About To Lose Home!
We are 3 months behind on our mortgage. Our second mortgage is current. The first is for 56,000. Our second is for 8,900. Midland Mortgage has set us up on a payment plan of 761.00 a month. To much! Our original payment was 452.00 a month in yr 2000. We have three children and we will not move. We will pay the 761.00 a month if have to. But I would like another option. we cannot refinance because there is already a partial claim. We had not had one late payment until last year when payment went up! Any advice. I found a web site called bold funding. But it scares me. Please reply!
I will make sure I read the rules. Thanks. Our payment went from 452 to 610 in three years. They say because of taxes and ins. We were never told about the tax excemptions until this year either. Last year we had a car blow an engine, had to buy another one. Hours at the job slowed down for my husband and my job closed. It was awful. They told us at the first month we were going to be late that we had to be three months late to qualify for any help. So then they set us up on the partial claim. It is around 1900.00. But we needed the payments back down that was the point. Now we cant refinance or anything! Our house is in fair condition. New privacy fence and roof. A house around the corner appraised for 66,000 and ours looks a lot bigger and better.
Quote:
On 2004-07-19 17:00, sweet32877 wrote:
I will make sure I read the rules. Thanks. Our payment went from 452 to 610 in three years. They say because of taxes and ins. We were never told about the tax excemptions until this year either. Last year we had a car blow an engine, had to buy another one. Hours at the job slowed down for my husband and my job closed. It was awful. They told us at the first month we were going to be late that we had to be three months late to qualify for any help. So then they set us up on the partial claim. It is around 1900.00. But we needed the payments back down that was the point. Now we cant refinance or anything! Our house is in fair condition. New privacy fence and roof. A house around the corner appraised for 66,000 and ours looks a lot bigger and better.
My advice still stands. Let the second know that you're behind on the first and there's a chance it could go to foreclosure. Ask for a forbearance from them so you can put that money towards getting the first current again. Since you're current on the second they may be more willing to work with you.
Talk to the HUD people. Maybe they can get to the bottom of why your payments increased 35% in three years. Can you break down your payment...actually tell us what is going to principal, interest, taxes, and insurance?
You don't want to borrow any more on your home. You're in a position where you might break even if you're forced to sell. Borrow any more, and if things get worse, you'll either have to pay money to sell your home or just let it go to foreclosure.
My wife's family lost their farm to foreclosure, so I know it's no picnic to be in your shoes. You certainly have my sympathies and I laud you for coming here to seek help. Hang in there.
By the way, since you're not working, have you considered real estate investing as a career?
Also, I'm uncertain what you meant by tax exemptions?
Hi,
I, like the other poster, do feel for you and your dilemma. I’m far from expert on the issues you raise. However, you need to look for a Truth in Lending document required by Federal Law in many instances. TIL covers open [credit card] as well as closed end [mortgage] lending.
You may have one from the Mortgage Company. Within the TIL doc you may find details such as “tax exemption” you spoke of and so forth. If you have a TIL and the rate hikes you mentioned are not disclosed ... well it would be a start. Besides, if they didn’t provide a TIL doc, you could ask a competent attorney if they should have? Again a starting point, perhaps.
Truth in Lending is the Federal Government’s means to compel lenders to disclose all manners & means of the loan provided individuals for open & closed lending, or credit granting.
Having said that, lenders many times hire attorneys whose job it is to “legally” circumvent the process. Always remember attorneys think “Congress” write the laws, attorneys who have yet to run for “Congress” try and circumvent them.
The FTC enforces a number of laws specifically governing lending practices, such as the Truth in Lending Act, TILA, 15 U.S.C. §§ 1601 et seq., and the Home Ownership and Equity Protection Act of 1994 "HOEPA", 15 U.S.C. § 1639, which is part of TILA. The Commission also enforces the Federal Trade Commission Act, 15 U.S.C. § 41, et seq., which broadly prohibits unfair or deceptive acts or practices in or affecting commerce. You need to find or have an attorney determine if one of these laws covers your condition.
Try and find out if your lender failed to comply with the disclosure requirements related to high interest mortgages, an amount equal to the sum of all finance charges and fees paid by you (unless the lender demonstrates to comply is not material). In the case of a mortgage, look for anything over 8 percent in costs and or fees balanced against the mortgage. This is usually for higher interest rate mortgages, but might be applicable to your situation.
http://www.ftc.gov/
You might enlist the help of an attorney versed in Real Estate law, Real Estate [home] mortgages, Real Estate contracts, and so forth.
