Can anyone help or have an advise with mortgage/loan problems?

Im stuck with this called ARM loan,my home is going down value wise and my loan is going up as I am only paying the minimum monthly interest to my 100% financing loan.I think im sinking,should i sell it or if it would be sold,it might not even cover my whole loan as the housing market sucks. (From San Jose California)Can anyone help or have an advise with mortgage/loan problems?
I feel sorry for you because a lender stuck you with that type of account.. those types of accounts.. ARM and Interest Only loans should be outlawed. They are the reason for all of these foreclosures we are seeing today. That lender never should have placed you in an ARM account in the first place.


Interest rates are still VERY low right now.. now is the time you need to refinance into a 30-year fixed if you can.. your mortgage amount will be more, but it can't adjust every 6 months like it's doing now and when interest rates rise.. you are then screwed. Rent out a room if you have to, to make up the difference, otherwise you probably WILL sink with all of the other foreclosures. Best of Luck to you.Can anyone help or have an advise with mortgage/loan problems?
You have some research to do. First you need to establish the REAL TRUE CURRENT market value of your home. Not a guess or some old comps from months ago. Call realtors, and check past sales records either online or at county courthouse if you need to. Once you have established a value, compare to what you currently owe. Sales costs and closing costs and any re tax issues will all total close to 8+% of average market value.





So, if the property has REAL current value of $200,000. you may have a net sale of $184,000 approx. Is the current loan balance more or less than that? If less you have some equity, if more you are ';upside down in the house';.





Then, you have to analyze the payment you're making vs. your cuurrent and expected income. Has the payment gone up alot?.....what are the scheduled increases?....Do you have any other source of income you can draw on to make the higher payment?





Finally, you could approach the lender and ask if they could help by locking in the current payment or modifying the loan in some other helpful way. You would need to demonstrate to them your future inability to make higher payments.





This is usually not easy to accomplish until you are delinquent in payments, (not that you should do so purposely), but just be aware that's how they often view the matter. Hope this helps.
You in a bad position and a bad place to live. My uncle is a realestate broker for 20 yrs in san jose and he is going down in flames. No one is buying because of the crises in stockton.


Best of luck to ya, try refinancing.
You need to immediately look into the programs the federal govt has put into effect for people like you. Best thing would be to refinance into a fixed rate mortgage as soon as possible. Selling is not a smart idea at this time, as you must pay off loan to legally transfer property....As long as you can make payments, do not sell. The market will come back and then you could sell and make money....
I am in OC with a similar situation. Here it is; I only allow myself to be upside down on my main residence, not on my investments. If you have a family with you, stick it out so you don't have to move kids and wife.





Now if you walk away you will not be able to buy when the market comes back 3 plus years. because of your credit and the lender will want 20% to 30% down.





The loans that will be written in 3 years will be much more conservative for a while. No 100% mortgages will be available.





So if you want to be a home owner in the next 3 to 5 years you had better stick it out and make your payments.





Most importantly you should contact your lender and tell them to fix your interest rate or you will default sooner or later. They probably wont fix your rate until you are two months late and forclosure looks imenent.





Good Luck
contact the lender asap and see if they'll help you work out a deal to stay in the house. 500,000 such deals have been done already; although most didn't permanently reduce the interest rate they do buy time.





*** another idea ***





is this the original loan on the house [the one you bought the house with]??





I'm told in news articles, but have not verified for myself, that in CA if a house sells for less than the original mortgage, the lender can not sue the borrower for the loss. [See end of this story ==%26gt; http://money.cnn.com/2008/02/06/real_est鈥?/a>





So what the article points out is happening is that people who are upside down on a house simply walk away from it.





YES, this will whack your credit for a good three years or more, and if you're able to move down in housing to something cheaper and thus save up a down payment, it may work out for you. [Do everything possible to keep all other bills paying on time.]





The idea is that another house, perhaps even similar to the one you can't afford now, will be much cheaper then and, with a down payment then, your future loan payment will be much smaller than the present one.








Man oh man, but this is going to be very hard on the banks and mortgage lenders. I'm thinking we'll see more bankruptcies in those areas later this year.





As an ex-mortgage lender as well, I don't think zero down loans will ever return to states that won't allow the bank to chase a deficiency. In fact, aside from government programs, you may not see down payments as low as 10% again for a decade.