2007-02-19 04:42:47 · 8 answers · asked by Nikki J 1 in Business & Finance ➔ Credit
Pay your bills and sometimes that is easier said then done due to hard time for some reason. If that is the case then I feel sorry for you and if you are one who just don't pay your bills, well guess you'll see what happens.
2007-02-19 04:52:41 · answer #1 · answered by Really ? 7 · 0⤊ 0⤋
A few options:
1. Save up and get current on the mortgage by paying back the payments you've missed, plus the interest, late fees, attorney fees, etc.
2. Work with the lender to put together a repayment plan, which would require you to put down part of the amount you are behind now and pay back the rest over a period of months, along with you current monthly payment.
3. Work with the lender to modify the terms of the loan to say that the missed payments are spread out over the life of the loan or put on the back end of the loan.
4. Refinance -- find a hard money lender or traditional lender that will consider foreclosure refinance loans. Qualifications include lots of equity and lots of income, since your interest rate will probably be over 10%.
5. If you have an FHA loan, you can get a one-time loan from the FHA that will bring you current and is placed as a lien on the property that you would have to pay back if you sell or refinance the home.
6. Sell to a private investor or friend/family member and lease/rent the property back from them. That clears off the foreclosure loan on the property and uses someone else's good credit to get a new loan and allows you to stay in the property.
7. Bankruptcy will stop the foreclosure process, but is usually a pretty expensive alternative to setting up a repayment plan, mentioned above. Attorney fees, trustee fees, court costs, and high monthly payments cause a lot of people to fail their bankruptcies.
8. Short sales are a good option if you owe more on the property than it is currently worth. A short sale means the bank accepts less than what they are actually owed, and would allow you to get out of the loan, at least.
9. Sell outright if the property is worth enough and you have a willing and able buyer. List the house yourself of through a local real estate broker.
10. If 1-9 do not work, you can offer the bank a deed in lieu of foreclosure, which means you're voluntarily giving the property back to the bank and they are agreeing that the property is payment in full of the loan. Not much better than a foreclosure, and you have to leave the property anyway, but it will prevent the sheriff sale and eviction process.
11. If 1-10 do not work, you can just move out and walk away and forget about the property. Not recommended if you care about your credit and plan to borrow money for several years, but foreclosure should teach you not to rely on banks to help you out when you face a hardship. All they really do is promise great deals when you think of going with them, and then throw you to the foreclosure dogs if you miss a payment.
Those are the most common options that can be used to stop foreclosure. There are a few others (suing your bank, etc.), but they involve much more cost and legal involvement and may not end up stopping the foreclosure process anyway.
Good luck with the property.
ForeclosureFish
http://www.foreclosurefish.com/
2007-02-21 19:25:43 · answer #2 · answered by foreclosurefish 1 · 0⤊ 0⤋
Here's the hardest part: You have to call your mortgage company and talk to someone. Ick! But if you don't, you will lose your home.
Call and ask for the department that handles Forebearance Plans. The mortgage company may use a different term but they will very likely know what you are talking about and get you to the right department. Generally, they will set up a repayment plan that keeps up your current mortgage payments and pays some on the back payments. For example, if you are three mothns behind, you would need to make the current payment and then a percentage of the late payments. They will ask for an income and expense accounting, so they know how much you can afford to pay on the arrears. It's not easy if you are already strapped, but it can be done.
If you just can't afford the house, then you need to find a way to let go of the house or to get more income.
As a LAST RESORT, look into filing a Chapter 13 bankruptcy, which allows you to reorganize and pay off your bills under a wage earner plan. Law have recently changed on that, so be sure you are getting the most recent info if you have to go that route.
2007-02-19 12:57:20 · answer #3 · answered by CJ 2 · 1⤊ 0⤋
Pay the bill or ask the bank for a program (with a down payment). You can also sell your home and use the proceeds to pay off the house. Better to lose a few dollars by selling to one of thos "We buy houses" people then have to live with a foreclosure on your credit record for at least 7 years! Sure, they low ball you. But if it covers the mortgage and hopefully enough to move you into a rental or an apartment you are much better off financially.
2007-02-19 13:42:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You might consider a foreclosure bailout program or hardmoney lender if you have 35% equity.
2007-02-19 14:18:13 · answer #5 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
Talk to your mortgage company about a rehabilitation program if you are late on your payments. Getting caught up on your payments would probably help.
2007-02-19 12:46:55 · answer #6 · answered by Dana Katherine 4 · 1⤊ 0⤋
pay all the arrearage and start making your monthly payments again
2007-02-22 23:24:08 · answer #7 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
pay the money owned...or sell it to someone else and do a rent back.
2007-02-19 12:45:36 · answer #8 · answered by Anonymous · 1⤊ 0⤋