I am asking for some advice with dealing with Homecomings Financial. We have an ARM that has adjusted every 6 months, currently our payment is $2,600 a month ( which does not include tax or insurance). It will adjust again in March to the amount of $3,100. We have decided that since we have been trying to be proactive with this company, to no avail, by contacting them and letting them know that we anticipate having an issue with our payments in the future, that we have not and will not pay another red cent for our home of 13 years.
Well, the Homecomings called me yesterday...they asked where the payment was. I told them that we obviously are not stupid people, but, we are "house poor" and that over 1/2 of our monthly income goes to our house payment. And that we are ready to just walk and pay cash for a foreclosed home in the same neighborhood. to the tune of 1/2 of what we currently owe Homecomings! At this time they were ready to "work" with us, on keeping our home! I was told to fill out a Financial Package and fax it over. They say it will take 7-10 days to get back to us with a work out package. Has anyone been through this with Homecomings and if so...what was the final outcome?
We have been told by Homecomings, just over 3 months ago, that because of the housing slump, we owe more on our home than what we could sell it it for. No suprise there! They aslo told us that even if we had a million dollars in the bank, that if your credit is not "A" credit, that you might as well forget about a loan modification with them, especially if we cannot come up with the difference in the value of our home and the closing and title costs to the tune of $40,000 + at closing! So, in the meantime we are confused. Do we pay what we can and just send it? Do we save the amount that should be paid into a seperate account, just in case they want to work with us now? Or do we just let them take the house?
Susan from michigan