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Loss Mitigation options to stay out of foreclosure

If you are behind on your payments and facing foreclosure, you may need loss mitigation help. Loss mitigation options (forbearance, loan modification, etc) help a borrower [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url] by providing them with alternatives to pay down their mortgage. It also minimizes the lender's credit loss resulting from the borrower's inability to repay the loan.

How do I negotiate for loss mitigation?

Here's an overview of what you should do when you cannot keep up with your usual payments, how to negotiate with the lender, and what actually happens when you are considered for a loss mitigation/loan workout plan.

Contact the lender: Unless you've missed a few payments, some lenders will not negotiate with you for a workout plan. However, if the lender refuses to negotiate unless you're behind, you should keep trying. Contact the lender's Loss Mitigation Department and request a loan workout option to help you pay down the mortgage.

Hardship letter: Prepare a hardship letter including the specific date when the hardship started. Take a look at this Sample Hardship Letter. You should attach documents supporting your hardship claim. Learn more on how to write a hardship letter.

Lender's analysis of your loan: After the lender has agreed to discuss a loan modification, they will send you a packet of forms. They will want you to provide as much information as you can about your finances so they can evaluate your situation using their own calculations. The types of information they are looking for include:
  • 2 months of bank statements
  • Tax filings for past 2 years
  • Receipts of 4 months of regular monthly payments
  • Personal statement about your finances
  • Situation that made you delinquent
  • Paystubs for past 2 months (to check for current ability to pay off loan)
  • Name and contact details of borrower's current employer
  • For self-employed persons, last 2 years of tax information and year-to-date and profit and loss business statement for past 2 years
  • Recent utility bill

The lender reviews the above information, calculates how much you can afford to pay each month and calculates:

  • Monthly net income for past 2 years (adjusted to changes in income)
  • Monthly living expenses (under normal conditions) with debt payments (adjustments are made to reflect rise or fall in expenses for each of the first 3 months of the loss mitigation option)
  • Surplus income available each month by deducting expenses from income
  • Surplus income percentage by diving surplus income by total monthly expense

Based on the above calculations, the lender will approve you for a loan modification and make you an offer. If you cannot afford this offer, you should try to get help from a credit counselor who will be able to help you negotiate. Before sending any documents to the lender, you should make copies in case the documents are misplaced.

What are the loss mitigation options?

Here's a rundown of the workout options available to you in order to avoid a foreclosure.


Special Forbearance

Repayment plan for the borrower to cover the debt and get current on loan until you can make the usual payments through a structured payment plan or loan modification.
  • Suffered verified loss in income and living expenses have gone up, but has enough to cover the debt and become current on the loan.
  • Occupies the property as primary residence.

Delinquent for 3 months but not more than 12 months.

Property should not need repairs which may affect payment under forbearance.

Loan Modification

Permanent Change in terms of the loan - the debt is included in the loan balance and reamortized at a reduced interest rate.
  • Suffered verified loss in income or increase in living expenses but have stable surplus income to help pay at the modified rate and terms.
  • Borrower should remain as the occupant and property should be the primary residence.
  • Borrower having loan at above market rates, lower loan-to-value ratio, and mature terms (loan paid down for 10 years or more).
  • Someone who isn't delinquent but may soon default on the loan.

Behind on payments for 3 months or more and 1 year has passed since the loan was signed.

Property should be in good physical condition; otherwise costs to complete repair work will drain out enough cash and borrower won't be able to make payments under the modification.

Short Sale/ Pre-foreclosure Sale

Sell off property to pay off the debt, though property value has declined to less than the money owed. Know more…
  • Have a verified loss in income.
  • Having negative equity of not more than approx. 63% of the unpaid loan balance.
  • Occupies property as the primary residence.
  • Non-occupant may qualify but have to prove that the need to vacate is related to default.

One who is already behind on payments or likely to be behind soon.

No serious damage to property. Even if damaged, cost of repair should not exceed 10% of the Repaired Appraised Value.

Property should be able to be sold free and clear of liens.

