Posted on: 24th Feb, 2009 02:44 pm
we filed ch 7 bk in september '05.
due to a long series of circumstances (including job loss) we are now about 5 months behind in our second mortgage. but they have not contacted us. we want to stay in the house.
what should we do? file ch 13 - try to "strip" the 2nd?
we're in colorado.
thank you.
due to a long series of circumstances (including job loss) we are now about 5 months behind in our second mortgage. but they have not contacted us. we want to stay in the house.
what should we do? file ch 13 - try to "strip" the 2nd?
we're in colorado.
thank you.
Hi native,
I think you should contact the lender and inform him about your hardship. As you are already delinquent on your payments, you should try for a deed in lieu foreclosure or a short sale. In both these processes, the lender will take away the property from you and sell it off in the market to recover his debts.
In case of a deed in lieu, the deficient amount resulting from the sale of the property is forgiven whereas in case of a short sale, you will have to pay the deficient amount to the lender. In a deed in lieu, your credit score will go down by 250 points and in short sale, your credit score will be lowered by 75-100 points.
In my opinion, you should go for bankruptcy only if the lender does not agree to a deed in lieu or a short sale.
Thanks
I think you should contact the lender and inform him about your hardship. As you are already delinquent on your payments, you should try for a deed in lieu foreclosure or a short sale. In both these processes, the lender will take away the property from you and sell it off in the market to recover his debts.
In case of a deed in lieu, the deficient amount resulting from the sale of the property is forgiven whereas in case of a short sale, you will have to pay the deficient amount to the lender. In a deed in lieu, your credit score will go down by 250 points and in short sale, your credit score will be lowered by 75-100 points.
In my opinion, you should go for bankruptcy only if the lender does not agree to a deed in lieu or a short sale.
Thanks
Thank you for responding, James.
But I really need to stay in this house if at all possible. I have four teenagers, six cats and a dog. Not to get too personal, but I have been through an emotional roller coaster in the past three years, which, in part, caused us to be in this financial disaster. I DID NOT create this. I do not have the emotional energy to move right now.
I have to find a way to stay here.
My husband is going to see if he can't get some 401K money to try and get us caught up. But being that we are so far behind, I'm not even sure if they will accept a payment at this point.
But I really need to stay in this house if at all possible. I have four teenagers, six cats and a dog. Not to get too personal, but I have been through an emotional roller coaster in the past three years, which, in part, caused us to be in this financial disaster. I DID NOT create this. I do not have the emotional energy to move right now.
I have to find a way to stay here.
My husband is going to see if he can't get some 401K money to try and get us caught up. But being that we are so far behind, I'm not even sure if they will accept a payment at this point.
hi guest,
you can speak to your lender about the option of loan modification. if the lender is convinced by your hardship, then the loss mitigation department of the lender will give you a new payment plan by which you will be able to pay off the dues.
however, you should note that the lender will add up your past dues while modifying your loan which may increase your monthly payments.
thanks.
you can speak to your lender about the option of loan modification. if the lender is convinced by your hardship, then the loss mitigation department of the lender will give you a new payment plan by which you will be able to pay off the dues.
however, you should note that the lender will add up your past dues while modifying your loan which may increase your monthly payments.
thanks.