Plan to get rightside up on house loan.

[WonderMonkey]

Originally Posted by hardpike

they called me. My payment was due on the 1st which was a Sunday. i was going to make my payment on the 2nd when I got in the office. they called before I got in. I was a little anoid by the call, so I told them screw it. come get the house, I am upside down anyhow and nobody there cares to help me out. (original loan was tat 8.5% for 40 years). They asked what they can do to help, I said drop my interest rate so I can afford to eat again. within 3 weeks, I got the refy paperwork. They were not part of the H.A.R.P program, but they were copying it. Maybe I just got lucky, who knows. All i originally wanted was a interest rate reduction. I went for $1800/month less escrow to $1250/ month with escrow.

My interest rate is already near the bottom so I don't think I can do what you just did. I was thinking and hoping that somehow they actually removed some principle.

Thanks for the response.

[sierra skier]

Originally Posted by hardpike

they called me. My payment was due on the 1st which was a Sunday. i was going to make my payment on the 2nd when I got in the office. they called before I got in. I was a little anoid by the call, so I told them screw it. come get the house, I am upside down anyhow and nobody there cares to help me out. (original loan was tat 8.5% for 40 years). They asked what they can do to help, I said drop my interest rate so I can afford to eat again. within 3 weeks, I got the refy paperwork. They were not part of the H.A.R.P program, but they were copying it. Maybe I just got lucky, who knows. All i originally wanted was a interest rate reduction. I went for $1800/month less escrow to $1250/ month with escrow.

What a score, you lucky dog.

[NotARoleModel]

Originally Posted by WonderMonkey

What was the conversation like when you called them? Not doubting you at all but I am wondering why the bank would do that for you?

The bank was probably tired of folks simply stopping by and handing them the keys.

Had he walked away they would have at the end of the day gotten far less.

This is a win win. The bank keeps a paying asset on the books, hardpike got a re-do without wrecking his credit and everyone is happy.

More banks should be doing this, frankly.

[NotARoleModel]

Originally Posted by hardpike

they called me. My payment was due on the 1st which was a Sunday. i was going to make my payment on the 2nd when I got in the office. they called before I got in. I was a little anoid by the call, so I told them screw it. come get the house, I am upside down anyhow and nobody there cares to help me out. (original loan was tat 8.5% for 40 years). They asked what they can do to help, I said drop my interest rate so I can afford to eat again. within 3 weeks, I got the refy paperwork. They were not part of the H.A.R.P program, but they were copying it. Maybe I just got lucky, who knows. All i originally wanted was a interest rate reduction. I went for $1800/month less escrow to $1250/ month with escrow.

I wonder if they were a participant in the "new" HAMP program?

At any rate one of the good guys (you) gets a win. Overdue. Congrats!

[NotARoleModel]

Originally Posted by WonderMonkey

My interest rate is already near the bottom so I don't think I can do what you just did. I was thinking and hoping that somehow they actually removed some principle.

Thanks for the response.

It never hurts to ask .... all you lose is the few minutes of time to call and the worst that happens is they say no.

You'd be surprised at what they might offer.

Take a shot ...

[haligan78]

Lots of good ideas and advice here. Thanks to all, that is why I asked. Knew I would get useful info.
I should have clarified a little more. My in laws are fairly well off but my mother in law will probably end up in a nursing home in the next 10 years. Rumatoid arthritis. (Spelling?)
The property purchased would be in our name not my in laws. We are trying to be in a situation that would enable us to help her stay at home as long as possible. They are looking to set up their assets so that when she has to go into a nursing home, the state can't seize their assets and auction them off to pay for the nursing home costs.

I am definitly hesitant to live on the same property though. I can't even get along with my own parents for an extended time.
We are pretty good financially other than being upside down in our mortgage. Vehicles paid off, student loans close to paid off, all other toys paid off, always have a decent amount sitting in our savings account.
I have just not really worried too much about getting after the mortgage. That was a situation I don't think anybody seen coming. I just figured it is what it is, keep making the payments and shut up.

