Posted on: 15th Apr, 2008 12:37 am
We are looking at a possible foreclosure in the near future if our lender does not work with us. We are not in default at this point and they refuse to modify the loan. I wanted to speak to an attorney about our options.. what type of attorney should I be looking for?
Thank you for your help!
Thank you for your help!
Hi Jasmin,
Welcome to the forum.
I think you should better contact with the lender and request him again and again. If you cannot afford loan modification then you can try out other options like Forbearance and Repayment plan or Reinstatement. There are so many other options to avoid the foreclosure.
Check out "17 ways to protect yourself from the foreclosure trap" at http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I think you should better contact with the lender and request him again and again. If you cannot afford loan modification then you can try out other options like Forbearance and Repayment plan or Reinstatement. There are so many other options to avoid the foreclosure.
Check out "17 ways to protect yourself from the foreclosure trap" at http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Feel free to ask if you have any further questions.
Best of luck,
Larry
OK, so the lender has given you the default notice? when is the date of foreclosure? and it isn't necessary for one to take help from an attorney for negotiating options like short sale, loan modification etc.
However, if you are comfortable with seeking attorney help, then look out for those who deal with loan modification cases or probably a mortgage attorney will be ok for you. But more than speaking to an attorney, discuss the options with the lender. This is because he's the guy who can actually help you if at all he's willing to! If loan modification is not preferable by your lender, ask him what alternatives he can offer you. So, have a talk with the lender/attorney about your options and keep us updated so that the experts/lenders participating here can come forward with the pros and cons of such options or even find out some better option for you. Oh by the way, do you know about the new FHA Secure? just check out more on this at a discussion on New Plan for deliquent borrowers .
Good luck
However, if you are comfortable with seeking attorney help, then look out for those who deal with loan modification cases or probably a mortgage attorney will be ok for you. But more than speaking to an attorney, discuss the options with the lender. This is because he's the guy who can actually help you if at all he's willing to! If loan modification is not preferable by your lender, ask him what alternatives he can offer you. So, have a talk with the lender/attorney about your options and keep us updated so that the experts/lenders participating here can come forward with the pros and cons of such options or even find out some better option for you. Oh by the way, do you know about the new FHA Secure? just check out more on this at a discussion on New Plan for deliquent borrowers .
Good luck
yes, we have looked at fha secure already (through a company's that are fha approved) and do not qualify. we are currently not in default. initially i was told by our lender that b/c we were not in default that they could not help us. i have been in contact with their loss mitigation dept (submitted financial statement, formal letter, etc) and they offered us a pre-foreclosure sale or a deed in lieu. they will not do a loan modification..
my concern is that we have a 2nd mortage (equity line of credit) and im worried that with whatever we decide (deed in lieu, foreclose, etc) that we may still have to pay the remainder (our house is less worth then the both our 1st and 2nd). i have been trying to work with our lender on the 1st for months and months now and am getting nowhere essentially b/c we are current. needless to say, refinancing has not been an option for us (i have been trying to do that since last year) since the home prices are so low.
it just seems that regardless of the options available to us (deed in lieu, short sale, foreclose) the entire process will be traumatic. and i want to be prepared in case we will need to owe.
anyways, thanks for your responses. i apologize if i babbled.. this site has been such a resource to me, i can honestly say that i am trying to be proactive about this as a result of the advice/suggestions i have seen on here.
thanks again
my concern is that we have a 2nd mortage (equity line of credit) and im worried that with whatever we decide (deed in lieu, foreclose, etc) that we may still have to pay the remainder (our house is less worth then the both our 1st and 2nd). i have been trying to work with our lender on the 1st for months and months now and am getting nowhere essentially b/c we are current. needless to say, refinancing has not been an option for us (i have been trying to do that since last year) since the home prices are so low.
it just seems that regardless of the options available to us (deed in lieu, short sale, foreclose) the entire process will be traumatic. and i want to be prepared in case we will need to owe.
anyways, thanks for your responses. i apologize if i babbled.. this site has been such a resource to me, i can honestly say that i am trying to be proactive about this as a result of the advice/suggestions i have seen on here.
thanks again
Most first mortgage lenders will not consider a deed in lieu when there is an existing scond mortgage. Not sure why they brought this up. Ditto for a sale. Not sure how grantee would obtain "clear" title.
You don't have a constitutional right to have the loan modified. Indeed there may be little incentive for the holder of the first mortgage to do this. YOU choose to put a heavy debt burden on your home and now the you lost your bet on the appreciation machine and you think YOU are the aggrieved party. Your choices have consequences; welcome to the real world.
There is a growing cottage industry of lawyers that will "come to your aid". Likely they will present spurious arguments. Such is the American legal system. You should be able to "buy" yourself a few more months of "free rent" but at substantial cost to your credit profile. Were it not be for the secondary lien in your upside down position there could be light at the end of the tunnel but there's little hope with both liens. Doubtful the two lenders will work in concert.
You don't have a constitutional right to have the loan modified. Indeed there may be little incentive for the holder of the first mortgage to do this. YOU choose to put a heavy debt burden on your home and now the you lost your bet on the appreciation machine and you think YOU are the aggrieved party. Your choices have consequences; welcome to the real world.
There is a growing cottage industry of lawyers that will "come to your aid". Likely they will present spurious arguments. Such is the American legal system. You should be able to "buy" yourself a few more months of "free rent" but at substantial cost to your credit profile. Were it not be for the secondary lien in your upside down position there could be light at the end of the tunnel but there's little hope with both liens. Doubtful the two lenders will work in concert.
hi jasmin,
first and foremost i'd like to ask you if at all you feel like leaving this home? if you really don't want to move out, then options like short sale and deed-in-lieu are not worth considering. don't you have an insurance policy on your mortgage? or do you have an insurance policy which you can encash and then pay off the mortgage. this is known as life settlement service.
another option can be filing a chapter 13 bankruptcy but you need to qualify for it. for this, you'd have to talk to a bankruptcy attorney.
know more on why filing chapter 13 may be helpful .
thanks.
first and foremost i'd like to ask you if at all you feel like leaving this home? if you really don't want to move out, then options like short sale and deed-in-lieu are not worth considering. don't you have an insurance policy on your mortgage? or do you have an insurance policy which you can encash and then pay off the mortgage. this is known as life settlement service.
another option can be filing a chapter 13 bankruptcy but you need to qualify for it. for this, you'd have to talk to a bankruptcy attorney.
know more on why filing chapter 13 may be helpful .
thanks.
Hi guest,
Welcome to the forum.
"Most first mortgage lenders will not consider a deed in lieu when there is an existing scond mortgage"
I agree with what you've said here. The chances of not getting the entire sale proceeds and the debtor being unable to pay the deficiency often forces the lender not to accept a deed-in-lieu when there are 2 loans.
There's little light but at least there is some light for Jasmin. I would rather go by what helping_user suggested here. Why not try and file chapter 13? yes it affects credit but doesn't other affect?
I personally feel jasmin should try out for bankruptcy and off-course Chapter 13.
Hope this helps...
God bless you.
Samantha
Welcome to the forum.
"Most first mortgage lenders will not consider a deed in lieu when there is an existing scond mortgage"
I agree with what you've said here. The chances of not getting the entire sale proceeds and the debtor being unable to pay the deficiency often forces the lender not to accept a deed-in-lieu when there are 2 loans.
There's little light but at least there is some light for Jasmin. I would rather go by what helping_user suggested here. Why not try and file chapter 13? yes it affects credit but doesn't other affect?
I personally feel jasmin should try out for bankruptcy and off-course Chapter 13.
Hope this helps...
God bless you.
Samantha
