been a big reason my blog has turned into a sub-par of what I initially envisioned and also why I’ve been MIA lately.
Anyway, after talking to my mortgage company, they wanted documents and financial information to get the ball rolling on what they could do in terms of working with me. During that time, I took the extra money left over (from not making mortgage payments) to pay off any unsecured debt. I had 6 active credit cards at the time but have reduced that number to having balances on only 2 cards. I feel that the pressure has been a little bit loosened on that area…but I’m desperately trying to eliminate my credit card debt and my 2 personal loans because the monthly payments on those tower around $700 a month alone. And, thats just the minimum.
After reviewing my information, my mortgage company decided to send me a HAMP package (the Obama program) to see if I would qualify for that. While filling out the paper work and sending it in, it will automatically halt the foreclosure process on my condo. If I do not qualify for the HAMP/Obama plan, my mortgage company said they would try to see what else I could qualify for to work with me during this process. I’m hopeful. What I primarily asked for in my plea was for a lower interest rate to be more reflective of today’s competitive rates. I know this can be a long and draining process and I’m up in the air about what I want to do personally with my life. Do I destroy my credit and try to walk away? Or do I stick it out with a place that needs ALOT of work and money put into it … which I do not have.