Home Value

[Joel Fraser]

Our adjustable rate mortgage will adjust in February of 2009. Our mortgage will increase by $400.00. We love and value our home, but we are struggling now to make timely payments. We refinanced our loan in 2006 with the intent on refinancing again in 2007 just to lower the interest rate. Our lender recommended that we go ahead and refinance our conventional loan into an ARM so we could get the equity out of our home to pay the taxes from the previous year (the taxes were not included in the conventional loan originally taken in 2005), and to pay off all creditors. The lender gave us a really high interest rate and again, we took it with the understanding that we would refinance again and lower the rate. When the time came to refinance again, we were approved and at the last second, we were told that our house did not appraise at the value it had just 8 months earlier. I contacted our current mortgage company and asked if I qualified for a loan modification they initially told me that I had to call back closer to the time that the loan is scheduled to adjust in February. We were late on our mortgage a couple of months ago and they called me, so I asked again about a loan modification an they told me that I didn't qualify at all.