Question about foreclosure?

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Long story short, we live in a manufactured home in a trailer park. My husband works full time, and we had extra money in our checking to cover bills, then his hours were cut to 32 per week, and the lot rent was raised to almost 300 per month about the same time, which only includes garbage and water/sewer. Our house payment is 457 per month. They raised his hours back to 40 after a couple months, but we have been struggling to put food on the table since the cut in hours and the raise on the lot rent dwindled our bank account down. We have 2 young kids, 1 and 4, and I stay home with them, because we cannot afford to pay for child care, We have called our mortgage company and asked to modify our loan, but they refuse, and we have asked the owner of the park to buy our home, since it has been for sale for 2 years, and not one person has come to look at it, but he says he cannot afford it. We are NOT allowed to rent it out or move it until it is paid in full.
So, we are thinking about letting it go back, as we feel we have no other option (can’t afford to stay), but what will happen? How long will we have to get out? Will we have to file bankruptcy? Can we buy an rv to stay in before we let it go back, and will it be taken if we end up having to file bankruptcy? Will they take any of our belongings? Can they lock us out? Or is there anything we should know before we let it go back, any other options? We live in Michigan if that makes a difference. Thanks in advance for any help.
We pay 757 a month with our lot rent, and the kids have never been away from me.
Mortgage company- Superior Choice Credit Union

My husband died last month and I lost his Social Security Disability. I am going to lose the house. My pay was cut last year by 10 percent due to the economy. I owe twice as much as the house is worth. Lender won’t modify the loan enough to help (plus I have a second Mortgage). I can’t short sale…. I want to talk to an attorney about whether it would be best to file bankruptcy or go into foreclosure. Both have long term ramifications and I don’t want any surprises. I need to talk to an attorney, but how do I find one and what kind?

Century 21 Today Short Sale Seminar

After attending this event at Glen Oaks Country Golf Course, I chose to educate myself and become Short Sale & Foreclosure Resource certified by acquiring the SFR designation. www.realtorsfr.org/

8 Comments
  1. Reply
    Iffy
    April 29, 2011 at 9:47 pm

    Modify what you pay 457 a month, you cannot even rent an apartment for that. You need to get a job at night or weekends and let husband babysit

  2. Reply
    liveinmd
    April 29, 2011 at 10:31 pm

    I am curious who your mortgage company is. You state that you pay lot rent which means the lender cannot foreclose on the land just the house. This info will actually help me to figure out if you would qualify for any of the homeowner refinancing programs.

  3. Reply
    Two peas in a pod
    April 29, 2011 at 10:48 pm

    Call your lender again and speak to a supervisor, lenders don’t want to foreclose they are losing a lot of money. They will work with you if you get the right person. You may be able to set up a payment plan, be persistent. The government has set up new guidelines for lenders just last month so check them again. I am a Realtor in Calif. and a certified HAFA specialist but I don’t have any experience with trailer homes but check out HAFA on your PC it may apply. Good luck.

  4. Reply
    Kevin Williams
    April 29, 2011 at 11:21 pm

    ” Two Peas in a Pod” is absolutely not giving you the right information.

    Since you have already made contact with the lender and they have not responded positively, it is best to step away from the process and allow a Hud Approved Counseling Agency to discuss the matter with the lender. The assistance is free and the result is normally positive if you can demonstrate some ability to pay. You can locate free foreclosure information from the Hud website here:
    http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure

    The lender can opt you into a modification program but lately they have been using fear tactics to demand payments rather that have a honest conversation with the owner about their finances. They default back to the belief that the owner is lying and if pushed hard enough will find the monies to bring the loan current.

    Contact Hud and I am sure you will be alright. Good luck and I really hope you get the help you need.

  5. Reply
    wilderwriter
    April 29, 2011 at 11:31 pm

    Bankruptcy stays on your record longer and looks worse. The kind of attorney who handles bankruptcies should be able to advise you satisfactorily on either course.

  6. Reply
    Just asking
    April 30, 2011 at 12:24 am

    First, talk to you lender and try to get a deed in lieu of foreclosure so that you aren’t liable for any deficiency in the first mortgage. If the lender holds the note for the first and second you may be lucky enough to get rid of both with the deed in lieu but that’s unlikely. If different lenders hold the notes then there’s no way you’ll convince the holder with the second mortgage to just forgive the note. However, if you can get rid of the first with a deed in lieu, maybe you can afford housing somewhere else along with the payments on the second.

    If none of that is possible, talk to a bankruptcy attorney! The difference between a foreclosure and bankruptcy on your credit bureau is negligible and with a foreclosure, you are still on the hook for any deficiency in the first mortgage along with the entire second mortgage.

  7. Reply
    alfredb1979
    April 30, 2011 at 12:31 am

    What do you mean you can’t short sell?

    You either sell for what someone will buy for or you up your income DRASTICALLY.

    It’s that simple.

  8. Reply
    debijs
    April 30, 2011 at 1:00 am

    ~~So sorry to for your loss.

    Ask around if you want a referral. However you can look under the yellow pages or through Yahoo’s yellow pages and find any who specialize in Bankruptcy. They will advise you on all your options. We just spoke with one yesterday and I am very pleased with the options we have. We are in a similar predicament with our own home. Due to the horrible economy, my husband has to close his businesses. Therefore we are looking at our options to.

    From what I learned yesterday, if you know you can’t keep your home (financially) chapter 7 is your best option. However, chapter 13 may work for you too, and can give you a hope of greatly reducing your loan amount on your home. It’s a 5 year program which is very difficult, but is another option. Consultations are free, so find out what will work best for you. Best of luck in the impossible difficult times!~~

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