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miller_st
Joined: 17 Jan 2007
Posts: 917
168.92 Dollars($)
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Hi Alex,
There are many options open & you should not think about foreclosure right now.
How much balance left on the mortgage? Did you search the possibility of refinancing your present mortgage? Any equity in the house?
And selling the house right now can be one alternative present for you.
Miller |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.84 Dollars($)
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Hi Alex,
Welcome to Mortgagefit discussion board.
If it is becoming hard for you to continue the payments then talk with your lender about any forbearance plan under which your payments can be stopped for few months to help you recover from financial problems you are facing and then continue the payments.
Another way your mortgage can be saved from going into foreclosure is to set up a repayment plan in which your loan term can be extended so that you can afford the payments.
These are known as loss mitigation plans which are used to save borrower from having to face foreclosure. If these plans do not work then you may have to give up the house using a deed in lieu of foreclosure where the lender accepts the house in return to whatever balance is left on the mortgage.
A deed in lieu if accepted would be better than foreclosure as then lender would not be going for deficiency judgment. While in foreclosure lender can get a deficiency judgment against the borrower and place a lien on his other assets for recovery of his balance dues.
Foreclosure as well as deed in lieu of foreclosure will have bad impact on your credit and you will face difficulty in availing debt in future. So these two choices are to be explored at the last when other plans don't work.
If you are still current on the loan then try to find out if the loan can be refinanced or not and how much equity (if any) is there in your house. It will be useful in determining if refinance would be possible or not.
Do let me know if you have any other questions.
Thanks
Blue
_________________
Lets help each other. Try my blog |
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jenkin7
Joined: 04 Jun 2007
Posts: 3430
Location: Hawaii
514.35 Dollars($)
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Hello Alex,
There are times when everything is not bright and things do not shape the way we want or wish to. But, under such situations, the best thing to do is to wait patiently and hope for the things to turn up positively. I am sure that you will be able to buy a house again and have bank accounts.
If you have kept your house as collateral, then the lender would not be able to take the business that you own. If you foreclose, then it would have a bad effect on your credit score which would be for about 10 years. Also the lender may sue you for a deficiency judgment against you. But, if you wish to avoid foreclosure, you can go for Loss Mitigation. It is a process where you avoid the foreclosure with the help of the lender. |
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Tris
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Post subject: what happens after foreclosure |
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| hello, my situation is slightly different and very confusing. I am a joint applicant on a home with my mother who has been consistantly delinquent on payments. I have a family of my own and live in a totally different state as her and can not afford to pay for her mortgage as well as a home for my family. i was wondering how foreclosure affects your credit and all the details on it, since working out any kind of payment plan or sale on the home with her hasn't proved useful (she declines all suggestions) I just wanted to know if the lender forecloses the home, then do I have to eventually pay back the remaining debt on the house in the future? How long does foreclosure stay on my credit? Most websites are only telling me how to avoid forclosure, rather than providing me the repurcussions of it. |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.92 Dollars($)
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Hi Tris,
As you are a co-borrower your credit will also be affected along with her.
| Quote: | | since working out any kind of payment plan or sale on the home with her hasn't proved useful (she declines all suggestions) |
You should try and explain to her that her credit will get affected if lender selects to foreclosure. And will face problems in getting new loans. I
| Quote: | | I just wanted to know if the lender forecloses the home, then do I have to eventually pay back the remaining debt on the house in the future? |
It depends on your state laws. In some states deficiency judgment is allowed while in some it is not. If you are in a state which allows for deficiency judgments then lender can place a lien on your other property for recovery of his remaining debt.
Miller |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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"How long does foreclosure stay on my credit? Most websites are only telling me how to avoid forclosure, rather than providing me the repurcussions of it."
Foreclosure will remain on your report for 7 years.
Foreclosure will not be good to have on your report. Make concerned effort so that foreclosure can be avoided. Why is she not listening to any kind of suggestions from you? It is likely that she is not aware of the negatives affects of foreclosure, I think proper explanation will do the trick.
_________________
Good is the Enemy of Great. |
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frustrated in n.j.
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Post subject: help |
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My taxed increased by $3,000.00within two years of my home purchase, it is presently $12,000.00+. Between taxes, mortgage and car insurance I can barely make payments. I am ready to run...
What are my options??? |
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frustrated in n.j.
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Post subject: help |
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| along with hike in taxes, many properties in my area are up for sale and my house was appraised for less than my loan amount... |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Hi Guest,
Don't get so much frustrated as everybody have to face some difficult situation in the course of their life. Even if your home appraised value has become less than your outstanding loan balance, you can try to sell it out and cover the payments. If required, you can take the fund from your other personal savings.
But I think in your situation, it will be better if you consult with a tax professional so that he can help you reduce the taxes. |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.92 Dollars($)
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Post subject: |
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| Quote: | My taxed increased by $3,000.00within two years of my home purchase, it is presently $12,000.00+. Between taxes, mortgage and car insurance I can barely make payments. I am ready to run...
What are my options??? |
You should look at cutting on some expenses to save money for the payments.
How much is the difference between the current house price and balance on mortgage? If it is not too big then sell the house and pay for the deficit from personal savings.
Miller |
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casey
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Post subject: foreclosure |
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| i am in partnership with an idiot i am able to make my share of mortgage payment but my partner is broke how will my credit effected if we go for an foreclosure this is a llc also how would i keep track of his payments |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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Hi Casey,
Your credit will be affected as you are also on the loan. And I would also say that it is always better to avoid foreclosure if possible. You need to look at other option available for you instead of foreclosure.
You need to know if your partner is in a position to pay his share of the mortgage or not. If he cannot continue the payments and it becomes difficult for you to continue the loan on your own then you will have to look into alternatives before the loan is in default.
_________________
Good is the Enemy of Great. |
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carvin
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| Quote: | | how would i keep track of his payments |
You can make an agreement with your partner that you will be making the mortgage payments & he should give his share of the payments over to you. And then you will pay the mortgage company. |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Hi Casey,
Foreclosure will certainly have a negative impact on your credit as you are also on the mortgage. It is better to avoid foreclosure and in this situation, if you alone can afford to make the payments, then you should refinance by taking a new loan in your name solely. But before refinancing, you must check out if there is any prepayment penalty or not. In case if there is the penalty, you may have to incur some costs.
If you wish, you may also sell the house to cover the payments. And if your partner does not agree to sell, you may file a partition lawsuit in the court. |
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JULIE
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Post subject: FORCLOSER |
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| MY HUSBAND AND I ARE ABOUT TO FORCLOSE ON OUR HOUSE IM ON THE TITLE BUT NOT THE LOAN WILL THIS HURT MY CREDIT SEEMS HOW WE ARE MARRIED |
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