Posted on: 29th Aug, 2007 07:23 pm
I am getting to the end of my rope. I currently own a house with my ex-husband. We owe way more then the house is worth. He no longer lives in the house and I do not want to stay in it. I have put it on the market for much less than what we owe. It has been on the market for about 6 months ( I have changed realators and dropped the price)
I recently got laid off. The Ex is no longer helping with the payments and doesn't care if it goes into foreclosure. I have had shoulder surgery. I can't afford the payments and DO NOT want to stay in the house at all.
I have tried to rent it with no luck. I am current on my mortgage but when I call the mortgage companies to tell them I will not be able to pay them and can we work soemthing out, I am told that they can't talk to me about options until I am late on my payment.
I do not want to ruin my credit but I want out NOW! The Ex doesn't want the house either and is not helping financially at all.
What can I do to get out now?
What are the affects of a foreclosure? It feels like that is a better option to just be able to move away from the house/the ex and be done with it.
I am extremely frustrated as my whole life is on hold because of the house.
Thanks for letting me vent and I would appreciate any advice anyone may have.
I recently got laid off. The Ex is no longer helping with the payments and doesn't care if it goes into foreclosure. I have had shoulder surgery. I can't afford the payments and DO NOT want to stay in the house at all.
I have tried to rent it with no luck. I am current on my mortgage but when I call the mortgage companies to tell them I will not be able to pay them and can we work soemthing out, I am told that they can't talk to me about options until I am late on my payment.
I do not want to ruin my credit but I want out NOW! The Ex doesn't want the house either and is not helping financially at all.
What can I do to get out now?
What are the affects of a foreclosure? It feels like that is a better option to just be able to move away from the house/the ex and be done with it.
I am extremely frustrated as my whole life is on hold because of the house.
Thanks for letting me vent and I would appreciate any advice anyone may have.
hi coolchick,
welcome to the forum.
you have mentioned that you owe more than the value of the house and you can no longer afford the payments. in that case, why don't you try for a short sale? by accepting this process, the lender will allow you to sell the house at an amount which is lesser than what you owe and will forgive the remaining debt. but he may seek a deficiency judgment for the difference between the sale amount and the debt amount. this will help you to avoid the foreclosure which has a far damaging impact on your credit report than a short sale and also lowers the score. the derogatory remark of foreclosure will remain on your credit report for 8 years.
btw, have you not asked your lender of any loss mitigation plan? he can help you with a suitable plan. to know more on loss mitigation plan, you can refer to http://www.mortgagefit.com/loss-mitigation.html
welcome to the forum.
you have mentioned that you owe more than the value of the house and you can no longer afford the payments. in that case, why don't you try for a short sale? by accepting this process, the lender will allow you to sell the house at an amount which is lesser than what you owe and will forgive the remaining debt. but he may seek a deficiency judgment for the difference between the sale amount and the debt amount. this will help you to avoid the foreclosure which has a far damaging impact on your credit report than a short sale and also lowers the score. the derogatory remark of foreclosure will remain on your credit report for 8 years.
btw, have you not asked your lender of any loss mitigation plan? he can help you with a suitable plan. to know more on loss mitigation plan, you can refer to http://www.mortgagefit.com/loss-mitigation.html
larry if he does a short sale, then he won't be doing the right thing. because as it is she owes more than the value of the house. and in a short sale you don't get equal to the home price, so if she owes more she will have considerably large amount of debt to pay. and i doubt whether the lender will forgive the debt because currently the market is in a crisis which is making lenders get back their invested money otherwise it will be difficult for them to cope up with the tension.
"BTW, have you not asked your lender of any loss mitigation plan?"
As far as loss mitigation is concerned, i feel she as also talked to the lender and they aren't ready to work out.
"BTW, have you not asked your lender of any loss mitigation plan?"
As far as loss mitigation is concerned, i feel she as also talked to the lender and they aren't ready to work out.
Is a loss mitigation plan something like a foreclosure bail out program or are they 2 different things?
Coolchick
In your divorce judgment who was given the house? You or him?
If he was given the house and is not making the payments then take him to court for that.
