advertisement
Reply
Thread Tools Display Modes
jesyka
Poohbah
 
jesyka's Avatar
jesyka has no updates.
 
Member Since: Jun 2020
Location: U.S
Posts: 1,280
3 yr Member
270 hugs
given
Default May 12, 2021 at 01:52 AM
  #1
Both my husband and I have had bad credit for years due to financial hardship. No judging please. I got a lot of that on another site and was called irresponsible, that it's our fault that we have bad credit for supposedly not paying bills or paying them on time which isn't true.

My husbands business was bad for along time and I haven't earned much over the years. We have owed the IRS a lot of money too.

Anyways, our mortgage for our house was $2900 up until recently. It went all the way up to $3400 which isn't fair at all! to many cards were opened up at once, and credit was denied a few times.

My husband told me that it'll take at least a year or more to repair bad credit. Once our credit score goes up that the mortgage can go back to the normal rate again. Is that true?

Is this new mortgage permanent or not? Btw, it used to be $2600 in the past, but I'm not sure when as my husband rarely discusses finances with me. I don't know if it had anything to do with bad credit or not.

How long will it take to return to the prior rate if it's nor permanent? Is there anything that can be done to prevent paying the few extra hundreds of dollars a month in rent?

I'd appreciate any helpful advice. No judging please. I'm already depressed, anxious and upset enough as it it I also have health issues and don't need the additional stress.
jesyka is offline   Reply With QuoteReply With Quote
 
Hugs from:
hvert, TishaBuv

advertisement
TishaBuv
Legendary
TishaBuv It’s mostly them, and somewhat me.
 
Member Since: Dec 2014
Location: USA
Posts: 10,122 (SuperPoster!)
8 yr Member
1,857 hugs
given
PC PoohBah!
Default May 12, 2021 at 06:56 AM
  #2
From what I know of mortgages, they can be fixed or adjustable. I thought the fixed ones stay the same during the life of the loan. For example: 3% for 30 years. The adjustable ones start at one rate and then can adjust over a period of time so they can sky rocket up to an amount you may not be able to pay.

I haven’t heard of a mortgage payment changing due to bad credit, but I’m not an expert. You could go into the bank who issued the mortgage and ask them directly, rather than taking your husband’s word. Maybe they tacked on many fees due to late payments and that is why you are now paying much more?

Maybe they started escrowing your taxes? Rather than you paying your property tax yourself, they can collect it as part of the mortgage payment. I’m just guessing.

__________________
"And don't say it hasn't been a little slice of heaven, 'cause it hasn't!"
. About Me--T
TishaBuv is offline   Reply With QuoteReply With Quote
RollercoasterLover
Member
RollercoasterLover In a healthy mental space.
 
Member Since: Apr 2021
Location: New Jersey
Posts: 315
2 yr Member
58 hugs
given
Default May 12, 2021 at 08:17 AM
  #3
I work for a financial planner, so I asked him what reasons a mortgage payment would increase. Most common reasons are
1. Its an adjustable rate mortgage and rates have gone up. Rate increases are documented in mortgage paperwork.
2. Its a structured payment for a jumbo mortgage. Very large mortgages have structured payment increases to pay down the loan. The increase amounts and dates are documented in the paperwork.
3. Change in costs paid by escrow through your mortgage lender (usually property taxes and homeowners insurance)
4. Repayment of late fees/missed payments. Payments that were missed can be repaid over time by adding payments to current monthly payment. This increases the payment until the past due amount is paid off.

A mortgage statement will tell you quite a bit. Loan type. payment breakdown, past due amount, etc). It may be helpful to find an older statement to compare so you can see where the differences are in the payment breakdown. If your escrow payments have dramatically increased, its possible that property taxes have increased. If the interest payments have jumped, you likely have an adjustable rate mortgage or ARM. If the principal amount has increased, its likely a structured change in a jumbo loan. Repayment of missed payments and fees will be a separate line item in the payment breakdown.

I can't take away the stress this situation causes. I hope that the information helps you.
RollercoasterLover is offline   Reply With QuoteReply With Quote
divine1966
Legendary Wise Elder
 
divine1966's Avatar
divine1966 Tired!!!
 
