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

Welcome casandra,

Georgia does not allow the stature of redemption once the property is sold off at the foreclosure sale. Thus, you won't be able to claim back the property.

Like | Dislike | Share | Posted: Fri, 01/28/2011 - 22:21

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

I used my CA HELOC years after I sold the home. I bought another home in FL and hold the deed. I live in WY and now I can't pay the HELOC. They are threatening to foreclose on a home that was sold years ago. I am disabled now and my husband is self employed. What will happen to our credit?

Like | Dislike | Share | Posted: Tue, 02/01/2011 - 16:33 | Post subject:

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

Hi patboo!

Welcome to forums!

Your query has been answered to in the given page:
http://www.mortgagefit.com/california/walkaway-debtcollection.html

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 22:54

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

Hi Danella,

Yes, a Deed in Lieu of Foreclosure does effect your credit negatively. However, in comparison to a normal foreclosure, the Deed in Lieu of Foreclosure's negative effect on your score is less. Still, it is better to go for a loan modification. It allows you to keep your home. It doesn't even hurt your score, and the loan amount may get reduced.

Thanks,

Sandra

Like | Dislike | Share | Posted: Mon, 04/26/2010 - 03:57 | Post subject:

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

Hi Laurence,

You can contact your first lender and apply for a deed in lieu of foreclosure. This will help you in selling off the property and you won't be liable for paying any deficient amount to the first lender. However, you'll be liable for paying off the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] dues to the second lender.

Thanks

Like | Dislike | Share | Posted: Thu, 02/03/2011 - 21:57

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

my wife and i are current on both the 1st and 2nd mort but the 2nd mort has a high interest rate and we are upside down with the two mortgages and when we call the 2nd mort company they are not trying to hear us about lowering the rate. what should we do?

Like | Dislike | Share | Posted: Tue, 12/15/2009 - 11:33 | Post subject:

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

Hi thresa!

Welcome to forums!

[url=http://www.mortgagefit.com/deed-lieu.html]Deed in lieu of foreclosure[/url] is a good option in order to get rid of your property. You will have to write a hardship letter to the lender in order to apply for a deed in lieu. It will take around 90 days to complete the whole process. Once you surrender the property to the lender, you will have to vacate it.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 10/22/2009 - 00:40

eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

NJ, you cannot simply ask for the rate to be lowered. You need to show the bank (in writing) what your financial situation is. You need to show your monthly cash flow and detail what payment would work for you. If you have a plan, they will be more willing to listen.

Like | Dislike | Share | Posted: Tue, 12/15/2009 - 15:38

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

If we go with a quick sell of our first mortgage, what can the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] holder do?

Like | Dislike | Share | Posted: Thu, 12/17/2009 - 14:38 | Post subject:

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

Explain to the individual in charge of reclassifying mortgages that you are undergoing financial hardship and are unable to pay your mortgage; explain what financial hardship, such as a job loss, is causing this issue. Thanks.
Regards,
Home Loan Mortgage

Like | Dislike | Share | Posted: Sat, 05/18/2013 - 01:55 | Post subject:

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

We were denied modifcation loan because we didnt come up with 5.000 payment at the end of the contract. Now I am looking at the [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] option? How long will we be able to live in our house if we go this route?

Like | Dislike | Share | Posted: Wed, 10/21/2009 - 06:08 | Post subject:

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

Hi Guest!

Welcome to forums!

If your husband goes for deed in lieu of foreclosure, the balance amount resulting from the sale will be forgiven. The forgiven amount will be considered as taxable by the IRS. But due to the Mortgage Debt Relief Act, your husband won't have to pay taxes.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 08/04/2010 - 23:45

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

i don't think that is what caldwell is looking for, but that's okay. i don't need to continue reading about the hell people are going through to undertstand that lenders are not prepared to act quickly enough, borrowers don't understand the process, lawyers and their ilk are too quick to file frivolous lawsuits that inhibit the program further and that the entire mess was misinterpreted to begin with. i don't think our government gets what's going on - look at how many stories our fiscal "advisors" have provided already.

i'd just as soon not see more hell stories, but a few more favorable pieces of news so we can at least see that someone's being helped.

Like | Dislike | Share | Posted: Sat, 04/10/2010 - 16:25

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

We are an active duty family and were forced to move due to orders. Our home has been on the market since 10/2009 and so far, no offers. We now reside in a different state, 2400 miles away and are behind on mortgage payments by 6 months. We were served a summons /foreclosure notice 2 weeks ago. We have been trying to work with the bank ( Citi mortgage) but they are not very helpful and keep losing paperwork. We have requested a [url=http://www.mortgagefit.com/deed-lieu.html]Deed in lieu of foreclosure[/url] now, hoping it will get approved before my husband deploys in 2 months. What kind of tax consequence are we looking at? Will it make a difference that my husband will be deployed when final papers are signed since all income is non taxable during deployment to a war zone?

