Posted on: 25th Apr, 2008 10:45 pm
i have a single unit family home in pre-foreclosure in missouri behind 3 payments. what can i do to slow down the foreclosure process here so that i get the time to catch up with payments. are there any programs offered by the govt to help people in pre-foreclosure. someone offered that we do a short sale. but we’re not sure. can we refinance if in pre-foreclosure, now that we're already 3 months behind. we bought the house for $175k and owe $135k . so we do a short sale ro refinance?? or should i sell house to my friend and then later on have him sell it back to me? has anyone gone into this before? i want to know how missouri works with pre-foreclosure homes.
Hi Jacob,
Welcome to the forum.
Have told to you lender about your problem regarding mortgage payments? If not then talk with him ASAP and see what are the options available?
I think you may not refinance now as you are already three months behind and if you can make payments and catch up the payments then no need to short sell. Rather request the lender for mortgage modification. In that case you can make the payments as the monthly payments will be lower.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Have told to you lender about your problem regarding mortgage payments? If not then talk with him ASAP and see what are the options available?
I think you may not refinance now as you are already three months behind and if you can make payments and catch up the payments then no need to short sell. Rather request the lender for mortgage modification. In that case you can make the payments as the monthly payments will be lower.
Feel free to ask if you have any further questions.
Best of luck,
Larry
thansk for the quick response larry. i did talk to the lender and they suggested short sale. but i would still like to look out for other options. because just don't wanna lose the home. so still want to know if there are govt programs in missouri that can help people like me in mortgage trouble or if i could refinnace? i don;'t knoew much about modification? is it all about a new loan? isn;t it same as refinance? and would i be able to lower payemnts in modification? pls help..
Hi Jacob,
Welcome back.
Mortgage modification is an agreement between you and your lender. According to this agreement the original rates and terms of your mortgage will be changed so that you can afford the monthly payments and can get back into the track.
You can also contact with the HUD approved counselors for mortgage help.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome back.
Mortgage modification is an agreement between you and your lender. According to this agreement the original rates and terms of your mortgage will be changed so that you can afford the monthly payments and can get back into the track.
You can also contact with the HUD approved counselors for mortgage help.
Feel free to ask if you have any further questions.
Best of luck,
Larry
your lender is pretty peculiar, jacob. did they make no mention to you at all of alternatives to a short sale? they ought to be working with you to try to resolve this issue to your mutual best interests. i suggest you contact them again to try to speak to someone in a supervisory position to see if you can work out a modification agreement. a short sale will simply force you to seek a new dwelling; you've already stated your desire to catch up and stay in the home, so why would a short sale solve your problem?
i know nothing about laws in missouri, but it would benefit you to contact an attorney in your area to discuss your options.
i know nothing about laws in missouri, but it would benefit you to contact an attorney in your area to discuss your options.
Hey Jacob,
Your options are
1. Forbearance Plan.
2. Modification of the Loan.
3. Reinstatement
4. Short Sale.
Forbearance plan is an extended instalment plan its also offered by HUD so its applicable in Missouri as well. This should be your first option,since you are so keen on retaining the property.
Second option should be a loan modification for a rate freeze . let me know if you have more questions.I would be happy to help. Thanks.
Your options are
1. Forbearance Plan.
2. Modification of the Loan.
3. Reinstatement
4. Short Sale.
Forbearance plan is an extended instalment plan its also offered by HUD so its applicable in Missouri as well. This should be your first option,since you are so keen on retaining the property.
Second option should be a loan modification for a rate freeze . let me know if you have more questions.I would be happy to help. Thanks.
Ok knight, i do have a question. I've heard sometimes loan modification increases your payemnts or interest whatever but if it raises the payment, then what's the use of going for it? any person unable to affrod payemnts will as it not be able to pay any higher, isn't it?
Hi Jacob,
I think if even after mortgage modification the rates or the monthly payments increases then it is no use to go for it. But it dose not happens much. But the borrowers need to confirm that they going get to a reasonable and affordable payment plan after the mortgage modification.
Best of luck,
Larry
I think if even after mortgage modification the rates or the monthly payments increases then it is no use to go for it. But it dose not happens much. But the borrowers need to confirm that they going get to a reasonable and affordable payment plan after the mortgage modification.
Best of luck,
Larry
Is it a standard of 3 months behind starts foreclosure?
Hi Jacob,
A loan modification should not increase your payments. Currently most lenders when they do a loan modification lower your interest rate and if you are in a ARM they will take your loan and make it a fixed rate mortgage.
A loan modification should not increase your payments. Currently most lenders when they do a loan modification lower your interest rate and if you are in a ARM they will take your loan and make it a fixed rate mortgage.
