Should I refinance my house in my situation?

Question

I am a single mother, unemployed and have been unable to find work for 7 months now. I live in Michigan. July is the first month that I actually have not been able to pay my mortgage on time. In fact, wont be able to pay at all unless I find employment very very soon. I purchased house in August 2005 for 92,500. My principal left owing is around 88,000. I dont know what to do. Can I get a re-finance being unemployed? ....and should I?.... What other options do I have? My loan is at 6.5% and fixed (FHA), with PMI.

Help....

Answer 1

you have no shot with out verifiable income --especialy with no equity

Answer 2

It is vital to speak to the mortgage co.immediately. Tell them your problem and ask what can be done. Besides that, have you thought of some ways to get some income? Can  you let a room in your house, until you get a job at least? Good luck.

Answer 3

I'm a little confused:  WHY do you want to refinance?

If you cannot afford to make ANY payment now, refinancing is not going to help you at all.

I agree -- you should talk to your mortgage company now about working out a deal.  Look to see about alternative housing that you can get into in a month or two.  And start the process to sell the house -- can you get out at break-even if you sell now?

Answer 4

you have a good interest rate and its fixed,, I say No way ... contact FHA .. they will work with you through these times

Answer 5

You would have a hard time getting refinanced.  Talk to your lender NOW, before you miss any payments - they might go along with deferred or reduced payments for awhile.  They do NOT want to foreclose on your house, so might be willing to work something out.

Good luck.