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Loss Mitigation options to stay out of foreclosure

If you are behind on your payments and facing foreclosure, you may need loss mitigation help. Loss mitigation options (forbearance, loan modification, etc) help a borrower [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url] by providing them with alternatives to pay down their mortgage. It also minimizes the lender's credit loss resulting from the borrower's inability to repay the loan.

How do I negotiate for loss mitigation?

Here's an overview of what you should do when you cannot keep up with your usual payments, how to negotiate with the lender, and what actually happens when you are considered for a loss mitigation/loan workout plan.

Contact the lender: Unless you've missed a few payments, some lenders will not negotiate with you for a workout plan. However, if the lender refuses to negotiate unless you're behind, you should keep trying. Contact the lender's Loss Mitigation Department and request a loan workout option to help you pay down the mortgage.

Hardship letter: Prepare a hardship letter including the specific date when the hardship started. Take a look at this Sample Hardship Letter. You should attach documents supporting your hardship claim. Learn more on how to write a hardship letter.

Lender's analysis of your loan: After the lender has agreed to discuss a loan modification, they will send you a packet of forms. They will want you to provide as much information as you can about your finances so they can evaluate your situation using their own calculations. The types of information they are looking for include:
  • 2 months of bank statements
  • Tax filings for past 2 years
  • Receipts of 4 months of regular monthly payments
  • Personal statement about your finances
  • Situation that made you delinquent
  • Paystubs for past 2 months (to check for current ability to pay off loan)
  • Name and contact details of borrower's current employer
  • For self-employed persons, last 2 years of tax information and year-to-date and profit and loss business statement for past 2 years
  • Recent utility bill

The lender reviews the above information, calculates how much you can afford to pay each month and calculates:

  • Monthly net income for past 2 years (adjusted to changes in income)
  • Monthly living expenses (under normal conditions) with debt payments (adjustments are made to reflect rise or fall in expenses for each of the first 3 months of the loss mitigation option)
  • Surplus income available each month by deducting expenses from income
  • Surplus income percentage by diving surplus income by total monthly expense

Based on the above calculations, the lender will approve you for a loan modification and make you an offer. If you cannot afford this offer, you should try to get help from a credit counselor who will be able to help you negotiate. Before sending any documents to the lender, you should make copies in case the documents are misplaced.

What are the loss mitigation options?

Here's a rundown of the workout options available to you in order to avoid a foreclosure.


Special Forbearance

Repayment plan for the borrower to cover the debt and get current on loan until you can make the usual payments through a structured payment plan or loan modification.
  • Suffered verified loss in income and living expenses have gone up, but has enough to cover the debt and become current on the loan.
  • Occupies the property as primary residence.

Delinquent for 3 months but not more than 12 months.

Property should not need repairs which may affect payment under forbearance.

Loan Modification

Permanent Change in terms of the loan - the debt is included in the loan balance and reamortized at a reduced interest rate.
  • Suffered verified loss in income or increase in living expenses but have stable surplus income to help pay at the modified rate and terms.
  • Borrower should remain as the occupant and property should be the primary residence.
  • Borrower having loan at above market rates, lower loan-to-value ratio, and mature terms (loan paid down for 10 years or more).
  • Someone who isn't delinquent but may soon default on the loan.

Behind on payments for 3 months or more and 1 year has passed since the loan was signed.

Property should be in good physical condition; otherwise costs to complete repair work will drain out enough cash and borrower won't be able to make payments under the modification.

Short Sale/ Pre-foreclosure Sale

Sell off property to pay off the debt, though property value has declined to less than the money owed. Know more…
  • Have a verified loss in income.
  • Having negative equity of not more than approx. 63% of the unpaid loan balance.
  • Occupies property as the primary residence.
  • Non-occupant may qualify but have to prove that the need to vacate is related to default.

One who is already behind on payments or likely to be behind soon.

No serious damage to property. Even if damaged, cost of repair should not exceed 10% of the Repaired Appraised Value.

Property should be able to be sold free and clear of liens.

