mortgage modification – stop making payments to qualify for HARP?
I’m 69 in September. owned my house 31 years. Husband died 2008, daughter 2013 leaving me 11 year old grandson to raise. Applying for mortgage modification. right now, my survivor benefits are $2195/mo, am told I would need my son to apply as second borrower to (him giving me $700/mo) to show I would be able to pay reduced mortgage payment. Owe $104,000, 9.20680% interest. House may be worth $160 to $250. Have $30,000 in credit card debt. $14,000 IRA. Mortgage payments have not been delinquent or late since 2008, death of my husband.
Should I miss my 8/14/2015 and 9/14/2015 payments in order to qualify for HARP and like programs? Have to be at least 2 months delinquent. Right now, my August payment will be 4 days late for the first time. Should I take money from IRA to make payment in full on time?
Terry Says: Wait — don’t do that! You do have equity, so there must be some good program for you. It is outrageous that you are paying 9.2% on a mortgage these days. You might even be a candidate for a reverse mortgage — assuming you can afford the property taxes and insurance, and plan to stay in the home for many years. A RM would pay off your current mortgage, and maybe give you a few hundred dollars income every month.
Contact one of my mortgage gurus and tell them I sent you!
Leslie Struthers: Leslie@guaranteedrate.com
or Daniel Chookaszian: dchookaszian@perlmortgage.com
