I am in Ch 13 and find that I also have to let my house go. However, I am worried about foreclosure. What problems have you had, anything you would have done differently? I have legal council, but I want to make sure I ask the right questions. What do I do about home owners insurance, how do I get answers from my mortgage company, etc.?
2006-10-02 05:07:05 · 7 answers · asked by starfire_lol 1 in Business & Finance ➔ Personal Finance
I have only had the house 3 years, bought it with an 80/20 loan. Not enough equity. Could not refinance (credit score was too low). Interest rate went up again, so now the payments wil be about 55% of my take home pay. Even with making a payment for any back payments, I can't keep up with the new payments in the long-term.
2006-10-02 05:45:48 · update #1
The best and only option is to pay a major chunk i.e. around 90% of the balance of the principal amount with a small fee instead of foreclosing instantly as foreclosing attracts a penalty. You can later foreclose after a period of 6 months and anyway the balance itself would be enough for the loan account to close on its own. Still check these details with some financial institution. Go ahead buddy, all the best for peace of mind.
2006-10-07 01:46:14 · answer #1 · answered by ¨°º¤•§îRîu§ ¤[†]¤ ߣã¢K•¤º°¨ 3 · 0⤊ 0⤋
Do you have a relative or friend that you trust that has a good credit score that is willing to help you. The loan can be under their name, but will put your name back on title. So both of your names are on title. Try to get an option arm loan which means that you have 4 choices a month to make your payment. Option 1 - Interest Only, Option 2- Minimum Payment, Option 3 - 15 year payment, Option 4 - 30 year payment. You can pick whatever payment you want every month. You need to have a good credit score for this. At least 680 FICO or some banks 620 FICO. The rate of minimum payment starts at 1% - 3%. This gives you at least 3 years to get everything in place and fix your credit then you can refinance under your name. Since you don't have equity, you have to settle with rate and term. No cash out. Just lowering your monthly payment. God Bless you.
2006-10-09 20:05:52 · answer #2 · answered by Mama 2 · 0⤊ 0⤋
I had to go for foreclosure on my home. It sounds like I was in a similar situation. Call your insurance company and let them know that you will no longer be owning the house.
The house went to the foreclosure sale and apparently, it sold for what was owed because I haven't heard from the mortgage company and my credit report shows a zero balance.
I am currently living in a 3 bedroom townhome with a 2-car garage. Even though your credit may fall to the bottom, you may be able to have good enough credit to move into an apartment.
Granted, the bankruptcy and the foreclosure for me were disappointing to me. But, as I found out, I wasn't the only one to make financial mistakes.
Right now, I am supplementing my income with an online based business that is working for me. Personally, I would prepare myself to let the house go and look for a good enough apartment/townhome that would be suitable. There is no maintenance, no yard work, etc. Now, you have time to do extra things that you wouldn't have had before.
It might be best in the long run, because it will be a long run before you will be able to own a home again. My plan is to stay until the lease is completed on our townhome and then look for a home to rent or possibly lease with an option to purchase from an owner who will do owner financing. Another option is to increase the revenue from my online business and purchase outright a foreclosed home in three-four years.
If I can be of further assistance, let me know.
pktull@yahoo.com
http://www.geocities.com/pktull
2006-10-02 13:59:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I can help you with a hard money loan...The interest payment will be higher, but it will take some of the pressure off for now. Once you get your feet back on the ground...things will get easier. If you would like me to look at your situation I will...and I will get back to you ASAP. My email address is mitchG@mortgagemaven.net
Good luck
2006-10-09 19:03:21 · answer #4 · answered by Mitch G 2 · 0⤊ 0⤋
Yes, you can approach the financing institution and request for a one-time-settlement if you could convince them about your financial crunch.
2006-10-02 12:12:12 · answer #5 · answered by Hobby 5 · 0⤊ 0⤋
You have equity, I need more information, you can try selling to take money out.
2006-10-02 12:09:15 · answer #6 · answered by Anonymous · 1⤊ 0⤋
visit jazjanta.homestead.com
2006-10-07 09:19:17 · answer #7 · answered by jazjanta 1 · 0⤊ 0⤋