Hi everyone, I have received a lot of great advice and reference information from this forum since having joined some months ago. I have also found Dave Ramsey’s resources to be very helpful.
I had really dug myself into a hole simply by taking on too much debt. There are so many times when things seemed hopeless, and I didn’t even know if I could get current because of all the fees and stuff I was paying – I’d catch up one place and fall behind in another.
I was also one of those caught up in the subprime mortgage situation (payed 11.75% initially which adjusted upward to 12.50% this Feb.). When I got behind in my mortgage payments, I was able to set up a 12- month forbearance plan with my mortgage company starting one year ago April, and completed it this April – one victory!
I then found out I had an extra monthly payment due that same month of my last forbearance payment(long story short), plus the extra amount due since my ARM adjusted up in February. I told them I couldn’t cover that right away and asked for alternatives. While I explored possibilities my mortgage company was taken over by another company and I received a notice of default. Things seemed to be going backwards again.
I called the mortgage company several times, explaining I could not make a double payment in one month … we talked about a loan modification.
Fast forward to today (certainly didn’t feel fast – it felt like a decade!) … my negotiator at the mortgage company called today … my modification has been approved AND they are giving me a new mortgage rate of 6% !! (Amazing since my FICO is still around 500.)
My next payment isn’t due till Oct. 1. It’s still an ARM, but I am going to jump on the opportunity to work hard on my FICO and refinance to a fixed as soon as I can.
Can’t believe this has happened. This year has been grueling – I have been working out repayment plans with all my creditors myself. Sometimes I had to request new arrangements. But I kept paying and paying, and I seem to be creeping ahead. I still have a ways to go, but in October I’ll get a bonus which will go towards debts, and my spreadsheet is increasingly in the black, and balances are going down. I keep a list of everything I paid off just to give me a boost if I get discouraged.
My thanks again to this group. I couldn’t have found my way without it. I just had to share the good news because I am feeling hopeful for the first time in a long time.