Deed-in-lieu of Foreclosure

Borrower offers property to lender who sells it off to retrieve the unpaid balance. Learn more…
  • One who's unable to continue making payments.
  • Occupies property as their primary residence.
  • Non-occupant owner can qualify, but he has to prove that the need to vacate is related to the cause of default.

The loan is in default (that is, the borrower is more than 30 days late on their payments and the cause of the default cannot be eliminated).

Property should be free of any liens.

Property shouldn't have been used as rental property for more than 1 year.

Partial Claim

Placing your past debts into a subordinate 2nd mortgage (not exceeding 12 months of PITI) payable to HUD (2nd loan payment to begin only after first mortgage is paid down; there's no interest on the 2nd loan).
  • Those having FHA loans and mortgages offered by Freddie Mac approved lenders.
  • Unable to qualify for forbearance.
  • Use property as the primary residence.
  • Can prove that financial hardship is over.
  • May qualify even after bankruptcy filing but court approval required.

Delinquent for 4 months but not more than 12 months.

Property should be in good physical condition.
*N.B: The criteria and conditions stated in the table above may vary from one lender/mortgage company to another.

Of all the loss mitigation options, special forbearance is the best. It may be combined with loan modification when there's doubt about the borrower's income stability. Especially in these tough economic times, if you're unable to get a loan modification, your lender may be open to a short sale or a deed-in-lieu to avoid foreclosure. If you convince your lender to accept a deed-in-lieu you can even talk to the lender about rental options. Whichever option you decide is best to help you avoid foreclosure, you'll need to submit the same documents to prove your hardship.
Related Readings

keilysmith's picture
keilysmith | Joined: August 29, 2010 10:19 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is quite surprising to me that the lender went ahead and testing of the property when your friend was to negotiate a loan modification. She should contact the lender and discuss the matter with him. In my opinion, it would be better if she could hire a lawyer and let him negotiate with his lender.

Like | Dislike | Share | Posted: Sun, 08/29/2010 - 22:27

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

WE HAVE ALLREADY DISCUSSED THIS WITH THE LENDER AND HE SEID THEIRS NOTHING HE CAN , DO TO VALUES OF HAVE ALL WENT DOWN THE LAST YEAR OR SO.

Like | Dislike | Share | Posted: Thu, 09/02/2010 - 15:13 | Post subject:

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

Hi,
I'm glad I found these forums. My situation my not be as dire as some but I would still like advice on what direction to go in. We bought our first house a bit over 4 years ago just before the market crashed. We have an 80/20 loan and are totally up to date on our payments. We currently owe about $172,000 and estimate the house to be worth about $158,000 based on comparables in the neighborhood - that being said the neighborhood is in a "transistional area" and therefore houses have not been selling fast.
Anyways, we are planning to move to another country in the next year. What is our best option to get rid of teh house with out foreclosing?

Like | Dislike | Share | Posted: Mon, 02/21/2011 - 19:54 | Post subject:

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

I should add that despite only being around $14,000 short, the added cost of a realitor as well as the presumably long length of time to sell add to the problem.

Like | Dislike | Share | Posted: Mon, 02/21/2011 - 19:56 | Post subject:

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

in review for loan modification before it goes to underwriter with bank of america, my son is on title and loan but he has his own morgage also, the bank of america is asking me for my son to sign a quick claim deed since he does not live or contribute to loan , is this okay to due?

Like | Dislike | Share | Posted: Mon, 01/24/2011 - 18:49 | Post subject:

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

As you've missed the payments, the lender will have the rights to foreclose the property. That's the reason why the lender's attorney had filed for a motion of release. Once he gets the judgment, the lender may immediately foreclose the property.

Like | Dislike | Share | Posted: Mon, 12/07/2009 - 01:21

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

They gave us a loan modification for the 2 year interest only loan that matured, because the LTV was not good we could not get another loan. The loan modification is not at all helpfull since we now have to pay $2350. month at 6.25% and were paying $1709. a month at an APR of 5.25%. The total work hours have decreased from 30- 50 hours every 2 weeks to 8 hours every 2 weeks. What can we do? Our payments were always on time and we paid a little extra on the principal

Like | Dislike | Share | Posted: Mon, 11/30/2009 - 19:45 | Post subject:

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

Hi Denise,

It is not mandatory for a person to be late on the mortgage payments to get approved for a loan modification. Depending upon your financial situation, the lender would approve your modification even though you are not late. It is true that the taxes are not due until April 15th. You should talk to the lender about this and ask them to consider their decision.

