Advice on avoiding foreclosure

teresasbengals · Joined: 29 Nov 2007 Posts: 1 1.34 Dollars($)

Due to payday loans, we have gotten behind on our mortgage, we owe 3,761.45 and they want it by Dec.16th or they will start foreclosure proceedings. We are in such a bind and in such a panic and don't know what to do. Any advice would be greatly welcomed.
-Thanks, Teresa

jasonredding · Posted: Thu Nov 29, 2007 3:37 pm Post subject:

The best thing to do would be if you can borrow the money from a relative. Then sit down reevalute your budget and tighten the purse straps and stick to it. Find a way to get back to living within your means.

The borrowing part may not be an option but the strict budget thing is definetly going to have to be if yiou can find a way to comeup the money.
Unfortunatly you have been very vague with your scenario so it is tough to give you a real solid answer.

Now you may me able to renegotiate that ultimatum date set with the bank and get a forebarance agreement going. but again we would need more info to help you out.

please eloborate and I should be able top help you get more direct plan of attack.

michelle · Posted: Thu Nov 29, 2007 3:42 pm Post subject:

Welcome to the forum.

I would recommend that you call the lender again immediately and tell them that you CAN NOT possibly make that payment. You are more than likely dealing with the collections dept at this time. Ask for the loss mitigation department. They might be able to work out a re-payment plan with you where they would take the past due amount and spread it out over a number of months. You may need to make repeated calls, unfortunately so patience and determination will be needed.

The other recommendation would be to contact a HUD counselor who may be able to negotiate on your behalf. They have been overwhelmed lately so it may take some time to get an appointment. Be sure to tell them of your deadline and they may be able to make an exception to get you in quicker.

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

Most lenders offer a work out solution but you may be talking to a customer service person that is not going to offer you a real solution. I would call your lender and ask for the foreclosure or loss mitigation department. Be persistant to get through to the right people that can help you. If you dont see yourself being able to afford the payments in the near future then I would suggest looking at options that would release you from this obligation. The first option could be a short sale. This is where the lender accepts a payoff that is lower than actually owed. They will only consider this when the you have a buyer that is willing to pay market value for the home. This way, you wont have a foreclosure on your record. A deed in leiu of foreclosure could be another option. Before these two options, I strongly suggest contacting the mortgage company for a work out solution.

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