People losing their houses....explain please...?

Question

Can anybody tell me the whole situation about people losing their houses....because my parents might lose the house is there anything we could do to save the house from losing it and keep it in a good record I really don't want to move please help my family always move and I actually like it here please help......I would really appreciate it thank you....

I been moving alot lately and if i move again it going to be hard for me to make new friends because im a junior and when you are already in high school its hard to make new friends and thanks for the help....

Answer 1

The ONLY reason people lose their house is if they fail to make the mortgage payments. This happens for ONLY 3 reasons.
1. They bought a house they could not afford to begin with. In that case, there is NOTHING that will prevent them from losing the house.
2. They borrowed more money against the house than they could afford. In that case, they have essentially ALREADY sold the house to buy whatever they spend the money on.
3. They are paying the WRONG bills first. Priorities should be A. Food, B. Utilities, C. Housing, D. Transportation. NOTHING else gets paid until these 4 are paid.

Answer 2

I'm sorry about your family's situation. There are so many cases of homes being foreclosed (taken back by the mortgage lender or bank) these days that most of the banks do try to help. If your parents talk to them and explain their situation, many times some kind of deal can be worked out to get caught up on payments. Another option is to file chapter 13 bankruptcy. This is different than chapter 11 bankruptcy in that you pay back your debts, including past due payments on the house, but in more affordable payments and bill collectors can't harass you anymore. They usually garnish (take out) this amount of money from your paychecks for a period of time until it's paid off. Bankruptcy will hurt your credit, but your parents credit rating is probably already tarnished if they have been having financial difficulties for a while. They will need to see a bankruptcy lawyer to do this. You don't pay them up front because their fees come out of the money you pay back. Everything will work out, just try not to worry too much. And if it turns out you do have to move, look at it as an "adventure"....new friends and new beginnings.

Answer 3

I assume your parents are facing a foreclosure on the property in which you live. That being the case, the only way to save the property is to pay the amount due to the lender and continue with the payments.

If payments are not made as agreed (and I assume they are not, in your situation), the lender will foreclose the property and take back ownership. At that time, you will be asked to move out.

Answer 4

If your parents are in danger of losing their home, they need to contact their lender NOW and attempt to work something out. Once they go into foreclosure, its usually too late.