I think my wife and I are losing our house due to foreclosure any suggestions?

Question

I have fallen behind on payments and cant afford the mortage companies repayment plan .We are about 5 months behind and not much equity in the house .

Answer 1

how much is not much equity? Dont you think it would be better for your credit history to sell rather than get forclosed on? Have you considered bankrupcy?

Answer 2

If you do not think you can catch up on your payments then your best course of action is to sell your house. Since you have little equity, you will need to sell your house short. Put your house on the market with a real estate agent that knows how to do short sales. They will negotiate with the lender (and their loss mitigation department) on accepting less than the full amount owed. Once you get an offer from a buyer and the lender accepts it, you can walk away from the house with clean hands, and you will not owe any money to the lender.

After one year of renting, you can show 12 months of on time rent payments. You can then qualify for a new mortgage, and be a home owner again.

Answer 3

The first thing that you should do, which is the first thing most people dont do is talk to your lender. NOT a mortgage broker but your actual lender.

Ask them depending on your situation to work it out with you so you dont lose your home. They have different work out programs like adding your missed payments & fees to your total loan amount or restructuring your loan terms from a variable to a fixed loan. There are many ways but you have to call and ask.

You have to know that even though you are in trouble and cannot afford to make the payments, you still have some leverage because the lender does not want you to lose the home. Lender's DO NOT want to own real estate, they lend money, they dont manage properties, with that said work with your current lender.

If you cannot work with your lender, a sale may be your solution. As someone already mentioned, doing a short sale may be your answer BUT you have to understand that you are not walking away with your hands clean as said on a previous comment. You may still be responsible to pay regular income taxes on the lose the lender took by doing the short sale (talk to your cpa for details)

The other exit would be a foreclosure or a deed in lieu of foreclosure. Either way you go, you still have responsibilities to fulfill. Some may be lesser than others like, as I mentioned before, you may get 1099 for the amount of money lost by the lender or you may get an unsecured note for the amount lost on the sale, etc.

Suggestions: Contact a REALTOR that knows what he/she is doing and try to figure out which is the best way for you to resolve this situation.

Good luck

Answer 4

Please speak to the bank. I see this all the time, some people wait to long...

Have they given a Notice of Sale? You think? Have you contacted them? Can you afford to pay the payment now? These are all questions you need to ask yourself first. Lenders are always usually willing to help unfortunately people don't ask.

If there is a Notice to Sale and you can not pay the mortgage even if you got caught up. I would say sale. Even if it is a short sale.

At least it will showed paid and not foreclosed.

http://www.myfinancialcorner.com

Answer 5

Talk to the bank and see if anything can be worked out. It's more of a pain for them to take the house back because then they have the burden of what to do with it. They don't want that. They would much rather have you making payments even if it means making other arrangements. It never hurts to inquire.

Answer 6

Brian 104 is somewhat right, but he is missing some of the picture. If the bank lets you do a short sale, they can, and most likely will attach the difference to you as personal loan debt. Get all the facts from the lender before you decide.

Answer 7

How can you THINK ? You should know!!!!!
Call the mortgage co , they will work with you. After all they are not in the real estate selling business.