Deed-in-lieu of Foreclosure

Borrower offers property to lender who sells it off to retrieve the unpaid balance. Learn more…
  • One who's unable to continue making payments.
  • Occupies property as their primary residence.
  • Non-occupant owner can qualify, but he has to prove that the need to vacate is related to the cause of default.

The loan is in default (that is, the borrower is more than 30 days late on their payments and the cause of the default cannot be eliminated).

Property should be free of any liens.

Property shouldn't have been used as rental property for more than 1 year.

Partial Claim

Placing your past debts into a subordinate 2nd mortgage (not exceeding 12 months of PITI) payable to HUD (2nd loan payment to begin only after first mortgage is paid down; there's no interest on the 2nd loan).
  • Those having FHA loans and mortgages offered by Freddie Mac approved lenders.
  • Unable to qualify for forbearance.
  • Use property as the primary residence.
  • Can prove that financial hardship is over.
  • May qualify even after bankruptcy filing but court approval required.

Delinquent for 4 months but not more than 12 months.

Property should be in good physical condition.
*N.B: The criteria and conditions stated in the table above may vary from one lender/mortgage company to another.

Of all the loss mitigation options, special forbearance is the best. It may be combined with loan modification when there's doubt about the borrower's income stability. Especially in these tough economic times, if you're unable to get a loan modification, your lender may be open to a short sale or a deed-in-lieu to avoid foreclosure. If you convince your lender to accept a deed-in-lieu you can even talk to the lender about rental options. Whichever option you decide is best to help you avoid foreclosure, you'll need to submit the same documents to prove your hardship.
Related Readings

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i would like to know how much amount of money one has to come up within few time as the initial contribution for a repayment plan like forbearance or mortgage modification in oreder to avoid foreclosure process??

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Andrew,

Your question has been answered on this page, kindly have a look:
http://www.mortgagefit.com/know-how/about5037.html

Thanks
James

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:51 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have two months behind.
When I re-finance the house they told me
that the insurance in included in the payment.
Now they tell me that I have 2 years with out insurance and
they charge me $13,000.00 because they told me I had no insurance...so they put their own insurance, and I have 2 months behind. I would like to know what I can do to save my house .

Contact me at:
E-Mail: "Veronica132821@yahoo.com"

Thank you,
Roger.

[size=9:c3a2550907][color=Red:c3a2550907][Email address deactivated as per the forum rules][/color:c3a2550907][/size:c3a2550907]

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:51 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Roger.

Welcome to the forum.

Do you have any escrow account? You should inquire this to the Escrow Company? If you have Insurance then why would they ask you for another insurance?

As you are already 2months behind talk with your lender and go for forbearance and loan modification. Check out what is the option available to avoid foreclosure at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Best of luck.
Larry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a rental that we can no longer pay for. It is in a depressed area and we are over three months late on the paymnets because we can't rent it for the amount owed each month. My husband has taken a huge cut in pay just to have a job. What is the best move to make with the least amount of impact on our credit. we tried renegotioating with the lender but we are about 2500 a mont short fiancially. The lender sugested a tring to sell it as a short sale with a realator for a thre month periiod. If doesnt sell then ther do a deed in lieu. We could let it go into forclosure. Our other option is since we are 500 thousnd dollars in debt should we file bankrupcy. However we dont want to lose the home we live in or our cars. And we hate to have to lose our credit cards since we can make the payments if we could get out of this other home. My question is what is our best option, concerning our credit and tax ramifications. Can you give me some advice. Thanks Debbie

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Debbie!

I think filing a [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url] will be a better option for you if you do not have the options of short sale and deed-in-lieu. It will help you to reorganize your debts which you will be able to pay within 3-5 years. Yes your credit score will be definitely affected due to this.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If my secend home is forclosed do i lose my primery residenc to .We have two homes and we need to do somthing or we are going to lose everithing we have .Please let us know what we should do .

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi didi!

