RE: If I can't sell my house, how do I give it back to the lender
I lost my job one month after we moved to our new home, I was disabled for 4 months and since I was new on the job I was terminated. I am 58 years old and i could no longer find a job in Menifee, CA. We have used all our equity, retirement money just to stay in this house. Our mortgage is for interest only is $2,946 per month and I paid $600 extra to go the principal. Our utilities, my kaiser insurance and car insurance, food etc is about $2,500 per month, so we paid $6000 a month for mortage and utilities etc for almost 2 years now. We have paid $500,000 to our house including $74,000 in upgrades. Our house is now for sale for $483,000 but there's no buyer to even look in our house. Do I contact my lender now, do I give my house to the lender? We have money in the checking to pay up to January, 2008. And our money is depleting fast. What do I do, I prayed, asked people to pray for us and still waiting for the Lord to work in our behalf. (What is the step to give the house to the Lender. My balance is $438,600 and the selling prices here is $440,000 to $515,000. Our home has 4 bedrooms and a loft, 3 full bath, with intercom, security, central vac, patio concrete, aluminum patio cover, shed, landscape, security doors, 2523 sq ft and 9746 sq ft in lot size.
Posted on 09/11/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
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By Sandy from Granger (Guest Post)
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First, don't panic. Call all of your other creditors and attempt to lower your interest rates, minimum payments required. Then, speak to your bank about paying INTEREST ONLY for a period of time. That's all they're really interested in. Of course, this means that you're not actually paying off the house...you're just paying for the cost of using the money. You may be able to defer payment on the principle of the loan for up to 6 months. Get rid of credit cards, shop at ALDI for food (or other discount place), and don't buy anything you don't critically need. I've seen people in foreclosure you refused to turn off the cable TV or get rid of their cells phones. Don't be one of those victims. Make a sincere effort.
Posted on 06/23/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
This is sort of a last resort thing, because I'm sure you don't want to move from your home. My mother is a realtor (though, in FL, not TN) and has helped some family of ours out of foreclosure. According to Florida law (you should call a TN realtor), the bank cannot actually "foreclose" until they sell the home at auction. Your bank may tell you otherwise (as they did to my cousin), which is why you should talk to a realtor. You can sell your home and use the money to pay off what you owe the bank, and hopefully have some left over. I don't know exactly what your situation is or what the laws are in Tennessee, but it's a suggestion if you can't find someone to work with you on catching up on your payments.
Posted on 06/22/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
i want to thank everyone for thier helpful advice. hopefully we can work through this. again thanks and god bless
Posted on 06/05/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
Hi again,
One helpful reader suggested that you should just give the house back to the lender on 6/2. Of course we all have our own opinions about things. But, as a professional, I advise strongly against this. You probably shouldn't just give the house back to Green Tree unless they agree to do a "deed in lieu of foreclosure". That's a legal transaction where you turn over the deed to the lender and they stop the foreclosure (IN WRITING). If you just GIVE the house back and they sell it for less than you owe, they can still make you responsible for the shortfall (which is called a deficiency judgment) and you're still on the hook for that. That's why I suggested the bankruptcy on 6/1. Good luck.
Posted on 06/03/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
Hi again,
One helpful reader suggested that you should just give the house back to the lender on 6/2. Of course we all have our own opinions about things. But, as a professional, I advise strongly against this. You probably shouldn't just give the house back to Green Tree unless they agree to do a "deed in lieu of foreclosure". That's a legal transaction where you turn over the deed to the lender and they stop the foreclosure (IN WRITING). If you just GIVE the house back and they sell it for less than you owe, they can still make you responsible for the shortfall (which is called a deficiency judgment) and you're still on the hook for that. That's why I suggested the bankruptcy on 6/1. Good luck.
Posted on 06/03/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
Our mortage company started forclosure on us about 10 years ago. First call and talk to your lender- They helped us with a plan and helped stop the foreclosure. They would rather see you pay them everything they owe than settle with someone else just to get rid of it. Second my husband was laid off work last summer and we had no income. We called the mortage company and asked for help. They said that we would have to be three months behind before they could get us in some program. Ask! Next we were late with one payment and were working with them to pay it back over the corse of three months. Watch them they were gave us payment arrangements to pay back the amount. Sounds good we are taken care of. They included a late fee into every re- payment , then they gave us a date to pay it beyond our regular date- you guess it another late payment everymonth. I just ask you to do your math when they give you the figures. Make sure you understand EVERYTHING and get the same totals they do.
