Question
We have a mortgage that is 7 months behind. We have been served default papers. We have contacted the lender and have offered a Deed in Lieu of Foreclosure. My question is is it to late to offer a mortgage modification? The mortgage got behind due to a loss of income that is now not a problem, but the mortgage payment is 980.00 a month that is still more than we can afford to pay right now. Should I just go ahead with the deed in lieu or should I try to work something else out with the lender. I don't want to lose my home.
most likely they will only listen if you bring the payments current......kenmax
You can always try to get them to restructure. Other options - sell to a friend or family member and have them lease it back to you. And then there's always a chapter 13 bankruptcy.
Is it posssible to do a partial claim to bring the mortgage current and then a mortgage modification to lower the payments?
generally speaking, they will not lower payments. only if you refi. they don't like moding a loan but you can ask all they can say is yes or no.........km
"Is it posssible to do a partial claim to bring the mortgage current and then a mortgage modification to lower the payments?"
#1. lenders rarely accept a DIL (deed in lieu of foreclosure). They'll first want the property listed at it's as-is fair market value and attempt a preforeclosure short sale.
#2. partial claim implies an FHA insured mortgage loan. Is that what you have?
#3. If $980 is unaffordable, then a Chapter 13 wouldn't work, either, since your 'plan' would include the regularly scheduled monthly payment... PLUS a portion of the arrears... for a total monthly payment of greater than $980.
[addsig]