You may not lose the first home, however, a lien can be placed on the property if you are not able to give the deficient amount to the lender.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

im not on the loan but im in the title as gift deed. i have 1st and 2nd mortgage ARM.im behind payment since march,2008 and received a notice of default. can you advise me on what to do? what are my consequences if any.

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi neleh!

You are saying that your name is not on the loan but at the same time you wrote that you are late on payments. Are you speaking of a second property which has 2 loans? Or are you speaking of the gifted property which has two loans? If you are speaking about the gifted property, then I don't think your credit will be affected as your name is not on the mortgage. You will only lose the property if it goes into foreclosure.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What exactly is the percent that the loss mitigation department is looking for you to have left over after they divide the income by the monthly expenses? Is there a certain amount of income that we need to have left over after all the debt is taken from our income? and what is that percent?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi need help!

Your query has been answered by one of our community members. You can have a look at the answer in the given link:
http://www.mortgagefit.com/know-how/lossmitigation-accountclosed.html

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am behind on my mortgage by two payments. If I get behind more than 60 days, they will move to foreclose.

I am in a bankruptcy and want to try for a loan mod but they'll won't consider while I'm in bankruptcy. I'm afraid to pull the mortgage out in case they don't approve me for the mod. What would happen then? I am open to selling my house, but the market is not good.

Do you have any suggestions?

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Miffer,

What type of bankruptcy did you file? Is it chapter 7 or 13? if it's chapter 13, then you should have been making payments as per the repayment plan approved by the trustee.

The lender is quite justified in not allowing for loan modification as because you're in bankruptcy. And now if you dismiss the bankruptcy, things could get even worse. Do you have other debts included in bankruptcy along with the mortgage?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We did Carleton Sheets, a few years back. We took equity and bought a Rental (in a depressed area). Then we went for the big house, in 2006, and rented our old one after Neg-Am'ing all 3. Had the market kept going, we'd have sold the 2 and paid down the big house, and be sitting in a $mil house with a $300K mrtg.
Oh well, that WAS the plan.
We finished Short Selling the big house in June. We're trying to Short Sale the rental too, but the loan is $250K and the house is worth about $50K, thanks to some dreamy eye'd Assessors. But we're hopeful we will be out of that soon.
Then we can refocus on our original home. And here we sit, 9 years later, with a $460K mrtg on a $300K house that we used to have a $180K mrtg on. Oops.
And, since we're way past the 115%, we're out of the cheap Neg-am payments, but the loan is still climbing.
SO... Do we choke down the payment, for the next 30 years, and say nothing? Do we try to re-negotiate (they don't sound helpful so far)? Would they ever go for a lesser mrtg at a fixed rate? If we do Chptr 13, do they just stretch it out to a 40 or 50 year (so we're basically renters, right)? What's our best option?
I make a decent check, and we've put so much into this place. But the idea that I could bank $1000/mo or more, if I handed in the keys and went renting, has it's appeal...

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:51 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Mnp,

I suppose you should re-negotiate for a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] of the negative amortization loan. This is because it'll get worse if you're not able to make payments and reduce the balance. It's better to refinance into a fixed rate mortgage.

As far as Chapter 13 is concerned, that's a good option and not as hard hitting as chapter 7. But you don't need to keep paying for 40 to 50 years or so. It's a matter of 3-5 years within which you'll have to pay the entire or part of your debt according to a payment plan approved by a bankruptcy trustee. Just take a look at the information available on Chapter 13 bankruptcy.

Keep updating the community with what the lender says about the refinance. There are experts participating in the forums. Hopefully they'll be able to come up with more advice.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks adonis for relocating my post in all these forums.
We're scheduled to sit with the most trustworthy mortgage broker we know tomorrow. He's not from the same company, so I'm not sure what he can do, but he didn't say "Sorry can't help ya" so we'll see.
I wish banks actually acted liked they cared a little. If we go to foreclosure, they get to sell the house for current market value. If they'd agree to something less then what they shoehorned us into, we'd go for that. Maybe we can get somewhere with the re-negotiate, but they don't sound helpful. We seem to be talking to a bank now based on India (not just the helpdesk, but the whole bank).
I'll chat with him also about the Ch13 idea, but he might not be the guy to advise on that. Not something I ever "planned" on doing, but I suppose most people would say the same.
Thanks again, and I'll re-post as things progress.

