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What to do if i cannot pay my mortgage?

Posted on: 22nd Jan, 2005 12:36 am
First, don't worry at all.
Keep a cool head and analyze your options.
You have more options to choose from than you thought. If you have nightmares on foreclosure, you need to know this.

Lenders hate foreclosures.
Yes, because it involves a hefty cost and nobody likes paying through their pockets. All you need to do is talk to your lender before the payment is due and try to negotiate with him.

The lender is human enough and will surely help you out.

First ask yourself a few questions:
  • Can I afford to pay my mortgage after a few months?
  • Can I never pay it back?
  • Can I afford to lose my house?
  • Is my lender on good terms with me?
If you are financially tied down temporarily, you can opt for a forbearance agreement clubbed with a repayment plan. The forbearance agreement includes a - no payment or low payment for about 6 months. After this term the repayment plan begins operation. You then have to pay the interest and an additional amount which covers the balance of the forbearance period.

If the condition is permanent but you are not bankrupt yet, you can request your lender for a loan modification. This could involve either:
  • A reduced interest rate
  • A longer term
  • A different loan type Or,
  • A combination of the above
If the condition is permanent and you are close to bankruptcy you still have three alternatives:
  • Work out an assumable mortgage: You can sell the property with the mortgage to a buyer who is willing to be liable to the deal.

  • Short sale: With the lender's permission you can sell the house and repay the loan as full payment from the proceeds of the sale. This amount has to be accepted even if the loan balance exceeds the sale price of the property.

  • Deed-in-lieu of foreclosure: You can hand over the title to the lender in full discharge of the mortgage.
You can also refinance the loan and carry on, but that is possible only if your credit is good enough.

If and only if all other options fail should you hands down on foreclosure. So, play your cards safe, maintain good terms with your lender and work out a plan to get out of the foreclosure. Whatever you do inform the lender. The arms are already in your cache, choose the one which fits the bill.
Hello,

I am very fear to lose my house. I have not pay my mortgage almost two months.. I have not talk to mortgage yet. I still pay my bills not mortgage. Will I lose my house??
Posted on: 25th Dec, 2005 05:19 am
Hi, Jean

Dont get so scared about not paying your mortgage. For me theres always a way out all you need is to stay calm and look for it.

Can you tell me that whats the reason that you didnt pay your mortgage.

Please tell me this then we will discuss on it further and then only i will able to help you.

Adonis
Posted on: 25th Dec, 2005 05:44 am
mortage payment is $1324 intreste 9.75% and for 2009 payment $2000
keep go up i jest stop paying if i pay this year i konw ican not pay next year it is to much thay dont lower the interst
Posted on: 09th Dec, 2008 10:20 am
hello shekib,

you need to contact someone in the loss mitigation department of your lender. they will have several workout options that you may qualify for to keep your home. some of the options include a loan modification.

be sure to ask for a fixed rate and a lower rate.

be sure that your current monthly expenses do not exceed your current monthly net income.

let us know if you still need help and have more questions. you may visit home-buddies.com and get the free mortgage problem guide that is available there.

good luck. :d
Posted on: 09th Dec, 2008 02:20 pm
This loan modification is going to be a big problem for small business owners. A lot of people are choosing to default on their home in order to keep the offices running. That may not be the best option, because in the end everyone is hurt.

Small business owners need to be reminded that there are alternatives to financing, not defaulting is one of them.

Try searching for "strong business credit" via google or yahoo. This would be a good start if you are a business owner.

Sincerely,


Ilya Bodner
Small Business Owner
Initial Underwriting Group
Posted on: 11th Feb, 2009 10:09 am
My parents are in the same boat right now, but they just decided to stop paying and move on. Will they be able to come after my parents for the money?
Posted on: 11th Feb, 2009 12:21 pm
Hi msnover,

Walking away from the property may result into foreclosure. The lender will sell off the property in order to recover the debts. If it results into a deficient amount, then the lender can come after your parents for that deficient amount.

Thanks.
Posted on: 13th Feb, 2009 03:54 am
I can not make the mortgage payment and the house insurance is not
included in the loan. Do I still have to continue to pay the homeowners insurance?
Posted on: 27th May, 2009 09:13 pm
Hi Earlene,

You can find a similar query discussed at http://www.mortgagefit.com/foreclosure/payment-insurance.html .

If there is any further query you'd like to ask, feel free to post.

Thanks,

Jerry
Posted on: 28th May, 2009 07:09 am
i can not pay my heloc
Posted on: 04th Aug, 2009 05:46 pm
What do i need to do
Posted on: 04th Aug, 2009 05:49 pm
Fernie

Did you call you bank for loan modification adn have you spoek to them about your financial problems


My two cents
Posted on: 04th Aug, 2009 07:22 pm
have va loan--30 yr. 26 yrs. left 7% loan 70$k home. on fixed social security & wife goes on social security early next year. have outstanding credit now, but moving back home to live out our life--to area that is expensive. cannot afford on our reduced income to pay for bills, large credit card, home here & also apt. there?? help
Posted on: 09th Aug, 2010 04:10 pm
Hi dod,

If you want to get rid of your home, then you can list the property in the market. This will help you in getting buyers for your property. If you're already delinquent on your mortgage payments, then you can apply for a deed in lieu of foreclosure. If the lender accepts your request, then you would be able to sell off the property and you won't be liable for paying the balance amount resulting from the property sale.

Thanks,

Jerry
Posted on: 10th Aug, 2010 02:26 am
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