Foreclosure Help or Suggestions (foreclosed, 9%, mortgage, mortgage company)

[gregs]

I know I am not alone, but is there a way to negotiate to stay in your home? I am probably close to getting foreclosed upon. I have my house on the market and it is priced to be the lowest for the #of bedrooms/bathrooms. I have done the usually things to make the house saleable and allow showings at a moments notice, etc.

How to negotiate with mortgage company to delay foreclosure? I have 25 % or more in equity and I am maintaing the property. I am unemployed. All of this has affected my health. Do I just wait and walk away?

Sincerely,
Greg

[fauve]

Are you late in your mortgage payments? This changes the tune of the bank when it comes to short sales (these are a lot more favorable to your credit, however being past due in payments will hurt you, but not be as destructive as a foreclosure). Most, if not all, banks will not allow a short sale unless you are behind on payments. Having a realtor who is familiar with the process is essential. I would urge you to maintain your credit rating to the best of your ability, because a good one is like gold, nowadays.

[palmcoasting]

Nope. You don't 'walk away'. You call 866-607-2187. That is the free legal advice line for Florida Homeowners facing foreclosure. They will ask you some questions and then give you the contact information for an attorney best suited to handle your situation with the bank. They are paid for by the state through federal funds that were just recently replenished. With equity in the home it would be foolish to just 'walk away'. There are avenues and programs available to you. Use them. Relax and don't panic. Things move very slowly in Florida, especially at this time.
And let us know how it goes!

[Silverfall]

Great advice from PC.

[bigtrees]

Originally Posted by gregs

I know I am not alone, but is there a way to negotiate to stay in your home? I am probably close to getting foreclosed upon. I have my house on the market and it is priced to be the lowest for the #of bedrooms/bathrooms. I have done the usually things to make the house saleable and allow showings at a moments notice, etc.

How to negotiate with mortgage company to delay foreclosure? I have 25 % or more in equity and I am maintaing the property. I am unemployed. All of this has affected my health. Do I just wait and walk away?

Sincerely,
Greg

Do you qualify for a HELOC? If so, you can tap the 25% equity in your home and use the money to get caught up on your first loan. However, it will catch up to you so you will need a plan to start earning more money or spending less in other things in your life.

[Brandon Hoffman]

Originally Posted by gregs

I know I am not alone, but is there a way to negotiate to stay in your home? I am probably close to getting foreclosed upon. I have my house on the market and it is priced to be the lowest for the #of bedrooms/bathrooms. I have done the usually things to make the house saleable and allow showings at a moments notice, etc.

How to negotiate with mortgage company to delay foreclosure? I have 25 % or more in equity and I am maintaing the property. I am unemployed. All of this has affected my health. Do I just wait and walk away?

Sincerely,
Greg

I agree with PC but I also want to point out if you have that much equity, drop the price and dump it. Better to walk away with a little in your pocket than go into foreclosure. Even though it's priced low, go ahead and reduce the price even lower. If you're 10% below fair market value I would think you'll get an offer fairly quick.

[c99]

Originally Posted by Brandon Hoffman

I agree with PC but I also want to point out if you have that much equity, drop the price and dump it. Better to walk away with a little in your pocket than go into foreclosure. Even though it's priced low, go ahead and reduce the price even lower. If you're 10% below fair market value I would think you'll get an offer fairly quick.

Great advice. Drop the price and dump and quick as you can. Maybe you could offer to pay for some of the buyers closing costs for a limited time (for example, if closed by 1/31/09). Have a serious meeting with your Realtor. Ask them to step up their marketing plan. When you drop your price, post "REDUCED" ads in all sources. Post your house on Craigslist and any other free sources you can to generate interest.

I'd also make sure that the house and yard are in tip-top showing order and that you have the walls painted neutral paint colors. I think you really need an experienced Realtor to help you get rid of it. I'd also check out the free legal advice phone number offered by a PP.

Best of luck to you.

[palmcoasting]

but is there a way to negotiate to stay in your home

The goal is not to sell the house, the goal is to keep his home and at this time there are avenues available that may do just that. I'll venture to say the only reason his home is on the market is because he's been thinking there is nothing that can be done and he has to sell it. And I'll bet the person who listed the house told him just that and didn't give him information to assist him. A real shame.

[bentlebee]

Originally Posted by bigtrees

Do you qualify for a HELOC? If so, you can tap the 25% equity in your home and use the money to get caught up on your first loan. However, it will catch up to you so you will need a plan to start earning more money or spending less in other things in your life.

How can the OP qualify for a Heloc if she already is affraid to be foreclosed on and has no job.......

The Op better start to call the government programs to help her and maybe to refi since I understand that this is a primary home.

[johnsonkk]

Options?

Best method would be to get a job - some job when you try to negotiate with the lender is much better than no job. You might have good reasons for not having a job but this won't help your situation when you call the lender.

There is no way that Greg (op) can realistically expect to stay in a house with only 25% equity and no income to continue paying the mortgage, heloc, etc.

Unfortunately, the Fort Lauderdale area (misspelled in the profile) has seen drops that exceed 25% in value so the 25% in equity might be gone. The average home price (in Ft L.) has dropped 9% last quarter and 23% in the last year. Home prices by metro area - MSN Money

I agree with others that it's not a good option to walk away but the best option is to put his house on the market at a reduced price and try to move it before it becomes a foreclosure.