Posted on: 18th Jan, 2008 05:01 pm
We are not currently behind our payments , however this coming month we will be. We both work and 100% of our paychecks go towards paying the mortgage. During the past few years I had a residual income, however for the past 9 months there was no residual income coming. We have depleted the reserves and we will have to use the credit card to pay for the rest of daily expanses. Do we need an advisor to negotiate for us with Countrywide or can we negotiate directly with them. How long does this procedure lasts. How bad will this affect our credit. Can anyone advise us?
Thank you
Thank you
Hello DAT,
I think you should first talk to the lender clearly and tell him about your situation. You may talk to him for a forbearance or a mortgage modification and see if he is willing to work that out. In that case, you will be able to save your home at least.
If the lender doesn't agree to a forbearance or a mortgage modification, then you may talk to him about a deed-in-lieu of foreclosure and see if he accepts that. Lenders usually do not agree to a deed-in-lieu and may ask you to do a short sale if you haven't already tried to do that. If the lender doesn't agree to it, then you may take the help of an advisor to negotiate with him.
For further information on deed-in-lieu, you may look here http://www.mortgagefit.com/deed-lieu.html
I think you should first talk to the lender clearly and tell him about your situation. You may talk to him for a forbearance or a mortgage modification and see if he is willing to work that out. In that case, you will be able to save your home at least.
If the lender doesn't agree to a forbearance or a mortgage modification, then you may talk to him about a deed-in-lieu of foreclosure and see if he accepts that. Lenders usually do not agree to a deed-in-lieu and may ask you to do a short sale if you haven't already tried to do that. If the lender doesn't agree to it, then you may take the help of an advisor to negotiate with him.
For further information on deed-in-lieu, you may look here http://www.mortgagefit.com/deed-lieu.html
Hi Dat,
I can understand your situation very well. But using credit cards to carry out daily expenses isn't a good option. I mean you need to repay the credit card debts too right?
You can yourself negotiate with them and request them to either offer you a loan modification or alternative repayment. You are the right person to do this because you know your situation the best. And, if any of these options don't work out, well, only then go for deed in lieu or short sale or any other loss mitigation options.
Let us know what the lender is suggesting. Feel free to discuss these issues here. Our experts and community members will try their best to resolve your problems.
good luck
I can understand your situation very well. But using credit cards to carry out daily expenses isn't a good option. I mean you need to repay the credit card debts too right?
You can yourself negotiate with them and request them to either offer you a loan modification or alternative repayment. You are the right person to do this because you know your situation the best. And, if any of these options don't work out, well, only then go for deed in lieu or short sale or any other loss mitigation options.
Let us know what the lender is suggesting. Feel free to discuss these issues here. Our experts and community members will try their best to resolve your problems.
good luck
It would be best if you can sell the house on your own. A deed in lieu of forclosure is a volluntary repo. Only do this if they will do it without recourse. Tighten up your budget, using CC's is a disaster.
HI Guest,
Welcome to the forums.
You are correct in saying that using credit cards isn't the only way to carry out daily expenses. It's better to stick a well-planned and tight budget.
Dat, if possible consult a financial advisor or credit counselor who can help you with a budgeting plan or if you can do it on your own, then that's fine.
You may even conisder checking out the Simple Budgeting tool developed by this community.
Take Care
Welcome to the forums.
You are correct in saying that using credit cards isn't the only way to carry out daily expenses. It's better to stick a well-planned and tight budget.
Dat, if possible consult a financial advisor or credit counselor who can help you with a budgeting plan or if you can do it on your own, then that's fine.
You may even conisder checking out the Simple Budgeting tool developed by this community.
Take Care
if you have any equity at all, you might want to look into a refinance before a deed in lieu. a refinance can lower your mortgage payments. if this is not an options then you can contact the lender and ask for the loss mitigation department for your options. if it is a temporary reduction in your income you can ask your lender for a forebearance.