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mnp,

Welcome back.

I feel chapter 13 would be a better option compared to foreclosure. At least it won't affect your credit as bad as foreclosure. I understand you haven't though of it. But it's an option worth considering.

Regarding the broker, I'd like to ask whether you're looking for a refinance loan in order to get out of the negative amortization loan.

May god bless you.

Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I was severed from my company on 08.08.08. I have not found a job yet. I started my own business though, but it is slow. Was making 80K and paying a 15 year mortgage. Now my unemployment pays only 1/2 of my payment. I had a severance that lasted until Dec. Now I have started to live on credit cards but I have money in a 401k about 111K. I have a loan in my 401K too (not including that amount) People tell me not to cash it in because of the tax hit, but I will have to do it if I do not get a job soon or lose the condo. Condo is on the market, dropped price 2 times. not one person came by. The realtor wanted to short sale in the 1st month. I did not think I should rush, I have not been late on a payment yet. I filled out the HOPE now america form to let the bank know the situation.Bank said I could not pay for three months, but then the entire payment would be due at the end of that, so did not seem helpful and I Decided to pay through 2008 and talk to them about 2009, just in case I found a job or if some legislation was passed due to new president.

Should I should take the place off the market because it would affect me qualifying for a loan or keep it on until I have a job? Should I cash in my 401K to keep the place or should I go to short sale or do Deed in Lieu of Forclosure. I do not want to lose my credit after years of hard work to keep it. Seems sad to lose everything over one big change in life. But I guess it happens. But I have a lot of determination to prevent the lose if there is away around it.

Do not want to go into foreclosure, but want to maintain my credit hope I find a job. I have to do something in the next 3 months, but I do need a place to live and its cold in Chicago in the winter. I do not know if I should file bankruptcy, it seem extreme. Any advice is appreciated. Thanks Cold in Chicago

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi COLD IN CHICAGO

You can take a loan from the 401k but you should remember that this is your retirement account which will pay you benefits after you retire. So in my opinion it will not be a very good option for you. However if you really face problems in paying the mortgage, then you can go for it.

Short sale and deed in lieu will both affect your credit. However, a short sale will lower your credit by 75-100 points whereas a deed in lieu will lower it by 250 points. But you can also speak to lender for a loan modification or a forbearance. You can also check out the following link to know more:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

our property taxes has increased.. and we recieved a letter from countywide stating that our mortage will increase due to the property taxes and now our mortage will jump from 1000 to 1500. Is there anyway we can get an extention on the property taxes to 24 months instead of 12

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

As far as I know, extension period on property taxes may vary from county to county. You should check with your county to determine whether you may be eligible for an extension on the property taxes.

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is California one of the states that doesn't allow the lender to after the owner's assets once a home has gone into foreclosure?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Sammy,

As far as I know, California is an anti deficiency state wherein the laws does not allow the lender to go after the borrower for the deficient amount resulting from the sale of the property.

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waltkat1's picture
waltkat1 | Joined: December 25, 2008 08:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

A friend's ex-wife is currently letting their old house go into foreclosure. Unfortunately, the friend's name is still on the loan and title. To add insult to injury we just found out the ex's new hubby is a dead beat dad and has a child support lien on the house even though his name is not on anything (separate issue). If there is a way to get that corrected (big if), can the friend avoid taking a hit on his credit? For instance, would a quitclaim deed do the trick at this point in time or is it too late? Maybe he can go to the lender?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have two lenders, one is 80% other is 20%. My question is, if I go with the lieu of foreclosure, short sale or any other process, what can I do, how to talk with boht of them. I am confious, please give an advice.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi!

Welcome to forums!

To waltkat!

