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How to avoid foreclosure-17 ways to get out of mortgage mess

If you're in severe financial crisis and can't pay down your mortgage or manage your daily expenses, it's time for some quick action in order to get better control over your money.
If you find yourself unable to make your mortgage payments, one of 2 things may happen depending on where you live. They are:
  1. Judicial Foreclosure: Depending on your state's law, the lender may file for a foreclosure with your local circuit court and send you a summons.
  2. Non-judicial foreclosure: Some states permit a lender to foreclose without having to go into court as long as the lender follows that state's foreclosure procedures. This is called non-judicial foreclosure. Here, the lender will send you a default letter, and a notice of default will be filed. If you do not cure the default after a certain period, the lender will mail you a Notice of Sale, record it, and publish it.
However, you can avoid foreclosure. It can be as simple as planning your budget each month so you have an emergency fund to meet your monthly mortgage payments. If these options don't work, try loan modification. With a loan modification, you will be able to reduce your monthly mortgage payments and extend your loan term. Read on to find out how you can avoid foreclosure.


11 ways before lender files foreclosure

  1. Build Emergency fund:
    Apart from creating a budget, put some of your paycheck into an emergency savings account fund to ensure that you have enough cash to continue paying the loan.
  2. Cut down on expenses:
    If you're having a tough time paying your bills, try and find areas where you can minimize your spending.
  3. Cash-out assets/Take up a second job:
    Try cashing out assets like stocks, savings accounts and investment property that if sold can give you a lump sum you can use to pay down your debts. You might even consider getting a second job.
  4. Enroll with a Credit Counseling service:
    If you are having problems paying off your loan and want to avoid foreclosure, contact a housing/credit counselor for financial advice. There are FHA and HUD approved counselors to help you with the following:
    • Analyze your finances and prepare monthly budget to ensure that you can meet your daily expenses and repay your debts.
    • Call the lender and discuss about workout options that can help you keep your home.
    • Protect you from future credit problems before you are too far behind on your mortgage.
    • Provide information about assistance programs/services in your area.


    You'll find a state-by-state list of HUD approved counseling agencies in the "Related References" section below. You can also contact counselors associated with the National Foundation of Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

  5. Obama's Making Home Affordable program:
    If you have a Sallie Mae or Freddie Mac mortgage, then you may be eligible for mortgage assistance as part of Barack Obama's Making Home Affordable program. You can also get assistance with short sales and deeds-in-lieu.
  6. Refinance the existing loan:
    If there's enough equity in the home and you satisfy the lender's guidelines, then refinancing may be a good option to avoid foreclosure. When you refinance, don't get lured in by the low initial rates on ARMs or interest-only payments; the chances are good that you will face even higher interest payments on these loans once the rates start adjusting.
  7. Emergency Mortgage Assistance programs:
    If you have lost your job or your income has been reduced, and you feel it's not possible to pay down the loan, you can get help from an emergency assistance program in order to avoid foreclosure. Hope Now is one of the many programs available in the market.
  8. Forbearance and Repayment plans:
    With forbearance, the lender may reduce your the amount you pay each month or even suspend it for a few months so you can get back on track and continue paying. Often the lender suggests a repayment plan so that the arrears are rolled into the amount of the loan balance and you can continue repaying the debt once the forbearance period is over.
  9. Reinstatement:
    The lender may be willing to accept the entire amount you owe in a single payment on a specific date. Then you can continue repaying the debt on a monthly basis as though you were never behind.
  10. Loan Modification:
    Loan modification is one way you can avoid foreclosure on your home. This involves an agreement between you and the mortgage company where the original terms and conditions of your loan will be modified so that you can afford to pay on the mortgage.
  11. Foreclosure Intervention program:
    There are agencies that grant funds to delinquent borrowers and help them negotiate with lenders about rescheduling payment. In order to qualify you for these grants, the agency will look at a number of factors such as:
    • Your income,
    • The reason for the late/missed payments or inability to pay,
    • Your housing ratio
    • Your ability to pay in future.


