Posted on: 24th Aug, 2010 09:53 am
HELP, I received last night what it seems to be a lawsuit for foreclosure. I been trying to do a loan mod sice 2009 with no luck. Am I still on time to try and resolve this with the bank? I am only 3 months behind on my mortgage.
Hi Gloriana,
As you're 3 months late on your mortgage payments, the lender has send the notice for foreclosure. You should immediately contact your lender and inform him that you want to go for a loan modification. You can even send him the documents related to your modification application. This might help you in stopping the foreclosure.
Thanks
As you're 3 months late on your mortgage payments, the lender has send the notice for foreclosure. You should immediately contact your lender and inform him that you want to go for a loan modification. You can even send him the documents related to your modification application. This might help you in stopping the foreclosure.
Thanks
Bought a house in Tampa in 2005. We moved to Louisiana in Oct 2006 (bought a house there thinking we wouldn't have a problem selling the Tampa house - little did we know. We were able to get a tenant after about a year, but the rent is about 300 less than what we pay for the monthly mortgage (this doesnt count the repairs 2k - 5k per yr). We have continued to make the payments and always on time. We have been trying to ride out the storm, but are just not seeing any hopes of improvement.
Here are the stats: Pd 182,000 and currently owe 150,000 to Chase. Decent interest rate of 5.5%. Becasue we couldn't put down a full 20%, we have PMI. I even tried to get the bank to remove/reduce and they wouldn't even consider. Told the comps are around 75k, but the house next door sold for 40k two months ago.
We have decided that even though it will be damaging to us, we are willing to walk away from the cash equity (my life savings) we had in the house and just chalk it up to "just one of those things that happen in life" But not sure how we can even do that. We learned that if we go through foreclosure, that the bank could still get a deficiency judgement and come after us after the fact.
We are terrified. We don't qualify for any of the programs. We just want to get on with our lives at this point. I can't keep worrying if the tenant is going to pay rent on time or worry what call I'll get from the management company about another major repair on a 60 year old house.
What can we do???? And if we need an attorney, how do you know they can be trusted to look out for your best interest. I had one attorney tell me he charges 2k flat fee up front - when I asked about things like the deficiency judgement, he just said it was possible, we would just work hard to get them to waive it. So basically I got the impression that while he might try his hardest, no promises. Seems like it would be no skin off his nose if the bank denied the waiver.
Here are the stats: Pd 182,000 and currently owe 150,000 to Chase. Decent interest rate of 5.5%. Becasue we couldn't put down a full 20%, we have PMI. I even tried to get the bank to remove/reduce and they wouldn't even consider. Told the comps are around 75k, but the house next door sold for 40k two months ago.
We have decided that even though it will be damaging to us, we are willing to walk away from the cash equity (my life savings) we had in the house and just chalk it up to "just one of those things that happen in life" But not sure how we can even do that. We learned that if we go through foreclosure, that the bank could still get a deficiency judgement and come after us after the fact.
We are terrified. We don't qualify for any of the programs. We just want to get on with our lives at this point. I can't keep worrying if the tenant is going to pay rent on time or worry what call I'll get from the management company about another major repair on a 60 year old house.
What can we do???? And if we need an attorney, how do you know they can be trusted to look out for your best interest. I had one attorney tell me he charges 2k flat fee up front - when I asked about things like the deficiency judgement, he just said it was possible, we would just work hard to get them to waive it. So basically I got the impression that while he might try his hardest, no promises. Seems like it would be no skin off his nose if the bank denied the waiver.
Hi Guest!
Welcome to forums!
As you're facing hardship in paying off the mortgage, you can apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you would be able to pay off the deficient balance with the help of the PMI. However, this would reduce your credit score by 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you're facing hardship in paying off the mortgage, you can apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you would be able to pay off the deficient balance with the help of the PMI. However, this would reduce your credit score by 250 points.
Feel free to ask if you've further queries.
Sussane
Sussane,
Thank you for your response. Can you explain what you mean by "pay off the deficient balance with the help of PMI"? Also, do I need an attorney? Is there generally a cost involved. Is Chase likely to agree? I have heard they are not the easiest to work with. Last question: If I start missing payments, will that hurt my chances of getting Chase to agree?
Thanks again for your guidance in advance?
Thank you for your response. Can you explain what you mean by "pay off the deficient balance with the help of PMI"? Also, do I need an attorney? Is there generally a cost involved. Is Chase likely to agree? I have heard they are not the easiest to work with. Last question: If I start missing payments, will that hurt my chances of getting Chase to agree?
Thanks again for your guidance in advance?
Hi Guest,
The insurance premiums that you pay for the private mortgage insurance will be used by the lender to recover his dues. It is not mandatory to take the help of an attorney in this regard. It is completely the discretion of the lender whether or not he would agree for it. Unless you're delinquent on your mortgage payments, the lender might not agree for a deed in lieu of foreclosure.
The insurance premiums that you pay for the private mortgage insurance will be used by the lender to recover his dues. It is not mandatory to take the help of an attorney in this regard. It is completely the discretion of the lender whether or not he would agree for it. Unless you're delinquent on your mortgage payments, the lender might not agree for a deed in lieu of foreclosure.