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Hi - I need some advice. We have received forclosure papers and I'm not sure how to handle this in the best way. The attorney for the bank says the bank will make payment arrangements with me. The bank says we have to have $5600 - we can only give them $4000 right now. We can make the difference up in a couple of weeks, but they wont even take what we have. We can get this all caught up - I know we can - but we need time.
Here's what happened - I lost my job in the summer. Am back to work. I just need time to catch up on everything. We are 90 days behind. But they are counting this month against us too. So they want 4 months of payments.
Can anyone tell me what I can expect? What kind of payment arrangements would be reasonable?
I am so sorry to hear about your situation. consider yourself lucky in a very small way though. many people are now going through that without having a penny to put down on it. Do you owe the bank a lot less than what it is worth? Most banks are working with people a little more that can pay some. at least that is what I am hearing from news articles, bob brinker, suze orman etc. Did you talk to a supervisor and explain everything? I would try it again and go as high as you can. if you owe pretty close to what your home is worth bring that to their attention. It is not easy to sell even a foreclosed home these days. I wish I had something better to give you.
I know. I can catch up. I just need the mortgage company to work with me. I don't know what is reasonable or not. So I don't want to go to them with a schedule if its unreasonable. GMAC is a big lender, so I don't know how much they'd be willing to work with us.
Actually since my job is brand new I dont have a 401K - and my savings was used while I was looking for work. No family or friends to borrow from either. Thanks for the suggestions though!
I do loss mitigation work - basically helping borrowers in situations like yours set up loan modifications with their lender. There are a number of ways to do loan modifications... lower interest rate, add the back payments to principal, pay off the arrears in payments, etc. or even a combination of the above.
My guess is that when you call, you're speaking with customer service, whose job it is to play hardball with you. What you need to do is a workout. There should be a department that handles that. Generally, who you need to provide is a hardship letter, proof of income (or lack of) and a monthly financial statement.
You should get on this now. When is your property up for sale?
ChipL - Thank you for that info. We keep getting the run around. Loss Mitigation Dept is supposed to be open till 9, but the recording says they are closed even at 6! Its frustrating. But I am keeping my cool, because lets face it, I need their help. Anyway, the house is not going to sale yet. We were just served with papers saying we have 35 days to reply. Their attorney says its in my best interest to work it out with the lender. So I'm trying to. So - let me ask you this - would it be unreasonable for me to say that I can give them the 5600 in 2 weeks and then ask them to roll the rest back into the principal? And then have our next payment be due on March 1 so we could have a fresh start? I don't want to be unreasonable when trying to negotiate with them. Fact of the matter is - we just need to catch up...once we do we'll be fine because of adding my salary in to play. We obtained the mortgage just on my husbands. Any advice on what is a reasonable solution to them (GMAC) would be so greatly appreciated. Thank you.
Last edited by shortcake; 01-08-2008 at 07:25 PM..
Reason: additional info
Dealing with some of these bozos is extremely frustrating. It's always amazed me how difficult lenders can be esp. nowadays, when they do not NEED any more foreclosures on their books.
If you'd like, I can talk to them and see if I can make any headway. You would need to authorize me to speak on your behalf. PM me and I'll get the form to you.....
ChipL - Thank you for that info. We keep getting the run around. Loss Mitigation Dept is supposed to be open till 9, but the recording says they are closed even at 6! Its frustrating. But I am keeping my cool, because lets face it, I need their help. Anyway, the house is not going to sale yet. We were just served with papers saying we have 35 days to reply. Their attorney says its in my best interest to work it out with the lender. So I'm trying to. So - let me ask you this - would it be unreasonable for me to say that I can give them the 5600 in 2 weeks and then ask them to roll the rest back into the principal? And then have our next payment be due on March 1 so we could have a fresh start? I don't want to be unreasonable when trying to negotiate with them. Fact of the matter is - we just need to catch up...once we do we'll be fine because of adding my salary in to play. We obtained the mortgage just on my husbands. Any advice on what is a reasonable solution to them (GMAC) would be so greatly appreciated. Thank you.
The comments made by previous posters are all good. You should also visit with an attorney who has experience in mortgage foreclosures in your state. There are variations from state to state, and within states depending upon the type of mortgage [purchase money versus non-purchase money, short term versus long term redemption], relating to pre-judgment "cures." In some states simply tendering the unpaid installments and a statutory attorney's fee anytime prior to the foreclosure sale will cure the default and reinstate the loan. In other jurisdictions once there's a notice of acceleration you're done and the only cure is payment in full. So, get some legal advice as well.
Hi everyone....I want to Thank all of you for your advice and support during the last couple of days. We have never faced anything even remotely close to this before and we were afraid. The bank has agreed to work with us! They are going to take our 4k and roll the rest back into principal. Thank you again so much ! You have no idea how much your advice helped us.
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