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We are upside down on our loan, mortgage company will not help. what should we do?

We have been in our home for over 10 yrs. We are upside down on the loan. We did get a modification but had a financial disaster happen and we got behind on three payments. The mortgage company came up with a payment plan but it is way out there ...we had to accept to save our house and we have already missed the first payment as we do not have that kind of money.  What do we do?
  • September 22 2010 - Anoka
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Answers (20)

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  • March 04 2012
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Profile picture for wetdawgs
It showed up in your feed because someone chose to respond almost a year after it was asked!
  • September 13 2011
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Why did this question show up in my feed? It's from last year.
  • September 13 2011
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Profile picture for MJHanson
Try to work with your mortgage company again, to see if they have a new program that will work for you while your home is on the market as a short sale.
  • September 13 2011
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Profile picture for Blue Nile
It has been almost 6 MONTHS since this was asked!  Agents would be well advised to be more timely in their responses!   Does it take you 9 months to return a phone call, and 10 months to answer a question on a listing, and 2 years for you to close escrow???

Why would anyone want an agent that is so slow at addressing issues?

Don't you think it likely would have been resolved by now, or that they might already be in the foreclosure process?

Besides, what information did you provide that wasn't already posted in the thread?

Is this what the National Association of Regurgitation taught you to do?
  • March 18 2011
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If your payments are higher than you can afford, it is advisable to do a Short Sale of your home thus avoiding foreclosure and improving your credit for the future.  Unfortunately, you would need to look for another place to live, but if you can't afford the payments, it seems unlikely that you will have a favorable end result with your bank.  I do work with an attorney that would give you good legal sound advice at no cost to you to short sale your home.  Hope this helps.
  • March 17 2011
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It would be well advised to start the short sale process. If the new payment sstructure that you are into is still above your comfort zone then a short sale will help. 
  • March 14 2011
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Sounds like you need to live and stay in your house... thus a short-sale probably won't work because you will still need to live somewhere.  I agree with MikeEmery, seek local advice so you can make an informed decision.  Legal advice would be best but I know it can be costly.  If you stop making payments your credit score will drop dramatically and thus you won't qualify for a new home loan.  You really need to determine if you want to stay in your home or start renting.  If you want to stay in the home then you should seek out any government aid or services in your state.  If you settle to renting then you should consider withholding your mortgage payments.  This will force your lender to either assist you and re-negoiate your terms or allow you to sell for short.  A real estate agent could assist you in the later.

  • September 24 2010
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I would echo the suggestion to seek legal advice and consider whether bankruptcy might be an option.  Many people are alarmed to hear the word bankruptcy, but it really is just a way to protect you from creditors under certain circumstances and it may help you save your home.
  • September 24 2010
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Profile picture for wetdawgs
@Jonathan:  according to the rules on the FHA short refinance, the borrower cannot have missed payments, and the OP mentioned missing several payments.


  • September 24 2010
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Excellent link Michael. TU.

Happy funding, Rudi
  • September 24 2010
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Try FHA Short refinance program

If a borrower owes more than the property is currently worth, the bank must agree to reduce the loan balance by at least 10% so that the new loan is no more than 97.75% of the home's current value.


The program is designed for borrowers who are current on their loans and owe more than their properties are worth. 

Borrowers are refinancing into FHA-backed loans and must be able to meet all traditional underwriting guidelines (including a minimum credit score of 500 and an income that can support the current loan payments).

If you have two mortgages, the combined mortgage debt on the first and second mortgages must be no greater than 115% of the property's current value.

The second-lien holder must agree to the refinance, and if the combined loan to value exceeds 115%, either the first- or second-lien holder (or both) will need to reduce the loan balance further.


Hope this helps!

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  • September 24 2010
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Check out Making Home Affordable HAFA  government program: http://makinghomeaffordable.gov/hafa.html , Minnesota home Ownership Center http://www.hocmn.org  and http://www.lawhelpmn.org/.

Hope this helps.
  • September 24 2010
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Profile picture for TEAMJERNELL

You may want to look at short sale as an option.

  • September 23 2010
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Millions are in the same situation as you. 

If at all possible seek legal advice. Other than that you have a few choices.

+ Strategically choose not to make any more mortgage payments and save the money riding out the foreclosure process and remaining in the home until you get tossed.

+ Try again to apply for a loan modification. Loan servicers appetite to work with consumers changes often. Call your lender.

+ Hire an agent who could handle a short sale for you.

+ Hang on anyway you can in hopes of a new stimulus from the government to stop foreclosures... Many believe it is closer than people think. 

  • September 23 2010
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Consider talking to an attorney and explore your option regarding chapter 13 bankruptcy. If you have regular income and have some excess income. You may be eligible to file chapter 13 bankruptcy, which will allow ou to keep the home and cure the 3 months defaulted mortgage payments over extended period of time.

2ndly you can consider short sale.

It depends, if you want to keep the home or sell the home.
  • September 23 2010
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Do as Mike suggested or also try the Minnesota Home Ownership Center.  www.hocmn.org.  The are also a non profit housing counseling organization.

A short sale may or may not be the best option for you - these organizations will give you a fair view of your options.
  • September 23 2010
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I would suggest starting the short sale process tomorrow. Your first call should be to your mortgage company, your second call should be to your Realtor. You have time, and beware of anything that sounds to good to be true or costs you money up front. Best of luck, and know that you are not alone in this position. -Jim Shaffer
  • September 22 2010
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You may be a candidate for a short sale. Call and find an agent who has done short sales(CDPE certification)  and put your home on the market asap.  
  • September 22 2010
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Call the number at the link below. This is a program operated by the state of Minnesota. They can direct you to an organization that can give you advice.

There are real estate agents that will offer to do a short sale for you, but you need to be better informed before making ANY decision.

http://www.dontborrowtrou ... rg/01.htm

612.312.2020
  • September 22 2010
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