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Old 11-21-2010, 02:58 PM
 
136 posts, read 254,143 times
Reputation: 43

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What happens if you're over 30 days late with your mortgage?

I live in California. I lost my job; the unemployment that I never received is on hold. I need to pay $6k back to my 401k or be taxed on a $25k loan. I've never been late on credit card payment in 25 years.


I'm not current on everything but cannot keep up. My goal is to pay as many loans on the 401k before the end of December and keep my credit cards current if I can.

What happens if I'm over 30 days late with my mortgage? Can they take my house, cause me trouble?

I plan on pulling out my 401k and everybody will be paid.

Should I call my mortgage and tell them? Should I send them a check for $100 even if my mortgage is $700?

What happens if I don't send my credit the minimum but I do send them something less, will that lower my credit score? Not that it matters anymore with a 29% interest rate, who needs a credit card?

I would appreciate any internet advice from the city slicker data out there.
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Old 11-21-2010, 04:07 PM
 
4,153 posts, read 5,878,345 times
Reputation: 2920
I would not touch your 401k. I would stop making credit card payments. If you can pay the mortgage pay it. If not look into bankruptcy. Don't mortgage your future retirement.

Sending them anything less than the whole mortgage note will not stop foreclosure. So don't send in any money unless it's the full payment.


Can you find work doing anything to pay the mortgage?
Can you make the payment on unemployment checks?
Will you lose more being taxed for the 25k loan or lose more paying it off?


You need to go beyond internet help and get with a pro. There's places out there for free that can give you advice. Seek it.
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Old 11-21-2010, 05:38 PM
 
136 posts, read 254,143 times
Reputation: 43
Quote:
Originally Posted by danieloneil01 View Post
I would not touch your 401k. I would stop making credit card payments. If you can pay the mortgage pay it. If not look into bankruptcy. Don't mortgage your future retirement.

Sending them anything less than the whole mortgage note will not stop foreclosure. So don't send in any money unless it's the full payment.


Can you find work doing anything to pay the mortgage?
Can you make the payment on unemployment checks?
Will you lose more being taxed for the 25k loan or lose more paying it off?


You need to go beyond internet help and get with a pro. There's places out there for free that can give you advice. Seek it.

Thanks for your responce I ment to say I am current on everything. I will be 30 days late on the 1st .... Will that be the start of the tanking of my 775 fico score.


I broke my leg at work in jan. an have been paid till last month. My job cut me an u/p has not kicked in yet there is a delay.

After paying my bills for the last month. I am tapped out untill I can take my 401 k or U.P kicks in..

With 20 to 30 % Interst on credit card dept. 0f 25k if I make the min it would take me 30 years an a lot more than I have in 401 k Or I can stick it to them.... But I have a house that I paid 100k an can sell for 200 k (Witch I will do next year to live on) they can put a lean on it in cali.

I here don't touch the 401 k... I have nothing to pay my bills ...jobs are tough I am looking .

if the market takes a dump my 401 k will be gone an i will still have the dept..


can I file chapter 13 in california with no job.

Can I make a reduced pay on 25 k credit card even through i have not missed apayment .


if i miss one payment on onme of my cards my credit score will tank big time is that importent anymore
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Old 11-22-2010, 01:58 PM
 
Location: New York
1,111 posts, read 2,141,497 times
Reputation: 729
.

Hi Jim

I speak to many people in your type of situation. Right off the bat - I am not licensed in the state of California, so I could not work with you. I do know a few attorneys that would help you, if needed.

As far as your credit is concerned - this is a last propriety.

It is easy to turn ones credit around...... later. I used to fix peoples credit for free and till I got burned by taken advantage off.... Over the years have seen 1000's of credit reports, the ones that were above 780 no longer had a mortgage. Unless you have 75% of your obligations paid off, I seriously doubt your in the high seven hundreds, especially with hard credit pulls and the balances on your credit cards.... Again your credit is off the table.

