Posted on: 04th Oct, 2007 11:08 am
Can someone please give me some good advice with my situation? My fiance and I purchased our first home about 2 years ago. We've been keeping up with our payments for about a year and a half. We took out some equity to do some upgrades and landscaping and after that... our payments went up a little bit where we were barely making the mortgage payment. We've come to the end of our 2-year fixed loan and now we're in an adjustable which we definitely now cannot affort the mortgage. We are upside down on the house and on our first mortgage is about 4 months delinquent and the second is 8 months delinquent. We would like to short sale the house but we don't know if that's our best option. Now I'm thinking BK is my only option. Can somebody please throw me some advice.
My advise would be to call someone before you have made that 1st late payment! Andd dont borrow more then you can afford comfortably.
But we past that. You can do shortsale if your bank agrees to it.
You can do BK if you are eligible for it.
Foreclosure is always an option.
Either way you lose the home and your credit is ruined. Its a matter of choice. With a BK at least you might be able to get rid of other bills as well and maybee get a clean slate. With foreclosure you get a few months of free rent till they kick you out. With short sale you get your debt setled but it takes time and is kinda a pain.
The choice is yours.
BUT FOR YOU AND ALL THE PEOPLE THAT READ THIS IF YOU STARTING TO FALL BEHIND, CALL SOMEONE BEFORE ITS TOO LATE! ITS ALOT EASIER FOR ME TO HELP YOU IF YOU HAVENT RUINED YOUR CREDIT YET.
But we past that. You can do shortsale if your bank agrees to it.
You can do BK if you are eligible for it.
Foreclosure is always an option.
Either way you lose the home and your credit is ruined. Its a matter of choice. With a BK at least you might be able to get rid of other bills as well and maybee get a clean slate. With foreclosure you get a few months of free rent till they kick you out. With short sale you get your debt setled but it takes time and is kinda a pain.
The choice is yours.
BUT FOR YOU AND ALL THE PEOPLE THAT READ THIS IF YOU STARTING TO FALL BEHIND, CALL SOMEONE BEFORE ITS TOO LATE! ITS ALOT EASIER FOR ME TO HELP YOU IF YOU HAVENT RUINED YOUR CREDIT YET.
hi bernielm,
welcome to our forums.
i do understand what you're going through right now. but please have patience and keep your calm while you decide which should be your right option now. going for a short sale would help you in paying off one mortgage and may be a part of the second loan. but you need to pay the remaining part of the second loan and for that either you use your own savings or else the lender may issue a charge-off considering that you won't be able to pay off the debt any more.
regarding filing a bankruptcy, chapter 13 can be a good option though bankruptcy is generally considered as something that can drastically damage your credit. inspite of that, i am advising this because in chapter 13, you can at least be allowed to pay off a part of the mortgage debt. it implies that you are trying to pay a certain percentage of the debt and hence the credit damage won't be as negative as that of chapter 7 bankruptcy.
if you wish to know more on whether you should go for short sale or chapter 13 bankruptcy, refer to a previous discussion.
good luck
welcome to our forums.
i do understand what you're going through right now. but please have patience and keep your calm while you decide which should be your right option now. going for a short sale would help you in paying off one mortgage and may be a part of the second loan. but you need to pay the remaining part of the second loan and for that either you use your own savings or else the lender may issue a charge-off considering that you won't be able to pay off the debt any more.
regarding filing a bankruptcy, chapter 13 can be a good option though bankruptcy is generally considered as something that can drastically damage your credit. inspite of that, i am advising this because in chapter 13, you can at least be allowed to pay off a part of the mortgage debt. it implies that you are trying to pay a certain percentage of the debt and hence the credit damage won't be as negative as that of chapter 7 bankruptcy.
if you wish to know more on whether you should go for short sale or chapter 13 bankruptcy, refer to a previous discussion.
good luck
I started 5 years mortgage in 2002 with 5 years renewal option. In 2007 mortgage was not formally renewed (by mistake the time was missed) however for 14 months payments were accepted with no notice from lender. No defaults on payments.
Now mortgage holder demands to pay mortgage and refuses to accept monthly payments. Lander harasses by Power-of-Sale based on the fact that mortgage expired.
Now mortgage holder demands to pay mortgage and refuses to accept monthly payments. Lander harasses by Power-of-Sale based on the fact that mortgage expired.
Hi natalia,
Is your mortgage based in Canada? I'm asking this because I don't hear about renewal in the US. Anyway, you should have renewed it in the right time but why didn't the lender send you any notice as such? they should have co-ordinated with you when you failed to renew the mortgage. may be the lender is considering it a default just because you didn't renew the loan. But I'm surprised they aren't even considering the payments for the 14 months. I guess it's better if you hire a mortgage attorney to negotiate with them or else you may lose your home.
Take Care
Is your mortgage based in Canada? I'm asking this because I don't hear about renewal in the US. Anyway, you should have renewed it in the right time but why didn't the lender send you any notice as such? they should have co-ordinated with you when you failed to renew the mortgage. may be the lender is considering it a default just because you didn't renew the loan. But I'm surprised they aren't even considering the payments for the 14 months. I guess it's better if you hire a mortgage attorney to negotiate with them or else you may lose your home.
Take Care