GOOD LUCK!! You can work through it.
Posted on 06/03/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
It may be best to give the house back to the lender and find a home that you can afford. This isn't a fun option, and it probably isn't the one you'd like. But, it may be the most logical one.
In the long run, the continuing struggle to stay on top of your mortgage could cause you more pain than going through a foreclosure now. You may find all the stress every month just isn't worth it.
Posted on 06/02/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
United Way is the only respectable and legit help out there for money management. They do it not for profit!
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
Sandy,
I'm so sorry yall are going through this. I will keep you in my prayers.
Fionarx...that was really a good suggestion and I admire you for offering it!
God Bless,
Sheila in Titusville, FL
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
I have just been throught the same thing, so I can really empathize with your situation.
I agree with others, you should contact your lender and explain your financial situation and ask for help. Most lenders want to work out a payment plan. It may be allowing you to make smaller payments for a set period of time until you can make full payments - such as a special forbearance. The lender may extend the length of your loan to recoup the back payments or may increase your mortgage payments to get you caught up. With or without equity, the lender really doesn't want your house. The legal fees that are spent to take over ownership of your home and then sell it are far more expensive than working with the borrower.
If your lender is unyielding, I would then call Consumer Credit Counseling Services. They are nationwide and non-profit. CCCS can help examine your finances, set up a budget and they will contact your lender for you and help set up a payment plan.
Whatever your circumstances are, they are temporary. I doubt it feels like that; it didn't for me. But time and prayer covers it all.
My prayers are with you and your family. You worked hard to get that house. Everyone deserves and has a right to have a place to call HOME.
Blessings,
Jenny
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
As a loan officer, I am usually reluctant to suggest this. But, you can go into bankruptcy immediately. That puts the brakes on the foreclosure and the lender can't put you out of the house. It gives you a chance to work out a payment schedule, through the bankruptcy trustee, and get yourselves back on track financially without losing your home. After you have completed the bankruptcy, you can refinance. Hope this helps.
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
www.Genus.org
Genus Debt Management company can help save your house provided you register with them to handle your outstanding credit card, etc... debts...
You should be able to take one payment and put it to the rear of the loan... Have you tried to refinance?
You do have options... Talk to them and see where they stand and let them know your situation...
There is even an option to pay the interest only for a few months and catch up later...
You have to talk to them to know all your options... They should work with you when you talk to them...
* The worst thing is not talking to your creditors*
I wish you luck in straightening this mess out....
Christie
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
Yeah, this is definitely a question for Dave Ramsey. Just keep in mind he doesn't mince words.
Posted on 06/01/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
The first thing to do is to find out exactly how much money you need to avoid foreclosure, then you know where to start. Talk to the mortgage company about what options you have, they may be able to lower your payments for a few months or forgive the late payments.
Sell what you can to come up with the money, ask relatives to help, and do whatever you can do to avoid this. You will do much better selling the house yourself if at all possible rather than letting it go into foreclosure.
If you have just recently bought the house, you may not have any equity and they are more likely to try to work things out with you rather than taking a loss on the property. If you do have equity, you may be able to borrow against it or if you are able to sell, have something with which to start over.
I'm sorry for your situation. You are certainly not alone in this day and age of adjustable rate mortgages and low wages. Keep us posted how this works out for you.
Take care Sandy,
Susan
Posted on 05/30/2007 | Report Spam or Abuse
RE: Bank Threatening Foreclosure
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By Heather Smith (Guest Post)
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I don't know much about what you could do, but I do know someone who can help. You may email or call his hot line during the week for his radio show. If you live in TN you probably already know of him. If anyone could tell you what to do, it would be Dave Ramsey. Be prepared. He will tell you to sell something, but he's helping get my family out of debt and creditors off our backs and it's really worth checking him out.
http://www.daveramsey.com/
Posted on 05/30/2007 | Report Spam or Abuse
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