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paying principle on mortgage to keep from foreclosure

Posted on: 11th Jul, 2007 09:37 am
My husband and I are in a tight spot with very little work/not enough pay. We are behind 2 months and the mortgage co.says they will foreclose. I was told by a mortgage broker that in the state of Florida that if you are having a hard time paying your mortgage that you can pay the principle amount until you are up on your feet and that the mortgage company has to accept this. Then once on your feet you can make catch-up payments. I was also told that this is something the mortgage companies will not tell you due to the fact that they also make money from the interest. Any input would be appreciated as to the fact that I am on the verge of losing my home. Thanks. Tina Kuklinski
"I was told by a mortgage broker that in the state of Florida that if you are having a hard time paying your mortgage that you can pay the principle amount until you are up on your feet and that the mortgage company has to accept this."

I have not heard of such law but one loss mitigation scheme is available in all states called forbearance. In forbearance your payments are stooped for few months to allow you from financial hardship and then to continue the payments again after a few months.
Posted on: 11th Jul, 2007 12:26 pm
Tina there are several loss mitigation plans that you can talk about with your mortgage company to save the house from going into foreclosure. Have you discussed your problems with them? If you properly explain your situation then it is probable that they will agree to step a payment plan by which you can continue the mortgage and foreclosure can be avoided.

Please do go through this page to know more about the options you have to save the house from going into foreclosure: http://www.mortgagefit.com/loss-mitigation.html

And about the point you raised regarding payment of only principal amount, well I am not aware if any such provision exists. I will check and let you know if the broker is correct or not. But primary concern for you right now would be to get in contact with mortgage company, request to consider your financial hardship and set a repayment plan.

Niicss
Posted on: 11th Jul, 2007 04:28 pm
"We are behind 2 months and the mortgage co.says they will foreclose."

Normally lenders help borrowers to recover from defaults. And you had 2 defaults. If they do not respond properly then take help from foreclosure prevention counseling agencies. They will try to convince your lender to agree to a repayment plan.
Posted on: 11th Jul, 2007 07:18 pm
Hi Tina,

When you are facing problems in making payments, talk to your lender regarding the loss mitigation plans without delay to save your house from foreclosure. Then depending on your situation, you can go for any one of the following options:

1) Forbearance: - Your lender may arrange a repayment plan based on your financial situation and may also provide a temporary reduction of payments.

2) Mortgage Modification: - You may extend the term of your mortgage. This will help you to reduce the monthly payments to a more affordable limit.

3) Partial Claim: - Your lender may help you to obtain a one-time payment from FHA-Insurance fund which will bring your mortgage current.

To know more about the options, you can refer to the page mentioned by Niicss.
Posted on: 12th Jul, 2007 03:30 am
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