House foreclosure?
Question:
Answer:
BEWARE.
When your foreclosure gets advertised, you'll typically receive 5-10 pieces of mail daily from all sorts of people offering to help.
There's a few variations I'll try to map out:
1. Legitimate realtor who simply wants to list your home for sale on the open market. If you have any equity but can't get caught up on payments, this is your best option to get whatever cash you can out of the home.
2. Investors who will offer you a quick cash closing for your home at far less than what it's worth. Not a good option unless your redemption period is almost over, well after sheriff's sale.
3. Scammers who will say that they want to lend you money to get caught up. In the flurry of paperwork, you actually sell them your home (for as little money as possible), and end up renting it back. Miss one payment on your rent by 5 days, and they evict you and sell the house on the open market and cash in on the equity you just signed over to them.
4. You pay them $1000 or more to negotiate on your behalf with your mortgage company. There is NOTHING they can negotiate for that you can't do yourself. I repeat: NOTHING. You have every right to speak with your bank's loss mitigation department directly and see if they can help get you out of this by tacking on your past-due payments to the end of your loan, or whatever else they might offer. If they can reasonably believe you can stay current if they bring you current, you might have a shot.
Your mortgage company will likely refuse any payment that is not payment in full for every penny owed to date, unless you get their loss mitigation department to agree. So don't mail any checks until you clear it with them first.
You can contact ACORN at http://www.acorn.org, they can help advise you of your rights in foreclosure. Your state housing finance agency might have some resources as well, just search online for them.
Read this site too: http://www.larcc.org/pamphlets/housing/a...
There's some good people and lots of bad people who come swarming around you in a foreclosure. Be very careful who you speak with and what you sign.
Good luck, and tread carefully.
Don't sign anything without having a lawyer look it over! These may be legit businesses, but their goal is the same as any business...to make money. They might promise it will all go away, but you're still going to pay for it. Listen to what they have to say, but avoid signing anything until someone can go over the details to make sure you're not getting screwed.
Work with the company. They really don't want your house. If you make an honest attempt, they will work with you.
Just talk directly to your lender or bank.
You think they're going out of their way to help someone they don't know for nothing in return? They want to make a buck off you. First talk to your bank (or whoever your mortgage is with) and look into refinancing to lower the monthly cost until you're well enough to go back to work. One option is to consider an interest only mortgage for what you owe (this is the one they advertise on TV all the time, they just don't tell you its interest only so your payments don't go to the principle).
You my also look into refinancing. Pay off the old debt and put some money in your pocket. Stay away from adjustable interest mortgages.
Pay the mortgage company.
Call them and work something out with them for getting caught up.
They can't "make it go away". About all they really do is refinance your house and usually at a higher interest rate then you are currently paying. The make it go away by paying your lender but then you wind up owing the foreclosure specialist and half the time, you owe them more then you did your original lender.
Call your mortgage company up. Find out what you need to do to get back on track. Mortgage companies would usually rather work with you then foreclose if they can. Foreclosing is a pain in the butt for them as they then have to sell the house, etc. You won't know what you can work out with them until you call. Be up front. Explain your situation. Work something out to get the payments back on track.
I've never had to work with one of them, but logic and a lot of knowledge with working with mortgage companies, tells me that if you had a solid tack record with your mortgage holder in the past you should call them.. the customer svc number on the foreclosure notice.
Let them know your circumstances.. offer documentation if necessary, tell them you have been contacted by these other companies and are unsure whether you should contact them or try to work with you (the mtg co.) if they want to keep you as a client, they will work with you.
There are companies that prey on the fact that a woman's name is on the mortgage.. unfortunately.. I've worked in a related field for a number of years.. so turn the tables..
Sometimes it works to flutter our eyelashes and act helpless. lol
I have been a lender for over 10 years now and trust me when I tell you that the LAST thing we want right now is to take another house into foreclosure! Call them, you are not a deadbeat, you simply ran into hard times. Get them leave of ab. paperwork, maybe something from the Dr. to show them you are not trying to snow them and then ask them for help. The market in horrible right now in terms of forclosures and I am confindent they will work with you.
Good luck!
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