Mortgage Foreclosure and Default: How to Keep Your Home
When You Have Financial Problems...
No one buys a home except with the expectation they will pay for it and keep it until they are ready to sell, or for the rest of their lives. But when untimely job loss, illness or other major financial crisis arises, there is often little you can do.
The first time you are faced with a decision of whether or not to make a payment on your home because money is so tight, you're likely to face some very deep agony. If you contact the bank asking for help, you're actually doing their job for them. But you are also likely to find they will do little or nothing as long as you are current on your mortgage.
In fact, the way HAMP and other loan modification programs are structured, you have to be at least three months behind on your payments before you can qualify. The problem is that once you do fall three months behind, you may never be able to qualify for a mortgage - at least with the lender who holds your note.
What do you do then?
Keeping Your Home
Once you are trapped in default on your mortgage, there is no easy way out. At this point, it's wise to engage an attorney to help you know and understand your rights and options. For example, because of the bank's own practices, you may be entitled to recover damages from the bank, instead of facing foreclosure.
Most people aren't interested in suing the bank or trying to recover money from their lender, and the best option is one that places a homeowner in a position where they are making the fair payment on the fair value of the home. Ideally, they are paying the full mortgage on time. But remember, we're dealing with situations that, through no fault of their own, homeowners have defaulted on the terms of a mortgage.
But what if, you negotiated in good faith to obtain a loan modification, or even more,
More by this Author
First, I'm a guy, so I have first hand experience with liking a girl and I know what I do (or did) when those feelings were welling up inside of me. Second, I've been an independent observer of my friends who are male,...
Once upon a time, Steve Martin had a comedy routine about knowing how you can "make a million dollars and not pay any taxes". Nice plan to hear - especially from a guy who had made many millions, just by...
"Some people say that they know right away, sell you love on a cloud for a lullaby." - The Bodeans Read the companion article to this hub: Ever After: What Happens When You Finally Meet the Person You Fell...
No comments yet.