V8 Beast Posted March 24, 2009 Report Share Posted March 24, 2009 I have a friend at work whose husband was laid off. She called the mortgage company to get help and the rep told her not to pay for a few months. She would receive a call to reassess her situation. My friend told the rep she could pay, but if there was anything they could do to help she would appreciate it. Her main concern was her credit because she was working hard to rebuild it. The rep said it would be ok. 3 months passed and her husband still didnt have a job. The company then told her it was okay to pay a reduced rate for 3 more months. She thought she had the job protection insurance so didnt worry about it. One day while going over her paperwork she found that she had actually declined the job loss protection. She then called the mortgage company and they told her that she was basically one payment away from foreclosure... but since she had arrangements she was ok. She then checked her credit rating and it showed that she had been past due on her mortgage for almost 5 months. When she called to cuss them out they basically said that since she doesnt make enough to be able to pay for the house herself they could not offer her any options other than selling her house for her. The only other option was to pay the past due amount and keep the house. The past due amount at that point was over $6000!!!! Now she has to find a place to live because she called and asked for help and was mislead. She could have easily worked OT to make up the difference but they wont let her. Not only is she losing her house, her credit has been impacted which could make it harder for her to find another place to live. She knows its her fault for not reading between the lines, but thats still all kinds of effed up. Anything she can do to keep her house? Quote Link to comment Share on other sites More sharing options...
TheHaze Posted March 24, 2009 Report Share Posted March 24, 2009 Would you happen to know her annual income and the value of the home? Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 40k and a 175k home. I dont know how long she has paid for it so I'm not sure how much is left due on the house. She has credit cards too, but no car payments. Quote Link to comment Share on other sites More sharing options...
TheHaze Posted March 24, 2009 Report Share Posted March 24, 2009 Hmmm. Normally, it would be suggested to look in to Obama's new home finance plan, but one of the requirements is that you haven't missed any mortgage payments in at least 12 months. I think the only option she has is to persuade her mortgage company to give her a Repayment plan or a Forbearance agreement. It may just come down that she can't keep the house. In that case, she needs to talk to her foreclosure company about pre-foreclosure selling so that a foreclosure doesn't destroy her credit. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 Hmmm. Normally, it would be suggested to look in to Obama's new home finance plan, but one of the requirements is that you haven't missed any mortgage payments in at least 12 months. I think the only option she has is to persuade her mortgage company to give her a Repayment plan or a Forbearance agreement. It may just come down that she can't keep the house. In that case, she needs to talk to her foreclosure company about pre-foreclosure selling so that a foreclosure doesn't destroy her credit. Is that the quick sale stuff she was talking about? I told her not to do it because I though that impacted her credit just like a foreclosure. They have to sell it during a foreclosure, whats the difference if they sale it before the forclosure? Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 Yeah shes sol Foreclosure or Deed-in-Lieu of Foreclosure Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380. Short Sale The effect of a short sale (providing the sellers are more than 59 days late) on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420. Her credit score will probably be in the 200's when she gets done.. ouch Quote Link to comment Share on other sites More sharing options...
Farkas Posted March 24, 2009 Report Share Posted March 24, 2009 Dude, a credit score of 200 is terrible.. probably better to have no credit history than bad credit at that point. I wonder what the lowest credit score ever is? *edit* Lowest you can have is 350. Quote Link to comment Share on other sites More sharing options...
Akula Posted March 24, 2009 Report Share Posted March 24, 2009 This brings up a few points. Always check your paperwork. Always communicate clearly IN WRITING when this sort of things happens. If I hear "you will be alright" I ask, how is that and will you write the explanation down?". She may have asked "are you going to throw me out this month" and the guy on the phone said "you will be alright". Context is everything and that is why correspondence about this type of thing must be in writing. As far as what she can do, she needs to pay up or get out. Can she raise the $6000 she needs? I hope she voted for Obama, cuz he is supposed to be saving people like this. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 I'm going to tell her to try and get a few more months at the discounted rate again from the mortgage company. Then work as much OT as she can and save it. Then if her husbands not working she can get a 6 month lease, pay 3-4 months in advance, and pretty much make her credit score invalid... Quote Link to comment Share on other sites More sharing options...
