I am struggling for a few months-but not sure how far out youcan be on your mortgage before they start foreslosure
2007-04-23 07:08:07 · 12 answers · asked by catfur4u 2 in Business & Finance ➔ Credit
I couldn't give you a straight answer to what would be worse, but I know I'd rather lose my car first--I owe more on my house than I would ever owe for one car. But if you're only one month late, you've still got quite a while before you'll end up in foreclosure; a few months for sure, especially if you at least make payment arrangements with them.
I can always find other means of transportation; it's not so easy to find another place to live.
2007-04-23 07:14:51 · answer #1 · answered by Krista B 6 · 1⤊ 0⤋
When you ask a question like that, you're asking the old cliche' which is "the lesser of 2 evils". Either one will be toxic to your credit. The good news is that there's help out there for you. As far as the mortgage, you never want to get on the wrong end of that. There's something that's called "loss mitigation" that helps people in foreclosure or in danger of foreclosure keep their homes. I posted a link to information to a couple of places to give you an idea of what they do and how it works. As for the car loan, it's a little bit different. One thing you can try is to make payment arrangements for a slow pay. I posted more links on how to prevent repossession below as well. I hope that your situation improves for you with the answer I gave you.
Good Luck!
2007-04-23 07:51:51 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Credit wise, 60-days late is always worse than 30-days late.
If you have had either loan for very long and have a good pay history? You should call them and talk about it. Sometimes a lender will let you slide and put the payment on the end of the loan. (Normally not more than once a year). This way you would have no late payments at all.
2007-04-23 08:00:10 · answer #3 · answered by ? 7 · 1⤊ 0⤋
ALWAYS, ALWAYS, ALWAYS pay your house, electric, gas/heat, water and food FIRST. Then the car and then credit cards. If you are struggling who cares about credit scores, you need to get a plan to get yourself current and up to date!
Sell the car before it gets repo'ed- buy a $500 car for the mean time just to get you to and from work. Or use public transportation if you live in a city.
If your house payment continues to be behind by a month or two, put the house up for sale and get a buyer instead of have it going into foreclosure.
You sound like you need a budget and a plan on how to get back on track and get these debts off your back. Read The Total Money Makeover by Ramsey for GREAT ideas on how to beat debt, save money and eventually save money for retirement.
You can do it, just keep your priorities straight.
2007-04-23 08:47:21 · answer #4 · answered by mldjay 5 · 0⤊ 0⤋
I believe it's six months for foreclosure, but three months for reposession.
But, this is what you should do - call the mortgage company and ask for an extension. Often, especially if this is the first time you've been late, they'll give you a 30 day grace period.
2007-04-23 08:05:48 · answer #5 · answered by zippythejessi 7 · 0⤊ 0⤋
Keep in mind, each state is different. If you're in GA, you've already been late enough to start foreclosure.
The earlier you start communicating with your mortgage lender and car lender, the easier the solution will be. If you call them before you are late, you talk to customer service. If they call you because you are late, you talk to collections. It's the difference between petting a friendly poodle or a ravenous pit bull. Call them now and talk to customer service before your only choice is to talk to collections.
2007-04-23 08:26:23 · answer #6 · answered by CJKatl 4 · 0⤊ 0⤋
It is worse to be 2 months late on a car payment because usually they will repossess it after you miss 2 payments.
2007-04-26 18:08:02 · answer #7 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
I believe the 2nd month late they can start foreclosure. It depends on the state you live in. But if it comes down to it, it would be better to lose your car than your house. Cars are easier to replace than houses are. You can find a $500 car but can you buy a house for $500 ? Hope this helped you.
2007-04-23 07:18:49 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It depends on the rate of interest. Generally speaking motor car loans will be more expensive compared to mortgage loans .Feel it will be better to keep the company informed so that they are clear of your intention to pay.
2007-04-23 07:17:28 · answer #9 · answered by karavi 1 · 0⤊ 0⤋
30 day mortgage lates are the biggest "sin" possible on a credit report.
2007-04-23 07:26:52 · answer #10 · answered by Darrell L 1 · 0⤊ 0⤋