How to avoid foreclosure amidst disability and bankruptcy

hi chucks

are you planning to file a bankruptcy or is your lender initiated a foreclosure procedure? if you file chapter 13 bankruptcy, you will be able to save your property. however, the lender will give you alternative repayment plan with which you will be able to pay off the debts within 3-5 years.

if the lender forecloses the property, then you will not be able to save the property. in a foreclosure, the lender will sell off the property and recover the debts.

thanks.

Hello to all you other folks with MBD (Mortgage Brain Damage).
I live in Arizona. You may remember Obama came out to AZ to introduce his new stimulus plan a couple of months ago. Do you know anyone who got a "Loan Modification"? I don't. But I do know Capital One took all their TARP money and purchased Chevy Chase Bank, my lender. With every statement for five years of never missing a payment, they included a little insert that read:"we do not want your house, and if you are having problems making your payment, call our 800 number so we can help. Well, I ran into some problems, health problems, combined with what is going on in the economy. So I called them, and they said, "first of all, I was not in default", so they could not talk to me. OK, payment missed, problem solved, so I call back. They talked to me for three minutes, and put me on hold for fifteen to twenty, and I restated my circumstances, and the fact that I need them to work with me, as I needed their help at this time. Not just for my sake, but for my whole family, Wife, Three Kids, Dogs, Hamsters, Fish, and the fact that this is our "Home". I designed it. It was the culmination of a life time of dreaming, and of saving for the big down payment, to finally get to design and have built our home. And we did it. And we watched the value go up, up, and away. Two years ago this home was worth just under two million, today, maybe 650K, and I have a 650K first, and I pulled out some equity to pay cash for a commercial building (that is going dark in two months, cutting my income almost in half) So here I am, like all of you, FREAKING OUT! Asking and re-asking what to do? Chevy Chase's answer, "there is nothing we will do", and so I state, what about your little note with your statements, is it a lie? So they put me on hold forever again, and when they get back on the phone, they say, "there is nothing we will do". Not that there isn't something they could do, like say, current market interest rate, amortized over forty years!?!? The bank makes money, I keep my home, what's wrong with that. And all they keep saying, "is that they are not doing anything". How is that possible? Wasn't Obama's plan designed to keep families in their homes, and stem the tidle-wave of foreclosures? It was, and yet these bankers are using the TARP money to pay each other HUGE bonuses and buy each other's companies. Well folks, my head hurts just thinking about it. I call it Mortgage Brain Damage (MBD), and like so many of you, I really do not know what to do next. I want to stay in my home, but I need the banks to work with me, and it sounds like all of you who are posting to this board do too!! I hear so many rumors, like, I know someone who just stopped paying their mortgage over a year ago, and the banks have not done a thing!?!?! Hell, I missed a payment, and I am getting nasty grams about how the bank is going to foreclose. And what about a second, can I just stop paying that, if the house is worth less than the sum of the first + the second? I (we) need to no what we can do to protect ourselves and our homes!?!?!?! I am all eyes and ears. Thanks for taking the time to read this rant, but I really need to let it out. This whole thing is major Brain Damage. Sincerely, Mark aka mawilde1

Hi Mawilde,

You need to contact Capital One and discuss your options for saving the property. You'll have to contact them and ask for a loan modification. Write a hardship letter to your lender informing him about your financial crisis. In my opinion, Capital One will accept your request for loan modification.

As far as missing payments are concerned, the lender can start foreclosure procedure only if you are 3 months delinquent on your mortgage payments.

Thanks

I am now disabled from injuries sustained in an auto accident. I am in the process of my appeal for disability benefits. At the same time, I am at risk of foreclosure. Are there any laws that protect families from foreclosure while in the process for applying for disability?

Hi Guest!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about48111.html#197328

Take a look at it. Hope it helps you.

Sussane

Well, it sounds like I am going through what some of you are. In short, my husband lost his job, we had to file Ch. 13, then he found a job and we were doing okay, then he got hurt on the job and they laid him off instead of sending him to the doctor. We had to file Ch.7 at that point. We have a lawsuit because he has full body disability know and we have been waiting for a year to see what they judge is going to do as far as compensation here in KS. Our so-called attorney lied to us also about filing the papers the judge asked for on time which has caused us a huge delay and to lose our car because the judge couldn't continue with her part of the suit until our attroney finished giving her what she requested. He lied and told us he did this way before then. Anyway, we are under foreclosure now. We thought our mortage company was going to work with us but nope and we only owe 8,000 to catch up. They said they did not have to do a loan modification because they did not take the bailout. So here we are with a bankruptcy, losing our home, lost our vehicles, I lost my job because I couldn't get bonded because of the bad credit, my husband can't work, receives a 2400 check each month but that doesn't help us pay everything that we owe especially since I have a disease and need all kinds of meds and only high cost insurance companies will touch me. Our whole life has been destroyed. We have been told that we can reopen the bankruptcy up to one year after and add the foreclosure and repossesion of the vehicle. The other one was taken during the bankruptcy. If we would have just received settlement on time all of this would have not happened. We fired the lawyer and working with the state to help with the settlement. The ombudsman told us we could do this. We are unsure how much we have to pay the workcomp attorney at this point but I hope he doesn't expect 25%. For full body disability a person can get up to 125,000 or could when my husband got hurt. Now it is 155,000. If you can't file the home in with the bakruptcy I would do the deed in lue of. At least you will get money from your lender hopefully to move on. I am being told a mininum of 1,000 if you sign to turn over the home.

welcome que,

if you just want to get rid of the property, then deed in lieu of foreclosure is a good option. it will help you in getting rid of the property and you won't be liable for paying off the delinquent balance resulting from the sale of the property.