See link explaining the different lateness's - Late Payment Secrets Revealed! | Credit.com
  • 30 days late – This record will damage your credit scores only when it is reported as “currently 30 days late.” The exception is if you are 30 days late often. Otherwise, a 30-day late payment will not cause lasting damage.
  • 60 days late – This record will also damage your credit scores when it is reported as “currently 60 days late.” Again, the exception is if you are 60 days late often. Otherwise, it will not cause long term damage.
  • 90 days late – This record will damage your credit scores significantly for up to 7 years. It doesn’t make a difference whether or not your account is currently 90 days late. Remember, the goal of the scoring model is to predict whether or not you will pay 90 days late or later on any credit obligation. By showing that you have already done so means that you are more likely to do it again compared to someone who has never been 90 days late. As such, your credit scores will drop.
  • 120+ days late – Late payment reporting beyond the initial 90 day missed payment does not cause additional credit score damage directly. However, there is an indirect impact to your scores. At this point, your debt is usually “charged off” or sold to a 3rd party collection agency. Both of these occurrences are reported on your credit files and will lower your credit scores further.

As for filing bankruptcy - right now forget about it. It is used as a last ditch effort to save the home. You have a few months before you want to consider it. Stay away from Bankruptcy attorneys - they will make it sound easy to do one. They have no concern for your future as far as your credit is concerned.

Yes you do need income for a chapter 13 bankruptcy, to make payments to a trustee. If you become late on a payment, it is easy for a debtor to file a "Relief of Stay" and get something removed from bankruptcy protection. Continued lates on a bankruptcy will result of an automatic discharge.

Since you are out of work -and unemployment hasn't kicked in. The possible delay is for 1099 workers, in many states there is unemployment compensation by it takes time to process. You need to get organized!

On a piece of paper write out all your obligations, amounts, dates due, etc... Then you are going to prioritize them into which one is most important. Your home is first priority - because you are in a non judicial state, your Lender could foreclosure on your home after four months.

You are saying your home is worth $200k, and owe $100k - you are unlike most of the people in your state. Most national charts showing the amount of people owing more then what their property are worth, California is almost at the top of the list!!!

If in fact you do owe 50% less then what its valve is worth. If need to do a short sale. A Short Sale - this does the least amount of damage to your credit score. Upfront when stating the negotiations you want to negotiate they can not do a future Deficiency Judgment against you.. Some Realtor's here might say your state it is non practical for them to do a D/J since they get the property back. Ultimately it depends on what you signed on your loan note when you did your closing. If you think your house will sell within 90 days - that is the way to go.

The bad news - if you have no income coming in, you going to have to let the property go because you can't afford it. The problem with a Short Shorts - most do not sell in the 90 day time frame, so the Lender can continue with the foreclosure process. Knowing you do have equity, I seriously doubt they will settle for less on what you owe them. Any reduction will have to come out of your equity.


Very important to understand - what you don't say cannot hurt you!!! Do not mention to anyone - especially your mortgage company, you have any money in savings or your 401K. They will go after it!

As for your credit cards - it is your right to settle those amount at a lower settlement. That $25,000 credit card could easily be settle for $8700 - by yourself!!! You should not got involved with any type of debt resolution company. You will be spammed out of your money.

Your question about sending in a $100, forget able that, it's either your full payment, arrears, on an agree modified payment. Have you go late after 90 days - most banks freeze the current loan, and set up a suspense account. Any and all new obligations go into this new account.

Last week I read a report from the Presidents office, confirming what I had all ready known. HAMP is failing and people are getting better deals working with Attorneys to save their homes.

Here is one problem with the banks - home owners are trusting their Lenders. The Lenders are putting inexperienced personal working on the front line to work with homeowners.

I can cite many cases and examples - last week I read that Chase is hiring college grads to work doing loan modifications. These kids are either renting or still living with mommy and daddy. Home owners dealing with people half the age - to save their home from foreclosure..... Ask them an easy question like... "How long do I have before paying principle on an interest only loan? I bet half on them would answer wrong.... .

Lenders are hiring people with limited understand of a mortgage. Because of their lack of experience - like "robots" they are trained to qualify people for a HAMP modifications. Out of the millions of people that applied for HAMP mod, as of September 2010 only 468,000 have been approved.

Here is the reason main reason why it takes so loan for a modification to be approved, without evening analyzing the loan, the new bank employees submit for a HAMP modification away. Months later it gets rejected for either being late on the mortgage, or greater then 125% LTV, etc. If the situation was analyzed by somebody who knew what they were doing. The homeowner would be able to work on another program. It doesn't take a Rocket engineer, or spending millions of dollars for research it understand this.....

