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msariano · Joined: 19 Dec 2007 Posts: 1 1.41 Dollars($)

Is it legal for a mortgage or loan company to refuse what someone out of work or injured has offered to pay?
My father-in-law was injured in a work accident which his doctor has removed him from working entirely. He currently has no income, no disability etc and has offered to pay $50 a month on an $800 a month loan until he begins getting an income again. The bank said, "no, we will just foreclose on your house if you can't pay the $800".
Thanks!

jenkin7 · Posted: Thu Dec 20, 2007 1:05 am Post subject:

Hello Msariano,

I think you should talk to your lender clearly about the situation.

Usually lenders agree for a forbearance or a mortgage modification during such situations in order to avoid foreclosure. You may talk to the bank about these and see if they are willing to work out any option.

Did you have any late payments earlier?

Niicss · Posted: Thu Dec 20, 2007 5:32 am Post subject:

I think that is legal for them. It is his money after all. The lender may not accept payment of such lower amount compared to what you are supposed to pay.

You may talk to the lender about a forbearance or any alternative payment option and try to convince him stating him about your situation. He might be ready to do that but you can expect the amount to be something more than $50 a month. Otherwise he may refuse that.

I think it will better if you try to sell off your property or at least do a deed in lieu in order to avoid the foreclosure and your father-in-law may put up in a rental property.

Guest

I agree, it is up to the lender. They can foreclose on the property. In some cases, the lender will not work out the situation until the mortgage is considered late. However, you can still try talking to the lender and work your way up to management to try to get help. Also, you can request other options. I would also contact Social Security as soon as possible to see if he qualifies.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Msariano,

The above posters have given you good suggestions. Consult with your lender immediately and try out some repayment options if possible.

If you can't afford any of those options mentioned by the above posters, then go for DIL or short sale. At least these will affect your credit lesser than foreclosure.

Feel free to ask if you have nay further questions.

Thanks,
Larry

brad · Posted: Thu Dec 20, 2007 3:02 pm Post subject:

Usually when you sign your mortgage note you agree to pay the said amount every month on the said date. It is their descretion to make any arrangements or changes to the payment schedule.

I think once you are late that they will be willing to help you out.

scherzeroni · Joined: 05 Jan 2008 Posts: 51 18.77 Dollars($)

It doesnt sound like you are talking to the right people over there. Talk to someone in the forclosure department. Also, they will work something out only if they expect there to be an ability to pay in the near future. Let them know if you will be returning to work, recieving disablity, or whatever the income may be in the near future.

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