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My mom is seriously ill and suffering for the past two years. I had taken a mortgage some 5 years ago. But has not been able to pay at the right time due to expenses for her treatment. a few days back my lender called me up and said he wants to sell the property. what should I do?

Jessica · Posted: Thu Jul 14, 2005 11:57 pm Post subject: avoid foreclosure

Hi Charlosse,

It feels sad to hear about your mother's illness. But let me assure that there are some ways by which you can avoid foreclosure of your property.

You should try to convince the lender about your inconvenience. You must also provide him with documents that can give an account of your income and expenses.

In case you have taken a HUD approved mortgage you should consult with a HUD approved housing agency which offers credit counseling. You may ask the lender to consider a different repayment plan based on your financial condition. But lenders approve of such negotiations only when you meet the minimum requirements for such a plan.

Another option is to refinance your existing mortgage so that you can pay off the present debt. But refinancing helps you only when the market rate is lower than the interest rate on your present mortgage. The lender will however not allow you to go for refinancing until and unless you can prove that you have recovered from a financial problem and can afford the new payment structure.

In case you have taken a FHA insured mortgage, you can apply for taking out funds from the FHA Insurance fund. But you need to qualify for it. You can also "give back" your property to the lender instead of allowing the lender to conduct a foreclosure. This prevents any damage to your credit rating which you can't avoid in a foreclosure.

There are buyers who can approach to help you but you should find out if there are any complaints against them. You should also consult a lawyer or an attorney who will guide you in the process of avoiding a foreclosure.

Wish to receive your feedback.

Regards,
Jessica.

mandarinmint · Joined: 22 Aug 2008 Posts: 2 1.89 Dollars($)

If you have a 401k or an IRA, maybe you can try tapping into those to get your out or your financial difficulty.

This article gives you the pros and cons of taking money out of your retirement accounts before retirement:
"http://gabwith.us/pros-and-cons-of-tapping-into-your-401k-to-avoid-fo reclosure/"

Otherwise, you should definitely consult a financial adviser. . .you will be able to sit down with them, talk over your options and they will find the best solution to your problems.

Good luck!

[Link deactivated as per the forum rules]

bkayebutts · Joined: 27 Aug 2008 Posts: 1 1.25 Dollars($)

I would seriously consider all your options before taking money out of your 401K. Contact you lender as soon as possible.

jmiller · Joined: 04 Sep 2008 Posts: 13 5.75 Dollars($)

You can do what is called a "loan modification"

*You can keep the same lender / mortage company
*We have attorney's that negotiate with your lender to give you a lower and more affordable payment
*You get to keep and stay in your home
*Does not matter what your credit score is
*You can be in foreclosure, have late payments, etc.
*95% Approval Rate

I am a Mortgage Professional, and I do stand by everything I post

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