Like | Dislike | Share | Posted: Tue, 08/03/2010 - 09:06 | Post subject:

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

Here's the joke. My wife and I both have FICO scores over 850. Never been late on a payment on anything in 30 years. Had two slow years of work, burned through my savings on the house. The cheapest we could find in the market 5 years ago. First house. All lenders said no worries, rates will be great for years to [url=http://www.mortgagefit.com/refinance.html]refinance[/url]. The year I got in I made over $160,000. Close to $200,000 combined. Combined both my wife and I make over 70,000 normally. Never went to Hawaii, all cars paid off, no cable TV. Need a bit of help and none of our creditors will even so much as let me skip one month payment to catch bills up. Joke is many of our friends who have been footing the bill for this country for 30 years are all scrambling for apartments. Well, I guess at least that way we'll have more in our pocket to keep bailing out the banks. We're walking from it all. Not worth the headaches. Quality of life is more important than a crappy house. The great American nightmare. Unless you are super wealthy or have help. Do the Deed in lieu. Short sale is nightmare.

P.S. Out of all of our friends who have done short sales, Deed in Lieu, begged for (or paid) to get a modification and gone into foreclosure not one of them or myself has had the bank come back and say, ‘Hey don’t move. We’ll help you with a modification.’ Do you see any posts here referencing that? We have been trying to get a modification for 9 months. They string you along saying hey you forgot to check this box or dot that ‘i’ so they can squeeze every last cent out of you before the ship finally sinks. Do yourself a favor; find a nice apartment while your credit is still intact if it is and take care of your survival first because no one will be there to help when you are out on the street and homeless.

Like | Dislike | Share | Posted: Sun, 12/20/2009 - 19:24 | Post subject:

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

Welcome Krystal,

The lender cannot foreclose the home which was sold off years ago. Your lender can rather charge off the account and sell it off to a collection agency. You should negotiate with your lender so that you can get an affordable payment plan to pay off the dues.

Like | Dislike | Share | Posted: Tue, 02/01/2011 - 22:18

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

My elderly parents home is in danger of being forclosed. Due to health issues (dementia) they did not pay their bills. Their home is set for a hearing this week to determine forclosure proceedings is there any help for them.
[size=9:1a7595ee81][color=Red:1a7595ee81][Email address deleted as per forum rules. Thanks.][/color:1a7595ee81][/size:1a7595ee81]

Like | Dislike | Share | Posted: Mon, 01/03/2011 - 21:23 | Post subject:

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

we filed for bankruptcy, and it is done, but since we have missed over 6 house payments, they sold our house without due process, meaning no legal serve, or posting?, when do i have to leave the premises, or what else if anything can i do?

Like | Dislike | Share | Posted: Sun, 05/16/2010 - 15:43 | Post subject:

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

I HAVE A 2ND HOME IN CALIF.MY DAUGHTER WAS MAKING THE PAYMENTS.SHE CAN NO LONGER MAKE THE PAYMENTS,SHE IS OUT OF WORK.MY PROBLEM IS THE HOUSE IS 3 MONTHS BEHIND,AND I CAN'T MAKE ANY PAYMENTS,SO FORECLOSORE IS COMING! ANY IDEAS?

Like | Dislike | Share | Posted: Wed, 01/26/2011 - 19:47 | Post subject:

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

Dear Jessica
I have a restaurant property which was vacant and I was unable to find a tenant so I fell behind in my mortgage payments. I have now found a tenant with lower rent and I am able to make payments but lower payments and bank has agreed to accept lower payments for two years but they want me to give deed in lieu and forebearance payment for two years and they will add all the interest payments in the back end with any and all costs due and payable as a baloon payment in two years. I am not sure if this is a good agreement Do you know of any attorney I can see before agreeing to this.

Like | Dislike | Share | Posted: Tue, 04/13/2010 - 18:58 | Post subject:

sabrinatoss's picture
sabrinatoss | Joined: January 16, 2011 09:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The best thing to do to avoid foreclosure is to be responsible with all your obligations.

Like | Dislike | Share | Posted: Sun, 01/30/2011 - 21:33

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

Hi Mark,

Though you short sale your property, you would still be responsible for the second mortgage dues. The second lender will have the rights to collect the dues from you. If you're unable to pay off the dues, the lender will charge off the loan.

