How should I settle a debt following a Foreclosure?


Question:
The insurance company for my former Mortgage company claims I owe over $8,000 from the loss occurred by the foreclosure but are willing to accept a lump sum of $5,000. They will only accept payments on the original amount. How can I have the amount lowered and still allowed to make payments?

Answer:
I think your best bet is to contact the Insurance Company and ask them how you can lower the amount and still make payments.

If they are willing to settle with $5,000.00 you may still have a chance.

I also think you should contact an attorney to find out if any legal procedures need to be followed since it was a loss due to foreclosure.

You should also document everything you are doing at this point just in case you may need to recall it at a later date.

Hope all goes well with you.

God Bless.
Pay the $5000 with a credit card and make payments to the credit card.

or

Borrow money from a family member and make payments to them.
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