[1FastFox]

Originally Posted by Jaa1456 That is not refinancing at all, It is only changing the interest rate. There is much more to refinancing a home, like paying closing costs, other fees as well as the length of the loan, it is not the same at all, not even close to refinancing. Read up on refinancing before you tell me that's what I did when in fact it is not what I did at all. It's more like just calling up the bank telling them hey I want you to look at my property and what I owe and what it's worth. If there is more than a 10 grand difference they will work with you. It's has to do with un upside down mortgage and is NO WHERE NEAR THE SAME AS REFINANCING. Read up on it.

Just so I have this straight, we are both talking about a fixed rate home loan, correct?

I also would be interested in this. I have never heard about this before and wouldnt mind saving a couple bucks on interest as well...

[Jaa1456]

Yes it is on my 30 year fixed. There are 4 things that make you eligible. You only need 1 of them. If you owe more than the house is worth. Or you are facing foreclosure and can make lower payments and there are 2posted others, can't remember the other 2. I will look them up when I get home. But owing 65 grand more than it is worth sucks and the lower rate makes it easier to take. Also the company will play dumb at first at least my bank does. Look up Obama mortgage plan first. It will have all the basics listed along with the other 2 reasons

[1FastFox]

So you have to be on the bring of foreclosure before they will let you do this? Almost sounds like you're agreeing to default on your loan but be set up under a new loan. Is there a name for this practice that I can look up?

This isnt a cheap shot at you by any means, but it sounds like another one of Obamas plans to bailout people who made bad decisions. I mean if you owe more on your house than its worth, cant afford the house anymore, ect... You probably made a poor choice somewhere down the line. Im 99% certain I dont qualify for this program as I only owe 15% of what my house is worth and the payments are more than acceptable versus my income but seems like bullshit that I cant get my payment lowered because I did everything right where as others can get theirs lowered because they screwed up. But then again, sounds like an Obama plan.

But in all seriousness, if you could find the name of this plan for me so I could none the less look into it that would be great.

[Jaa1456]

Im not on the brink of foreclosure and I have never been late or missed a payment in the 6 years I have had my house. And no one knew the market was gonna flop. So I don't consider it a bad choice. More like bad timing.

[1FastFox]

Once again, not trying to take shots but you have to admit if you're $65k upside down that was a little more than bad timing...

But all that aside, I am curious to see the details of the exact plan as it seems to be something you have to be in the know about to take advantage of.

[brought_pain]

One of the biggest "buyer beware" that I was taught in some financial schooling is the wrong, more expensive, bells and whistles added to, mortgage. The advice of not borrowing excess is good advice.

As so many have said, everybody will he out for themselves. If you catch on to the realator, bank, or seller is scamming you, consider very carefully how much you want that house and how much they are scamming you. Some people get their financial stuff fixed and end up with over a grand monthly without losing the products and services they need and use.

The advice about an attorney is okay, but a bad attorney can send you down a bad road. Be careful there. Best advice I can give to anybody looking to buy a house is research what rights you have, will have and what rights the seller and bank have( the number one thing realators and banks count on is peoples ignorance about the law and what rights they have).
Here's a thought that dawned on me while typing, get some books. Not Ebooks, paper ones. Then read up on the stuff. Having books at hand comes in extremely handy...

...I will say this: somebody that has knowledge and can manipulate your monies, can do so in such a way that your assets and monies off set any interest, your credit gets better and better while you have contingencies if something happens to your income or assets. Again though, people in that field are also looking for a payday. Finding somebody you can trust and knows how to play the system can and usualy does pay off.

[03SonicBoom]

I'll further add this again. Do NOT get caught up on one single house and think you have to have that house because it's so awesome. There are TONS of houses on the market and if the seller is going to try to jerk you around and not negotiate, walk away.

Originally Posted by brought_pain The advice about an attorney is okay, but a bad attorney can send you down a bad road. Be careful there. Best advice I can give to anybody looking to buy a house is research what rights you have, will have and what rights the seller and bank have( the number one thing realators and banks count on is peoples ignorance about the law and what rights they have). Here's a thought that dawned on me while typing, get some books. Not Ebooks, paper ones. Then read up on the stuff. Having books at hand comes in extremely handy...

I will say that the attorney thing saved my ass from tens of thousands of dollars. The purchase agreement will say something along the lines of, "all issues will be fixed to a reasonable acceptance level....." The key word there is REASONABLE. What is reasonable? What I consider reasonable might not be the same as your reasonable. If you and the seller/realtor get into a disagreement about what's a reasonable fix, guess who gets to decide what's reasonable, a judge. Going to court is not going to be cheap.