Thanks

Like | Dislike | Share | Posted: Thu, 12/17/2009 - 21:17

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

Welcome djc,

You can contact your lender and apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] in order to get rid of the property. If the lender accepts your request, then you can get rid of the house and you won't be liable for paying off the deficient balance resulting from the sale of the property.

Like | Dislike | Share | Posted: Mon, 04/30/2012 - 01:39 | Post subject:

saliviyajonathan1's picture
saliviyajonathan1 | Joined: September 11, 2012 01:27 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Many people have complain that they caught once or many times in mortgage scamming. Only good mortgage broker can help you so you must ask your good friend or relative for right mortgage broker.

Like | Dislike | Share | Posted: Tue, 09/11/2012 - 02:57 | Post subject:

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

One may even consider renting out the home so that he/she can pay off the loan using the rent payments and thus prevent foreclosure.

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 03:02 | Post subject:

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

There are initiatives taken by the government to help those behind on their home loans so that they can avoid foreclosure. One such initiative is the rate freeze program for borrowers having ARMs that will reset from January 1, 2008 and 31st July, 2010.

The community has discussed on the rate freeze at http://www.mortgagefit.com/tennessee/newlaw-variablerate.html .

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 03:37 | Post subject:

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

is it limited to tenessee only adonis?

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 03:59 | Post subject:

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

Hi Ryan,

The Rate Freeze Plan isn't limited to Tenessee, but throughout the nation. It's meant for borrowers who are likly to fall behind on their adjustable rate mortgages but haven't yet defaulted.

There's a new program now – "Project Lifeline" initiated by the government so that borrowers in default can avoid foreclosure on their homes. Under this program, banks will delay foreclosure proceedings for 30 days and this is applicable to borrowers having any type of mortgage, not just ARMs. At the same time, lenders will try to modify loans so that these can be afforded by the borrowers.

good luck

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 04:39 | Post subject:

jbarto65's picture
jbarto65 | Joined: November 4, 2007 04:09 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What a great article, it explains everything so clearly, thank you.

I fortunately have mine all caught up and present and am happy to say that I am back on track and plan to stay there, in fact, come the end of the month, I will be one payment ahead. thank god that stress will be gone.

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 04:59 | Post subject:

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

Hi,

This is really very helpful article. When this year is heading towards 1 millions of foreclosure, this article is really going to help the debt-stricken borrowers.

As Caron has mentioned above Project Lifeline is another government sponsor program to help borrowers avoid home foreclosure. Here Servicer will send letters to the seriously delinquent borrower to contact the servicer within ten days for counseling and trying to modify the loan term. But if the borrowers fail to respond the letter, then foreclosure proceeds.

Thanks,
Larry

Like | Dislike | Share | Posted: Mon, 02/18/2008 - 17:23 | Post subject:

enriko's picture
enriko | Joined: March 5, 2008 04:00 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

man, thanks this is a great post!!

Like | Dislike | Share | Posted: Tue, 03/18/2008 - 02:04 | Post subject:

kpatrick's picture
kpatrick | Joined: October 29, 2007 05:46 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Great article, Jessica!

Like | Dislike | Share | Posted: Wed, 03/19/2008 - 21:17 | Post subject:

imdcorp's picture
imdcorp | Joined: March 14, 2008 09:12 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Great article. The homeowner should also be aware that for many of the solutions above that "forgive" debt such as short sale and bankruptcy. They may become liable for taxes as the IRS treats it as taxable income.

Like | Dislike | Share | Posted: Thu, 03/20/2008 - 15:30 | Post subject:

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

Hi imdcorp,

I agree with you here. However, the tax liability remains if the homeowners does not qualify for mortgage debt forgiveness by satisfying the criteria as given at http://www.mortgagefit.com/deficiency/form1099a.html#44186 .

Morepover, if he's in California, he is liable for taxes on canceled debt unlike in other states.

good luck

Like | Dislike | Share | Posted: Mon, 03/24/2008 - 05:29 | Post subject:

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

we are behind 8 payments on both first & second, filed chap 13 in
Feb. 2012, have to pay chap 13 court $701 on top of the first and
second . We are about $40k behind, lost my business (trucking)
july 2012, only get social security now. what if any help is available?
we are probably going to move in with family,and short-sale the
house. then start over and try to save for the future.

Like | Dislike | Share | Posted: Sun, 05/19/2013 - 21:25 | Post subject:

fireyone_02's picture
fireyone_02 | Joined: March 20, 2008 08:44 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Kudos...very good post indeed.

Like | Dislike | Share | Posted: Mon, 04/21/2008 - 16:19 | Post subject:

jbarto65's picture
jbarto65 | Joined: November 4, 2007 04:09 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

very informative

Like | Dislike | Share | Posted: Sat, 05/03/2008 - 17:20 | Post subject:

AlaskaDES's picture
AlaskaDES | Joined: May 4, 2008 11:03 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Great Article!