But if no decision was given on the house or if it is in your name then I can't see how you can save your credit from going down after the mortgage is in default.
After the mortgage is in default you will have to request the lender for any loss mitigation plan like forbearance or loan modification.
You do not have a job right now but if you think that in a few months you will be able to get a job then mortgage payments can be stopped for a few months or the mortgage modified to add the default amount to the mortgage & mortgage term increased.
When you will contact lender about loss mitigation plan he will ask you to send him a hardship letter. They will then review your financial condition and tell you if any option exists to save the mortgage from going into foreclosure.
Otherwise, deed in lieu of foreclosure, short sale or foreclosure are the only way out. And all will spoil your credit.
How is the equity position of your house? Is refinancing the mortgage is an option open for you? You said that you want to get out of it but that at this moment can hurt your credit score. If any other option can be possible to save the mortgage from going into foreclosure, then implement it. After some time when you are able to find a buyer, sell the house and shift.
""BTW, have you not asked your lender of any loss mitigation plan?"
As far as loss mitigation is concerned, i feel she as also talked to the lender and they aren't ready to work out."
>>> Fox, Coolchick has not been able to discuss any loss mitigation plan with the lender as of now because the loan is still current. The lender won't listen to anything until the loan is in default.
In your divorce judgment who was given the house? You or him?
If he was given the house and is not making the payments then take him to court for that.
But if no decision was given on the house or if it is in your name then I can't see how you can save your credit from going down after the mortgage is in default.
After the mortgage is in default you will have to request the lender for any loss mitigation plan like forbearance or loan modification.
You do not have a job right now but if you think that in a few months you will be able to get a job then mortgage payments can be stopped for a few months or the mortgage modified to add the default amount to the mortgage & mortgage term increased.
When you will contact lender about loss mitigation plan he will ask you to send him a hardship letter. They will then review your financial condition and tell you if any option exists to save the mortgage from going into foreclosure.
Otherwise, deed in lieu of foreclosure, short sale or foreclosure are the only way out. And all will spoil your credit.
How is the equity position of your house? Is refinancing the mortgage is an option open for you? You said that you want to get out of it but that at this moment can hurt your credit score. If any other option can be possible to save the mortgage from going into foreclosure, then implement it. After some time when you are able to find a buyer, sell the house and shift.
""BTW, have you not asked your lender of any loss mitigation plan?"
As far as loss mitigation is concerned, i feel she as also talked to the lender and they aren't ready to work out."
>>> Fox, Coolchick has not been able to discuss any loss mitigation plan with the lender as of now because the loan is still current. The lender won't listen to anything until the loan is in default.
Hi Wildstorm,
Foreclosure bail out loan program is basically a refinance loan. It helps the borrower to repay the existing balance of his loan and thus saves his property from being foreclosed by the lender. But loss mitigation plan consists of various ways with which a borrower can avoid a foreclosure.
Foreclosure bail out loan program is basically a refinance loan. It helps the borrower to repay the existing balance of his loan and thus saves his property from being foreclosed by the lender. But loss mitigation plan consists of various ways with which a borrower can avoid a foreclosure.
But in order to qualify for this program, there has to be equity available in the home correct?
Yes Wildstorm, they require that the home should have equity but that hardly happens and if there is equity, borrower would rather look at options such as refinancing present loan is possible.
And such loans have high interest rates and require the borrower to have good credit score.
And such loans have high interest rates and require the borrower to have good credit score.
Hate to be the bearer of bad news Coolchick but if you fall behind on payments or go into foreclosure your credit is forfeit so you'll have to decide whats more important to you credit or your financial wellbeing. Perhaps looking a a bancrupcy might be an option for you.
Evolovik,
You have mentioned that bankruptcy is an option for Coolchick. But don't you think that bankruptcy will have a far damaging impact on his credit?
You have mentioned that bankruptcy is an option for Coolchick. But don't you think that bankruptcy will have a far damaging impact on his credit?
"Evolovik,
You have mentioned that bankruptcy is an option for Coolchick. But don't you think that bankruptcy will have a far damaging impact on his credit?"