Signing a quitclaim deed now will be considered as a fraudulent transfer. The lender may penalize your friend for doing so. Your friend can speak to the lender and see if there is anything that the lender can do for him. But as far as I know, your friend's credit will be badly affected as his name is on the mortgage of the property.

To matti!

You can speak to the first lender about a deed in lieu foreclosure.You will have to write a hardship letter to the lender for this. The lender will then sell of the property and recover his dues. If there is an excess amount, then you can use it to pay the 2nd lender. Or else the 2nd lender may charge off the mortgage to a collection agency who will in turn collect the dues from you.

Feel free to ask if you have further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have never been late on our mortgage until 4 months ago, as our savigns ran out. We tried to refinance, but live in az--so we did not qualify to refinance as house price is less than owed. We worked with people's first fianncial--please do NOT anyone else work with them-and now are in foreclosure. The mitigators today said that the lender would not modify loan and gave 3 options- short sale, a 50% reduction of principal balance or refinance (duh, if we didn't qualify a year ago, ya think it would happen now??). I don't understnad what the 50% balance off is--do I get to save my house and only pay the 50% of the loan?? help

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owe much more than my home is now worth. I am in an option arm and I can barely afford to make my payments. I am now behind by 2 months. I am considering filing for chptr 7. should I let my house go into foreclosure eventually and what do I tell the bank as they keep calling me. they have declined a loan modification due to my lack of income vs expenses.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owe much more than my home is now worth. I am in an option arm and I can barely afford to make my payments. I am now behind by 2 months. I am considering filing for chptr 7. should I let my house go into foreclosure eventually and what do I tell the bank as they keep calling me. they have declined a loan modification due to my lack of income vs expenses.

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi lis

You can check out the options of short sale and deed in lieu foreclosure with the lender as well. These are also two options to avoid foreclosure. You will have to write a hardship letter to the lender in order to apply for a short sale or a deed in lieu foreclosure.

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can one purchase an reo or short sale with land contract in california

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi T,

As far as purchasing a REO or short sale property is concerned, you can definitely purchase it. But I did not understand what you wanted to say by [quote:52874026cd]with land contract in california[/quote:52874026cd] Can you please explain this?

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

How does this work if you have two mortgages?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am filing chapter 7 on my credit cards only, now I fell behind on my mortgage payments first time, I am going to request for modifcation but if lender refuses due to the BK, what happens, can lender go after my wages and what about the county tax I owe, which is included in my mortgages.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

To confused,

If there are two mortgages and if the first lender does a deed in lieu, he will forgive the deficient amount of his loan resulting from the sale of the property. But you will still be liable to pay off the second lender. if you do not, then the second lender will charge off the mortgage to a collection agency.

To desperate,

Chapter 7 helps in wiping off all your debts depending upon your situation. As far as I know, if you file Chapter 7, then mortgage on the property will also be included in it. The property will be liquidated and your creditors will be paid off. To know more about chapter 7, check out the following link:
http://www.mortgagefit.com/bankruptcy/chapter7.html

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a good income but I am in chapter 13, I would like to get my mortgage company to accept bi-monthly payments in order to be on time but they refuse, where can I get help?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owe $63,000 on my home and has been on the market 2 years. I want to sell it for $58,000 and have the bank loan me the $5000 to pay off so my credit isn't damaged. Ever heard of such a thing?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

[i:ac30865722]To preacher: [/i:ac30865722]

Are you having problems making monthly payments? if that's the reason why you need bi-weekly payments, then please have a talk with your bankruptcy trustee who approved your payment plan. Perhaps he can help negotiate with your lender in this regard.

[i:ac30865722]To Molly: [/i:ac30865722]

Frankly speaking, I haven't heard o such a thing. Do you want the $5000 loan from the same bank who has offered you the mortgage? Such a thing isn't possible. Also, banks and lenders usually don't lend for an amount like $5000 except if it's a personal loan. You need to check the criteria for such loans.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a mortgage loan with Wachovia Bank. I am three months behind on my payment. I called the bank trying to see if they will put the arrears in the back of the loan and let me continue making my current payment. They refused to agree to this and said that the only option that I had was to make full payment of all the arrears or sell the house. I will like to know if there are any other option available to me.