Take care.

Like | Dislike | Share | Posted: Wed, 02/24/2010 - 00:34

bankrupcyus's picture
bankrupcyus | Joined: July 8, 2010 09:26 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

There are many approaches to handling a foreclosure. Unfortunately, most of them don't work out too well. You already know that time is short here. If you want to get in touch with us right now to get the help you need, call us, or click,

Like | Dislike | Share | Posted: Mon, 11/29/2010 - 20:55 | Post subject:

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

i have home my name or my wife namewe continue pay morgage paymet both ist and 2nd mortgage but now i loss job from 2 month and cant afford the payment cuslot of other payment like my 3 car paymet my son in college andother expeditur its very hard ship now other thing my basement got water leakage when heavey rain many time. even i ask for modification both of my leder they not ready to do cusbefore i never miss payment if i repair that leakage its cost too much that its out of my reach and continue leak when rain its afraid to mold in that wall in base ment i already vaccate home and move in apt. and think for forcolosure no other option is come in my mind if i sell home its not worth that i have blance on my 1st and 2nd mortgage and from my house to next 2 house already on sale from long time but still on listing pls advised me wat to do cus i already out from house and dont want to keep due to big hardship i already given my all credit card for debt consolidation to co. and pay to them more then 700 month pls showme path

Like | Dislike | Share | Posted: Wed, 08/22/2012 - 15:29 | Post subject:

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

Hi!

Welcome to forums!

To al,

In Michigan, the lenders can come after you to recover the deficient balance resulting from the sale of the property. As you have a PMI, the insurance will help you in paying off the deficient balance to the lender. The PMI group can come after you to recover their dues. The lender will claim the deficient balance resulting from the property sale from you.

To anonymousluna,

A quitclaim deed will only help you in removing your son from the property deed. It won't remove him from the mortgage. Unless you refinance the mortgage or assume it, your son will remain liable for the mortgage.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 01/24/2011 - 22:15

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

Marlon, if your servicer is contacting others and discussing your financial situation, that is illegal and you have to find someone to assist you in taking action. A good place to start is with the Federal Trade Commission (www.ftc.gov). Check that site out and you'll learn what you need to do to take care of that situation.

As for your payments being due, and your inability to obtain a modification, that is often the case. I don't know about limitations on how many modifications are allowable on a monthly basis (sounds fishy), but if you're marginally employed, and have had a history of delinquency with them, they are certainly within their rights to demand payment in full at once without offering you any sort of break.

Like | Dislike | Share | Posted: Sat, 06/19/2010 - 08:29

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

we spoke to a supervisor on 10/13 we are 2 months and a partial 3rd we were told we owe 1792.00 but if we came up with some payment before 10/31 then they would be able to work with us seeing as we've paid on time for the past 10 months today we received another call very mean, very disturbing this person said that we owe over 2000.00 and they would not be able to help us and she proceeded to ask my mother who is a cancer survivor and has diabetes as well as some other illnesses what we needed a car for? why do we have cable(which we need for our phone)? she had my mother so upset her blood pressure shot through the roof she started crying and her nose started bleeding..needless to say we live in a forest our local grocery store is 7 miles away for my mom to get to doctors it's a 35 mile drive one way without a car we're lost she even asked my mom why she needed to go the doctor's? does she have any right at all to do this considering she had already worked this out and all that stuff she said which isn't even all of it i was so disgusted and angry and horrified that a "human being" could treat another like this and be so heartless..are they're any suggestions you can make to handle that? do you know of any programs that could help us? the company even stated they do not do [url=http://www.mortgagefit.com/know-how/loan-modification.html]loan modifications[/url] and it's like they love taking peoples homes and not trying help others..please if anyone can give me advice as far as possibly contacting a lawyer or let me know about housing laws or whatever and some programs we are in really dire need i also live here with my 3 children and help take care of my parents i suffer from seizures and am not able to find employment i sincerely need to get answers and help i would greatly greatly appreciate it thank you all and god bless

[E-mail address deleted as per forum rules. Thanks.]

