Question : What options are available to avoid foreclosure?
I have a relative that can no longer pay for a high mortgage payment, what options are available to avoid foreclosure? The house has been on the market for nine months but no buyers.
- asked by Badbone
All Answers:
Answer #1
Don't stop making the payments yet. Have a lenderreview the loan and the equity and see if there issomething they can do in the mean time to lowerthe payments.Second, see if they could rent outthe house to cover the payments for now.Third,offer more commission to the selling agent. Like5% to the selling agent. This will motivate theagents to show this house.Last step, contact thelender and see what they can do. Remember though,if the bank loses money you could be tax for thedifference as income. This should be your lastresort.I hope this helps you. Feel free to emailme with more questions.CA Lender
- answered by lenderjayne
Answer #2
If your relative wants to keep the home, but isjust in over there head in bills, file bankruptcyto get rid of all the other debt but they canstill file a "stay" to be able to keep the home.
- answered by wanting baby3
Answer #3
we tried refinancing, it was a no go. our creditsucks. so what we went for is a bankruptcy. i hateto do this, but i am left with no other option atthis time. we are filing chapter 13, this means wehave to repay our debt, no walking away scottfree. which is ok, because we can keep our houseand our cars. we will be in the program for atleast 3 years and we will be on a STRICT budget.we pay a trustee of the court and it willautomatically come out of our checks. i didnt wantan escape path, i just wanted a chance to make mydebts tolerable. we live in michigan and it willcost us about $850. it will take us a few weeks ofscrimping to get it, but if i can keep a roof overmy kids heads i will do anything. we contacted alawyer that specialized in it, look in your phonebook. i really hope this helps, or at leastsomeone here can help. i understand the feelingsof failure and frustration, it can kill a family.good luck to your relative.
- answered by rachael
Answer #4
Geez with all the super low payment mortgages whynot just refi and get a lower payment plan.
- answered by Joe Bleu
Answer #5
Is the person already in default? ( missedpayments?) The first thing to do is for the ownerto call the lender, and also put it in writing,and try to negotiate terms. Sometimes, if only apayment or two was missed, the lender will executedocuments to put the missed payments on the backend. If it is due to a temporary situation, suchas a health issue, the lender may work with you.Your relative should see a lawyer if he/she letmany months go by with no payments and hasn'ttalked to the lender. Now, with the sub-primedebacle, many people have gotten in way over thereheads when the mortgage rate resets. Some lenderswill do a work-out rather than become the owner ofthe real estate. Your relative needs to confrontthis head-on, as painful as it is, and see if heor she can negotiate his way out. If his or hercredit is not yet impaired, perhaps refinancingwill work, but usually, by the time someone asksfor help, it is late in the game!
- answered by es
Answer #6
First and foremost. There are many options if youhave money.. Contact the lender. Tell them thatyou had a financial struggle do to unforeseenmedical or job contract cut.. something like that. DO NOT MOVE OUT OR RENT yet. First they will tryto add it on to a payment plan which is usuallyhigher than what ou are currently paying. Askthem for the forebearance agreement, which iswhere it will state how much you are now going topay.- this is only if you can pay that.. if youknow you can't tell them. you have to bepersistent in telling them you can't. chancesare if they were willing to enter in forebearance(a payment plan) they are willing to modify yourloan. try to get the balance of what you owe puton the end of your loan. Try as much as posibleto avoid CH13 andbk's.... right now lenders aredesperate to let homeowners keep their home. Ican go into an entire tanget about it... but youneed antyhing else.. let me know.
- answered by Norma is Nice :)
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