as of june 1st,our house went in default for 2 mos payment.can we pay one payment now and pay the other by mid june and bring the house out of default?
2007-06-03 14:33:36 · 5 answers · asked by butterfly38 1 in Business & Finance ➔ Renting & Real Estate
You'll have to ask the mortgage lender. Have they served notice of acceleration of the debt or a demand for full payment of all arrearages? Even if they have, most will work with you as most lenders don't want to deal with a foreclosure any more than you do.
2007-06-03 14:38:20 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
This is a question best answered by your lender. With the real estate market the way it is, the last thing a lender wants is a house to try to sell. They should be more willing to work with you especially since the market is not good right now.
If you have a decent amount a equity in your home, then there is less risk for the lender so they might be more likely to take the house from you.
I would say yes to your initial question, but don't hold me to it.
2007-06-03 21:45:43 · answer #2 · answered by Wade M 3 · 0⤊ 0⤋
Contact the note holder ASAP and talk to some one in loss mitigation, not collections. The last thing they want is to foreclose. Talk and they will generally listen.
How to Avoid Foreclosure - When you miss your mortgage payments, foreclosure may occur. This is the legal means that your mortgage company can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your mortgage company or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your mortgage company or HUD an additional debt.
Most lenders idea of helping you avoid foreclosure is by putting you in a payment agreement or forbearance agreement. They will ask you to make payments which are generally about 150% more than your normal payment (that's 1.5X) for a period of time ranging from 3 months to 3 years depending on how much you owe. You may be better off refinancing your home loan to a lower payment, and using the excess cash flow to rebuild your credit with the goal of refinancing into a lower paymnt loan after 2 to 3 years.
A last resort to avoid a foreclosure is to file for bankruptcy protection. The bankruptcy laws have toughened a bit regarding the ability to file. It is recommended to speak to your attorney regarding this option and should be considered only as a last resort to avoid losing your home.
To avoid foreclosure or the beginning of the foreclosure process on your home, you may want to look into selling your property. This should be considered if you are not able to make the payments on your home and the mortgage payments seem to steep for you. It would be a shame to lose all of the equity you have in a home and let the bank take that by having your home foreclosed upon.
The best way to avoid foreclosure is to not purchase to much of a house for your budget. There are exspenses that are not figured into the loan application such as groceries, telephone and cable bills. You should sit down with your mortgage broker before you start looking at properties and determine a comfortable payment every month. Based off this payment your mortgage broker should be able to give you a purchase price range to look at.
Some lenders will help you to avoid foreclosure. The lenders are not in the business to foreclose on your home, and more often than not, they do not want to foreclose. The lender may allow you to add multiple months' worth of missed payments, interest, and late fees onto the loan balance. Then you are responsible for paying off the arrearages by making small additional monthly payments, on top of what your regular payment should be.
As well as costing people their homes, foreclosure can have a devastating effect on personal credit. People who have lost property as a result of foreclosure will struggle to obtain loans or mortgages and may even fail simple credit-checks for home rental agreements. It is a very bad situation to be in. Most financial advisors advise homeowners to do everything within their power to avoid going into foreclosure.
2007-06-03 23:02:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
That would depend on the lender, but most likely they will not take partial payment. Get the entire amount in arrears paid as soon as possible.
2007-06-03 21:37:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
ASK FOR PAYMENT DEFERMENT
2007-06-03 21:56:04 · answer #5 · answered by KARRIEM A 1 · 0⤊ 0⤋