As for them placing “partial claim” against you ... this may have been an attempt to “stop clause” you. Since, they may be able to profit by your misfortune. If you get a decent attorney, he may be able to have it lifted. Inasmuch as it could be exampled as a means to restrain you from seeking remedy through another means.
Anyway ... good luck ...
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TCI45,
Hey, thanks for chiming in with some good advice. However, (and I could be mistaken) I believe the "partial claim" the author refered to is simply an FHA payout to the lender in order to reinstate the loan.
As an incentive to avoid foreclosure, the FHA will issue a zero-point, zero-interest, zero-payment loan, called a "partial claim" (very much like an insurance claim), that does not have to be repaid until the insured loan is first repaid in full either by reaching term, sale of the home, or refinance. To qualify, the borrower must have an FHA insured loan and be between 4 and 12 months delinquent.
So, if I'm following, the poster was $1900 behind and approaching the 4th month of missed payments, so FHA reinstated the loan by paying the $1900 in arrears.
Thank you so much for all your help. I will look into the advice you have given me. This is a great site where it seems people actually do want to help other people. Thank you.
Go to the following web site they should be able to help you.
http://www.homeownersaa.org/4134/
Equity or credit is not needed but you must meet the following to be qualified:
1. Must be able to afford to resume regular monthly mortgage payment each month after loan is brought current.
2. Must have resolved hardship that caused the delinquency.
3. Must be two or more months behind before they can assist.
4. There is not fee for the analysis and no fee if they can’t help you
Go to our web site and read the testimonials then click on the online application located on the right hand side.
I realize this is an old topic to bring back up to the top. However, the organization the poster originally asked about, Bold Funding, has made the news (and not in a good way).
See here: http://abclocal.go.com/wls/news/111004_ns_boldfunding.html
Emotional and personal reasons must be balanced against financial reality and what is better in the long term.
You may want to try a work out with the lenders as suggested by other posters but before you can arrive at a final decision of what to do you should consider the following.
Reasons to keep:
Home Has Equity
Temporary Hardship
Personal Reasons
Financial Recovery in Sight
Reasons to sell:
Negative Equity
Long Term Financial Hardship
Significant Drop in Income
High Cost of Living in Area
Severe Indebtedness
It is possible to propose a workout to keep the home initially and then to fall back on another strategy if that the lender may have declined.
The appropriate workout should be selected based on the type of financial hardship you have experienced and whether you can afford to keep your home.
You can do a Loan Modification, Repayment Plan or a Forbearance to keep the home. You can do a short sale or deed in lieu to cure the debt.
A loan modification workout program seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. This workout makes sense in a situation where you have experienced a decline in income and can no longer afford the original loan but could afford the payments with a little adjustment. Loan modifications include lowering the interest rate, extending the loan period, or adding the delinquent portion and fees back onto the principal of the loan to be repaid overtime.
A repayment plan is suited if you had a short-term financial hardship but are now getting back on your feet.
A forbearance is a request that the lender forbear (stop) from proceeding any further with the foreclosure for a short period of time. This is usually done along with another workout.
A "short sale" is the best solution when you are "upside down" in your home due to a decline in the local real-estate market (meaning you owe more on their home than it is worth). By doing a short sale, you are asking the lender to discount your mortgage principal to a level that can be discharged by selling the home at market value.
To complete a short sale, you should find a realtor or service that will be able to market your home as a short sale (often with reduced commissions) and is skilled at competently following up with the lender to handle all the details.
Short sales can be done with multiple mortgages / lien holders, but the negotiations involved become more complicated.
Under a "deed in lieu" workout you surrender your property to the lender in exchange for forgiveness of their mortgage. These workouts are more rare than the others because it still leaves the lender holding a repossessed property that needs to be resold. Therefore, lenders are much more open to a short sale scenario as a more complete solution.
Contact your lender or get help from a foreclosure assistance service
You should contact your lender to find out what kind of workout programs they have available. The first thing to realize when you deal with your lender is that their frontline contact point for delinquent borrowers is probably a collections group whose goal it is to persuade you to bring your mortgage current. Another department, typically referred to as the "loss mitigation group", works with you when you cannot get your loan current without some form of a workout program.
Be sure to be cooperate and honest when working with your lender as you will gain much more vs letting emotions guide you in this process!
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