-----

Ultimately Fanny and Freddy were to cause of the mortgage meltdown across America. Fannie Mae and Freddy made CMO's available to buy on the secondary market, it is now to the point they have been brought and sold so many times. Fannie and Freddy are left with worthless CMO's, by 2012 and by 2015 mortgage pools should transferred into MBB pools. People's homes should not be traded and gambled.

Sorry I went a little Over Board - answering you questions. I am working on my Theseus - Doing away with Freddy Mac and Fannie Mannie by the year 2015.

Good Luckl....
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Old 11-22-2010, 02:24 PM
 
Location: Union County
5,118 posts, read 4,886,087 times
Reputation: 3728
Quote:
Originally Posted by Modification Specialist View Post
.
...
-----

Ultimately Fanny and Freddy were to cause of the mortgage meltdown across America. Fannie Mae and Freddy made CMO's available to buy on the secondary market, it is now to the point they have been brought and sold so many times. Fannie and Freddy are left with worthless CMO's, by 2012 and by 2015 mortgage pools should transferred into MBB pools. People's homes should not be traded and gambled.

Sorry I went a little Over Board - answering you questions. I am working on my Theseus - Doing away with Freddy Mac and Fannie Mannie by the year 2015.

Good Luckl....
Boy, I sure hope you're not serious about "Fanny and Freddy were to cause of the mortgage meltdown across America". I'll give you the issue around the fact that they invented the MBS and being the grandfather of the CDO... I'll even accept the fact that this cracked the door open for the idiotic credit bubble. But, at face value (bad pun) the concept behind how MBS is supposed to function isn't necessarily a bad thing.

The greed and corruption from the investment banks (Goldman Sachs is a perfect example) took the concept of leverage and used Enron style accounting to rip us all off. Then hack lenders like Countrywide and the infamous liar loans (aka no docs) is where the real trouble began. They sold loans PRE underwriting and intentionally misclassified risk of the loans they were writing. It wasn't limited to Countrywide, either - or just no doc loans. It was rampant everywhere and loan applications were intentionally fraudulent. They didn't care if people could repay as they were just selling the loans as they wrote them (many cases they were already sold BEFORE they wrote them).

I really hope your thesis looks at MERS and the investment banks, not just FanFred. I think you'd enjoy the latest book (and his earlier one) from Matt Taibbi who is a political columnist for Rolling Stone - happened to stumble into being one of the best writers on the forefront of the financial and mortgage crisis.

Amazon.com: Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America (9780385529952): Matt Taibbi: Books
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Old 11-22-2010, 08:38 PM
 
136 posts, read 254,143 times
Reputation: 43
[quote=Modification Specialist;16748718].

Hi Jim

I speak to many people in your type of situation. Right off the bat - I am not licensed in the state of California, so I could not work with you. I do know a few attorneys that would help you, if needed.

As far as your credit is concerned - this is a last propriety.

It is easy to turn ones credit around...... later. I used to fix peoples credit for free and till I got burned by taken advantage off.... Over the years have seen 1000's of credit reports, the ones that were above 780 no longer had a mortgage. Unless you have 75% of your obligations paid off, I seriously doubt your in the high seven hundreds, especially with hard credit pulls and the balances on your credit cards.... Again your credit is off the table.

See link explaining the different lateness's - Late Payment Secrets Revealed! | Credit.com
  • 30 days late – This record will damage your credit scores only when it is reported as “currently 30 days late.” The exception is if you are 30 days late often. Otherwise, a 30-day late payment will not cause lasting damage.
  • 60 days late – This record will also damage your credit scores when it is reported as “currently 60 days late.” Again, the exception is if you are 60 days late often. Otherwise, it will not cause long term damage.
  • 90 days late – This record will damage your credit scores significantly for up to 7 years. It doesn’t make a difference whether or not your account is currently 90 days late. Remember, the goal of the scoring model is to predict whether or not you will pay 90 days late or later on any credit obligation. By showing that you have already done so means that you are more likely to do it again compared to someone who has never been 90 days late. As such, your credit scores will drop.
  • 120+ days late – Late payment reporting beyond the initial 90 day missed payment does not cause additional credit score damage directly. However, there is an indirect impact to your scores. At this point, your debt is usually “charged off” or sold to a 3rd party collection agency. Both of these occurrences are reported on your credit files and will lower your credit scores further.

