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Parents facing foreclosure

Posted on: 07th Feb, 2012 12:00 am
My parents are facing foreclosure as they are 3 months late on their mortgage payments. However, the mortgage is under the name of my grandmother. My mother has power of attorney and has applied for loan modification. However, the payments are still too high for them. They can’t afford it. My grandmother does not even live in the house. My father is currently unemployed and my mother's income significantly decreased because of cut in working hours. Since the loan is not under their name, what power do they have? How long before they're kicked out?
If the owners do decide to work on their credit and improve the record, it is most likely in an effort to qualify for a new mortgage within the first few years of facing foreclosure. Whether they lost the house completely or are dealing with a higher payment due to a forbearance agreement or modification, qualifying for a mortgage with better terms can prove to homeowners that they have repaired the situation and are creditworthy again. Some of the more important aspects of this process to focus on include paying all of the other debts on time, not opening more credit lines, and disputing any inaccurate, negative information.



:idea:
Posted on: 07th Feb, 2012 01:22 am
Hi Karoke,

If the lender does not receive his payments on time, then he has all the rights to foreclose the property whether or not your grandmother lives in that property. After the foreclosure sale is over, your parents will receive an eviction notice from the lender which will mention the time period within which you will have to leave the property.
Posted on: 07th Feb, 2012 08:57 pm
Sabrina, where do you get your thoughts? They're utterly useless to this poster, I'm afraid.

Karoke - it seems like there's not much that will happen of a favorable nature. If your parents cannot afford to make payments now or even after a modification, then it's looking not so good as far as keeping the home.
Does Grandmother have any resources that might help to alleviate this problem?
Obviously, there's not much time available to rectify this whole situation. You need to act as quickly as you are able.
Bankruptcy is an option - it will stall - at least - the lender's foreclosure action; and provide, perhaps, a way in which to find the funds to reinstate the mortgage eventually.
Posted on: 08th Feb, 2012 12:24 pm
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