Member Since: Dec 2014
Location: US
Posts: 22,303 (SuperPoster!)
8 yr Member
1,274 hugs
given
PC PoohBah!
Default May 12, 2021 at 08:55 AM
  #4
Is it a monthly payment? 3400?

Your husband might not be telling you the truth.

Call your lender bank and talk to them. You don’t need your husband to tell you stories. Bank will explain to you.

You either have late fees or some kind of adjustable mortgage rate (no idea what those really are), your taxes are escrowed like Tisha said and taxes went up. But then again it doesn’t happen all of a sudden. Our taxes are escrowed but we signed up for it, it’s not like it was ambushed upon us

Overall it’s insane increase. Is it a monthly payment? I might be completely off but is it better to sell and get something much smaller and affordable? The other option take on a roommate and collect rent from them to help out

We make decent middle class income but it wouldn’t be affordable for us to pay 3400 a month in mortgage. Or am I reading it wrong
divine1966 is offline   Reply With QuoteReply With Quote
MickeyCheeky
Legendary
 
MickeyCheeky's Avatar
MickeyCheeky My echo is the only voice coming back
 
Member Since: Jun 2016
Location: Italy
Posts: 11,817 (SuperPoster!)
5 yr Member
38.4k hugs
given
PC PoohBah!
Default Jun 14, 2021 at 12:21 PM
  #5
So Sorry for what you guys are going through! Please do not give up! i don't have much to add myself as i don't really know anything about this stuff. Just wanted to let you know that i am here if you need support and thanks to the other members whom are trying their best to Help. i Hope things will improve soon for everyone. Sending many Safe, warm hugs to ALL of you, @jesyka, your Families, your Friends and ALL of your Loved Ones! Keep fighting and keep rocking NO MATTER WHAT HAPPENS, OK?!

Last edited by MickeyCheeky; Jun 14, 2021 at 12:23 PM.. Reason: deleted post; added space and plurals as well as capital S in Safe in the second to last sentence
MickeyCheeky is offline   Reply With QuoteReply With Quote
Aviza
Magnate
 
Aviza's Avatar
Aviza Calm
 
Member Since: Jan 2013
Location: Midwest
Posts: 2,456
10 yr Member
86 hugs
given
PC PoohBah!
Default Jun 16, 2021 at 06:36 PM
  #6
Maybe your husband took out a second mortgage. Loans don't go up due to bad credit. There's a reason. He borrowed against the house and doesn't want you to know. Is what i think.

__________________
Son: 14, 12/15/2009 R.I.P.
Daughter: 20
Diagnosis: Bipolar with Psychosis. Latuda 100 mgs.
Aviza is offline   Reply With QuoteReply With Quote
divine1966
Legendary Wise Elder
 
divine1966's Avatar
divine1966 Tired!!!
 
Member Since: Dec 2014
Location: US
Posts: 22,303 (SuperPoster!)
8 yr Member
1,274 hugs
given
PC PoohBah!
Default Jun 16, 2021 at 06:37 PM
  #7
Quote:
Originally Posted by Aviza View Post
Maybe your husband took out a second mortgage. Loans don't go up due to bad credit. There's a reason. He borrowed against the house and doesn't want you to know. Is what i think.
Yup. That’s what happened.

Although if the house is on both names they’d need both people’s signatures. Can’t just refinance the house without spouses signature. Unless it’s just his house
divine1966 is offline   Reply With QuoteReply With Quote
All times are GMT -5. The time now is 09:24 AM.
Powered by vBulletin® — Copyright © 2000 - 2024, Jelsoft Enterprises Ltd.



 

My Support Forums

My Support Forums is the online community that was originally begun as the Psych Central Forums in 2001. It now runs as an independent self-help support group community for mental health, personality, and psychological issues and is overseen by a group of dedicated, caring volunteers from around the world.

 

Helplines and Lifelines

The material on this site is for informational purposes only, and is not a substitute for medical advice, diagnosis or treatment provided by a qualified health care provider.

Always consult your doctor or mental health professional before trying anything you read here.