Posted on: 17th Aug, 2009 10:21 pm
Help! We need some advice. We filed for bankruptcy about a year ago, discharged it etc. We have contiued to make house payments, but now husband is laid off and we didn't make this months payment. The value of our house has dropped about $50,000. Currently our house payment is $1800 thats with a second. We also have an arm that could go up in Jan. Should we fight for a loan modification, no one will refi us, or walk away and rent a bigger house for less money. I don't want to rent but at this point it seems the lesser of two evils.
Hi rankat,
If you are interested in saving your property, then loan modification is the option for you. You will have to inform the lender about your situation and workout payment options with him.
If you walkaway from the property, then the lender would foreclose upon it. If you've reaffirmed your mortgage, then you are personally liable for paying off the mortgage. Thus, a foreclosure will affect your credit score and lower it by 250 points.
Thanks
If you are interested in saving your property, then loan modification is the option for you. You will have to inform the lender about your situation and workout payment options with him.
If you walkaway from the property, then the lender would foreclose upon it. If you've reaffirmed your mortgage, then you are personally liable for paying off the mortgage. Thus, a foreclosure will affect your credit score and lower it by 250 points.
Thanks
rankat97
It is never advisable to anyone to go for the foreclosure and it should be considered as a last option.
I think you can send hardship letter to your lender and ask them for a loan modification which will eventually lower your monthly payments and thus save you from the unforeseen situation.
One more to add, going for the rented property is one good option if you get a good deal, where you will rent your own property to someone else and will try to look for a rented property, difference between the two rents can be halved towards the payments of mortgage.
Do you think it will make difference in any way to your daily life if you are not awarded modification by the lender?
If it is really haunting you a lot then you can find out some rented apartment and shift yourself and your family members over there.
let us know about your decision so that we will get to know whether our advice has helped you or not??
Henceforth for any query related to mortgage visit mortgagefit.
It is never advisable to anyone to go for the foreclosure and it should be considered as a last option.
I think you can send hardship letter to your lender and ask them for a loan modification which will eventually lower your monthly payments and thus save you from the unforeseen situation.
One more to add, going for the rented property is one good option if you get a good deal, where you will rent your own property to someone else and will try to look for a rented property, difference between the two rents can be halved towards the payments of mortgage.
Do you think it will make difference in any way to your daily life if you are not awarded modification by the lender?
If it is really haunting you a lot then you can find out some rented apartment and shift yourself and your family members over there.
let us know about your decision so that we will get to know whether our advice has helped you or not??
Henceforth for any query related to mortgage visit mortgagefit.
Is loan modification a new loan on the house ? We filed bankruptcy on it but still making payments. My husband has not been able to get work for quite awhile now. We have 3 mortgages. He was unable to work for medical reasons this past year. We owe a friend $ 25,000
Hi Dianna,
A loan modification is not the new loan on the house. It is the modification of the terms and conditions of the existing mortgage. If you're unable to pay off your mortgage dues, you can contact your lender and apply for a loan modification. If you meet the required criteria, the lender will agree to your request.
Thanks
A loan modification is not the new loan on the house. It is the modification of the terms and conditions of the existing mortgage. If you're unable to pay off your mortgage dues, you can contact your lender and apply for a loan modification. If you meet the required criteria, the lender will agree to your request.
Thanks
If your husband was laid off and is collecting unemployment you may qualify for the UP HOME AFFORDABLE MODIFICATION PROGRAM. If you have discharged the bk then no problem with doing a loan modification. What lenders do you have all 3 mortgages with?
Professor Loan Mod
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Professor Loan Mod
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