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How to avoid foreclosure amidst disability and bankruptcy

Posted on: 01st Jul, 2007 03:22 pm
We are going to end up in foreclosure,it hasn't happened yet but it will,and that's ok now. We have accepted this fact. Due to disability,wifes job loss, bankruptcy (#7) etc. it is going to happen.As twisted as this may seem,we would like to know how to speed things up or must this all just run its course.Could we inform the mortgage companies we are giving up, here's the house,we are leaving. I know this all sounds crazy,but it is now a fact that it will happen and we are going through mental hell and would like to just go ahead and move on and leave.Can anyone comment on this? Has this happened to anyone? Can this be done this way? Please give some advice.Thank you so much.
Hi Mikee,

Before taking final decision of foreclosure, atleast have a talk with the lender to suggest some foreclosure prevention plans.Im sure you will find a solution.
Posted on: 01st Jul, 2007 08:52 pm
Hello Mikee,

I understand your state of mind. You have talked about lots of problems in your life and after going through it, I can feel you pain. To leave a house is a very painful task and you are going through it. :( But, you are not the only one here. My friend also went through a similar situation and came out of it. What he had, was a cool mind and patience. :)

You could try the option that he took to come out of the situation. What he tried was a deed-in-lieu of foreclosure. In that, if you are in a default and you have tried various options and failed, you can voluntarily give back the house to the lender. But, this is possible after you have talked with your lender and you both have agreed on it. This way, your credit ratings would not be having a negative effect and you would get an opportunity to apply for loans in future.

You also talked about bankruptcy. So have you filed for one?

Do feel free to ask questions.
Posted on: 01st Jul, 2007 11:43 pm
Hi Mikee,

Welcome to the forums.

It seems that you've gone through a lot of financial hardship. But you have to fight it our or else everything will be messed up.

I am not sure but have you applied for any kind of disability insurance so that in case you are into such a situation, at least you can pay down the mortgage?

You can definitely inform the mortgage company that you want to leave but that's not the solution here – I mean you will lose your home but the unpaid debt will be reported to your credit report and that's really going to harm your credit. What I shall suggest that instead of declaring that you are giving up why not explain your situation to the lender and request him to suspend payment for a while so that you can gather the funds and get current on the loan. Or else, request him to provide you with an alternative payment plan.

There are some other alternatives to foreclosure; these constitute the loss mitigation plans - the ways of avoiding foreclosure.

Hope this helps..

God bless you.
Posted on: 02nd Jul, 2007 04:43 am
Thank you so much for your responses. Yes, bankruptcy is in the works (#7) I don't think the DIL will work as we owe more than the house is worth.We are actually ok now with the foreclosure thoughts. We will not be able now or in the future to make the payments. We have found some alternative living arrangments and would like to take advantage of it as it might not be there if we stay here for the months and months it will probably take for the foreclosure process to play out. Is it possible to just leave now or must we stay here while the process unfolds. As of this month the payments all stop. (3 mortgages) We are not sure about how to initiate the process. Seems like we probably must stay and go through the process and let the chips fall. It's become a struggle to just get through the days now. Any big lottery winners out there want to help? As of now it seems like this mess will never end. We appreciate your encouraging words.
Posted on: 02nd Jul, 2007 04:45 am
Hi Mikee,

I can understand your situation but let me tell you - it's been a practical move on your part. If you have got some alternative living arrangements, then that's good enough at this situation. The thought of leaving a home is indeed painful but things do at times go out of control. So, just have patience and god will help you come out of this trouble.

But hey as far as I knew, as far as the bankruptcy procedure is going on, the foreclosure is kept on hold. So, you will still have some time to get rid of the foreclosure. But for that you need money and that's where I guess the problem lies. Still I would suggest that you take a look at some of the foreclosure prevention assistance programs offered to people in financial distress and find out if these suit you.

Take Care
Posted on: 02nd Jul, 2007 05:02 am
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