Foreclosure help?! please?


Question:
my husband lost his job a while back... after we bought a home in illinois for 86,000... we are 3 months behind (our payment was 741.00/mo)now were getting things from the attny. stating 7000.00?! we cant come up with that... we've tried calling Homecomings (our lender) and they just keep telling us we have to deal with the attny. is there anything other than coming up with the money that will help us keep our house... also with the market drop there is no way we can get what we need out of a sale... and we really want to stay due to the kids. they attny keeps saying that we have to pay that by July 12 to stop the forclosure and we go to court in November... how long do we have? what are our options? i really dont want to move... a divorce is looming anyway but our kids finally have a home with a yard and friends... also couldnt afford to rent... it would be just as expensive as our house payment we couldnt get in...

Answer:
I would suggest Chapter 13. This will allow you'll to pace yourself and reorganize the situation if you can not come up with the fees.
If your lender has initiated foreclosure and you cannot sell the home for what is owed you are about out of options. The home will be yours until the date of the foreclosure sale. At that point it becomes the property of the successful bidder (usually a lien holder) and they would have to evict you to get you out. Since by the time they can do that it will be close to Christmas they may wait until after the first of the year to avoid any nasty publicity.

I am so sorry for your situation.
the only option that i can think of is a forebearance agreement. this is where they let you pay it back on a plan to get you caught up. believe me, they would rather you pay than be foreclosed... it costs alot. it is odd that agter 90 days, they are unwilling to bend on this. be a pain and see if you can get anywhere with it.

good luck, and i wish the best for you.
It sounds like you may have had an adjustable mortgage with a low rate in the beginning that just began floating its interest rate if your payment was only $741/mo and now 3 months later, you all of a sudden owe $7,000. Also, three months is very fast for a bank to initiate foreclosure.

Since the bank has already started the foreclosure process, I don't know how much wiggle room you have to negotiate. Will the attorney allow you to only pay the amount in arrears (forebearance agreement) while you see if you can re-finance to a fixed mortgage with another lender? Ask them.

Another alternative I normally would never recommend - there are alot of small businesses out there that will buy your home and rent it back to you, but BE CAREFUL! There are alot of shady organizations just looking to profit from your situation.

I hope your situation gets better.
You are 100% correct. The 7k came from all the fees tacked on since you fell behind. You have waited too late to get any help from the lender. Once the lawyer has it you need to pay all back payments and fees in full to keep your home. Did you not get the letters from the bank? You should have called and worked this out then. i am sorry to be the bearer of bad news, but this is reality. The bank wants their money, and if you don't have it your out. That's exactly what a mortgage is. Is paper work to protect the bank. I would beg borrow and plea with family and friends to help out. Its sounds as if you get out of this mess you may be back in it shortly. I would consider trying a short sale.
Good luck
Can you borrow against any 401K money? I know when my husband and I got 3 months behind the mortgage company sent us a letter stating that they will start forclosure proceedings if money wasn't received by a certain date. I then called Fidelity (my 401k investment place) and they required that I send them the letter (I faxed it) and they allowed me to borrow against my 401K for the exact amount. We paid off the balance and stopped the proceedings. I am assuming your husband doesn't have his 401K still but how about you? It's worth a shot. good luck to you hon. If it comes down to it and you do need to move though, make it fun for the kids. Let them help you find a place, let them help you pack and decorate their boxes and then when you find a place, let them decorate their own rooms. This will help with the transition.
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