What to do?

lbrodeur1965 · Joined: 21 Dec 2008 Posts: 7 3.81 Dollars($)

We are at a loss as to whom to turn to for help. We did see a financial advisor but I don't think his advice was sound. We have two homes and a lower hours @ work due to economy. One house has been for sale for over a year and the other has been on the market for 4 months. We have been constantly late on our primary home mortgage for several months but not more than 30 days. More like 28 days. The other home we rented out several months ago. To top it off our employer changed health insurance plans with a $5K deductible and basically covers very little until this deductible is paid. So we have had an increase of medical expenses as well. We do not want to keep the home we are living in. We just want to sell it for what is owed but with realtor fees, they say our home is still overpriced. I don't know who to turn to. We have had no response from our mortgage company as yet. We do have PMI on our primary mortgage but not our second home. The financial genius suggested to refinance the 2nd home as it has some equity whereas our primary home does not. I dont want to do that because if we refinance there are added costs/fee attached to the new mortgage plus the added equity funds we borrow to pay off our other bills are tacked on to that mortgage. If we try to sell it, with realtor fees, we would never be able to do that in this market. Can anyone give me some help as to where to turn to? Both mortgages are conventional loans.

admin · Joined: 15 Dec 2008 Posts: 4 2.72 Dollars($)

Hi, I am not profesional or expert in the field, but just came cross my mind, last were listenning in some of youtube video related article for mortgages....so if you are in trouble of paying your motgage, why don't you go with loan modification application form, probably they would be able to decrease the monthly payment instead of loosing the big part or the whole mortgage.....i beleive there is alwyas another way who to deal with some how in order to in track...

Cheers,

smithsussane · Posted: Sun Dec 21, 2008 9:09 pm Post subject:

Hi lbrodeur!

Welcome to forums!

Apart from loan modification as suggested by admin, you can also check out the option of forbearance with the lender. In this process, the lender will reduce or suspend your payments for few months depending upon your situation and will also give you an alternative payment plan.

Apart from this, if you can afford to lose one of your properties, you can check out the options of short sale or a deed in lieu. Both short sale and deed in lieu are similar processes wherein you will have to deed back the property to the lender and the lender will try to sell it off in the market. There are chances that the lender will have to sell off the properties at a lower price and thus there will remain a deficient amount. In case of deed in lieu, this deficient amount will be forgiven whereas in case of short sale, you will have to pay the deficient amount to the lender. But again you should remember that a lender will agree to a loan modification, short sale or a deed in lieu only when you are delinquent on your mortgage payments.

Feel free to ask if you have further queries.

Sussane

lbrodeur1965 · Joined: 21 Dec 2008 Posts: 7 3.81 Dollars($)

When do they consider you delinquent? I have for several months been 26-28 days late but not over 30.

jameshogg · Posted: Wed Dec 24, 2008 10:05 pm Post subject:

Hi brodeur,

As far as I know, you will be considered delinquent if you are more than a month late on your payments. Normally lenders give a 15 day grace period if you cannot pay the mortgage dues on the due date.

Wish you a Merry Christmas.

Thanks

Guest

We recently contacted our lender and they are willing to work with us. It appears that you go through the steps. They said the important thing for people to do is to contact them and start the paperwork. If step 1 doesn't work, then they can go to step 2, and so on. With some, yes, it may ultimately end up in a foreclosure or a deed-in-lieu, but at least you tried. I just want to stress all homeowners they are in financial trouble... CALL YOUR LENDER. I am just glad and grateful our bank if willing to help homeowners struggling due to lack of hours at work which is due to the economy.

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