Mortgage Moritorium Is there such a thing?? (loans, foreclosure, loan)

[njkate]

My brother is ill, just diagnosed with esophageal cancer. He is in the hospital recuperating from where they perforated the esophageal during the endoscope before the move ahead with the cancer surgery and chemo.

He is worried to death over his mortgage and losing his house, some mentioned calling the mortgage co and asking for a moritorium on the mortgage..Is there such an animal?? He lives in Colorado if that makes a difference

Thanks

[renriq02]

Never heard of it, but it may be in the papers he signed at closing.
He should contact an attorney or an estate attorney

[chet everett]

This is not something that you need an attorney for -- some lenders do allow people who are on a medical disability to suspend payment on their otherwise current mortgage.

The technical name for this is a "forbearance" plan or program. The various larger lenders have (had?) funds to cover these kind of things because it is really bad press to throw a sick cancer patient out into foreclosure. Not sure the best way to go about contacting the lender these days as they have mountains of healthy people with loans that are not current...

Hopefully you or your brother can call and get a good contact. Typically the lender will just freeze amortization for a fixed number of months -- your brother would still have to cover taxes and if he has ZERO income that could be a problem. Obviously the lender is going to want something from the doctors to back this up, and they might try and suggest that he take a Viatical settlement - Wikipedia, the free encyclopedia instead, if the doctors do not think he has good survivor odds.

Folks, there is a reason that AFLAC and similar companies want to sell disability and sickness related indemnity policies. Not sayingtehy are a smart thing for everybody, but there are ways to protect against one problem causing others...

[njkate]

Originally Posted by chet everett

This is not something that you need an attorney for -- some lenders do allow people who are on a medical disability to suspend payment on their otherwise current mortgage.

The technical name for this is a "forbearance" plan or program. The various larger lenders have (had?) funds to cover these kind of things because it is really bad press to throw a sick cancer patient out into foreclosure. Not sure the best way to go about contacting the lender these days as they have mountains of healthy people with loans that are not current...

Hopefully you or your brother can call and get a good contact. Typically the lender will just freeze amortization for a fixed number of months -- your brother would still have to cover taxes and if he has ZERO income that could be a problem. Obviously the lender is going to want something from the doctors to back this up, and they might try and suggest that he take a Viatical settlement - Wikipedia, the free encyclopedia instead, if the doctors do not think he has good survivor odds.

Folks, there is a reason that AFLAC and similar companies want to sell disability and sickness related indemnity policies. Not sayingtehy are a smart thing for everybody, but there are ways to protect against one problem causing others...

Thank you!! I will check into that

[christeen]

Originally Posted by njkate

My brother is ill, just diagnosed with esophageal cancer. He is in the hospital recuperating from where they perforated the esophageal during the endoscope before the move ahead with the cancer surgery and chemo.

He is worried to death over his mortgage and losing his house, some mentioned calling the mortgage co and asking for a moritorium on the mortgage..Is there such an animal?? He lives in Colorado if that makes a difference

Thanks

Know nothing about this, but wanted to say sorry about your brother. Hopefully the treatment will go well and he's able to get some mortgage relief to reduce some of the stress.

[ricardocobos]

Of course it is tragic that his health is poor but remember that a mortgagee will only begin foreclosure when the mortgagor has failed to make a number of mortgage payments or shows any effort to repay the mortgage.

[SmartMoney]

Originally Posted by renriq02

Never heard of it, but it may be in the papers he signed at closing.
He should contact an attorney or an estate attorney

I agree on contacting an attorney. To tell you not to contact one could be negligent in some states, unless you are intimate with the foreclosure laws of every state. Also, contacting an attorney does not always equal additional expense (although caution, you tend to get what you paid for), your brother may belong to a legal plan, have union benefits, or other resources you may not be aware of. Also, the hospitals have social services (not necessarily low to no income) to aid families working through the many problems they find themselves suddenly facing with cancer. He is paying for these services, use them!

Many prayers for your brother and family.