I do, however believe in not letting cash flow limit one's potential. If you have the assets to free up, I feel that using a strategy to use the bank's money to pay the bank back would be another alternative to look at.

Living life on an Average Daily Balance system rather then an amortized system may be a possible alternative.

Like | Dislike | Share | Posted: Mon, 05/05/2008 - 15:22 | Post subject:

cliff3's picture
cliff3 | Joined: May 5, 2008 02:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Great Post! Good also to note even if your lender has posted your home for foreclosure it is still "not" to late. Your lender will still modify your loan and/or do a repayment plan. In addition, project lifeline only includes the six of the nations mortgage companies. There are some mean mortgage companies out there who are still refusing to offer project lifeline. Make sure and call your lender and speak with a supervisor in the loss mitigation department they will help you with your options to save your home.

Like | Dislike | Share | Posted: Wed, 05/07/2008 - 13:42 | Post subject:

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

Hi BRUCE,

Well, given your situation, it will be quite difficult for you to get any kind of funds.

Like | Dislike | Share | Posted: Sun, 05/19/2013 - 23:56 | Post subject:

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

We have been in bankruptcy for 24 months because of our home. Trustee payments are HUGE! Will a lender take a Deed-In-Lieu of if we allow the bankruptcy to be dismissed.? We owe more than the value right now(upside down)

Like | Dislike | Share | Posted: Mon, 08/11/2008 - 19:37 | Post subject:

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

Welcome Rociel.

Whether the lender will accept the deed in lieu or not that totally depends upon the lender. But first try to contact with the lender ASAP and you should try to go for short sale. Short sale will have less negative affect on your credit report than deed in lieu or foreclosure.

Let me know if you have any further queries.

Like | Dislike | Share | Posted: Tue, 08/12/2008 - 02:55 | Post subject:

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

Hi Rociel,

So, you filed chapter 13 and now you think the payments are huge. Did you talk to your trustee about it? usually the trustee prepares a payment plan keeping in mind the debtor's affordability. But it's not so perhaps in your case.

A deed in lieu is possible if the bankruptcy is dismissed but what I'd like to know is, did the lender ever declare a foreclosure? In case the lender has done so, the bankruptcy has put an automatic stay on the foreclosure. Hence, after the chapter 13 dismissal, the lender will hopefully release the stay and resume foreclosure proceedings again.

Take Care

Like | Dislike | Share | Posted: Tue, 08/12/2008 - 04:38 | Post subject:

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

I have ten vacant properties which I cannot make the payments on but am current on payments. If I do a BPO and agree to pay the difference if there is one can I just quit claim or grant deed these non owner occupied properties back? What if I just deed back without approval what can happen?

Like | Dislike | Share | Posted: Sat, 08/16/2008 - 10:17 | Post subject:

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

Welcome chuck.

You cannot deed the property back without the approval. As the property is mortgaged you cannot also use a grant deed. By the way, if you cannot make payments then talk to the mortgage company and find out if there are any options available for you to avoid foreclosure.

Like | Dislike | Share | Posted: Mon, 08/18/2008 - 06:07 | Post subject:

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

How and why would a lender offer a loan modication. What can a borrowere expect to see in a loan modification

Like | Dislike | Share | Posted: Fri, 10/03/2008 - 12:28 | Post subject:

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

Well, a loan modification is offered by lenders as a part of foreclosure prevention program. It involves changing the terms and conditions of the loan so that the borrower can afford to pay it off.

However, at times in case of loan modification, the mortgage payment may be increased instead of reducing it as because any payment which is due may be added to the loan balance. Know more on loan modification from an article on this topic.

Good luck

Like | Dislike | Share | Posted: Fri, 10/10/2008 - 05:45 | Post subject:

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

Will it be best to get a lawyer to represent us and let them speak on our behalf.

Like | Dislike | Share | Posted: Thu, 10/23/2008 - 17:56 | Post subject:

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

Hi ar white!

Have you applied for a deed in lieu with your lender? You will have to first apply for it. If they reject you then you can go in for negotiations and consult the lawyers.

Thanks.

Like | Dislike | Share | Posted: Fri, 10/24/2008 - 02:59 | Post subject:

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

I'm unemployed right now. been in my home 12 years. not upside down have some equity. my adjustable rate is too much. my credit is shot cant refi. behind now 3 months. is there any help for those unemployed?

Like | Dislike | Share | Posted: Fri, 12/26/2008 - 06:46 | Post subject:

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