    While there is a maximum amount of money these agencies can lend, if you have FHA insured loan, you may qualify for an interest-free or a payment-free loan to pay off the debt and get current on the loan. The loan needs to be paid back only after you've repaid the mortgage.


6 ways after lender files foreclosure

  1. Seek Court Protection:
    If you are unemployed or underemployed, then depending on your state's laws, you may be able to seek the protection of the court. In this case, the court may postpone foreclosure for the next 6 months so you can try and gather the funds to get current on your loan.
  2. File Chapter 13:
    You may file [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url] and avoid foreclosure sale if your other debts are preventing you from becoming current on your mortgage. Chapter 13 is designed to help you restructure and pay back your debts within 3-5 years.
  3. Sell off your property:
    If you no longer wish to keep the home, you can try to sell it off at a price equal to the fair market value. The best way to try and sell your property is to list it with a realtor or real estate agent.
  4. Try for short sale:
    A short sale is where you try to sell your property for less than the amount of your loan. If you attempt a short sale, you must get any offer approved by your lender. Learn how a short sale works.
  5. Ask your lender to accept a deed-in-lieu:
    If a short sale isn't working, then you might want to try to get the lender to accept a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. However, most lenders are reluctant to accept a deed in lieu because they have to manage the property until they can find a buyer.

    With a deed in lieu, you give the house to the lender in exchange for being released from the debt. This will also lower your credit score. Learn more...
  6. File Chapter 7:
    Filing Chapter 7 will put a temporary stop to a foreclosure. However, depending upon your state laws, you may or may not be able to keep the home. Learn more...


What if none of the options work for you?

If you fail to use of any of the options stated above, there's no other option but to let your home go into foreclosure.

Prior to judgment, you may be able to redeem the loan by using the right of redemption if your state grants you this right. This allows you to pay off the mortgage along with the lender's court costs and attorney fees.

Foreclosure is one of the worst things that can happen to you. The best thing to do if you're in danger of falling behind on your mortgage is to contact your lender or a credit counselor and discuss how you can avoid foreclosure.

Related Readings
Related Forum Discussions
Related References
stephenmars's picture
stephenmars | Joined: May 18, 2011 12:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you Jessica, this is really awesome thread and it makes the forum a better place with knowledgeable mentor like yourself, gmakerley and the rest. Thank you!

Like | Dislike | Share | Posted: Sun, 05/22/2011 - 02:14

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

can you give me a sample letter to send to my mortgage co. offering them a deed in lieu of foreclosure?

Like | Dislike | Share | Posted: Wed, 12/23/2009 - 19:06 | Post subject:

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

Hi Guest,

Unless the lender agrees to your home loan modification, you won't be able to save the property. You should contact your lender and negotiate once again for a loan modification and convince him to accept your request.

Thanks

Like | Dislike | Share | Posted: Tue, 02/15/2011 - 21:29

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

How far can you be behind on mortgage payments before you can seek chapter 13... And can this help also include other payments I may have so we can get things back in order to start paying all of our payments on time again.

Like | Dislike | Share | Posted: Sun, 05/02/2010 - 19:32 | Post subject:

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

Hi Jayne,

If you do not pay off the dues on time, then the timeshare company can file a lawsuit against you and get a judgment to garnish your wages in order to recover their dues.

Thanks

Like | Dislike | Share | Posted: Wed, 10/27/2010 - 00:25

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

Hi villabong,

If you want to get rid of the property, then short sale is a good option. It will help you in selling off the property. However, you should remember that you would be liable for the deficient amount resulting from the sale of the property. If you cannot pay off the deficient amount, the lender would place a lien on your other properties or can garnish your wages.

Like | Dislike | Share | Posted: Wed, 10/07/2009 - 00:22

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

I had a home modification about a yr in a half ago in aug. wife and I seperated filed for divorce and got back together in late Dec. due to all of that drama our morgage defaulted since then we have started marriage counseling. Filed our tax returns and called to make pymnt and were told acct. has gone with the attorney. We are very nervous we have two young children 3 & 5. I need all of your advice we live in TX.