Like | Dislike | Share | Posted: Thu, 10/15/2009 - 01:40 | Post subject:

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

I refinanced in 2007 with a company called AHMI >they sold the loan to RCS In Feb 2010 My monthly payments were $1950. which included tax/ins.I fell behind 2 payments deliberately to qualify for a loan mod however they kept giving me the run_around On Oct 2010 they stopped sending monthly payment coupons instead sent a letter stating my rate adjusted and that my payment was now $1700. per month. I paid Sept and Nov with money orders.On Dec2010 I get a fore closer notice because the new amount (1700) DID NOT Include tax/ins therefore PARTIAL payments were not accepted nor were they returned. Any advice?
QUESTION 2: because my contract was with AHMI and not RCS does it void my obligation and can I reverse the deed to make my self the Grantor and/or beneficiary to [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url]?
J
Ps I have 30% equity left int he house!

Like | Dislike | Share | Posted: Tue, 12/14/2010 - 20:27 | Post subject:

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

To the man who was desperately needing advice, of course there is a way out. If the lender is looking for a specific amount of money, and you and your Mom can come up with that amount, that will settle it.

Like | Dislike | Share | Posted: Tue, 12/28/2010 - 08:07

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

joint Fosun Group, three well-known enterprises in Zhejiang Taobao was established specifically for small providers Amount Loan Companies, June 30, Dunhuang network signed a strategic cooperation agreement with China Construction Bank,

Like | Dislike | Share | Posted: Thu, 09/18/2014 - 14:29 | Post subject:

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

Photos of the stars, is something that must have been collected by everyone at some point of time in their lives, who has lived in India. The degree of fanaticism might vary but the truth remains that Indian movies and actors are liked by everyone. Actress photo is therefore a common finding with any kind of Indian movie reviews as they are very essential for making a movie. And people do collect the actress photo that they like. Most of the internet portals that talk about the Indian movie reviews have the movie photo gallery splashed all over the site.

Like | Dislike | Share | Posted: Thu, 09/18/2014 - 17:27 | Post subject:

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

Welcome Ruthie,

After a foreclosure or a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url], you'll have to wait for 3-4 years in order to get a new mortgage.

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 20:47

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

Hi roz_levin!

Welcome to forums!

It is quite surprising to me that the lender went ahead and foreclosed the property when your friend was negotiating for a loan modification. She should contact the lender and discuss the issue with him. In my opinion, it would be better if she could hire an attorney and let him negotiate with her lender.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Sun, 09/06/2009 - 21:39

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

I have a 2-nd home in Nevada, dealing with this for a year, already. All programs works for first home, what about me working hard for 20 % downpayment and now loosing it. This is so unfair! My bank if IndyMac.
I've been lied to, loosing time with loan mod co's. Now, trying to do short sale. Have very little hope. I can't loose more anymore!!

Like | Dislike | Share | Posted: Fri, 01/29/2010 - 14:09 | Post subject:

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

ME AND MY WIFE HAVE TWO BUSSINESSES WITH ONE BING SUSSIFUL AND THE OTHER NOT. WE ARE UNABLE TO MAKE THE PAYMENTS. WE BEEN IN BUSSINESS TEN YEARS PLUS. BANK DOES NOT WANT TO WORK WITH US ON MODIFING THE PAYMENTS. HAVE NOT MISSED PAYMENTS IN THE LAST TEN YEARS EXCEPT JUST LAST TWO MOUTHS. WHAT SHOULD WE DO?

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 06:37 | Post subject:

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

should I decide to use this option, could I still qualify for the cash-for-keys and how long would I have to vacate the property?

Like | Dislike | Share | Posted: Mon, 10/25/2010 - 12:04 | Post subject:

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

HAVE YOU RESPONED TO MY PROBLEM YET?

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 07:08 | Post subject:

jenny321thomas's picture
jenny321thomas | Joined: October 5, 2010 09:39 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you want to delete the property, then you better go and act instead of closing. This not only helps to get rid of the property, but you can not answer your lack of balance even.If entitled to a loan modification, you reduce the interest rate and term of the loan increase.

