Am I Doing The Right Thing To Avoid Foreclosure?
ByHere’s my situation…
I have a condo and an Interest Only loan. The intrest rate went way up and I can’t afford it. I’ve saved up and have made the payment this month but won’t be able to do that again. I’ve tried to get a refinance but with 0 equity and a credit score just under 620, it’s very difficult. My refinance guy told me the credit score may go up in a month but I have no guarantee of that. So, I’ve decided to sell the place. I simply want out of this whole situation. I’ll rent for a while. I spoke to a realtor and my place is up for sale right now. My fear is that the market isn’t very good right now and it might take a while to sell. in the meantime, I’ll have to pay higher mortage next month that i simply CANNOT afford. It’s not a matter of spending less, etc – the money simply isn’t there. I’m not behind in any payments so but i want to speak to my bank (I’ll call on Monday). Please tell me if you think I’m doing the right thing!!
9 Comments
November 13th, 2009 at 3:39 pm
I would have a talk with the bank, because they don’t want to foreclose on you. That means that they have to sell your condo and try to recoup their loss. You’re going on the right track. However this is a buyers market, meaning that your going to have to give an incentive to buy your condo and it may not be in your best interest. Tell the mortgage company that you do not have the money to pay the next month’s payment and tell them that you are trying to sell the condo so that they won’t evict you. I’m sure they will try to help you as much as possible. I would really try to get the advice of an Attorney, they may be able to give you the best information on how to expedite the process.
November 13th, 2009 at 8:55 pm
Talk to the bank, they don’t want your condo. They should try to work with you until you get your condo sold.
November 14th, 2009 at 12:50 am
I agree with Haroon a up above. I also feel you made a bad deal from the beginning.. I’m sorry for your troubles. Hope it works out. LOL
November 14th, 2009 at 4:18 am
you are headed in the right direction—here is a website that details the foreclosure laws and timelines for themhttp://www.foreclosures.com/pages/state_…
just click on your state and read….
good luck
November 14th, 2009 at 10:36 am
I think you are doing the right thing. Try to avoid foreclosure at all costs. Good Luck!
November 14th, 2009 at 2:48 pm
Hi,
I help people like you on a daily basis. The number one thing you should do is contact your lender and tell them that the terms of your loan have just adjusted and you no longer can afford the new payments and you have depleted all of your savings and have no personal assets to sell. See if they can redraft the note or refi you to get to a lower affordable payment.
If they say no or if what they offer you doesn’t fit within your budget, you should look into doing a short sale. It will hurt your credit, but it’s better than a foreclosure or a bankruptcy (This is my opinion and you should check with a bankruptcy lawyer and your accountant for proper advice regarding your particular situation).
Even if they accept partial payments, the loan will need to be paid off before you can sell. With the shor sale, the lender will accept less than what is owed in order for you to sell the place and for them to avoid the costs of foreclosing on you.
Regards
EDIT:
You cannot get evicted if you do not pay your mortgage company. You only get evicted once you have been foreclosed on and the property gets transferred out of your control. And trust me, whatever the reason was why you couldn’t pay your loan/mortgage, they (the foreclosing lender or new owner) won’t care and will still evict you.
November 14th, 2009 at 3:18 pm
The bank can give you an extension. Speak with your loan officer. He will be happy to work with you.
November 14th, 2009 at 6:03 pm
Talk to a realtor who is a short sale specialist before getting into forclosure. They can speak to the lender on your behalf, explaining your hardship ( the bank would rather take $50000 off the price of your loan in a short sale than deal with the foreclosure). Also if you can find some one to piggyback your credit, you can get there credit score in about 30 days.
November 15th, 2009 at 12:22 am
Yes, you have to talk to the bank. They will help you manage the situation because they do not want to inventory property.
You may also want to go to the HUD site. Here is a data base of home counselors that are part of the process before a home forecloses. They are there to help.http://www.hud.gov/foreclosure/index.cfm
You may also want to go to http://yourpropertypath.com/artman2/publ…
and call Fannie Mae at 916.408.0494 for some info on foreclosure