I believe bankruptcy is more damaging to the credit profile. Thats why if you can get qualified for a bail out program that would be better and if there was some way of qualifying for a refi that would be good too. Like for example, in my situation I have a first and second mortgage and 4 credit cards. If there was some way for me to take out one huge loan to pay off everything that I've listed, that would make things easier and affordable. Undoubtly if that were possible the interest rate would be high for such a loan but, at least there's only one credit payment instead of 6. This would give a chance to improve credit scores and maybe 6 months or a year down the road, qualify for a lower rate to get the monthly payments lowered.
You have mentioned that bankruptcy is an option for Coolchick. But don't you think that bankruptcy will have a far damaging impact on his credit?"
I believe bankruptcy is more damaging to the credit profile. Thats why if you can get qualified for a bail out program that would be better and if there was some way of qualifying for a refi that would be good too. Like for example, in my situation I have a first and second mortgage and 4 credit cards. If there was some way for me to take out one huge loan to pay off everything that I've listed, that would make things easier and affordable. Undoubtly if that were possible the interest rate would be high for such a loan but, at least there's only one credit payment instead of 6. This would give a chance to improve credit scores and maybe 6 months or a year down the road, qualify for a lower rate to get the monthly payments lowered.
"If there was some way for me to take out one huge loan to pay off everything that I've listed, that would make things easier and affordable."
It looks like it would be easier but for such a big loan, the interest rate will be very high. And most often the borrower is not in a position to make such large payments every month.
It looks like it would be easier but for such a big loan, the interest rate will be very high. And most often the borrower is not in a position to make such large payments every month.
"It looks like it would be easier but for such a big loan, the interest rate will be very high. And most often the borrower is not in a position to make such large payments every month."
True, very true but if these companys would revaluate their guidelines and make favorable adjustments to the guidelines, I'm pretty sure mortgage brokers would get more business and borrowers can payoff new loans. Right now with the current status of the market, brokers are tailoring to wealthy homeowners. Now I'm not talkin about the rich but those who make more than $30k a year. So where does that leave the people who make less then $30k at? At the bottom of the barrell with no chance.
True, very true but if these companys would revaluate their guidelines and make favorable adjustments to the guidelines, I'm pretty sure mortgage brokers would get more business and borrowers can payoff new loans. Right now with the current status of the market, brokers are tailoring to wealthy homeowners. Now I'm not talkin about the rich but those who make more than $30k a year. So where does that leave the people who make less then $30k at? At the bottom of the barrell with no chance.
Hi Wildstorm,
With the annual income around $30K, one can get a loan from many organizations like Freddie Mae, FHA, MyCommunity and ACORN housing.
The loan program with ACORN housing provides loan with lower interest rate and also lower down payment.
MyCommunity loans are available with 100% financing with lower amount of down payment.
With the annual income around $30K, one can get a loan from many organizations like Freddie Mae, FHA, MyCommunity and ACORN housing.
The loan program with ACORN housing provides loan with lower interest rate and also lower down payment.
MyCommunity loans are available with 100% financing with lower amount of down payment.
"Hi Wildstorm,
With the annual income around $30K, one can get a loan from many organizations like Freddie Mae, FHA, MyCommunity and ACORN housing.
The loan program with ACORN housing provides loan with lower interest rate and also lower down payment.
MyCommunity loans are available with 100% financing with lower amount of down payment."
Yes of course if you have great credit scores. If a person makes $30k a year or around that its not going to help them get a loan. Well let me rephrase that. It could because its showing the lender that this person may have the ability to pay back the loan, but its better to make more money yearly and have a great to excellent credit score.
With the annual income around $30K, one can get a loan from many organizations like Freddie Mae, FHA, MyCommunity and ACORN housing.
The loan program with ACORN housing provides loan with lower interest rate and also lower down payment.
MyCommunity loans are available with 100% financing with lower amount of down payment."
Yes of course if you have great credit scores. If a person makes $30k a year or around that its not going to help them get a loan. Well let me rephrase that. It could because its showing the lender that this person may have the ability to pay back the loan, but its better to make more money yearly and have a great to excellent credit score.