I have a relative that can no longer pay for a high mortgage payment, what options are available to avoid foreclosure? The house has been on the market for nine months but no buyers.
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lenderjayne said:
On March 29th, 2008 at 7:45 am
Don’t stop making the payments yet. Have a lender review the loan and the equity and see if there is something they can do in the mean time to lower the payments.
Second, see if they could rent out the house to cover the payments for now.
Third, offer more commission to the selling agent. Like 5% to the selling agent. This will motivate the agents to show this house.
Last step, contact the lender and see what they can do. Remember though, if the bank loses money you could be tax for the difference as income. This should be your last resort.
I hope this helps you. Feel free to email me with more questions.
CA Lender
wanting baby3 said:
On March 30th, 2008 at 7:04 am
If your relative wants to keep the home, but is just in over there head in bills, file bankruptcy to get rid of all the other debt but they can still file a “stay” to be able to keep the home.
rachael said:
On April 2nd, 2008 at 3:22 am
we tried refinancing, it was a no go. our credit sucks.
so what we went for is a bankruptcy. i hate to do this, but i am left with no other option at this time.
we are filing chapter 13, this means we have to repay our debt, no walking away scott free. which is ok, because we can keep our house and our cars. we will be in the program for at least 3 years and we will be on a STRICT budget.
we pay a trustee of the court and it will automatically come out of our checks. i didnt want an escape path, i just wanted a chance to make my debts tolerable.
we live in michigan and it will cost us about $850. it will take us a few weeks of scrimping to get it, but if i can keep a roof over my kids heads i will do anything.
we contacted a lawyer that specialized in it, look in your phone book.
i really hope this helps, or at least someone here can help. i understand the feelings of failure and frustration, it can kill a family. good luck to your relative.
Joe Bleu said:
On April 3rd, 2008 at 8:30 pm
Geez with all the super low payment mortgages why not just refi and get a lower payment plan.
es said:
On April 5th, 2008 at 11:22 pm
Is the person already in default? ( missed payments?) The first thing to do is for the owner to call the lender, and also put it in writing, and try to negotiate terms. Sometimes, if only a payment or two was missed, the lender will execute documents to put the missed payments on the back end. If it is due to a temporary situation, such as a health issue, the lender may work with you. Your relative should see a lawyer if he/she let many months go by with no payments and hasn’t talked to the lender. Now, with the sub-prime debacle, many people have gotten in way over there heads when the mortgage rate resets. Some lenders will do a work-out rather than become the owner of the real estate. Your relative needs to confront this head-on, as painful as it is, and see if he or she can negotiate his way out. If his or her credit is not yet impaired, perhaps refinancing will work, but usually, by the time someone asks for help, it is late in the game!
Norma is Nice :) said:
On April 8th, 2008 at 12:22 am
First and foremost. There are many options if you have money.. Contact the lender. Tell them that you had a financial struggle do to unforeseen medical or job contract cut.. something like that. DO NOT MOVE OUT OR RENT yet.
First they will try to add it on to a payment plan which is usually higher than what ou are currently paying.
Ask them for the forebearance agreement, which is where it will state how much you are now going to pay.- this is only if you can pay that.. if you know you can’t tell them. you have to be persistent in telling them you can’t. chances are if they were willing to enter in forebearance (a payment plan) they are willing to modify your loan. try to get the balance of what you owe put on the end of your loan. Try as much as posible to avoid CH13 andbk’s…. right now lenders are desperate to let homeowners keep their home. I can go into an entire tanget about it… but you need antyhing else.. let me know.
On March 29th, 2008 at 7:45 am
Don’t stop making the payments yet. Have a lender review the loan and the equity and see if there is something they can do in the mean time to lower the payments.
Second, see if they could rent out the house to cover the payments for now.
Third, offer more commission to the selling agent. Like 5% to the selling agent. This will motivate the agents to show this house.
Last step, contact the lender and see what they can do. Remember though, if the bank loses money you could be tax for the difference as income. This should be your last resort.
I hope this helps you. Feel free to email me with more questions.
CA Lender
On March 30th, 2008 at 7:04 am
If your relative wants to keep the home, but is just in over there head in bills, file bankruptcy to get rid of all the other debt but they can still file a “stay” to be able to keep the home.
On April 2nd, 2008 at 3:22 am
we tried refinancing, it was a no go. our credit sucks.
so what we went for is a bankruptcy. i hate to do this, but i am left with no other option at this time.
we are filing chapter 13, this means we have to repay our debt, no walking away scott free. which is ok, because we can keep our house and our cars. we will be in the program for at least 3 years and we will be on a STRICT budget.
we pay a trustee of the court and it will automatically come out of our checks. i didnt want an escape path, i just wanted a chance to make my debts tolerable.
we live in michigan and it will cost us about $850. it will take us a few weeks of scrimping to get it, but if i can keep a roof over my kids heads i will do anything.
we contacted a lawyer that specialized in it, look in your phone book.
i really hope this helps, or at least someone here can help. i understand the feelings of failure and frustration, it can kill a family. good luck to your relative.
On April 3rd, 2008 at 8:30 pm
Geez with all the super low payment mortgages why not just refi and get a lower payment plan.
On April 5th, 2008 at 11:22 pm
Is the person already in default? ( missed payments?) The first thing to do is for the owner to call the lender, and also put it in writing, and try to negotiate terms. Sometimes, if only a payment or two was missed, the lender will execute documents to put the missed payments on the back end. If it is due to a temporary situation, such as a health issue, the lender may work with you. Your relative should see a lawyer if he/she let many months go by with no payments and hasn’t talked to the lender. Now, with the sub-prime debacle, many people have gotten in way over there heads when the mortgage rate resets. Some lenders will do a work-out rather than become the owner of the real estate. Your relative needs to confront this head-on, as painful as it is, and see if he or she can negotiate his way out. If his or her credit is not yet impaired, perhaps refinancing will work, but usually, by the time someone asks for help, it is late in the game!
On April 8th, 2008 at 12:22 am
First and foremost. There are many options if you have money.. Contact the lender. Tell them that you had a financial struggle do to unforeseen medical or job contract cut.. something like that. DO NOT MOVE OUT OR RENT yet.
First they will try to add it on to a payment plan which is usually higher than what ou are currently paying.
Ask them for the forebearance agreement, which is where it will state how much you are now going to pay.- this is only if you can pay that.. if you know you can’t tell them. you have to be persistent in telling them you can’t. chances are if they were willing to enter in forebearance (a payment plan) they are willing to modify your loan. try to get the balance of what you owe put on the end of your loan. Try as much as posible to avoid CH13 andbk’s…. right now lenders are desperate to let homeowners keep their home. I can go into an entire tanget about it… but you need antyhing else.. let me know.