When you are at the end of negotiating with the banks because you are so behind on a loan what can you do?

Question

When you are so behind on a home loan you dont want to file for bankruptsy and you are on the berge of getting a pay check how can you negotiate with the bank who do you talk to in order to get a few weeks to work out the problem and you are behind 3 months??? is there a way out when your credit cards are max out and you have no resources?

Answer 1

While you may, in the long run, not be able to prevent losing the house, talking to the bank is the best idea. Remember, they have no interest in you defaulting on the loan. They do not want to own your house. So talk to them immediately and discuss you situation to see if there is some accommodation they can make.

Answer 2

It sounds like you have some serious issues there.

Bankruptcy isn't the end of the world, it's simply a way to protect your property and give you time to work out the problems.

Usually bank lenders have a "work it out" program you can call when you're 60 days behind your loan. They can take a month or two and add it to your principal. You'll pay interest on that, but it helps for the short term. There are sometimes other things you can do.

Cut up those credit cards!! Cut them up, forget the numbers, don't use them.

Find credit counseling. Often they can either consolidate your credit card loans or at least give you some advice. How are your credit cards all maxed and your savings gone and your house payment not made for 3 months?? I'm guessing you've never made a monthly budget or considered NOT buying something you want in favor of living on bare bones until the debts are paid. That means no new clothes, no organic food, no eating out, no partying.

Also consider taking a second job, having a garage sale, or otherwise getting rid of excess. Keep those lights off, cancel cable & the cell phone, and quit any highly expensive habits like drinking or smoking.

It's hard, but not impossible to get out of debt without bankruptcy. You can't live life like you want, but at least you won't have "bankrupt" on your credit report for 7 years.

Answer 3

Contact the bank as soon as you know there is going to be a problem with payment. Many companies are willing to work with you as in the long run it would be them losing money or a customer. If you would feel better (and perhaps less embarrassed) you can always call and track down the right person you need to talk with who can help you out. Then if they do want you to come in you will have a name to ask for instead of stating your problem for all ears. There are also a lot of reputable credit counseling groups out there. Make sure they are legit before signing up. Your bank could probably help you with that also.

Best of luck.