I think my wife and I are losing our house due to foreclosure any suggestions?
Question:
Answer:
how much is not much equity? Dont you think it would be better for your credit history to sell rather than get forclosed on? Have you considered bankrupcy?
If you do not think you can catch up on your payments then your best course of action is to sell your house. Since you have little equity, you will need to sell your house short. Put your house on the market with a real estate agent that knows how to do short sales. They will negotiate with the lender (and their loss mitigation department) on accepting less than the full amount owed. Once you get an offer from a buyer and the lender accepts it, you can walk away from the house with clean hands, and you will not owe any money to the lender.
After one year of renting, you can show 12 months of on time rent payments. You can then qualify for a new mortgage, and be a home owner again.
How can you THINK ? You should know!!!
Call the mortgage co , they will work with you. After all they are not in the real estate selling business.
Talk to the bank and see if anything can be worked out. It's more of a pain for them to take the house back because then they have the burden of what to do with it. They don't want that. They would much rather have you making payments even if it means making other arrangements. It never hurts to inquire.
Please speak to the bank. I see this all the time, some people wait to long...
Have they given a Notice of Sale? You think? Have you contacted them? Can you afford to pay the payment now? These are all questions you need to ask yourself first. Lenders are always usually willing to help unfortunately people don't ask.
If there is a Notice to Sale and you can not pay the mortgage even if you got caught up. I would say sale. Even if it is a short sale.
At least it will showed paid and not foreclosed.
http://www.myfinancialcorner.com...
The first thing that you should do, which is the first thing most people dont do is talk to your lender. NOT a mortgage broker but your actual lender.
Ask them depending on your situation to work it out with you so you dont lose your home. They have different work out programs like adding your missed payments & fees to your total loan amount or restructuring your loan terms from a variable to a fixed loan. There are many ways but you have to call and ask.
You have to know that even though you are in trouble and cannot afford to make the payments, you still have some leverage because the lender does not want you to lose the home. Lender's DO NOT want to own real estate, they lend money, they dont manage properties, with that said work with your current lender.
If you cannot work with your lender, a sale may be your solution. As someone already mentioned, doing a short sale may be your answer BUT you have to understand that you are not walking away with your hands clean as said on a previous comment. You may still be responsible to pay regular income taxes on the lose the lender took by doing the short sale (talk to your cpa for details)
The other exit would be a foreclosure or a deed in lieu of foreclosure. Either way you go, you still have responsibilities to fulfill. Some may be lesser than others like, as I mentioned before, you may get 1099 for the amount of money lost by the lender or you may get an unsecured note for the amount lost on the sale, etc.
Suggestions: Contact a REALTOR that knows what he/she is doing and try to figure out which is the best way for you to resolve this situation.
Good luck
Brian 104 is somewhat right, but he is missing some of the picture. If the bank lets you do a short sale, they can, and most likely will attach the difference to you as personal loan debt. Get all the facts from the lender before you decide.
Here's a list of methods that can be used to stop foreclosure. There are really no magical ways to end the foreclosure process -- but there are enough tools that homeowners have available, that they can choose from a number of options to help them out of their hardship situations.
1. Save up and get current on the mortgage by paying back the payments you've missed, plus the interest, late fees, attorney fees, etc. Understand that there are often thousands of dollars of extra charges that are added once you start missing payments and especially if the lender hires a law firm to pursue the foreclosure.
2. Work with the lender to put together a repayment plan, which would require you to put down part of the amount you are behind now and pay back the rest over a period of months, along with you current monthly payment. Usually, repayment plans can be worked out through your lender's loss mitigation department, and will result in you paying almost twice as much per month as your regular mortgage payment. This is to help you get caught up on the payments you missed while you are paying your original monthly obligation.
3. Work with the lender to modify the terms of the loan to say that the missed payments are spread out over the life of the loan or put on the back end of the loan. This is called a mortgage modification or loan modification. Some lenders will not do this because they do not hold the paper to be able to modify it. This is especially true for mortgage servicing companies, who only service their loans and collect payments, but who do not own the loans.
4. Refinance -- find a hard money lender or traditional lender that will consider foreclosure refinance loans. Qualifications include lots of equity and lots of income, since your interest rate will probably be over 10%. Foreclosure refinance loans can be difficult to qualify for and may result in higher monthly payments, but they are a good way for homeowners to get a fresh start with a new note and new lender.
5. If you have an FHA loan, you can get a one-time loan from the FHA that will bring you current and is placed as a lien on the property that you would have to pay back if you sell or refinance the home. This is called a partial claim. You would have to contact the FHA directly for this one time payout to get you caught back up on your mortgage.
6. Sell to a private investor or friend/family member and lease/rent the property back from them. That clears off the foreclosure loan on the property and uses someone else's good credit to get a new loan and allows you to stay in the property. Investors can also work out short sales on properties, allow they usually do this in the hope of flipping the property by reselling it quickly at a profit.
7. Bankruptcy will stop the foreclosure process, but is usually an expensive alternative to setting up a repayment plan, mentioned above. Attorney fees, trustee fees, court costs, and high monthly payments cause a lot of people to fail their bankruptcies. Only consider bankruptcy if you desperately want to prevent foreclosure and if you have a significant amount of income you can dedicate towards the bankruptcy payments.
8. Short sales are a good option if you owe more on the property than it is currently worth. A short sale means the bank accepts less than what they are actually owed, and would allow you to get out of the loan, at least. The bank would not be able to come after you for the rest of the loan amount, since, by accepting a lower amount, they forgive the rest of the debt owed on the mortgage.
9. Sell outright if the property is worth enough and you have a willing and able buyer. List the house yourself of through a local real estate broker. In some cases, it is the right decision just to unload the house to stop foreclosure and focus on repairing your credit until you can purchase a new, more affordable home in a few years.
10. If 1-9 do not work, you can offer the bank a deed in lieu of foreclosure, which means you're voluntarily giving the property back to the bank and they are agreeing that the property is payment in full of the loan. This is not much better than a foreclosure, and you have to leave the property anyway, but it will prevent the sheriff sale and eviction process. The bank will not be able to ask for any extra money or sue you for a deficiency judgment, because they accept the property itself as satisfaction of the loan.
11. If 1-10 do not work, you can just move out and walk away and forget about the property. This is definitely not recommended if you care about your credit and plan to borrow money for several years, but foreclosure should teach you not to rely on banks to help you out when you face a hardship. All they really do is promise great deals when you think of going with them, and then throw you to the foreclosure dogs if you miss a payment. Many homeowners simply walk away because the foreclosure situation is so intimidating, but, as listed above, there are numerous options that are better than just giving up on the property.
Those are the most common options that can be used to stop foreclosure. There are a few others (suing your bank, etc.), but they involve much more cost and legal involvement and may not end up stopping the foreclosure process in the end.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
More Related Questions & Answers...