Like | Dislike | Share | Posted: Wed, 10/06/2010 - 02:36

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

My mother owns a 2-flat rental property in which she occupies one apartment. A little more than a year ago my mother began a loan modification. She was at that time one month behind in her mortgage payments. While they were reviewing her case they gave her a temporary payment plan for six months of half her regular mortgage payment. After the 6 months she was to return to the full payment amount. She made her "partial" mortgage payments on time for the 6 months as scheduled. She continued to contact the bank as to the status of her modification. She was always told that they were still reviewing and had not made a decision yet. Once she neared the one year mark to when she originally started, they advised her she had to start all over again. This was just a few months ago. She once again completed the required paperwork and submitted everything requested. She once again has been calling to see if they required any further documentation and to check on the status and still no answer. Now she is a real jam because according to the bank she is behind 6 months mortgage payments and they are looking for a total of about 14k to "reinstate" her loan. She does not have this much money and now she is looking at a foreclosure. What could I do to help her out of this? She is not on the loan by herself, my brother is a co-signer but does not live there or contribute anything to the loan payments. Is there anything that can be done to protect him as well?

Looking for any advice anyone can provide....

Thank you in advance.

Desperately need advice.

Like | Dislike | Share | Posted: Fri, 12/03/2010 - 09:59 | Post subject:

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

Adonis - I'm not sure that helps me. My goal would be to sell it but I do not think it will sell for what is owed on it. I don't have $20,000 plus to pay for the difference of what it will likely sell for to what is owed.

Like | Dislike | Share | Posted: Tue, 02/22/2011 - 16:15

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

I owe 172,000 on my mortgage and I am thinking of doing a short sale. The property is worth 32,000. What are the positives and negatives of this? Can the lender come after me to come up with balance of the loan after short sale? What should I expect good and bad out of a short sale. My lender is Bank of America

Like | Dislike | Share | Posted: Sat, 09/11/2010 - 22:28 | Post subject:

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

Hi paga!

Welcome to forums!

It will depend upon the lender whether or not he would modify the loan. The lender would judge your financial situation and check if it would be possible for you to pay the loan. If your lender feels that you would be able to pay the loan, then he won't agree to your request for a loan modification.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 09/23/2009 - 22:12

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

Yeah...I'm with Sussane here...a [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] sure doesn't seem like a solution to much of anything for you Anonymous Luna. Have the modification mavens given you any clue as to why they'd suggest that? As Sussane pointed out, he'd still be obligated on debt anyway.

Al, as far as Michigan law is concerned, what it says and/or doesn't say won't have any impact on a property that's in Florida. The lender is bound by local statutes. Now, if this lender should decide to seek restitution of any unpaid amounts from the foreclosure action, they'd have to sue you again, in my opinion (remember this is just opinion, not fact). Once they make the decision to sue, they'd take you into a Michigan court, there seeking a judgment for whatever the deficiency is. Of course, that being the case, if you default on the judgment, they'd have the right to then seek to stake a claim on your Michigan property.

But that would seem to be a long ways off, don't you think?

As for how much delinquency will be considered - they'll consider just as much as actually exists; the whole enchilada.

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 12:32

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

Hello, i have a mobile home that i got through conseco first and was later sold to green tree, but, the individual that had the mobile home was behind like 6 months and to be honest, my credit score should not have let me gotten this mobile home. I was working a good job back when i got it and i am unemployed right now. Green tree servicing is crooked. As of right now um behind may payment and i have gotten a temporary job, i called the main lady over accounts i think whose name is Susan and i asked her about payment defferal and yup you can guess she stated i can't get one this month because they are only allowed to give 5 or 6 a month and she'll put me on the list for next month which i'll be 3rd in line. They told me that exact same crap in 07 and it went on and on, excuse after excuse. These people have me borrowed out from family and friends and i hate i had to do that. In my area jobs are getting scarcer. She said if i wasn't able to make the may payment on the 25th of this month then i'll be in a little trouble with legal fees and the foreclosure process. I am not dumb, but are they suppose to toss that at you like that. They've called my neighbor and i don't know how they got her number and they've also told my cousin my account problems because they went on to tell him he was me and this was no time to be playing games. Um stuck and i refuse to let these folks stress me out. The mobile home was built by redman homes and it sucks as far as quality goes and not worth the $11,000 i owe on it. Its a 1995 built mobile home, they stuck me with their crappy insurance and you can't get things fixed because they are crooked. To be honest I need to figure out something, they also said i could not get a loss mitigation loan mod either. Any help would be greatly appreciated