Like | Dislike | Share | Posted: Tue, 02/15/2011 - 18:56 | Post subject:

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

Hi Guest,

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/problems/home-auctioned.html

Take a look at it. Hope it helps you.

Like | Dislike | Share | Posted: Sun, 05/16/2010 - 22:42

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

Kindly define these terms as I am not understanding how if I am paying insurance on the home (and I believe or am lead to believe this includes taxes) why am I paying additional in escrow and how does that get calculated ---[font=Arial:d59ccf69b6][/font:d59ccf69b6][size=12:d59ccf69b6][/size:d59ccf69b6]

Like | Dislike | Share | Posted: Thu, 02/18/2010 - 08:16 | Post subject:

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

An account held in the borrower's name to pay the property taxes and insurance premiums is known as an escrow account. As far as mortgage insurance is concerned, it is an insurance policy which compensates the lenders for losses if you default on your home loan. You need to contact your lender and ask him to clarify the whole thing. This will help you know whether or not you are paying extra.

Like | Dislike | Share | Posted: Fri, 02/19/2010 - 01:41

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

Hi Guest,

You will have to write a hardship letter to your lender asking for a deed in lieu of foreclosure. Check out the given page in order to know how you can write a hardship letter:
http://www.mortgagefit.com/problems/hardship-letter.html

Like | Dislike | Share | Posted: Wed, 12/23/2009 - 22:13

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Nick,

A deed in lieu of foreclosure will help you in selling off the property. It will not save your property. I would suggest you to contact your lender and check out the whole agreement. You can ask your lender to give you a copy of that agreement which you can show to an attorney and take his opinion. The attorney will help you in deciding whether or not you should go for this agreement.

Take care.

Like | Dislike | Share | Posted: Wed, 04/14/2010 - 03:07

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

I am current in my mortgage. But, I want to turn it over to the bank. I owe 252,000 and it's valued at 125,000. A short sale really can't happen because of the gap, and I propably would qualify for hardship due to income (69,000 per year). I want to be out by august 2012. Do i continue to pay my mortgage, or do i try to turn it over to the bank at the end of july as a "deed in leiu foreclosure" scenario.

Like | Dislike | Share | Posted: Thu, 04/26/2012 - 12:07 | Post subject:

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

Welcome anonymous,

As far as I know, there is no such time period to default the loan before which you won't be able to file Chapter 13. You will be able to file Chapter 13 even if you are a month late on your mortgage payments. You will be able to include your other debts as well when you file bankruptcy.

Like | Dislike | Share | Posted: Mon, 05/03/2010 - 00:16

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

Could you quickly reply, I may be without internet next

Like | Dislike | Share | Posted: Wed, 10/21/2009 - 06:11

kristinthomas21's picture
kristinthomas21 | Joined: August 6, 2010 10:29 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The best way to avoid foreclosure is to prevent the conclusion of formal notice. Creditors do not want to close the file, but the formal notice to protect its interests if necessary. If you know you could meet the requirement of a mortgage, the first thing to do is call the lender.

Like | Dislike | Share | Posted: Fri, 08/06/2010 - 22:45

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

mortgage debt balance-165,000 in a 4br ranch house in roanoke, virginia
montly payment-1,600
not able to pay mortgage amount d/t lack of funds/hours cut off from work
value of house is less than debt balance
opting to leave the house and rent another house with 300 less than our mortgage montly payment
is this a good idea?

