I was in the mortgage industry for 25 years and like a lot of other people, I bought my home on an adjustable rate. My interest rate jumped 4% in the last 6 months and my payments increased $2000.00. I got laid off in January and have used all of my savings to keep the home while I find another job, but even though I put out over 100 resumes, no one wants to hire someone from the mortgage industry. I'm in foreclosure and on January 6th, my 5 yr old son and I will be on the street unless I find a job so maybe the mortgage company will work with me and let me pay the past due a little at a time. I'm running out of time so is there anyone who knows how I can stall for more time or knows an attorney that can tell me if it's legal to raise an interest rate 4% while rates have gone up less than 1%. I'm running out of time and I don't want to be homeless so any advice is appreciated.
2007-12-20 10:59:56 · 8 answers · asked by lighthousegail 1 in Business & Finance ➔ Renting & Real Estate
Well, I am not sure if you are interested in selling, but your only option at this point would be to contact a real estate agent and try to initiate what is called a "Short Sale." It is when the bank agrees to take less for the property than you agreed to pay for it with hopes of salvaging some of its money. You have to get the bank to agree to do it first. You need to get rid of it quickly, so you need to try to find an investment capitalist or venture, basically someone who looks for people in your situation, that are willing to buy it from you at a price "short" of the value. Once they agree to do that, the mortgage company should notify the sheriff's department and they will pull the house from market. Once the sale is complete, the debt is cleared, but of course your credit has already been damaged by the late payments, but it is much better than having a full-on foreclosure. This is one example that would do a short-sale: http://www.homevestors.com/ . I know that you do not want to hear this, but coming from someone who really knows, that is your best option at this point. As far as having a place to live, I would ask friends, relatives, church, public assistance, if you must. Do not be ashamed! You were a victim of predatory lending. I hope that I helped you, and good luck!
2007-12-20 11:26:15 · answer #1 · answered by playgyrl10 1 · 0⤊ 0⤋
You have been in the mortgage industry for 25 years, now you want to get an attorney to see if it is legal to raise your interest rate by 4%? Look and read your loan docs you signed that will tell you if it is legal or not.
You are running out of time, if you want to declare bankruptcy and forestall the foreclosure procedure then that is an option.
Depending on if you are in a judicial ornon-judical foreclosure state will also determine what is legally available to you.
You may contact an attorney to see what your legal options are, but if your attorney decides to take your case then you will be required to pay him/her a retainer. If you are unable to pay your mortgage where would you get the funds for a retainer for your attorney?
You may file a bankfuptcy yourself, but let's stop kidding ourselves, stalling is not really in your best interest, you are hoping against hope, that some rich uncle will come out of the wood work and rescue you.
One of the other members have already mentioned a short sale
Contact your lender and see if there are there are other options available to you. I think one of the main things against you is that you are unable to make any monthly payments even if there was an option available to you.
One other is to tell you lender you would like to move and give them the property in-lieu of foreclosure, they might do this. See if they will give you an allowance for you to move as some will do this in order to preserve the property. This will give you funds to pay first and deposit on another place for you and your son. This is your best option in my opinion.
You have used up about all avenues that I can think of.
I hope this has been of some use to you, good luck.
"FIGHT ON "
2007-12-20 19:54:59 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
The legality of the interest rate increase is determined by your mortgage contract. (You WERE in the industry, and should know that. Frankly, you should ALSO have known what would occur, since you were in the industry.)
The mortgage firms are not looking actively for foreclosure activity. Speak with their loss mitigation department and tell them what you CAN do. Their reaction might actually surprise you. They're not going to settle for pennies on the dollar, but any reasonable program you offer for repayment with catch up will be considered.
You don't state at which stage your foreclosure action sits, but if you're going to be homeless on January 6, I'd venture that you have also accrued substantial legal expense from the lender to process the foreclosure. The longer you wait to speak with them, the worse it will get. Get on the phone TOMORROW morning and start finding out what they will work with.
2007-12-20 19:58:18 · answer #3 · answered by acermill 7 · 0⤊ 1⤋
You said you were in the mortgage business for 25yrs ? You should know the laws about rate increases. I would refer you to this site http://creditinfocenter.com is a great forum filled with information about your type of situation. You can get into the car business with your back ground and get some salary for 90days also you can look into bankrupty as a means to stop foreclosure but its time to act. Sorry to hear I know its tough working on commission. Good Luck
2007-12-20 19:20:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I am surprised that being in the mortgage industry that you took an adjustable rate mortgage and did not read the contract. Unfortunatly it is happening to many people.
The best advise is talk to your lender. Many understand what is going on and most don't want another house to unload.
2007-12-20 19:10:50 · answer #5 · answered by Laurie 7 · 0⤊ 1⤋
Sorry to hear about your scenario. Always tough finding out you bought something you couldn't afford. As for preventing the auction, i don't see how. The lender petitions the court for the auction after the current owner defaults on the loan. Only recourse would be another court order stopping it.
2007-12-20 19:10:14 · answer #6 · answered by Cysteine 6 · 0⤊ 0⤋
try entering auto industry,i have been in auto industry for 24yrs
and pays decent,needs good sales and communication skills and a great attitude,i know for a fact that if you have above qualities which you should being in mtg industry for so long,now you can have a job and help your family if you need
assistance call me i,am willing to spent time with you,so you can get a job first so you can help yourself and your family.
god bless you and have a great happy holidays you can reach me at my email address...
2007-12-20 20:49:25 · answer #7 · answered by JAY 2 · 0⤊ 0⤋
You are out of luck. It is sad that so many people made the decision to buy when they really could not afford to do so. You need to start looking for work outside the realm of what you normally do. It is your only option.
2007-12-20 19:09:37 · answer #8 · answered by Otto 7 · 0⤊ 1⤋