Posted by Shambhu Nath on September 07, 2003 at 17:52:51:
First of all; selling house has nothing do with mortgage late payments as the buyer gets new mortgage and pays off the old mortgage at closing.
Your option is to call the mortgage lender directly and explain them the situation and negotiate but they do for you. They might give you some more time and lump sump the interest in mortgage.
If you get new mortgage, you will be in same situation unless you can get more than current loan and use the cash out from house for payment till you get another job.
You may also try a home equity option although that may also be hard to get when credit is bad. The best option is to have equity open before mortgaes are late than use is when needed.
You can also try some subprime lenders who can offer you loan but at higher interest. You might also want to try to borrow from family member if that is an option. You current lender may be the best shot.
About to lose my house can anyone help? - Posted by Don Holland
Posted by Don Holland on September 07, 2003 at 15:59:10:
Hell all,
I am three months behind on my mortgage. I am unemployed and have poor credit due to my unemployment. I purchased my house two years ago for $310,000. The remaining mortgage is $294,000. I am told i can’t sell my house (even if I wanted to) until the mortgage is up to date. The house is currently valued at approximately $439,000. I really don’t want to lose the house or the equity. Is there anything that I can do? Please let me know.
Re: About to lose my house can anyone help? - Posted by Phil Pelletier
Posted by Phil Pelletier on September 09, 2003 at 19:31:46:
You have a few choices, some better than others. An investor could buy your home for $294,000 and pay off the first mortgage (regardless of the late /missed payments), then they could lease option the property back to you for $350,000 pay out in three years. Investor covers his payment, you keep the house and you are first in line to repurchase it when you get back on your feet. Problem I see is the lack of ability to pay the monthly lease payment (due to lack of income). Your payment would be in the $2,500/month range to cover the investor’s payment, so I assume you have no way to cover that payment, correct?
I would sell that place yourself by calling a mortgage broker in the area. They have a ready list of investors looking for people who are in default and needing to unlock some equity fast. In my opinion, you need to get the money out of that house fast by selling to someone at a below market rate and cashing out at the closing table whatever you can.
I person in your situation needs to make some major decisions before someone else makes some major decisions FOR HIM. Go get some For Sale By Owner signs and plaster the neighborhood. Put an ad in the local paper saying $420,000 house for $350,000, need to sell NOW. The phone will probably melt with activity. You are in control of that property until the court house sale (6-9 months from now?). SELL IT and take the cash and buy a smaller place and have a nice equity position in the home.
Don’t let it foreclose. That is a life changing event you want no part of. Sell it NOW!
Phil Pelletier
If you want to talk about your options, please feel free to call me at 503-709-8184. I live in Portland, OR.
Re: About to lose my house can anyone help? - Posted by Mickey
Posted by Mickey on September 07, 2003 at 19:51:49:
Sorry to hear about your situation. I have been in real estate for quite some time now. One option is for you to get a loan from someone, anyone you can to at least make a payment or two to buy yourself some very valuable time. You have to do this before your mortgage company begins the foreclosure process. Once you do this you have a LITTLE time. I don’t know your whole situation, or where you live, or how well the market is where you live, but you have roughly $145,000 in equity. Put the house on the market yourself between $340,000 and $350,000. That way the buyer is getting a VERY nice deal, you will probably sell quickly, the new owner will have some equity and most important of all. you will be OUT of your situation with some cash in hand…
Re: About to lose my house can anyone help? - Posted by Mike (NY)
Posted by Mike (NY) on September 07, 2003 at 18:54:47:
Don,
The problem I see with using your equity to keep your property is that you are unemployed. Your best option may be to sell and try to get out as much equity as you can to give yourself a new start and more importantly some time.
I would see if any local investor is interested in helping you out.