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My husband died suddenly and I am left with only 1/4 of the income we had,(which is Soc. Sec - I am 70) no savings and no way to make the house payments. I have to go live with my children. The only thing I can do is see if they will take the house back or let it be foreclosed. I've tried to sell it, but nothing is selling in our area and I haven't owned it long enough to have equity. Any advice? Thank you.
I am sorry for your loss. I know it's tough. Call them. Deed in Lieu of Foreclosure may be an option after a period of time on the market.
A short sale is the other option. Put your house on the market for what other buyers are paying other sellers. Lower the price a little until you get a good offer, then send the whole package to your lender for consideration of a short sale.
Don't worry about it and don't exhaust a lot of energy trying to make it work. You're 70 years old and you are judgment-proof. That is, "You can't get blood out of a turnip." The mortgagee cannot access your Social Security benefits (recently enacted regulations prevent a bank from freezing your account) and I can't see where you need to maintain a good credit score. I suggest you call/write the mortgage company and tell them you are 70 years old, have no income other than Social Security benefits and that you are moving in with your children. You may also want to consider contacting a local nonprofit organization for help. Best of luck.
My husband died suddenly and I am left with only 1/4 of the income we had,(which is Soc. Sec - I am 70) no savings and no way to make the house payments. I have to go live with my children. The only thing I can do is see if they will take the house back or let it be foreclosed. I've tried to sell it, but nothing is selling in our area and I haven't owned it long enough to have equity. Any advice? Thank you.
Let me see if I can help you - not soliciting you, only explaining options. When I speak with people involving financial trouble with a home, ask what is the goal? Do you want to save it or walk away....
Respect that you are mature, right now you are experiencing tunnel vision because of all your problems hitting at one time...
First looking at your income - you are collecting social security, are you collecting your late husband survive benefits (part of his social security?
Due to government guideline at 31% of the house-hold income, if you show affordability at 2%, there is a really good chance of staying in your home with a reduced payment. If you are short - it can be said a relative just moved in helping you with rent, or you just started renting... The following is only a suggestion - saving the home, adding one of your children to the title (not the loan), moving in with them, and returning out your house for more than the mortgage payment......again only a suggestion if you are look to get you home and having a little nest egg for you or your children...
Looking to letting your home go.....
Your state is a Primary Non Judicial state, meaning your Lender once they foreclose, they get the home back and no further recourse.. It might be OK just to do a short sale (cheapest way) if you are looking to let your property go. To be approved - there can be no affordability. Noting real estate is not selling to way it has been it other years, and the chance your property is underwater, is going to add to the time you can continue living there.
Deed in Lieu's are mainly used for Judicial states - eliminating deficiency judgements, allowing the home owner to walk away for and clear without further repercussion. A loan modification is attempted, along with a short sale. This method averages 4 to 5 months to complete.
Last edited by Modification Specialist; 05-16-2011 at 12:10 PM..
Thank you for the last reply. Prior to recieving the increase in my soc. sec., my house payment represented 68% of my total income, now with the increase it represents 48% and that does not allow for food, utilities, gas,etc. My children do not live near me, I have medical problems. When there were two of us, we took care of each other, now I am alone. It seems I only have the option of walking away. I do have it listed for sale, but the only homes that sell or at a huge discount.
... When there were two of us, we took care of each other, now I am alone. It seems I only have the option of walking away. I do have it listed for sale, but the only homes that sell or at a huge discount.
I can sympathize with your situation - 13 years ago my father passed. My mother went down hill. So ten years ago moved her from Texas to Maryland (living next to my older sister).
Even though all her conversations are her complaining about something. Last year we really got mad at her because she brought one of those small Toyota pickup truck - said she needed to get around. She was going to a local pub every Friday - she says for the for food (buffet hour).. Point at 86 years old she is going strong. I hope this is some type of inspiration for you.
You goal is living to your children, and moving away from your old home. You need to consider which exit strategy is best for you. Waiting for your home to sell and struggling to make your payments is going to be very burdensome to you. Why continue making your payments?
Possibly talk with your lender about doing a loan modification (not mentioning you moving). Many times they can temporally reduce your payments while your modification is being reviewed. I caution you on what I just said above because I have witnessed multiple times after a period of reduction, the lender asking for a lump sum payment or they will foreclose on the property. Point - you cannot trust your lender.
You on making late payments to prove you are facing a hardship - be careful because in your state they can move towards a forclosure in a very small limited amount of time.
Again I am not soliciting you - if you run into a problem and need to speak to someone - send me a personal email.
Good Luck..
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