Suze Orman advice...

[RichD]

mi catch a little part of her on Larry King last night an mi hear her a sey that people who under water(mortgage more than the market value of the house) in their mortgages (even if then current and can afford to pay it) should try to get out of it.

dat nuh sound like good advice to me at all

[CeaBee]

Re: Suze Orman advice...

what she mean by "try to get out of it"?

walk away?

[Gen]

Re: Suze Orman advice...

yeah mi did ketch likkle part a har but mi suh used to har mi just surf on by

[RichD]

Re: Suze Orman advice...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ceabee</div><div class="ubbcode-body">what she mean by &quot;try to get out of it&quot;?

walk away? </div></div> well she sey that if the banks not willing to negotiate (which apparently they will not if you are current ) then the only option is to walk away.

[CeaBee]

Re: Suze Orman advice...

oh yes my neighbour told me that my other neighbour () had to go 3 months delinquent before the bank would even start talking to her

[julie*mango]

Re: Suze Orman advice...

yep...di banks are very willing to work out the mortgage nowadays...

[RichD]

Re: Suze Orman advice...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Skelly</div><div class="ubbcode-body">yep...di banks are very willing to work out the mortgage nowadays... </div></div> huh?

[julie*mango]

Re: Suze Orman advice...

work out delinquent mortgages...rather than foreclose...mi know quite a few ppl who refi after dem delinquent

[CeaBee]

Re: Suze Orman advice...

well this was late last year..eventually, because she was a point or two short of the credit score they were looking for, she wasn't able to negotiate and the house went into foreclosure

[RichD]

Re: Suze Orman advice...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Skelly</div><div class="ubbcode-body">work out delinquent mortgages...rather than foreclose...mi know quite a few ppl who refi after dem delinquent </div></div> oh ok ..but funnily enuff they not willing renegotiate good mortgages

[Gen]

Re: Suze Orman advice...

mi juss copy from wah she seh

SITUATION: When you bought your home three
years ago, the lender steered you into an ARM and said
that you would be able to refi nance before the fi rst rate
adjustment. But now you’re being told you can’t refi -
nance because you have no equity in the home


ACTION: Make sure to check in with the lender to
see if you can qualify for a loan modifi cation. As I
mentioned earlier, there is a growing eff ort by lenders
to help “qualifi ed” borrowers stay in their homes
rather than being foreclosed on. But if you are
turned down for a loan modifi cation and you will
not be able to aff ord the mortgage when your interest
rate resets, then I am so sorry to say it is bett er
to try to sell your home sooner rather than later

[Gen]

Re: Suze Orman advice...

SITUATION: You can’t afford your mortgage payments,
but what you owe on your mortgage is more
than the house will sell for.

ACTION: Push your lender to agree to a short sale.
In a short sale, the lender accepts whatever you
can sell your house for in today’s market, even if
that is less than the outstanding balance on your
mortgage. The lender is agreeing that once you hand
over all procee ds from the sale, your mortgage will
be considered settled; any shortfall between the sale
price and your balance will be forgiven.
Lenders may be open to this arrangement if
they believe what they can get from the short sale
is more than the cost they will incur if they foreclose
on your home. That said, it is by no means
easy to get lenders to agree to a short sale. But it is
worth asking. The impact on your FICO credit
score is no different from what it would be if you
went through foreclosure (see details below), but
it is a less traumatic way to walk away.

[RichD]

Re: Suze Orman advice...

this is what im talkign about:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">ORMAN: And but here's the thing. Let me just address that for a second in that that is something that I still don't see this recovery plan addressing at any level. The amount is enormous of the number of people that currently are still up to date on their mortgage, but they're so under water.

I know people -- I'm dealing with them every day from my own show. Bought a home, have a $700,000 mortgage in Tampa, Florida. Now, the exact homes next door to them are selling for $250,000.

They're not just 25 percent or 30 percent under water, they're 60, 70, 80 percent under water.

And yet no bank will deal with them. It's really a catastrophe and nobody is helping them out whatsoever.

L. KING: But didn't you have a solution to that problem the last time you were on, that some -- that you can go to your bank in that situation and do something?

ORMAN: Yes. You can do what's called a short sale. But only -- and this is what drives me bats, Larry -- only if you are currently behind on your mortgage payment one, two, three months. Only if you show them that you really do not have the resources to pay the current mortgage payment will they allow you, in most cases, to do something known as a short sale.

<span style="font-weight: bold">However, if you're in a situation where you can afford it -- but why in the world would you want to pay it when you have a $600,000, $700,000 mortgage, the house is $200,000 at most. You're $3,000, $4,000, $5,000 a month be -- you know, under water, in terms of what you're putting out.

Why do you want to keep doing that?

It doesn't make financial sense.
</span>
Yet, good luck getting a bank to understand that one.

So what are people doing?

They're just walking away.</div></div>

[Gen]

Re: Suze Orman advice...

she is saying that people have been 'walking away', rather than pay the 700,000 mortgage on a home that is now worth, 200,000.

mi nuh think she seh dem muss walk away.

mi nah leff mi house and mash up mi fico score if mi can AFFORD fi pay it, after mi a nuh speculator.

[CeaBee]

Re: Suze Orman advice...

but she seh it doan mek sense to keep paying in that situation...nuh that she a seh?