As for filing bankruptcy - right now forget about it. It is used as a last ditch effort to save the home. You have a few months before you want to consider it. Stay away from Bankruptcy attorneys - they will make it sound easy to do one. They have no concern for your future as far as your credit is concerned.

Yes you do need income for a chapter 13 bankruptcy, to make payments to a trustee. If you become late on a payment, it is easy for a debtor to file a "Relief of Stay" and get something removed from bankruptcy protection. Continued lates on a bankruptcy will result of an automatic discharge.

Since you are out of work -and unemployment hasn't kicked in. The possible delay is for 1099 workers, in many states there is unemployment compensation by it takes time to process. You need to get organized!

On a piece of paper write out all your obligations, amounts, dates due, etc... Then you are going to prioritize them into which one is most important. Your home is first priority - because you are in a non judicial state, your Lender could foreclosure on your home after four months.

You are saying your home is worth $200k, and owe $100k - you are unlike most of the people in your state. Most national charts showing the amount of people owing more then what their property are worth, California is almost at the top of the list!!!

If in fact you do owe 50% less then what its valve is worth. If need to do a short sale. A Short Sale - this does the least amount of damage to your credit score. Upfront when stating the negotiations you want to negotiate they can not do a future Deficiency Judgment against you.. Some Realtor's here might say your state it is non practical for them to do a D/J since they get the property back. Ultimately it depends on what you signed on your loan note when you did your closing. If you think your house will sell within 90 days - that is the way to go.

The bad news - if you have no income coming in, you going to have to let the property go because you can't afford it. The problem with a Short Shorts - most do not sell in the 90 day time frame, so the Lender can continue with the foreclosure process. Knowing you do have equity, I seriously doubt they will settle for less on what you owe them. Any reduction will have to come out of your equity.


Very important to understand - what you don't say cannot hurt you!!! Do not mention to anyone - especially your mortgage company, you have any money in savings or your 401K. They will go after it!

As for your credit cards - it is your right to settle those amount at a lower settlement. That $25,000 credit card could easily be settle for $8700 - by yourself!!! You should not got involved with any type of debt resolution company. You will be spammed out of your money.

Your question about sending in a $100, forget able that, it's either your full payment, arrears, on an agree modified payment. Have you go late after 90 days - most banks freeze the current loan, and set up a suspense account. Any and all new obligations go into this new account.

Last week I read a report from the Presidents office, confirming what I had all ready known. HAMP is failing and people are getting better deals working with Attorneys to save their homes.

Here is one problem with the banks - home owners are trusting their Lenders. The Lenders are putting inexperienced personal working on the front line to work with homeowners.

I can cite many cases and examples - last week I read that Chase is hiring college grads to work doing loan modifications. These kids are either renting or still living with mommy and daddy. Home owners dealing with people half the age - to save their home from foreclosure..... Ask them an easy question like... "How long do I have before paying principle on an interest only loan? I bet half on them would answer wrong.... .

Lenders are hiring people with limited understand of a mortgage. Because of their lack of experience - like "robots" they are trained to qualify people for a HAMP modifications. Out of the millions of people that applied for HAMP mod, as of September 2010 only 468,000 have been approved.

Here is the reason main reason why it takes so loan for a modification to be approved, without evening analyzing the loan, the new bank employees submit for a HAMP modification away. Months later it gets rejected for either being late on the mortgage, or greater then 125% LTV, etc. If the situation was analyzed by somebody who knew what they were doing. The homeowner would be able to work on another program. It doesn't take a Rocket engineer, or spending millions of dollars for research it understand this.....

-----

Ultimately Fanny and Freddy were to cause of the mortgage meltdown across America. Fannie Mae and Freddy made CMO's available to buy on the secondary market, it is now to the point they have been brought and sold so many times. Fannie and Freddy are left with worthless CMO's, by 2012 and by 2015 mortgage pools should transferred into MBB pools. People's homes should not be traded and gambled.

Sorry I went a little Over Board - answering you questions. I am working on my Theseus - Doing away with Freddy Mac and Fannie Mannie by the year 2015.