Like | Dislike | Share | Posted: Mon, 06/14/2010 - 12:13 | 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 modifies the mortgage for your mother, she won't be able to save the property. You and your mother will have to convince the lender so that he gives your mother a loan modification.

Thanks

Like | Dislike | Share | Posted: Fri, 12/03/2010 - 21:14

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

Hi waverly!

Welcome to forums!

A lender will address the loan modification on your second home in a similar way as your first home. You need to contact your lender and apply for it. The lender will judge your financial situation and let you know whether or not you would get a modification.

Sussane

Like | Dislike | Share | Posted: Wed, 08/25/2010 - 23:29

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

Welcome bb,

You need to contact your lender and negotiate with him so that you can get an affordable payment plan to pay off the loan. Though you've received a modification to clear off the dues, you can try and negotiate for a better payment plan and check out if the lender agrees to it.

Like | Dislike | Share | Posted: Tue, 12/01/2009 - 23:05

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

how does a loan modifycation program address secong homes?

Like | Dislike | Share | Posted: Wed, 08/25/2010 - 10:19 | Post subject:

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

If your house is foreclosed, is it true that you cannot buy another home for 3 years? So, if you do a Deed in Lieu of Foreclosure, what is the time period during which you cannot buy a home, since the "Foreclosure" was avoided.

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 15:10 | Post subject:

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

im buying a house, and need to take out a mortgage of $250,000. I'm not sure how long i should make the loan over and so decide to knoe the amount i would need to pay per fortnight, the total amount i will pay over the life of the loan, and the total amount of interest i will pay. i want to see this for all lengths from 1 to 30 years. The current lending rate is 7%.

1. If i take 25 years to pay off the mortgage at 7% per annum, what will the fortnightly payments be ?
2. Yo can afford $1100 a fortnight. What is the minimum length term i can afford now ?
4. What is the total interest paid at 7% over 30 years, with fortnightly payments ?
5. What is the total interest paid at 7% over 30 years, with monthly payments?

...thanks in advance...my sincerest thanx :)

Like | Dislike | Share | Posted: Tue, 09/14/2010 - 19:29 | Post subject:

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

I was contact in August 2010 by Chase to find out if I was interested in keeping my house, I had already filed Chapter 11 but a payment to the Trustee in Tenn. (I lve in Texas) got there a day late so they disallowed my bankruptcy. After several phone conversations and emails and 4507T hardship forms snet via email I cannot reach these same people by email or phone. I guess I should just my lawyer to go Chap 7 and let them absorb the loos. I tred to do the right. I can make the payments but they will not work with me. Do you have things I have not tied and should try becasue I would like to pay my mortgage? AS they have me in forclosure now I can't even pay them the normal house payment. They won't take it.

Like | Dislike | Share | Posted: Thu, 10/28/2010 - 10:16 | Post subject:

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

i filed chp 13 back in april, my attorney managed to get the second mortg removed and now only dealing with1st, however, this is he one that is high and a variable. what are my options. I have missed two payments already but i found out the attorn for the bank file a motion to release, so this means they want the home back, right> how long do I have if they get the motion approved. I live in ny

Like | Dislike | Share | Posted: Sat, 12/05/2009 - 22:06 | Post subject:

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

Hi marlon,

If you want to get rid of the property, then it will be better to go for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for the deficient balance even.

If you get qualified for a loan modification, your interest rates will be reduced and the loan term would be increased. If you don't want to keep the property, then going for a mortgage modification is not a good option.

Thanks,

Jerry

Like | Dislike | Share | Posted: Tue, 06/15/2010 - 02:26

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

Hi annon!

