Question:
In Jan 2006 i came down with a on going illness that forced me to apply for Social Security Disability which I finally was aproved for this month.From Jan to April 2006 I was able to keep up with my mortgage but in June my home went into foreclosure. I have called at least 30 banks and private lenders and the minute I mention foreclosure that is it. No one is willing to give me a chance. my home is valued at 185000.00 and I owe 125000.00. You would think that I could get some kind of help with borrowing 125000.00 on a home worth 185000.00 but when the word foreclosure is mentioned thats it, sorry I can't help you over nd over . anyone know of any one that can help me out. I can't afford hard money lenders as the intrest they charge put me way over my budget (10-15% intrest) I have worked hard all my life and it just kills me the thought of loosing my home all because of a little hard luck this year.
Answer:
Sell your home quickly and walk away with the $60,000 equity in it. $60,000 is better than nothing, which is what you will get if you wait any longer.
Have you tried to get a HELOC? You could take out money from that and pay off your arrears to get yourself out of foreclosure.
Depending on what state you live in, you may be able to find someone who will do a lease back to you. In essence you sell your home to the investor for a pre-determined price. They allow you to rent the property from them for a lower payments than you have now. After you have been in the rental contract for 1 to 2 years and your credit has improved; they will sell you the property back at a pre-determined price. It is formally called a land contract or contract for deed. It is usually not cheap (you may lose some equity) but at least you keep your house. Better to be cash rich and equity poor than to be equity rich and cash poor.
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