99FLHRCI Posted March 24, 2009 Report Share Posted March 24, 2009 Try and get a loan modification agreement through the bank. I was close to losing mine and received one of these. It knocked my mortgage payment down by about $250 a month lowered my interest rate a full 2% and it is still a fixed rate mortgage. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 Try and get a loan modification agreement through the bank. I was close to losing mine and received one of these. It knocked my mortgage payment down by about $250 a month lowered my interest rate a full 2% and it is still a fixed rate mortgage. They told her she didnt qualify for anything but losing it. By the way she made it sound her husband has to get a job making 30K a year for them to even consider it. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted March 24, 2009 Report Share Posted March 24, 2009 Have her call my wife. Her rates are more than fair and this is right in her wheel-house. PM me if you'd like and I'll send you her office number. She's one of the best and I'm not just saying that. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 Sure, I'll pass the info along Quote Link to comment Share on other sites More sharing options...
excell Posted March 24, 2009 Report Share Posted March 24, 2009 Damn, I was just going to say to call an attorney quick. Quote Link to comment Share on other sites More sharing options...
87GT Posted March 24, 2009 Report Share Posted March 24, 2009 I would give up on keeping the house at this point. Maybe she should focus on selling for now? Maybe the bank can work out something with her so she can just walk away if it is sold. Selling a house does suck but it isn't the end of the world. If you lose your job and don't have any savings left for the payments (hopefully you stock piled 6 months worth of payments???) your first priority should be to sell. That is just my opinion so I could be wrong. Quote Link to comment Share on other sites More sharing options...
T Rex Posted March 24, 2009 Report Share Posted March 24, 2009 If the guy has any food management experince and you can vouch for him I may be able to get him something. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 24, 2009 Report Share Posted March 24, 2009 1. Get attorney 2. Make lazy ass Husband get a job at Lowes, Home Depot... whatever. You can still look for a job while bringing in a little cash. 3. ??? KillJoy Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 24, 2009 Author Report Share Posted March 24, 2009 He husband is lame Quote Link to comment Share on other sites More sharing options...
bigflee Posted March 25, 2009 Report Share Posted March 25, 2009 She makes enough to afford it. I know someone who recently was approved for 225k that makes 58k a year. If her husband was laid off why wasn't she working overtime anyways ?? Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted March 25, 2009 Report Share Posted March 25, 2009 This doesn't sound right to me, and I bet you aren't getting the full story. If she can pay the full amount, I am sure the bank would be okay with her making full, on time payments each month, and sending in a little extra monthly to make up her back pay. They want her money, not her house. Her lazy husband is a whole other issue. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted March 25, 2009 Author Report Share Posted March 25, 2009 She makes enough to afford it. I know someone who recently was approved for 225k that makes 58k a year. If her husband was laid off why wasn't she working overtime anyways ?? She didnt think she needed it since she was told not to worry about it. She basically took the lazy way out. This doesn't sound right to me, and I bet you aren't getting the full story. Thats a definite. When people make mistakes they tend to change the story in their favor. I called my mortgage company today and asked about it. They said when you accept a payment agreement you have to sign that you understand what it is and accept the terms and what not. Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted March 25, 2009 Report Share Posted March 25, 2009 Has she tried calling Obama and asking for a favor ? Quote Link to comment Share on other sites More sharing options...
kirks5oh Posted March 25, 2009 Report Share Posted March 25, 2009 husband needs to suck it up and get a job somehow--ANY JOB. they also need to walk away from that house and get a cheaper one. plenty of people are just moving out of their house without even trying to sell it--they just walk away. $175k house is too much for them in this volatile economy where jobs are at such risk, and its clear he is not motivated. Quote Link to comment Share on other sites More sharing options...
Mr. Jones Posted March 25, 2009 Report Share Posted March 25, 2009 husband needs to suck it up and get a job somehow--ANY JOB. they also need to walk away from that house and get a cheaper one. plenty of people are just moving out of their house without even trying to sell it--they just walk away. $175k house is too much for them in this volatile economy where jobs are at such risk, and its clear he is not motivated. You'd think the possibility of his family being homeless would be a good motivator. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted March 25, 2009 Report Share Posted March 25, 2009 This thread makes me want to buy a house still. Quote Link to comment Share on other sites More sharing options...
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