[lryan361]

We moved to Florida 16 months ago and are planning on moving back to Iowa. It is not what we thought. We sold our home in Iowa and the market was starting to fall. So we didn't make a lot. We bought a home down here because everyone kept saying the market was going to go up fast. Big mistake. But now we have bought a home for 159,000 and we have it on the market for 168,900. We have an 80/20 loan and the 20 loan has gone up to 10.5% and the 80 at 7.95%. Our payments are 1650.00 and it is killing us. We have depleted all our 401(k)'s, savings, etc. We are wondering if should refinance. We have 6,000 left in savings and know that that will take up the cost of selling our home and moving back. We are really in a mess and very discouraged. We don't want to foreclose on our home. And are even going to get second jobs to help. We have received a lot of flyers in the mail wanting us to refinance. Can we do that while it is for sale? Also we'll this put us deeper in the hole? Our 20 loan has a 5% early payoff also. Any advise would be greatly appreciated. We are desperate. Thank you

[Dwight_Pigg]

We moved to Florida 16 months ago and are planning on moving back to Iowa. It is not what we thought. We sold our home in Iowa and the market was starting to fall. So we didn't make a lot. We bought a home down here because everyone kept saying the market was going to go up fast. Big mistake. But now we have bought a home for 159,000 and we have it on the market for 168,900. We have an 80/20 loan and the 20 loan has gone up to 10.5% and the 80 at 7.95%. Our payments are 1650.00 and it is killing us. We have depleted all our 401(k)'s, savings, etc. We are wondering if should refinance. We have 6,000 left in savings and know that that will take up the cost of selling our home and moving back. We are really in a mess and very discouraged. We don't want to foreclose on our home. And are even going to get second jobs to help. We have received a lot of flyers in the mail wanting us to refinance. Can we do that while it is for sale? Also we'll this put us deeper in the hole? Our 20 loan has a 5% early payoff also. Any advise would be greatly appreciated. We are desparate. Thank you

Based on the information that you have supplied, I would advise against refinancing. Most lenders will not allow you to refinance if the property is listed for sale in the Multiple Listing Service that real estate agents use.
It doesn't appear that you have adequate equity to make it worth your while, even if the for sale listing wasn't an issue.
Contact your mortgage company immediately! They do not want to foreclose. You can work out an arrangement to reduce payments until it is sold. I was in a similar situation many years ago and the mortgage company worked with me.
At the time, I worked 2 full time jobs until we were back on our feet. It wasn't easy, but desperate times call for desperate measures.
I can't tell you how important it is to communicate with your mortgage company. Lenders lose millions of dollars every year due to foreclosures. Also, ask them about a short sale. That is an agreement to take a little less than your pay off, in an effort to sell your home. If you are behind on payments, the damage has been done to your credit rating. A short sale is much better than a foreclosure.