When we were looking at houses one house in the country had a bad septic issue and a bunch of old tires on the land. I put in the purchase agreement that the septic needed to be fixed and the tires needed to be removed from the property. I also changed the little phrase noted in the above paragraph to say "fixed to the buyers level of acceptance." We all signed it and the seller got to work. They put in a cheap temporary fix that stopped the septic from leaking (it would leak again in another 1 or 2 years) and threw the tires in a sink hole and covered them with dirt.

We were getting ready to close and I found the tire as I was walking the land. I went in and said the deal was done and I was walking away. Upon which, my realtor (who did such a good job of making me think he represented me) stood up and told me I didn't have an option and was in a legally binding contract and I couldn't walk away. He told me that this was my house and I was stuck buying it. I pulled out my contract, showed him where it said those things had to be fixed to MY expectations, and told him why it's not right. Then MY realtor yelled at me for going behind his back and how I pulled a quick one over his head and how I was such a terrible person. He was pissed that I changed the contract to protect ME and not him and his commission.

[brought_pain]

Originally Posted by 03SonicBoom I'll further add this again. Do NOT get caught up on one single house and think you have to have that house because it's so awesome. There are TONS of houses on the market and if the seller is going to try to jerk you around and not negotiate, walk away. I will say that the attorney thing saved my ass from tens of thousands of dollars. The purchase agreement will say something along the lines of, "all issues will be fixed to a reasonable acceptance level....." The key word there is REASONABLE. What is reasonable? What I consider reasonable might not be the same as your reasonable. If you and the seller/realtor get into a disagreement about what's a reasonable fix, guess who gets to decide what's reasonable, a judge. Going to court is not going to be cheap. When we were looking at houses one house in the country had a bad septic issue and a bunch of old tires on the land. I put in the purchase agreement that the septic needed to be fixed and the tires needed to be removed from the property. I also changed the little phrase noted in the above paragraph to say "fixed to the buyers level of acceptance." We all signed it and the seller got to work. They put in a cheap temporary fix that stopped the septic from leaking (it would leak again in another 1 or 2 years) and threw the tires in a sink hole and covered them with dirt. We were getting ready to close and I found the tire as I was walking the land. I went in and said the deal was done and I was walking away. Upon which, my realtor (who did such a good job of making me think he represented me) stood up and told me I didn't have an option and was in a legally binding contract and I couldn't walk away. He told me that this was my house and I was stuck buying it. I pulled out my contract, showed him where it said those things had to be fixed to MY expectations, and told him why it's not right. Then MY realtor yelled at me for going behind his back and how I pulled a quick one over his head and how I was such a terrible person. He was pissed that I changed the contract to protect ME and not him and his commission.

Awesome example. Reasonable sounds acceptable, but, having it changed to be more appropriate, paid off. Having caught that and reworded it made a big difference.

Was it the attorney or you that caught that?

...always be involved in what is going on when you get an attorney. And always double check his work.

[Jaa1456]

Originally Posted by 1FastFox Once again, not trying to take shots but you have to admit if you're $65k upside down that was a little more than bad timing... But all that aside, I am curious to see the details of the exact plan as it seems to be something you have to be in the know about to take advantage of.

Obviously the market prices are different in NJ than Indiana. I watched the market climb here steadily from 98 and on. Im sure the mark up % is way higher here than their. That house listed by the op is easily every bit of 250k to 280k here. But a few years ago was selling in the 295-3356 range.

[03SonicBoom]

Originally Posted by brought_pain Awesome example. Reasonable sounds acceptable, but, having it changed to be more appropriate, paid off. Having caught that and reworded it made a big difference. Was it the attorney or you that caught that? ...always be involved in what is going on when you get an attorney. And always double check his work.

It was the attorney who had me change quite a few things on the purchase agreement. That's why I recommend finding someone who has done this before and having them look it over before signing. They're there to help you out because you're paying them. Your realtor is there to help themselves and their company out. Their job is also to portray that they're on your side.

[mxnate116]

thanks for all the advice guys, i just got back from looking at the place, and the realtor was surprising nice to deal with. no pressure, and he let me know everything about the place that he knew up front.

that said, the inside of that place is TINY. i dont think the second bedroom is big enough for anything more then a twin bed. the basement is nearly non existent and difficult to get to. and the back half of the house has slanted ceilings, that can make it difficult to walk. the shop is amazing, but frankly thats the only selling point of the house for me, so i think im going to move on and keep looking.

and thanks for the advice about what the bank will approve me for, I havent been looking for anything over 100k, and thats on the absolute top end i could possibly do. ive been looking at the mortgage payments more then what they will give me.

I think my plan now is to just go and get pre-approved for the mortgage, start putting away more money for a decent down payment, and keep looking for houses.

sucks about that house, cause id love to have that shop haha