[WonderMonkey]

Originally Posted by NotARoleModel

It never hurts to ask .... all you lose is the few minutes of time to call and the worst that happens is they say no.

You'd be surprised at what they might offer.

Take a shot ...

That is true.

[irregardless]

I moved in with my inlaws over a year ago...

I do not regret it. They're pretty much on cloud 9 because the don't have to mow and do maintenance on the house and our pretty much minimal "rent" has given them more fun money than they've had in a LONG time.

[NotARoleModel]

Originally Posted by irregardless

I moved in with my inlaws over a year ago...

I do not regret it. They're pretty much on cloud 9 because the don't have to mow and do maintenance on the house and our pretty much minimal "rent" has given them more fun money than they've had in a LONG time.

You didn't buy anything with them.

Big difference between you living in THEIR house and you and THEM owning something "together". Which really means 3 vs 1. 1 being you.

Your party is still in the early stages, too.

I've seen this movie many times starring friends and even some relatives in my life and it rarely has a happy ending.

[irregardless]

Originally Posted by NotARoleModel

You didn't buy anything with them.

Big difference between you living in THEIR house and you and THEM owning something "together". Which really means 3 vs 1. 1 being you.

Your party is still in the early stages, too.

I've seen this movie many times starring friends and even some relatives in my life and it rarely has a happy ending.

Just because some/most people hate their in-laws (apparently) does not mean that the situation is going to turn ugly 100% of the time. We are all mature adults and are able to talk through our problems rather than act like children and throw tantrums when we don't get our way.

[WonderMonkey]

Originally Posted by irregardless

Just because some/most people hate their in-laws (apparently) does not mean that the situation is going to turn ugly 100% of the time. We are all mature adults and are able to talk through our problems rather than act like children and throw tantrums when we don't get our way.

I think the warning is worth it though. He's not getting nasty or anything.

I say I've seen it work out about half the time. And some of the ones that didn't could have worked out if they approached it differently. Treat it like an operating agreement, which is commonly called a "While we love each other" agreement.

[SurvivorGirlAL]

Would definitely not finish the basement, you rarely get ANY of your money back out of renovations and upgrades, or if you do, it's a small percentage of it at best.

$30K seems like a LOT of renovations, as someone mentioned, screw up sheetrock yourself for a few hundred/thousands at most. It is definitely not hard work.

Far as taking the hit on your 401K, could you walk past a pile of money... oh, let's say $30K ... throw gasoline on it and then keep on walking as it burnt?

That's essentially what you'll do when you take the early withdrawal penalties.

Hard decisions, pray on it hard and trust the Lord to guide your way is about all you can do in your situation, there are no hard/fast black/white answers I'm afraid.

[NotARoleModel]

Originally Posted by irregardless

Just because some/most people hate their in-laws (apparently) does not mean that the situation is going to turn ugly 100% of the time. We are all mature adults and are able to talk through our problems rather than act like children and throw tantrums when we don't get our way.

No one is suggesting anyone "hates" anyone else.

There is a good reason why birds kick the little ones out of the nest when it's time. Never do they bring them back a season or two later with their own young to boot.

If you haven't seen families fighting like cats and dogs I suggest you are a bit naive.

The best way to start the fighting is to involve them in matters of money or ownership of property ... any kind of property let alone "sharing" property.

[BruceS]

Originally Posted by haligan78

With that 60K we could pay down our mortgage by 30K so that we only OWE as much as our house is worth instead of being upside down. I have an uncle that is a contractor so we could use the remaining 30K to finish our basement cheaply with his help and have some left over.
Then we would have not only paid down to what we owe, but then increased the value by finishing the basement. Thinking then we could sell the place and be in a much better financial situation in our next home purchase.

At best you'll get an ROI of 67% on your basement remodel according to national averages: http://www.remodeling.hw.net/2011/co.../national.aspx You'll basically be taking a 50% loss on your 401k to lose another 33% on a basement remodel. Doesn't seem like sound financial planning to me.

[WonderMonkey]

The only reason to do anything which may not get you payback is if it allows you to sell your house sooner. That in itself is payback of a certain type. Only the seller will know if that is worth it or not though.