Posted on: 10th Nov, 2008 10:23 am
hi
i am new to this website and looking for advice.
we are in foreclosure (no court date yet - very slow in florida). we have owned our home since 2006 and took out our mortgage in 2 parts. a jumbo primary loan and a 2nd lein to make up the total needed to buy the home.
income stopped for 11 months (yes 11 whole months) and we have now secured income again.
we had done a workout with the primary lender back in may and they sent us a loan modification to sign.... however, we did not sign and return as we were let down financially again by an employer.
we just got employment again and immediately did another workout package with the primary 2 weeks ago and this morning spent an hour on the phone as they explained that we can have a forebearance program for 4 months and then be modified after that period if we make payments on time.
my question is, should we be using this window of time to try to negotiate the payment with them? they based their required amount on the new earnings but husband will have some initial expenses that are work related and a lower payment would be better. however we appreciate that the mortgage company is working with us and don't want to 'rock the boat' with them after getting this chance to save our home.
being a lay person, i'm not sure what the guidelines are and wonder if we should get assistance from someone knowledgable before signing any agreements. advice appreciate.
p.s. called the 2nd lein holder to ask to negotiate and was told that they had charged off our loan. now received a letter from them calling it a home equity loan??? how can it be a home equity loan when it was a loan taken to purchase the house in the first place?
i am new to this website and looking for advice.
we are in foreclosure (no court date yet - very slow in florida). we have owned our home since 2006 and took out our mortgage in 2 parts. a jumbo primary loan and a 2nd lein to make up the total needed to buy the home.
income stopped for 11 months (yes 11 whole months) and we have now secured income again.
we had done a workout with the primary lender back in may and they sent us a loan modification to sign.... however, we did not sign and return as we were let down financially again by an employer.
we just got employment again and immediately did another workout package with the primary 2 weeks ago and this morning spent an hour on the phone as they explained that we can have a forebearance program for 4 months and then be modified after that period if we make payments on time.
my question is, should we be using this window of time to try to negotiate the payment with them? they based their required amount on the new earnings but husband will have some initial expenses that are work related and a lower payment would be better. however we appreciate that the mortgage company is working with us and don't want to 'rock the boat' with them after getting this chance to save our home.
being a lay person, i'm not sure what the guidelines are and wonder if we should get assistance from someone knowledgable before signing any agreements. advice appreciate.
p.s. called the 2nd lein holder to ask to negotiate and was told that they had charged off our loan. now received a letter from them calling it a home equity loan??? how can it be a home equity loan when it was a loan taken to purchase the house in the first place?
Hello specialthingsforyou,
Yes, you should take the forbearance that they are offering. You can still negotiate with them at any time for the loan modification based upon the change in financial status (the change in his expenses that you mentioned).
You are doing the right thing in contacting your lender and keeping in touch with them. That is always the most important thing for you to do. Always let them be aware of your changes with your financials, income, etc. As you have noticed, they have several different workout plans to see if you qualify for them, in order to save your home from foreclosure.
Please be sure to continue staying in touch with your lender until your final loan modification has been achieved.
As for your 2nd lien being charged off and now it is showing as a home equity loan, we can only assume that they have stated that incorrectly to you. However, it is still going to be negatively affecting your credit because it is a charge off against you now.
Please let us know if you still have questions.
Good luck. :D
Yes, you should take the forbearance that they are offering. You can still negotiate with them at any time for the loan modification based upon the change in financial status (the change in his expenses that you mentioned).
You are doing the right thing in contacting your lender and keeping in touch with them. That is always the most important thing for you to do. Always let them be aware of your changes with your financials, income, etc. As you have noticed, they have several different workout plans to see if you qualify for them, in order to save your home from foreclosure.
Please be sure to continue staying in touch with your lender until your final loan modification has been achieved.
As for your 2nd lien being charged off and now it is showing as a home equity loan, we can only assume that they have stated that incorrectly to you. However, it is still going to be negatively affecting your credit because it is a charge off against you now.
Please let us know if you still have questions.
Good luck. :D
Thanks so much for your reply. I appreciate the time you took. Can I pick your brains further?
I've been doing a bit of internet surfing and I'm wondering if what the mortgage company has offered us 'is' a Forebearance plan at all.... They have said that we must pay 4 monthly payments that are set slightly higher than our original monthly payments as we have accumulated quite a large sum in arrears. They have said that if we make one single payment of the 4 months late we will be closed out and the foreclosure will be back on. If after 4 months all payments have been received we will then need to proove that we can afford the payments and be considered for a loan modification. Does this sound like a typical Forebearance deal?
As for the 2nd lien, we too thought they had made a mistake by calling it a home Equity Loan but a friend suggested that they may be trying to call it that so it is a recourse loan and try to pursue us personally for collection. Yet I believe the lein is still against the property? But there is no equity in the property so if it were to foreclose they would receive nothing.
Can anyone shed some light on recourse and non-recourse of 1st and 2nd leins? I'm so confused!!!
I don't understand why they charged the 2nd lein off and didn't even tell us. I only found out when I called into the bank to try to negotiate a lower payment. This seems so bizarre to me.
I've been doing a bit of internet surfing and I'm wondering if what the mortgage company has offered us 'is' a Forebearance plan at all.... They have said that we must pay 4 monthly payments that are set slightly higher than our original monthly payments as we have accumulated quite a large sum in arrears. They have said that if we make one single payment of the 4 months late we will be closed out and the foreclosure will be back on. If after 4 months all payments have been received we will then need to proove that we can afford the payments and be considered for a loan modification. Does this sound like a typical Forebearance deal?
As for the 2nd lien, we too thought they had made a mistake by calling it a home Equity Loan but a friend suggested that they may be trying to call it that so it is a recourse loan and try to pursue us personally for collection. Yet I believe the lein is still against the property? But there is no equity in the property so if it were to foreclose they would receive nothing.
Can anyone shed some light on recourse and non-recourse of 1st and 2nd leins? I'm so confused!!!
I don't understand why they charged the 2nd lein off and didn't even tell us. I only found out when I called into the bank to try to negotiate a lower payment. This seems so bizarre to me.
Hi specialthingsforyo u!
Welcome to forums!
I don't think it is a forbearance plan that is offered to you. You should speak to the lender once again and check with them. You may also consult a mortgage attorney for this.
In a recourse loan, the lender can come after you for any excess amount of money you owe. For a non-recourse loan, if property does not fetch enough money at sale to pay the lender off, that lender cannot come after you and ask you to pay off the deficient amount. Whether a loan is recourse or non-recourse varies with the state and will be mentioned in the loan documents.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
I don't think it is a forbearance plan that is offered to you. You should speak to the lender once again and check with them. You may also consult a mortgage attorney for this.
In a recourse loan, the lender can come after you for any excess amount of money you owe. For a non-recourse loan, if property does not fetch enough money at sale to pay the lender off, that lender cannot come after you and ask you to pay off the deficient amount. Whether a loan is recourse or non-recourse varies with the state and will be mentioned in the loan documents.
Feel free to ask if you have further queries.
Sussane