Like | Dislike | Share | Posted: Tue, 10/06/2009 - 20:30 | Post subject:

patboo13's picture
patboo13 | Joined: February 4, 2010 10:03 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a home in CALIFORNIA that i use to live in but no longer do, i currently have renters in it. I was given a loan about 5 years ago for the home which i bought for 380,000. I put 80,000 dollars down for the house. I currently owe 325,000 because of neg-am loan putting money on the back end. I have a first mortage for 300,000 and a second for the rest. I haven't paid on either loan for 7-8 months. The first mortgatge company Back of AMerica has not contacted me at all, the second has and i told them i wanted help, they said they couldn't till i defaulted so that is what i did. The second has since given my loan to a debt collection agency. What are my options and what should i do? if there is anyone that has been through this or knows what to do i would love to hear from you.
Thank you good luck to you all

[size=9:e2475568a6][color=Red:e2475568a6][Email address deleted as per the forum rules. Thanks.][/color:e2475568a6][/size:e2475568a6]

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 10:04 | Post subject:

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

Hi aro,

You can contact their lender and discuss their situation with him and check out if there is a way to avoid foreclosure. If possible, you can pay off the dues on behalf of your parents and stop the foreclosure sale.

Thanks

Like | Dislike | Share | Posted: Tue, 01/04/2011 - 20:17

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

I bought a condo three plus years ago. I am current
On my payments. Paid 301k plus paid 5k in accessments
Since the purchase. I have tried to sell it twice with no
Luck. I have consulted short sale real estate specialist
And told the unit would bring about 210k in short sale.
On top of that, I just got hit up for another assessment
For 45k for exterior remodel. I do not have the money
To pay that and can't see putting any more cash into
This unit, it has become a bad investment. I have
Talked to two attorneys and advised to file chapter 13,
I still am reluctant to do so. I have great credit but
A lot of debt including two other mortgages. I make
Just enough to cover monthly expenses, no savings
Other than 401k. Need some advise

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 06:20 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi victoria,

As per the expansion of the Obama's loan modification program, temporary help will be provided to the borrowers who are presently unemployed. You need to contact your lender and check out if he is ready to offer you such help.

Take care

Like | Dislike | Share | Posted: Tue, 04/06/2010 - 03:37

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

It's really good to know that you liked the MortgageFit Forums! :-)

Like | Dislike | Share | Posted: Mon, 05/23/2011 - 22:21

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

Welcome rwolff,

If you walk away from the property, it will have a severe negative affect on your credit score. Your property will be foreclosed and your credit score will get lowered by 250 points. It will be a better option if you could short sale the property. This will help you in selling off the property and your scores will lower by only 80-100 points.

Like | Dislike | Share | Posted: Mon, 02/13/2012 - 00:32

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

Hi freddie!

Welcome to forums!

As the mortgage still remains in your name, the foreclosure will have a negative affect on your credit report. Unless you pay off the mortgage in full, the lender will not stop the foreclosure process.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 11/08/2010 - 15:18

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

Hi AZTRANSPLANT,

If you want to get rid of the property or the mortgage, then you should contact your lender and apply for a deed in lieu of foreclosure. You should contact your lender and apply for it. If the lender is convinced about your financial situation, then your request will be accepted.

Thanks

Like | Dislike | Share | Posted: Thu, 01/27/2011 - 22:30

chiranjeevi.7thfoldmedia's picture
chiranjeevi.7th... | Joined: February 22, 2012 03:53 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

All the points seem to be useful/...

Like | Dislike | Share | Posted: Wed, 02/22/2012 - 03:57 | Post subject:

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

by all means you need an attorney...speak with friends, family, business acquaintances, etc. in order to get a referral of an attorney who can be of assistance. you want someone who specializes in real estate, of course.

a deed in lieu of foreclosure transfers ownership of your property to the lender - i don't see how this is any form of "workout" situation for you that will enable you to keep the property. it looks to me like the lender is seeking possession and ownership of the property as well as payments on the underlying loan from you.

before you sign anything at all, you need legal counsel.

