Nach meinem Post "Immobilienkrise: Beispiel aus den USA" von Anfang November nun ein weiteres konkretes Beispiel einer 4-köpfigen Familie, die sich mit einem Kredit für ihr neues Zuhause vertan hat...
Gefunden bei signonsandiego.com:
Couple renegotiates home loan to stave off soaring adjustable rate
By Melanie Stevens
UNION-TRIBUNE
December 2, 2007
When Michael and Suzanne Hornbeek moved from upstate New York to California three years ago, they were willing to deal with the higher cost of living and a smaller house in exchange for a more lucrative career opportunity, a warmer climate and a relaxed Southern California lifestyle in which to raise their two young children.
They knew the transition from their quarter-acre property and home in Buffalo – which they bought for $128,000 – to their $440,000, 1,400-square-foot Poway condo wasn't going to be easy. The low-interest loan they were offered through Countrywide helped sweeten the move, though it seemed like a rate too good to be true.
As it turns out, the couple's instincts were right.
Upon purchasing their home in 2004, the couple accepted a $352,000 interest-only mortgage at 4.97 percent, a rate that was set to adjust Nov. 1 of this year. When they asked Countrywide a few months ago, they learned the rate would initially increase to 7.97 percent this month, and then could continue to increase by 1 percent every six months to a cap of 11.97 percent.
In dollar terms, that meant an extra $880 a month – with more potentially to follow.
“We understood the situation with loan adjustments to be that after our first three years, our low rate would increase to the rate that everyone else is buying at right now,” said Suzanne, 38. “We didn't realize that we would see an increase of our monthly mortgage payments by several hundred dollars or that we'd now be facing this uphill interest rate climb that we're not going to be able to afford.”
Such situations have become increasingly common in San Diego County, where thousands of families used adjustable-rate loans to finance houses they might otherwise not have been able to afford. Although homeowners could have dealt with such problems in the past by refinancing, sagging property values have made that a less-viable solution.
The Hornbeeks didn't appear to have any good options. They could have tried to sell the condo, but they thought its value had fallen to about $400,000 from the $440,000 they paid for it. They could have refinanced, but that also would have required them to come up with the $40,000 difference to make up for the decline in the unit's value. Or they could have faced foreclosure.
But, as the Hornbeeks learned when they consulted with financial planner Kevin Barrett, there was another alternative: Renegotiate the loan. With lenders reluctant to take over massive numbers of properties they might have difficulty reselling, some have become more willing to work with homeowners such as the Hornbeeks who find themselves in difficult situations.
This turned out to be the solution.
Barrett, whose firm is Barrett Financial Strategies in San Diego, spent several weeks talking with the Hornbeeks about the pros and cons to each option for handling their mortgage. Ultimately, he was able to negotiate a deal with Countrywide under which their loan would increase only to 5.25 percent, a level that would enable them to keep their home.
“The Hornbeeks really were in a predicament, and it's not so far off from what tons of other people in San Diego are facing with their mortgages right now,” Barrett said. “They knew they could lose their home, but facing it at this stage in the game has at the very least taken some of the burden off their shoulders.”
The Hornbeeks worked with Barrett after volunteering for a San Diego Union-Tribune Money Makeover, sponsored by the newspaper and the San Diego chapter of the Financial Planning Association. In exchange for sharing their story in the newspaper, the Hornbeeks received a comprehensive plan at no charge.
The couple's situation was complicated by the fact that the family of four depends solely on Michael's salary to pay the bills: a $2,900 monthly mortgage payment, including taxes and homeowners association dues; a $40,000 school loan; credit card payments; a car loan and their living expenses.
Suzanne used to work as a hair stylist but had to quit a year ago when she was diagnosed with an autoimmune condition. The condition, which requires her to live in dry, warm climates, also ruled out one option the couple considered: returning to New York.
