Originally Posted by wuds
For the last two years we have been bumping along between 30-60 days late on our mortgage. We finally hit 90 days down on our payment Sep 1st. Our problems are the result of my wife having had no income during this time, but she has recently obtained a job, and we recieved her first paycheck on the 15th.
Yesterday she called the mortgage company and they refused to take a payment. We now have all weekend to sit here with our imaginations running wild, we are scared and don't understand what this means. Are we in foreclosure? Will the lender give us an opportunity to catch up? With her now having an income, we will easily be able to bring ourselves current with the payment, and the payment itself is easily manageable for us on two incomes.
We will certainly be making some calls Monday morning to get some clarification on all this. Just sitting here chewing my fingernails, I had to ask somebody, anybody, so I'm posting this.
I speak with people in your situation every day - due to forum guidelines I am not pitching you, only discussing your options. You do not discuss enough of your situation to discuss what options you might have available.
The first thing you need to ask yourself - do you want to keep to home. If not, down sizing is something you need to look at. If yes - you need to determine if you have the income available to show affordability and apply for a loan modification.
To be approved for a loan modification - two things have to be present. Your income has to support your loan at 2% interest rate, and you have to be in a verifiable hardship.
Need to know what state you are in - it appears your in a non judicial state because by the Lender refusing to take your payment after three months. In N/J states foreclosures can happen with in 4 to five months after missed payments.
People in non judicial states are at a disadvantage compered to judicial states. It takes longer to foreclose in Judicial states because the Lender has to go through the court system. In non Judicial states - all the Lender has to do is contact an attorney to send out a thirty day letter notifying the house will be sold in 30 days.
Which leads if your paying on time, your lender can ague your not in a hardship because your making your payments. Which it you are late, in a non judicial state they can foreclose on your home faster.
Your hardship is obvious - I would add "Due to the slow down of the economy,....." That way the way it is said is you had no control over what happened.
Being that your situation is going down the path of no return - I suggest getting a Moratorium with your lender, so there is a legal pause with your mortgage, long enough to have a loan modification done. So that your payments can be possibly reduced, and your late payments restructure back into your loan (a fresh start).