Posted on: 15th Feb, 2009 09:08 pm
Lender won't work with us. Home value is at least 100K below what we owe. Should we SS, or go for a DIL or a foreclosure? Also have a HELOC on property, how is that affected? We rent out house (but mortgage isn't covered) and rent another house we live in (had to move for work). How do we know what is best solution?
hi qsyaley,
lenders are not ready to work with you because you are still current on your payments. generally lenders offer the short sale or a deed in lieu if you are already past due on your mortgage payments.
as you are facing hardship, you should inform the lender about it. you will have to negotiate with the lender and convince him. if the lender is convinced, then he may get ready for either a short sale or a deed in lieu.
you have mentioned that there is a heloc on the property. i guess it a second mortgage on the property. though you go for a short sale or a deed in lieu, you will still be liable to pay off the second mortgage. if you cannot, then the lender will place a lien on your other properties.
thanks,
jerry
lenders are not ready to work with you because you are still current on your payments. generally lenders offer the short sale or a deed in lieu if you are already past due on your mortgage payments.
as you are facing hardship, you should inform the lender about it. you will have to negotiate with the lender and convince him. if the lender is convinced, then he may get ready for either a short sale or a deed in lieu.
you have mentioned that there is a heloc on the property. i guess it a second mortgage on the property. though you go for a short sale or a deed in lieu, you will still be liable to pay off the second mortgage. if you cannot, then the lender will place a lien on your other properties.
thanks,
jerry
Hi gsyaley,
Sorry to hear about your mortgage problems and hardships.
Please note the following if your mortgage loan(s) fall under Fannie Mae:
New early workout option: You no longer have to miss two to three months of payments before your mortgage company can modify the loan payments that you can't afford.
Fannie Mae, is now supposed to be letting borrowers who face imminent difficulties to request "early workout" loan alterations, even if they have never been late!!!
Under this new early workout plan, servicers of the company's loans nationwide are supposed to inform borrowers that if they are "reasonably" certain that changes in their income will cause them to miss mortgage payments, they might qualify for an advance loan modification -- before they fall behind.
If you qualify for this, you will have a trial period of reduced payments, usually for four months. If you make those payments on time during the trial, then they are supposed to be able to make that modified mortgage term permanent for you.
Fannie's servicers are supposed to be able to let you know upfront that they will try to lower your monthly payments to accommodate your missing income issues. If you're current on the lowered payments after a four-month trial, and your income has not rebounded, they are supposed to make the change permanent.
They will examine your case individually, check your income, credit reports and other documentation to prove that you aren't faking income shortages just to get a lower payment.
So Please know that there may be other options available to you besides a DIL or SS.
Let us know if you still have questions.
Good luck. :D
Sorry to hear about your mortgage problems and hardships.
Please note the following if your mortgage loan(s) fall under Fannie Mae:
New early workout option: You no longer have to miss two to three months of payments before your mortgage company can modify the loan payments that you can't afford.
Fannie Mae, is now supposed to be letting borrowers who face imminent difficulties to request "early workout" loan alterations, even if they have never been late!!!
Under this new early workout plan, servicers of the company's loans nationwide are supposed to inform borrowers that if they are "reasonably" certain that changes in their income will cause them to miss mortgage payments, they might qualify for an advance loan modification -- before they fall behind.
If you qualify for this, you will have a trial period of reduced payments, usually for four months. If you make those payments on time during the trial, then they are supposed to be able to make that modified mortgage term permanent for you.
Fannie's servicers are supposed to be able to let you know upfront that they will try to lower your monthly payments to accommodate your missing income issues. If you're current on the lowered payments after a four-month trial, and your income has not rebounded, they are supposed to make the change permanent.
They will examine your case individually, check your income, credit reports and other documentation to prove that you aren't faking income shortages just to get a lower payment.
So Please know that there may be other options available to you besides a DIL or SS.
Let us know if you still have questions.
Good luck. :D
