Can we expect a person facing foreclosure?

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I had to close his business and I am the mortgage, do not give me the patience of contract, but payments are so high that I can not get what other options I have if any? Credit scores do not allow me to refinance or received a loan to equity.

9 Comments
  1. Reply
    Iffy
    April 29, 2011 at 11:33 pm

    No you need to learn when to give it up. You have no immediate hope of improving your financial status,
    can’t afford the house so let it go.

  2. Reply
    Kevin Williams
    April 29, 2011 at 11:34 pm

    You can try to network with organization who are committed to helping homeowner’s secure real assistance. One such group can refer you to a program that help you to pay off your missed mortgage payments. To qualify you must be at least 3 payments late. The program is not based on credit since to apply technically, your mortgage must be delinquent.

    Additionally, new programs are released daily by the states. Just last week the state of Washington DC, revised its laws and made it mandatory for all banks to work with the homeowner through mediation to resolve the delinquent payment and DC is a non-judicial state, but they revise the state laws to create a quasi-government judicial process.

    To learn about updated state laws that may help you, click the link below and select your state.
    http://www.worldclassmemberservices.com/ForeclosureLaws.html

  3. Reply
    loanmasterone
    April 30, 2011 at 12:17 am

    There are several options you have,it appears as if none are very good at the time.

    #1 Deed-in_lieu of foreclosure (This is a request by you to your lender to take the house instead of going through the complete foreclosure procedure.) This would make you no longer responsible for the monthly mortgage payment if approved by your lender.

    #2. Short-Sale (Get a competent real estate agent to apply to your lender for this method of relief from your mortgage) This method if approved would also eliminate your responsibility to pay the monthly mortgage note if approved.

    #3. Allow the foreclosure to take it’s normal course( This would eliminate you from making the monthly mortgage payment. This would eliminate your monthly mortgage one completed.

    Either method you decide to use, most lenders would indicate to the IRS that they had a loss on the property as they had to sell the property at a discount and did not fully receive the balance of the mortgage loan you signed for.

    Also either method would reflect a negative on your credit report for several years.

    Since the IRS has someone that had a loss on this property or mortgage loan then someone had to have had a gain. The IRS has indicated this gain is you the current property owner. Therefore you will be issued a 1099 indicating what this gain was. You would have to file this gain with your current income tax. You should take this 1099 for filing with your tax preparer.

    For tax and legal matters you should always consult your tax consultant or attorney.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  4. Reply
    the kid
    April 30, 2011 at 12:45 am

    You can hope to find a new place to live by the time they kick you out. Or you can hope to come across enough money to get your payments current.

  5. Reply
    compcon
    April 30, 2011 at 1:26 am

    The reasons the payments are so high is the lender has you on a catch-up program. You are making your mortgage payment plus an extra amount to make up for the payments you missed. Since you are having a problem making those payments, get in touch with the lender and explain your situation again.

    Your lender may be willing to lower the interest rate. This will lower the payment. The lender my be willing to extend the loan in years. While you will pay more interest on the loan (interest is tax deductible) extending the number of years will lower the payment.

    If your mortgage is insured, your lender may be able to get you a one-time interest free loan from your mortgage guarantor to bring your account current. And you may be able to wait several years before paying off that loan. You may qualify for that loan if you are between 4 and 12 months delinquent and you are able to start making the original mortgage payment again.

    When your lender files a partial claim, the lender will have you sign a promissory note and a lien will be placed on the property until the note is paid off.

    If none of the above is now an option, you may want to look into selling the home.

    Your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to use the services of a real estate professional who can aggressively market the property.
    You may be able to use something called pre-foreclosure sale or short payoff. If you can’t sell the property for the full amount of the loan, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if:
    1. The loan is at least 2 months delinquent.
    2. The house can be sold in three to five months.
    3. A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines.
    4. The lender may allow another person to assume the mortgage, even if the orginial paper work says the loan is not assumable.
    5. As a last resort, you “give back” your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations. You usually have to try to sell the home for fair market value for at least 90 days, and the option may not be available if you have other leins against the property.
    You probably should call a HUD housing counselor to discuss your specific situation. http://www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm. (800) 569-4287. Talk to them about your situation. They can tell you the best course of action.

  6. Reply
    Theodore Macmahon
    April 30, 2011 at 2:06 am

    would help people retain their homes, but I doubt that’s the real purpose; I think it was mostly to save bank investments.

    I don’t know what your financial status is, so I can’t really offer any concrete solutions. Maybe being a homeowner in your current home in your current position isn’t even an option. Try rearranging your budget, and sticking to it. You’re already in a bad spot financially… If you have a car loan, get rid of the car and get something cheaper or take public transportation, and use the difference for your home. Cut costs – get rid of the cell phone plans. If you have kids in private school, put them in public school. Get a job if you don’t have one. Sell the assests from your business.

    The hard truth is this; if you’re over extended and in foreclosure, there probably isn’t much you can do now that you haven’t already thought of – you’re trying to use contraceptives after you’re pregnant.

    The fact is, during the late 90s and early 2000s, people were getting approved and moved into homes they had no business being approved for. The banks are really responsible, and they should be paying to fix the problem. People were being approved on vapor for homes they could not afford, and never would have been approved for at any other time in history. Then the Bush years started and the economy crapped out. People buying with ARMs or interest only loans so they could move into more home than they could possibly afford, they should lose their homes and learn a lesson about living within their means.

    I hope you can keep your home; but, if not, learn from the lessons that caused you to lose it, and don’t make them in the future.

  7. Reply
    New Yorker
    April 30, 2011 at 2:22 am

    Have you tried selling your home? or trading it for something smaller?

  8. Reply
    walkawayokcom
    April 30, 2011 at 3:19 am

    Yes there is more than hope! Strategic default and/or bankruptcy can be used as a tool by most underwater homeowners to provide a new start for their families. Imagine a life without your mortgage debt, without any debt. A fresh financial beginning.

    A lot of your options depend on which state you reside in. Also remember that these laws and regulations are starting to be removed by congress as more people use them and the banks squeal. 7-10 years is poppycock! There are many paths to good credit scores in just 2-3 years after default and judging by the current economy we will still be struggling for quite some time.

  9. Reply
    Gorden
    April 30, 2011 at 4:00 am

    If you have an okay income or your spouse does, you could look into filing a Chapter 13 bankruptcy to get caught up on your mortgage payments …if you have no income or not enough income and you have never filed a bankruptcy, you could file a Chapter 7 and just voluntarily give up the home and start all over…if you need more information, please pm me.

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