Like | Dislike | Share | Posted: Wed, 04/14/2010 - 10:35

mortgage2011's picture
mortgage2011 | Joined: October 4, 2010 06:07 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Nice post very helpful solutions

Like | Dislike | Share | Posted: Mon, 10/04/2010 - 06:18

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

We got served with foreclosure papers last week. We requested the total amount from the banks attorneys and are being charged an additional $6000 on top of the late payments. We would like to pay back what we're behind but want them to waive the $6000 fee. Is that something that banks will do? Also, if we reinstate the loan, can we still ask for a modification after? We just don't want to lose the house and don't want to take a chance on losing the house if we don't get a modification for one reason or another.

Like | Dislike | Share | Posted: Mon, 11/09/2009 - 07:33 | Post subject:

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

can the timeshare companies attach your wages

Like | Dislike | Share | Posted: Mon, 10/25/2010 - 17:31 | Post subject:

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

Does a Deed in Lieu of Foreclosure effect your credit. I had a rent-to-own fall through and now can't afford the mortgage. I have an 800-ish credit score and DO NOT want to screw it up. I owe $212K on the property and will be lucky to get $220K. Would almost rather just walk away from the whole mess but do not want to mess up my credit. Just heard about this . . . help?

Danella

Like | Dislike | Share | Posted: Sat, 04/24/2010 - 14:54 | Post subject:

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

Hi caldwellb,

A lender will give you a loan modification depending upon certain criteria. For example, if you do not have employment when you apply for a modification, your request won't get accepted. The lender will think that you won't be able to pay off the loan even if it is modified. The borrower should take proper steps in order to negotiate with the lender and get a modification.

Thanks

Like | Dislike | Share | Posted: Sat, 04/10/2010 - 00:40

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

i lost my job and my husband has been on unemployment also , I want to know if theres any thing i can do to save my home i tried modification but they tell me i have tomany bills so they cant help me.

Like | Dislike | Share | Posted: Mon, 04/05/2010 - 08:41 | Post subject:

md.81's picture
md.81 | Joined: December 30, 2009 01:53 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have an investment property which is vacant land, large bare acreage in California. I will be able to reinstate my deed of trust before the Trustee Sale. A Notice of Default and subsequent Notice of Trustee Sale have already been recorded with the County.

Can something be recorded with the County about the reinstatement?
Are there alternatives to have a reinstatement mentioned or picked up on the credit reports?
Is the credit score impacted less than it would be, that is what impact would just a Notice of Default have, a Notice of Default plus a Notice of Trustee Sale have; Notice off Default plus Notice of Trustee Sale resulting in a reinstatement versus a full foreclosure?

Thanks and happy New Year!

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 18:06 | Post subject:

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

Welcome Colcond,

If it is property which is posing problem for you, then you should contact your lender and apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] so that you can get rid of the property as well as the loan. However, if you have other unsecured bills as well, then you may think of filing [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url].

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 20:52

jenny.smith's picture
jenny.smith | Joined: July 20, 2010 05:56 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The best way to avoid foreclosure is to prevent the filing of a notice of default. Lenders do not want to exclude, but will file a notice of default to protect their interests, if any. If you know that is unlikely to meet their mortgage obligations, the first thing to do is call your lender.

Like | Dislike | Share | Posted: Wed, 07/21/2010 - 01:38

sanachatilo's picture
sanachatilo | Joined: December 10, 2009 12:44 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We can avoid foreclosure by paying our obligation regularly, but due to some circumstances happened like you lose job and you can never pay your lender, you can go straight to them and ask for an extension of the mortgage.

Like | Dislike | Share | Posted: Thu, 12/10/2009 - 00:50

caldwellb02's picture
caldwellb02 | Joined: April 9, 2010 06:29 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am new here so forgive me if this sounds too strident. I am not seeing stories of the real hell people are being put through in trying to get [url=http://www.mortgagefit.com/know-how/loan-modification.html]loan modifications[/url]. Can you steer me in that direction? There are lots of stories on www.shamethebanks.org

Like | Dislike | Share | Posted: Fri, 04/09/2010 - 13:49 | Post subject:

lori12844's picture
lori12844 | Joined: January 18, 2011 04:27 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

my current mortgage is @ 7.225% and I owe $135,000.00. Most people in this condo community bought at the height of the market and are now walking away from their condos. I purchases in 2006 for $174K and now they are selling for about $50K. Of course the HOA fees are increasing because of the amount of people that have walked away. My mortgage holder will not lower the interest rate unless I miss payments, I can't [url=http://www.mortgagefit.com/refinance.html]refinance[/url] because the property isn't worth what I owe on it.
Any ideas on what I can do in this situation? I may just have to walk away!