Welcome to forums!

You can definitely seek legal representation. If you want to get rid of the property, then you should apply for a deed in lieu of foreclosure. If the lender accepts your request, you will be able to sell off the property and you won't be liable for paying off the deficient balance resulting from the sale.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 11/15/2010 - 22:50

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

Hi anonymous,

The husband needs to sign a quit claim deed in favor of the wife. Once he does so, the wife would become the owner of the property. As the husband is missing, I would suggest the wife to contact a real estate attorney and take his opinion in this matter.

To ashlynn,

By using the FRM calculator, if your loan amount is $ 250000 and your interest rate is 7 % and loan term is 25 years, your monthly payment will be $1766.95.

If your interest rate is 7% and Installment = $2200 ($1100 +$1100), then the total interest paid will be $161267.48 in 15 Years and 7 Months. You can calculate yourself by using the given calculator: http://www.mortgagefit.com/calculators/pay.html .

Thanks

Like | Dislike | Share | Posted: Tue, 09/14/2010 - 23:44

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

I need a cover letter for my mortgage company to attach to my six month profit and loss statement. I'm in the situation I'm in right now because of a job loss and am now self employed.

Like | Dislike | Share | Posted: Tue, 12/15/2009 - 09:07 | Post subject:

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

I purchased a house in 2006. As a result of a job transfer, i moved to a different state in 2008. The value of the house declined substantially from the time that i obtained the mortgage therefore i could not sell the house. To offset the loss from the mortgage payment each month, due to changes in the market, i had rented the house for less than the mortgage payment. As a result of a major illness, i was unable to continue covering the difference and have missed some payments. I tried to work with the mortgage company to obtain a loan modification but my application was not approved.

Can i still qualify for deed in lieu? Should i seek legal representation?

Like | Dislike | Share | Posted: Fri, 11/12/2010 - 08:01 | Post subject:

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

Hi simon,

If you're facing a financial hardship and cannot pay off the mortgage for your rental home, you can apply for a modification. The lender will judge your financial situation. If he is convinced about your hardship, your request for modification will get accepted.

Take care.

Like | Dislike | Share | Posted: Fri, 07/30/2010 - 02:52

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

would not this work? : "Enclosed please find my current Profit & Loss Statement for the most recent 6-month period, ending..."

Like | Dislike | Share | Posted: Tue, 12/15/2009 - 10:08

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

my home i live in was justmodified with g.m.a.c under only my husbands name.this loan was not owned by freddie mac or fannie mae, can i modify my rental home under my name which is owned by freddie mac.

Like | Dislike | Share | Posted: Wed, 07/21/2010 - 15:48 | Post subject:

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

Hi Jack!

Welcome to forums!

You should contact your lender who has given you the business loan and inform him about your financial hardship. He will go through your situation and might offer you a payment plan so that it becomes affordable for you to pay off the dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 09/02/2010 - 00:19

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

Welcome Sanissa,

A short sale will help you in selling off the property. However, you'll be liable for paying the balance amount resulting from the sale of the property to the lender. Moreover, a sale will reduce your credit score by 80-100 points.

Like | Dislike | Share | Posted: Mon, 09/13/2010 - 00:25

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

How many months late should you be to have the lender FINALLY review your request for a loan modification? Or, how many months late are typical for the lender to file Notice of Default? We submitted a complete package to Wells Fargo in October and still are waiting for a modification person to be assigned. We call weekly , because we have submitted the same documentation many times after being told the week prior that no documents were needetd because they were in receipt of everything. They are now requesting our 2009 Tax Returns and we were told that until they receive the taxes that our file will NOT be reviewed further! Can they do that? The taxes are not due until April 15th!!!!!

Like | Dislike | Share | Posted: Tue, 02/23/2010 - 11:59

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

Hello my name is lionell grooms. how can i find the settlement paper work to my house. i really need it but i dont know where to start can you help me because it's cold in baltimore. can you point me in the correct please.

[Email address deleted as per forum rules. Thanks.]

Like | Dislike | Share | Posted: Tue, 10/30/2012 - 07:59 | Post subject:

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