Facing Foreclosure ...Any suggestions ?
Question:
I have two questions for you :
1. If I stop paying my mortgage ,how soon I will have to leave my house ?
2. My mortgage payment went up by 30% and I can not afford it anymore.All attempts to refinance came back declined because of my high debt-to-income ratio and no equity in the home .The job situation is terrible right now and my question is : what can be done to solve the problem ?
Any input appreciated ...
Answer:
You may want to think about filing for bankruptcy under Chapter 13. Unlike Chapter 7, which is a liquidation of assets, Chapter 13 is a reorganization (like Chapter 11) but geared toward individuals instead of companies. What results is a negotiated plan of reorganization in which you continue to pay your debts but on a more favorable payment schedule. In many cases you will be able to stall the foreclosure and keep your home as long as you make payments under your bankruptcy plan of reorganization.
Well, am sorry for your situation, that was a hard lesson to learn. Fixed rate is the only way to go now, before or in the future but I have a feeling you know that now. When you stop, bank the money because about the 90 to 120 day mark your going to be served notice to move out.
I've heard that you can call the bank and tell them that you are going to go into foreclosure and that if they would like to prevent that then they should try to work something out with you...allow you to refinance or something else.
good luck dude
1. 6 months 2. Sub prime lenders have done that to a lot of people low interest rates to sucker you in. You could fill bankruptcy and it will buy you some time and whoever is appointed to your case maybe able to work out a lower payment with your mortgage company so you can keep your house. The Gov. is looking into the lending practices of company's like this right now they may change the mortgage company's ways of doing business real soon, or so they say.
Sorry to hear about your situation.
1. This varies by mortgage lender and how quickly they act to foreclose on your property and by county and how quickly they are to act on the sheriff sales in the county. With the foreclosure rates being so high right now, this could give you some extra time. I have heard of people being out of there homes within as little as a few months. I have also heard of others who lived in their homes for 1, and sometimes even 2 years after they stopped making their mortgage payments. The answer to this really just depends.
2. You can try contacting the lender to see if they will permit some type of forbearance, loan modification, or anything to help out with your payment. Believe it or not, lenders do not want to foreclose, even though it seems like they don't want to help either. You can also contact a bankruptcy attorney as they may be able to help you more to work with your lender to prevent you from losing your home. Filing bankruptcy if nothing else will at least delay the foreclosure for 30-60 extra days.
Check out he page below for information on stopping foreclosure. Good luck and I hope you find a solution.
Here's a pretty good list of options that you might have. Foreclosure is pretty unique in every instance, so do some research on what might be done here. 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
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