[size=9:c3527ba142][color=Red:c3527ba142][Link deleted as per forum rules. Thanks.][/color:c3527ba142][/size:c3527ba142]

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Erasmo,

If you do not want to sell the property, then you should look for a loan modification. But remember in a loan modification there are chances that your payments towards the mortgage will increase.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to know, what is best options for me: short sale or deed in forclusre

I am first time home buyer , i have 80 -wellsfargo/20-bankofamerica loan.. value went down lot.

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jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi babu,

A short sale can drop your credit score down by almost 75-100 points, whereas a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] will hurt your credit by as much as 250 points. Thus, from credit point of view a short sale looks like a good option. However, you may be required to pay the deficiency amount of the loan and if you cannot, the lender may get a deficiency judgment against you to recover the deficient amount. In a deed in lieu this deficiency amount is forgiven in most cases, though you may have to pay taxes on the amount forgiven.

Thanks,

Jerry

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admin31 | Joined: January 26, 2009 01:07 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[size=9:7b0cb8fe9b][color=Red:7b0cb8fe9b][System detected duplicate content; converted into image][/color:7b0cb8fe9b][/size:7b0cb8fe9b]

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have heart problems, hbp, arthritis, loss of hearing, glaucoma, etc and the house has been robbed six times and vandalized in the past 7 months. My doctor has recomended I do not live alone anymore and I cannot take care of the property. I cannot find a tenant who will pay rent consistently I live on a small income insufficient to pay the mortgage and taxes.
I have it up for sale with no takers. It is in good shape now but valued at least 33% lesshan loan value. do I need an attorney to ask for a DIL?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

no you do not need an attorney. you may want to find someone to be an advocate for you, however. counseling would appear not to be useful to you in this situation, so getting a housing counselor isn't particulary in order.

you might want to check with a legal aid office that can offer you free legal assistance in working on this. requesting a deed in lieu of foreclosure or a short sale is something one can do on one's own, but having someone in your corner will help to make sure all moves smoothly.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Clearly stated and understood. I am delighted to have read all this.
I am in forbearance and loan modification at the same time with EMC and I do hope by the end of July when that forbearance ends I am able to clear my debt or they are able to provide me with a loan modification otherwise, it is coming to a year when they keep extending my modification. Every time I call and ask before the period given is about to expire they say they are working on it and they will extend me six more months! I once thought, they are buying time to take away my home.
Anyone knows any investors who would want to buy my loan and so I keep my home still???

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gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i don't think they are buying time to take away your home, nelson. i think they have insufficient staff to keep up with all the consumers who need assistance, and being overburdened, they are unable to figure out how to express that situation to consumers.

in other words, they can't even be honest with themselves.

no lender in this wacky country of ours desires to take anyone's house. the last thing they want to do is to own real estate.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband was transferred from AZ last year and we had to move out of a house we paid over $400,000 for. We have renters in the home who only pay a portion of our mortgage. The property continues to lose value and they are asking for a $300 rent reduction. Since moving, I have not been able to find work and he was just told he is going to have a salary cut. We can't keep paying this mortgage and don't know what we can qualify for since it is no longer our primary residence. Worse yet, when we moved into this house, we kept our old house as a rental and can't sell it either. We also have a second on the house. I can't sleep at night because I am so stressed. What options do we have for this house that is now assessed at $100,000 under what we paid for it? We're trying so hard to not kill our credit but can't continue to make these payments. Please help!!! THANK YOU

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi SMS!

Welcome to forums!

You're in a difficult situation. It will be better if you could now sell off the rental property by going for a deed in lieu of foreclosure. However, this will badly effect your credit score and lower it by 250 points. But you should note that if you go for a deed in lieu, you'll not be liable for the deficient amount resulting from the sale of the property.

Feel free to ask if you have further queries.

Sussane

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