Question by veebeedee: What is the next step after being 3 months behind on mortgage and receiving a foreclosure letter?
I lost my job and got behind. I have since got a new job,(way lower paying) but still behind on all bills.
I got this letter saying I am 3 months behind. I have submitted paperwork to them in March to get some kind of help with this and they still have not helped me. I call and ask them what is the progress and they say a decision has not been made and it takes a long time.
I guess my question is, can I make a partial payment? If I’m more than 3 months late, but do make a payment in July they accept it? I am saving money to pay it, but it’s rough. I will call and ask them also when they open, just wanted some advice. I tried with 2 other mortgage companies to try and get refinanced but got declined because of bad credit and bankruptcy. (I wanted to get a new mortgage co. too because I don’t like this one) When those 2 declined me, I had no choice but to ask my current company for help. They don’t seem willing to help me at all. Or at least not in a hurry.
Best answer:
Answer by glenn
You need a good friend that can give good financial advice to sit down with you and look at your bills (maybe parents or a sister or brother?). It may be that you can no longer afford to stay in your house. If that is true then you need to see if it can be sold (even if it is a short sale). Your new job may not be enough to meet the house payments where you are and sending the little cash you have would be a waste of money.
If you can get back on track and eventually make the back payments, then you need to present a realistic plan to the mortgage company about how long it will take.
In the absolute worst case you may just have to let the house go back- in that case you would look at your remaining time in this house as a time to save up cash. It will be hard to find a place to rent with your foreclosure and the cash will help for a large deposit.
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you may not have many options at this point unfortunately, the bank has started foreclosure proceedings which can take six months to complete so you probably only have three more months before the lender will actually foreclose on your house, partial payments probably will not stop the process only a full payment to bring you up to date with you lender will stop the process at this point
If you make a half payment you will lose the property anyway. Don’t make a payment, but go and talk to your bank first. Sometimes, there is nothing that can help you because the lenders refuse to work with debtors. Instead they have an insurance policy that makes up for the house being lost. You should keep your money until you talk to the bank. Find out your alternatives first, then save your money to rent a place. There is no use throwing money away to people when you can’t realize any advantage from it.
you could talk to your lender and see if they would be willing to allow a short sale of your property. that would mean that you would sell your house for less than your loan balance and your lender would accept the proceeds from the sa;e as payment in full. I’d talk to a realtor after you speak with your lender and see what they could do to help.
There’s a terrific article at eHow on steps you can take to avoid foreclosure:
http://www.ehow.com/how_2256426_foreclosure-middle-subprime-housing-crisis.html
How to Avoid Foreclosure During the Subprime Crisis
Read through it carefully, follow the steps outlined, and make full use of the Resource links provided.
You may also want to have a look at this one, on ways to earn some extra cash
http://www.ehow.com/how_2254361_money-internet.html
How to make money on the internet, scam-free
Hope that helps. Best of luck.