My husband and I live in the state of TN. We are having some financial troubles so therefore we have gotten behind on our mortgage through Green Tree Servicing. They are threatening to foreclose. Does anyone have any suggestions on what we can do?
Thanks so much,
Sandy from Bluff City, TN
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.
Yeah, this is definitely a question for Dave Ramsey. Just keep in mind he doesn't mince words. (06/01/2007)
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. (06/01/2007)
I have just been through 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.
United Way is the only respectable and legit help out there for money management. They do it not for profit! (06/01/2007)
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. (06/02/2007)
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. (06/03/2007)
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. (06/22/2007)
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 who refused to turn off the cable TV or get rid of their cell phones. Don't be one of those victims. Make a sincere effort. (06/23/2007)
By Sandy from Granger
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