House payment question?

Question

So, my house payment went up almost 200 dollars because the bank figured out our taxes wrong or something.

Well, we could hardly afford it to begin with. Basically, my husband and I got in WAY over our heads, and we thought that the payment would be less money, but went to closing and it was around 300 more than what the bank told us. We should have just backed away from it at that point, but I didnt know that I could. So, now we are stuck.

My husband volunteered for a deployment to get caught back up in our finances, and the bank agreed to push back our house payment for three months. We still had to pay taxes and home owners, but that was it. Well, he is leaving a month later than what we thought and we are still not caught up at all.

Anyway, do you think that the bank would push back the payment one more month, or is that asking for too much?

Answer 1

You don't think the bank is doing that for free do you?

You don't think the bank is NOT putting late payments on your credit do you?

While your husband is gone, you need to sell the house.

Answer 2

I'm a loan officer and this type of thing really burns me up.  My understanding is that any changes that take place during the loan process must be accompanied by an updated good faith estimate. Too many loan officers purposely quote low estimates on taxes to give the impression they are cheaper.  Any good loan officer should be able to give you a very accurate estimate on taxes.  

I'd look through the paperwork the loan officer gave during the loan process.  If they inaccurately quoted taxes and never informed you of the change until the day of the closing, you will have some negotiating power.  

I would not negotiate that they grant an extra month i would ask for them to recalculate your escrow account.  Escrow accounts were started during the depression to assist people that could not afford increases in taxes and/or insurance.  You might be able to convince the servicer of your loan to work with you by spreading out the increased cost over a few years.  

I would contact your insurance agent and ask if there is a way to increase the deductibles on your policy to lower your payment.  Also, make sure you do not have more insurance than you really need.  usually, changing the cost of your insurance will not help you lower your payment until next year when the escrow account is re-calculated but it's a start.  Again, it would not hurt to ask them to recalculate now.  

Check out this article on saving money with regards to homeowner's insurance:

http://www.mortgagemagnifier.com/article...

I'm sorry this happened to you and will pray for your husband's safe return.

As a last resort, might tell them you feel tricked and that you are hiring a lawyer if they do not work with you.

Feel free to email me with any other questions.

Answer 3

Don't push back the payment any more. It will cost you more. Three months is MORE than enough for what you'll have to pay for that eventually.

Is there anywhere you can cut spending in your budget? Can you get a better job (or a job at all if you do not currently have one)?

Do you have an extra room you can rent out? Especially if you live in a college town, this can be a big help on that mortgage payment. You'll want to make sure you screen your prospective tenants AND you'll want to research any tax implications ahead of time. The tax issue shouldn't out-way the benefits of getting a "roomie" financially, but it's good to be aware of.

You may want to look into refinancing if you've owned for a while. I'm not entirely knowledgable about the details refinancing exactly, but you may be able to lower your mortgage payments that way. The longer you've lived there, the less of the principal you owe, so the smaller the new payments would be.

If all else fails, selling is an option. If you can't afford it, you can't afford it. Believe me: I know how disappointing that is. I'm in the process of trying to buy a house and I was totally let down at how little I can really afford. Keep in mind that if you've lived there for less than 2 years, you'll have to pay taxes on the profit. However, with the market as it is, as well as, it sounds like, you haven't lived there long, there may not be much, if any profit.

If you have to sell, take it as a lesson. Next time, when the bank gives you an amount, shoot for well under that amount to allow for mortgage hikes.  

Answer 4

.   President Bush and Congress want the bank to do everything possible so you don't lose your home.  Including dropping the payment to something you can afford.  Right now it is all voluntary.  My friends called their bank and got $7,000 forgiven.  Originally the bank wanted to add it to the loan balance.  THey haven't decided yet what to do.