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This is the fact. I can't keep my house anymore. I will coming July be short $400.00 a month after all my bills are paid. Let me say that I have never paid any of my bills late. I always pay everything on time. I have used up all my 401 k and other savings to pay my house and I have nothing left. I really need some help...
Location: Upstate NY native, now living in Houston
663 posts, read 2,264,073 times
Reputation: 216
Quote:
Originally Posted by ktalley
This is the fact. I can't keep my house anymore. I will coming July be short $400.00 a month after all my bills are paid. Let me say that I have never paid any of my bills late. I always pay everything on time. IS foreclosures worse then bankruptcy or is it the same?
If this will be your first late payment, I wouldn't panic just yet.
You should talk to your lender ASAP and work out a payment plan for this month's payment (and others going forward, if needed). This may save you from the payment being reported as late on your credit report which can make any type of credit you may need in the future an absolute nightmare.
If this will be your first late payment, I wouldn't panic just yet.
You should talk to your lender ASAP and work out a payment plan for this month's payment (and others going forward, if needed). This may save you from the payment being reported as late on your credit report which can make any type of credit you may need in the future an absolute nightmare.
Good luck to you. I hope things work out.
I Have a question for you. Is a foreclosure better then bankruptcy. Somebody told me that a foreclosure will stay on my credit for life.Is that really true?
Not much info to go on , so I will skim some of the basics.
FIRST, has your financial situation been steadily deteriorating, or is this a sudden change? In the first case maybe you have debts that are growing, due to increases in rates, continued spending, increased borrowing. In the second case you have hit a 'rough patch' with a forced job change / loss, sudden unavoidable bill(s), some kind of judgement. Lenders are not crazy and if there is "light at the end of the tunnel" they would rather change the terms of your loan than end up with a property that will give them headaches. OTOH if you've been digging a deeper hole for a long time... A "modification" of your mortgage may be in the best interest of your borrower OR it may only stave off the inevitable, the lender will NEED to be CONVINCED by a pile of evidence.
SECOND why / how did you decide to drain your 401K? Do you have any other savings or assets? If the answer is NO then the short answer is you made a decision that really has no upside. Please understand that by moving assets out of your 401K AND being on the verge of losing your home you've basically torpedoed your TWO biggest nest eggs. This does not mean that there is no hope, only that you know must do some serious rethinking of not just where/how you live, but how / when you can retire. Very tough.
THIRD while not having any late bils up to this point in time is a GOOD THING, it might not mean a whole lot if you have crummy credit. DO you know your FICO score? If it is a solid number there MAY be some hope to refinance. If it is already trashed, refinancing is not an option. If your credit is crummy but you've never had late bills then the simple answer is that you borrowed too much and earned too little. There is also a subclause, as you said you had a 401K to drain, and that possibility is that you tried to save (generally a good thing) BUT you were also borrowing to do so (a generally BAD idea). It happens to lots of people, but that doesn't make it easier or the results any less painful. Putting aside "savings" is foolish if you borrow for current expense. You have to be able to cover your expenses out of current income or the debt monster will force you to throw your savings overboard...
As unpleasant as it sounds you need to think in terms of how you can turn things around. If you have things to sell (like a car, boat, jewelery) you need to consider that NOW. If you can borrow with/from family, friends that is something that you may need to do -- if you know someone that has the credit that can afford your home
consider bringing them into the picture.
If you have NOT yet missed any payments you are so much better off than someone who has missed even one that I hesitate to say it, but there is hope. July is 6 days away. If you can figure out a way to scrape together $400 bucks that will buy you another 31 days of "no late payments" and you HAVE to take advantage of that. DO NOT borrow from a "payday lender" unless you are 100% sure you can pay them off in less than a week. DO explain all the details to your current lender AND seek out mortgage brokers. Don't except them to be able for July 1, but if you are solid credit risk there is a good chance that in 30 days you could have different loan.
If you have to figure out a "doomsday scenario" now would be the time to have a level head. If you family to care for you have to prepare for the worst. No one wants to have their belongings tossed in an eviction. Line up a place to stay and figure out a way to get your minimal household goods to it... If you need to rent a place no landlord is going to be happy if you are literally flat broke with an empty wallet. Put aside what you need for the security deposit and first month's rent. If you are working you need to show up looking like you are making it. If you are out of work having a working phone and an attitude that says you are on top of things is even more crucial.
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