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Does second mortgage help avoid foreclosure?

Posted on: 14th May, 2008 07:42 am
n you take out a second mortgage to save foreclosure on your house? my husband was in an automobile accident six months ago and has not been on short-term disability since that time. we are facing foreclosure on our home but have quite a bit of equity built up. can i take out second mortgage to avoid foreclosure on our home and sustain us until we receive re-imbursement for his lost wages in an insurance settlement?
i hope your husband is getting back on his feet alright. i know how stressful the entire situation can be with everything that needs to be dealt with during a time like this.

you may be able to take out a 2nd or get a refinance to save your home but since lenders underwriting conditions are usually fico (credit score) driven things will be dependent on how much your credit has suffered during this period.

have you been able to keep the payments up during this time?
how many are due?
have you talked to your lender about the current situation?
do you have any income or are living on savings?

the first thing i always suggest is to talk to your lender & see how or if they might be willing to work with you.

for other suggestions you can cut & paste this link into your browser laddress line to an article i wrote "http://www.zimbio.com/mayor+patrick+morris/articles/27/find+yourself+pre+foreclosure+situation+don"

good luck
Posted on: 14th May, 2008 09:44 am
Thanks. I will check out the site that you posted.

We have my income only, so it has been cut in half. We were able to keep the payments current for three months but we are now three months behind, so I doubt that our lender would be willing to work with us. I'm sure this would have to be from a second party, and our credit has suffered much so I'm trying to figure out my options quickly so we don't lose our home!
Posted on: 14th May, 2008 10:12 am
I'm sorry to hear how close you may be!

Try talking to your lender anyway, you may get a surprise...the last thing lenders want to do lately is foreclose if there's another way. Did you know it costs them an average of $40K when they foreclose on a home & often more.

If not you can always talk to a mortgage broker who offers 'Hard Money' loans.

Also, have you checked out your state's foreclosure timeline? For example in GA you can lose your home in as little as 37 days in CA it's 90-120 days.

Lynnette
Posted on: 14th May, 2008 12:21 pm
I'm sorry to hear how close you may be!

Try talking to your lender anyway, you may get a surprise...the last thing lenders want to do lately is foreclose if there's another way. Did you know it costs them an average of $40K when they foreclose on a home & often more.

If not you can always talk to a mortgage broker who offers 'Hard Money' loans.

Also, have you checked out your state's foreclosure timeline? For example in GA you can lose your home in as little as 37 days in CA it's 90-120 days.

Lynnette
Posted on: 14th May, 2008 12:54 pm
hi jtmoraga,

definatley contact your lender make sure you speak with the loss mitigation department. this department is there to work out a negotiated arrangement for the lender they will work with you. by the way who is your lender?
Posted on: 14th May, 2008 03:50 pm
Lynette and Cliff, how about Tmoraga going for a cashout refinance? I'm saying because if he goes for a second mortgage, he's going to get pretty high rates than a refinance, isn't it? Do you really think hard money lenders can help in such situation? They too charge high rates, don't they?

God bless

Samantha
Posted on: 15th May, 2008 05:38 am
If you currently have enough income to pay for your home you may try to work out some sort of hardship program with your lender. Also see if FHA loan can help you out. As long as you qualify based on income and can show that this was a temporary hardship an FHA loan may be possible.
Posted on: 15th May, 2008 05:43 am
I agree hard money lenders are very expensive and not the best route. I would work with the lender because they have programs where you can modify the loan. You may even qualify for a special forebearance where you would not have to make any mortgage payments until your husband is reimbursed for lost wages.

Have you attempted to contact your lender yet? You should not be afraid of your lender here is a great article that will help you "http://home-buddies.com/dont-be-afraid-of-your-lender/"

Hope this help :D

[Link deactivated as per the forum rules]
Posted on: 15th May, 2008 08:18 am
Clliff, my lender is a locally owned hometown bank.
Posted on: 16th May, 2008 12:34 pm
Hi jtmoraga,

I work with Cliff at Home-Buddies and I would definitely read through that article he posted above. You really should qualify for a Special Forbearance and, Cliff may correct me on this, it would seem to me that a hometown bank would be more inclined to approve you for it.
Posted on: 17th May, 2008 12:18 am
Hi, cliff

Thanks for your suggestions......

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rescue-me-now.com
Posted on: 27th May, 2008 12:03 am
No problem it is my passion to help people in this market!
Posted on: 27th May, 2008 08:54 am
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