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Hello everyone - I'm new to this forum, so I'm hoping I'm posting under the right topic area. Long story short - Is there help for a wife whose husband (sole breadwinner) went years without paying mortgage and is slow in supplying information requested by a mediation program designed to help homeowners in a pre-foreclosure process? We occupied the house for about 18 years or so. The house is currently for sale (both husband and wife's names are on the mortgage) and the pre-foreclosure meetings are designed to give more time for the house to sell, without it going to foreclosure.
If a house goes to foreclosure before it sells, how does that affect a spouse's credit to lease a place somewhere else, each in their own name?
Both people's credit will be trashed. Once payments are late, it impacts the credit of both people on the mortgage. If you live in an area with a tight rental market, it might be hard for both parties to find a rental as they will both have bad credit.
Thanks Silverfall for your reply. Is there a set number of years that it would reflect badly or will we basically not be able to find housing (mortgage or renting) forever?
Dito on the credit being trashed after a foreclosure....
Correction - foreclosures stay on credit reports for 10 years....
More enlightenment....
Attending a mediation programs? This tells me you probably in a Judicial state, where foreclosures go through the state court system which is very expensive in legal fees.
Before with the swamped court system, states initiated mandated medication hearings to reduce the amount of foreclosures. Allowing time to work things out between the lender and borrower.
Lenders are predictable to a point, they do not like to spend money. By you selling the property, this is an expense the lender isn't going to have to pay. If the property doesn't sell, then eventually will be foreclosed upon. As you know just by doing a short sale will not stop a foreclosure from going forward.
One suggestion is asking the lender for a deed in lieu, where the property is listed on the market for 90 days, after which a loan modification is attempted. If the lender cannot reduce to loan into an affordable payment, technically you can walk away free n clear avoiding a foreclosure...
Hi Modification Specialist - Thank you for all of the information you posted. So sorry this reply comes so late - I'm just seeing your post today. As it turns out, we were able to get a few more months of time to get the house sold. No foreclosure! Now we're marketing like crazy to get it done
Hi Modification Specialist - Thank you for all of the information you posted. So sorry this reply comes so late - I'm just seeing your post today. As it turns out, we were able to get a few more months of time to get the house sold. No foreclosure! Now we're marketing like crazy to get it done
That is good news Toni.
Seriously doubt your lender will provide little or any information that benefits you. They are probably going to be continually to offer a loan modification. They want you to send in financial information so they can analyze. A term called dual tracking - any information you give them can and will be used against you (written in fine print in all documents they sent you). Strong word of caution about anything your lender says, as a debt collector they will be your best friend all the way up until foreclosure.
As for the mediation hearing (pre foreclosure meetings) - most states require a minimum of two court appearances which are about three months apart. After that in approximately three months will be a hearing to set the date of the foreclosure, which is generally 30 days after that.
Advice - one hand may get information from your lender, on the other hand be aware of the legal process as things are happening.
Hope everything works out for the best.
Good Luck...
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