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I intentionally fell behind on payments to try for a remodification. During the process I fell behind enough that I am now in foreclosure with a pending sale date in three weeks. I don't have a lot of debt (maybe about $14,000) and am only behind about $17,000 on home. Problem is, I am self employed and have only made about 20K this year (compared to my average of about 50 to 60).

I would like to stay in the condo (been here 7 years and only late once in that time) but am willing to leave it if must be. Am upside down about 50K in it (owe 180K and is worth about 130K). They would not remodify and are only willing to take 12K next week and 2,500 a month for 6 months to catch up. This is too tough a nut for me to cover if I am realistic, even though I could probably borrow for half and cash in my IRA for the other half to pay the initial amount. Of course I will still be upside down and I know the market is not getting better too soon.

I hate the idea of a BK 13 as I don't really owe that much in my mind to merit it but have little other recourse or time to stay in my place.

smithsussane · Posted: Fri Oct 30, 2009 12:30 am Post subject:

Hi Mikey!

Welcome to forums!

If you want to save the property, then you will have to follow the payment plan given to you by your lender. In my opinion, you should apply for a deed in lieu of foreclosure with your lender. This will help you in selling off the property and you won't be responsible for the balance amount. However, your credit score would go down by 250 points and it would remain on your credit report for 7 years.

Feel free to ask if you've further queries.

Sussane

gmakerley · Posted: Fri Oct 30, 2009 1:41 pm Post subject:

i think you're in a big jam and there appears to be no easy way out, other than tapping retirement funds, which you noted isn't a very good alternative.

in hindsight, of course, the modification scheme shouldn't have been tried, but that's spilt milk, i guess. unless your revenue is about to increase dramatically, it would appear you're best served by letting this go and moving on.

gmakerley · Posted: Fri Oct 30, 2009 1:41 pm Post subject:

but of course bankruptcy would grant you a stay on the foreclosure.

swarghade · Joined: 01 Nov 2009 Posts: 7 2.07 Dollars($)

Hi Mikey!

Welcome to forums!

If you want to save the property, then you will have to follow the payment plan given to you by your lender. In my opinion, you should apply for a deed in lieu of foreclosure with your lender. This will help you in selling off the property and you won't be responsible for the balance amount. However, your credit score would go down by 250 points and it would remain on your credit report for 7 years.

swarghade · Joined: 01 Nov 2009 Posts: 7 2.07 Dollars($)

but of course bankruptcy would grant you a stay on the foreclosure.

gmakerley · Posted: Tue Nov 03, 2009 1:41 pm Post subject:

swarg, have you ever had your own mind?

christinehynes · Posted: Wed Nov 04, 2009 2:27 pm Post subject:

Hi Mikey,

It sounds like you tried to go through the loan modification process yourself and they refused. This is often the case but not necessarily the end of the road for you. I would suggest consulting a loan modification attorney and asking what they can do for you. These attorneys have experience specific to stopping the foreclosure process and getting banks to negotiate with homeowners.

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