Good Luckl....[/QUOTE


Can I offer to close my credit cards an pay less than hafe of what I owe. Or do I have to miss of be late 1st I have never been late an it is hard to do after 20 plus years.
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Old 11-22-2010, 08:42 PM
 
136 posts, read 254,143 times
Reputation: 43
If I am am more than 30 days late..... Between 30 an 60 days late an I make one payment will that hold off any for close. I will always be 30 days behind
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Old 11-24-2010, 05:03 PM
 
Location: New York
1,111 posts, read 2,141,497 times
Reputation: 729
.

Quote:
Originally Posted by MikeyKid View Post
....Fanny and Freddy were to cause of the mortgage meltdown across America".
Mikey - really good description of Mortgage Back Securities. The Mortgage crisis has revealed many things about our finance system.

The mortgage market is unique, and the Fed was deliberately involved in the development of the secondary markets. In the 1930's Fannie Mae was established to buy mortgages from local banks. So they could make more mortgage loans. In the late 1960's, fewer veterans couldn't qualify for a mortgage, the the Fed create Ginnie Mae, then around 1970, they created Freddy Mac, These three agencies allowed for the creation of mortgage back guarantees.

Financial institutions originated the mortgages and secondary market buyers did not have to be concerned with a borrowers credit score or the value of the property backing the mortgage since they had a federal guarantee protecting them against risk default. The problem started when Ginnie Mac pools were 100% insured by the Fed, all loans were fixed and had the same interest rate.

Fannie and Freddy were Government sponsored. Meaning they had a credit line directly to the US Treasury. If they got into trouble or ran low of funding, they could borrow at a low rate. This created Risk taking behavior on their parts. They charged any rate they could, meaning they wrote their own money. (I can talk for hours on this topic.....)

Last night I took my mid term - was panicking that the majority of the test would be on the Stock market; futures, calls, puts, shorts... Received the test and was pleasantly surprised most of it was about Mortgages and MBS's..(Slam Dunk...).

In my above comments I'm talking about how mortgages were pooled and packaged, that Fanny and Freddy brought Sub-prime mortgages and sold as Triple AAA mortgage backed securities to investors. Think of it as an old car - buying old Pinto, selling it as a Corvette... This Fraud on the highest level!!!

With MERS your are talking about a different side of the coin - the ownership?

In the years worked as a Loan Officer, Nationwide Bank, plus two different brokers. Many people in the mortgage industry know that MERS is somewhat of a scam (something really not needed). It is more of a convenience for the investor, not the homeowner. My point in explaining this this way, there are more homeowners that might read this, compared to a mortgage investor.

MERS is a private company - does not lend money or acquire the right to receive payments on mortgage. Their goal was to provide tracking electronically the transfers of ownership of mortgages.

The sanctity of a mortgage, is done at the local county court house. That is the one central place for all information pertaining to the deed of the property is located. Many Lenders do not update the information when the loan was sold, circumventing the court fees.

Out of the 1000's - both purchases and refinances I wrote, . Every loan a required a 3rd party title search at the local country court house. On top of that most loans had title insurance, protecting the home owner having the right and was insured that they had 100% free and clear title.

The point I am trying to explain on a smaller scale, the MERS situation would not immediately affect Mr & Mrs John Smith, because their mortgage company holds the note (lien) to their home, that they are making on time monthly payments on. If they do not pay - the mortgage company inticiates forecloasure proceedings.

Working for my Attorney firm now - see nationwide results that foreclosures are not slowing down. The last couple of years we have been dealing with the 2/28 ARMS that adjusted to the point people could not afford the new payment. We are now seeing the 3/27, and going to see the 5/25 and 7/23 ARMs when they adjust. Also noting the 5 year MTA, and the 10yr I/O payment on Option Arms and Interest Only loans. This foreclosure crisis is going to continue through 2018.....

I want to comment on - the recent past we heard about the middle class shrinking. I expect in the coming years, expect the the middle class to be reestablishing itself and the rich class shrinking. Mortgages will longer be seen as a profitable investment.

Another point It is even a bigger mess - when the writers of articles writing about the mortgage mess, having limited and no mortgage experience. They are looking for a topic to write about - looking for the attention to seize the moment. All they are doing is creating panic and fear.

.......

Just My $00.02
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