that paying the monthly morgage has become difficult. Lender has given notice of possible foreclosure via quick claim to the lender due missed payments. Should I consider consulting a lawyer(which Icannot afford ) or just calling the lenders foreclosure specialist and do the quick claim. I dont intend of keeping the property anymore.
2007-05-10 03:02:15 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
As the above-posters pointed out, contact the Lender's Loss Mitigation Department and tell them you want to do a Loan Modification or Forebearance.
The fact that they are asking you to immediately "Quit Claim" the property back to them is somewhat suspicious since they have not yet filed Foreclosure. Is this refi with a national lender?
Since we don't know what state you are in you may have a long time until they actually can Foreclose or as short as 30 days. (Since they have not served you with Foreclosure papers yet, there may still be enough time). So get to the Loss Mitigation Dept immediately by phone and if the first person says no, then ask for a supervisor.
If you need a lawyer, contact the local Legal Aid Society for assistance.
If you have enough equity in the property you may be able to sell it quickly and still recoup some cash. But if all the equity is cashed-out from the refi last year you may need for an Investor to complete a "short-sale" with the Lender.
2007-05-10 03:25:50 · answer #1 · answered by Anonymous · 1⤊ 0⤋
IF you have enough equity in the house to sell it AND pay off the full amount owed, that of course would be the best thing. Depending on your local market, you might not have any equity after a refi one year ago, and now being behind in payments. If that's the case, there are some options - but they do have consequences.
If the lender has to go through the foreclosure process, it will cost them money - they'll pass that cost on to you. A deed in lieu, or quit claim will eliminate some of those costs and so could be a good thing.
Due to so many Realtors and loan officers putting people into houses and loans that they had no business being in, "short sales" have become very popular of late. This is where the lender allows you to sell the house, pay them all the proceeds (but it doesn't cover what is owed) and "forgive" the rest. What many sellers don't get told is that the "forgiven" amount is reported to the IRS as earned income on a 1099 form and the seller then owes income tax on that amount. There is currently a bill being discussed that would do away with taxing this "income", but as of right now, you'd be taxed on it.
Find out sooner rather than later what your options and consequences are - DO TALK WITH YOUR LENDER. Any attorney fees that you can prevent them from spending would be good.
2007-05-10 11:16:56 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
exactly how late you are and how much equity there is in your property will determine your options. there are some lenders that will refinance you to bring you current (called a foreclosure bailout) but it will be at a high interest rate. the other option is the forbearance agreement which adds your unpaid payments to the current loan amount. unfortunately, both of these options will probably raise your mortgage payment and if you can't make it now, it will be even harder after doing either of these things.
my advise is to call both, the lender to see if they will even do the forbearance and if so what your new payment will be, and a mortgage broker to see if a refi / bail out is an option for you and if so what that payment will be. only then will you have the information you need to make the right decision for you.
i would not suggest the deed in lieu (signing your home over to the lender to avoid foreclosure) option except as a last resort because with it you are essentially walking away from the equity you have built in your home (through your down payment and monthly principal payments).
it sounds like you plan on selling your home shortly - do NOT list it for sale until AFTER either of the above is done!!!
good luck!
2007-05-10 10:31:03 · answer #3 · answered by i lend 2 u 1 · 0⤊ 0⤋
What they are suggesting is a "Deed in Lieu" of foreclosure where you allow the bank less time in taking your property back. If there is absolutely no way you can keep the property that this is okay.
However, you could also negotiate with your lender to do a forebearance agreement and/or a modification of your loan to bring you current. Ask them about those possibilities if there is a chance you can stay in the property and make the payments once you are current.
2007-05-10 10:09:06 · answer #4 · answered by mrsfoster 2 · 0⤊ 0⤋
Call the lender and work something out, maybe a shortsale
2007-05-10 10:14:42 · answer #5 · answered by walding714 2 · 0⤊ 0⤋