With the thought of moving out of San Diego temporarily off the table, Barrett looked at other scenarios, starting with the possibility of selling the condo and then renting until the couple were able to get back on their feet. Although they could have the $40,000 difference considered by a lender as a forgiven debt, it would still be a source of income that they ultimately could have to pay taxes on.
The option to refinance put them in a similar situation, where a bank or lending institution would only likely give the Hornbeeks the current maximum value of their home, which would again leave them to come up with the remaining $40,000 they initially borrowed.
“This is almost a no-win situation for us,” Suzanne said. “If we refinance, we're spending $40,000 to keep the place, or we spend $40,000 to lose the place in a short sale. Ideally, we need to stay where we're at, but we don't know how to make that happen.”
Foreclosure was another option, one Barrett said could be imminent if the Countrywide rate adjusted from the 4.97 percent to nearly 8 percent. But Barrett pointed out that Countrywide might not be eager to foreclose, which could give the company an incentive to help the Hornbeeks keep their home.
“Banks are not in the business of owning and selling homes, but they've had to do it a lot lately with all the foreclosures happening, particularly in San Diego,” Barrett said. “That, and the time it takes to sell the home means more time lenders aren't receiving mortgage payments. They're also likely paying Realtor commissions, which make the value of the home decrease.”
Barrett said the ideal scenario would be to negotiate a three-to five-year extension of their initial interest-only loan payments at a rate of 4.97 percent, along with an understanding for how the rate would eventually adjust.
This arrangement would allow the couple to catch their breath over the next few years, pay off some debt, beef up their savings, and potentially ride out the housing market long enough to see their property start gaining value.
Last month, the Hornbeeks and Barrett were able to sit down at the negotiating table with Countrywide representatives to hash out the details. Although the arrangement isn't yet confirmed, both Barrett and the Hornbeeks are more than pleased with the probable outcome.
According to Barrett, Countrywide is reviewing a tentative proposal to allow the Hornbeeks to keep their initial loan without having to refinance. Instead, Countrywide would renegotiate the terms of their primary mortgage for the full $352,000, an amount that relieves the couple from having to make up the $40,000 difference.
The couple would be able to continue paying on an interest-only loan for the next three to five years at a slightly higher, but manageable, rate of 5.25 percent. Once the interest-only period is up, the Hornbeeks would begin paying off the principal as well as interest for the remaining 22 to 24 years left on the loan. The interest rate would remain at 5.25 percent during this time.
“This is really great news for the Hornbeeks,” Barrett said. “Their mortgage would only go up about $1,000 a year based on the new interest rate, but it's something we all agree that they'll be able to manage in the short term. And, as we'd hoped, it will give them some time for the market to recover and for Mike's salary to increase.”
In addition to their primary mortgage, the Hornbeeks had taken out a second mortgage with Chase for $85,750 at a fixed rate of 8 percent. Barrett and the Hornbeeks have already contacted Chase to pursue similar negotiations to lower the interest rate for that mortgage.
The financial planner gave some advice to other homeowners who might be in a similar situation.
“This is a perfect example of 'the squeaky wheel gets the oil,' and I'd encourage other people to do everything they can to save their home from foreclosure,” Barrett said. “There's a huge time commitment involved with negotiating, and a ton of phone messages and bureaucracy to work through. We eventually got there for the Hornbeeks, and I think it was the best possible solution considering the circumstances.”
The Hornbeeks are just as pleased with the potential outcome, but they also recognize they've got a ways to go before stabilizing their finances. At the very least, they've made a solid first step, and, as a result of Barrett's advice, they know what they need to do next.
Eventually, the Hornbeeks would like to focus on saving for their retirement; they'd like to be able to give an annual tithe of $5,000; Suzanne would like to get braces; and the couple would especially like to put some extra savings away for their children's college and wedding funds.
“Our biggest priority has been dealing with our mortgage,” said Michael, 39. “Kevin has been a great advocate for us, and because of all the work he's put into helping us to get through this, I think we may have a chance to sit down with him again sometime soon to set up a formula for paying off our debt. We can also start thinking about how we're going to save for retirement.”