Like | Dislike | Share | Posted: Tue, 01/18/2011 - 16:35 | Post subject:

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

I have two mortgages on a condo which is presently worth 210K. The first mortgage is an interest only 5yr ARM for 203K which is presently floating on the 6 month Libor (so far so good as rates have dropped from 6.75 to 2.75). The [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] is 30yr fixed at 7.5 for 32K. I want to sell but I'm under 10-20K. Any advice? Is a short sale advisable or just walk away?

Like | Dislike | Share | Posted: Fri, 02/10/2012 - 09:13 | Post subject:

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

I just find out that chase foreclosed on my home on january 4th is there any help for me in the state of GA?

Like | Dislike | Share | Posted: Fri, 01/28/2011 - 14:21 | Post subject:

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

Your query has been answered in the given page:
http://www.mortgagefit.com/forbearance-1.html#140331

Please take a look at it. I hope it will help you.

Like | Dislike | Share | Posted: Sun, 12/20/2009 - 21:18

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

Hi lori,

It is true that unless you're delinquent on your mortgage payments, the lenders won't consider you for any hardship plan. Thus, if you want to go for a loan modification, the lender will want you to be delinquent on your payments.

Thanks

Like | Dislike | Share | Posted: Tue, 01/18/2011 - 21:32

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

The FMV of my home is less than the combined mortgage/home equity loan balance. I do want to sell the home as I cannot afford the monthly mortgage payments as I am 66 years old and on social security.

What realistic options do I have? thanks,

Like | Dislike | Share | Posted: Thu, 02/03/2011 - 06:36 | Post subject:

rithik's picture
rithik | Joined: May 24, 2011 02:55 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It s really a good article. One should be careful and take into consideration of all these options and always be safer.

Like | Dislike | Share | Posted: Wed, 05/25/2011 - 01:17

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

Hi md,

I don't thing you'll be able to record something in the county recorder's office regarding reinstatement. In my opinion, you should inform your lender that you will be able to reinstate the loan. He will let you know what steps you need to take in this regard. As far as I know, your credit score will be affected due to the late payments for which the Notice of Default and Notice of Trustee Sale has been filed.

Like | Dislike | Share | Posted: Thu, 12/31/2009 - 00:25

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

okay...

Like | Dislike | Share | Posted: Thu, 12/10/2009 - 08:59

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

Hi Ana,

It would be the bank's discretion whether or not it would waive off the fees. However, you should negotiate with the lender for the same. Inform the lender that you would be able to pay off the loan dues and reinstate the loan and in turn want the fees to be canceled. He would let you know whether or not it would be canceled.

You do not need to modify the loan after bringing it current. You can even apply for a loan modification now. However, I don't think after reinstating the loan, you would become ineligible for a modification.

Thanks

Like | Dislike | Share | Posted: Mon, 11/09/2009 - 22:11

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

it's highly unlikely that you're paying "extra." you may be paying a bit more than is absolutely required for the lender to take care of taxes, insurance and mortgage insurance (if any), but lenders are required to analyze their escrow accounts and adjust accordingly (up or down) so as to not have too much or too little in the account to make the required payments.

Like | Dislike | Share | Posted: Fri, 02/19/2010 - 10:57

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

we have ask the lender to sell the propery for years and no one has offered to rent or buy the property , now thet want to foreclose on us and are taking us to court neither of us live in the home , I myself was the co-sighner and have a home of my own,we live in a non-recourse state, please help

Like | Dislike | Share | Posted: Sat, 11/06/2010 - 10:57

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