mortgage & foreclosure problem? - Free Foreclosure Help - Loan Modification Help

Stephens C · #1 (**permalink**) 12-05-2007, 05:56 PM

Hello guys,

I am facing problems in paying the monthly mortgage payments of a house in Virginia, and I am not currently residing in that house, since I moved to California. So the house is vacant. I brought the house for 320,00K and right now the market value of that property is only 210,000K. I have only one lender (primary mortgage only) with around 8.5% APR (it?s a variable APR plan which changes every year) with $300 per month mortgage insurance. This makes my monthly payments to around $3000 per month. I am thinking to stop paying on the payments from this month. Will the bank directly go to foreclosure or will they try for a workout agreement with me. Also, if I go for foreclosure, do I still owe money to the bank considering I have only one lender and also have mortgage insurance? Please suggest what would be best option for me? Where can I get additional information regarding this?
Thanks

moname · #2 (**permalink**) 12-05-2007, 05:59 PM

Take it from me, just went through foreclosure and it is not a good thing. See what kind of agreement you can make with the lender. Foreclosure on your credit is a horrible thing and lasts for 7 to 10 years. With everything so bad, the company will want to work something out with you. You will only owe money on the home if it gets sold at auction for under what your loan is. If it is sold for more than the loan is the money supposedly is yours, however after all fees and liens are paid, which pretty much leaves you with nothing and it takes forever and a day to get. So trust me, try to work things out because foreclosure really shouldn't be a solution. You would only be hurting yourself in the long run.

dolphyns2000 · #3 (**permalink**) 12-05-2007, 06:01 PM

Refinance. If you would rather them foreclose on it, it will take them several months of defaulted payments before they begin foreclosure proceedings. If they foreclose on you, it will ruin your credit. Like I said, you can refinance it, or rent it out to make the payments until the market improves and you can sell it. Your interest rate is rather high, and with your loan being an ARM, the best thing to do would be to refinance.

DeeDee · #4 (**permalink**) 12-05-2007, 06:03 PM

you can stall several months to work out an agreement. if it ever goes to foreclosure, and then finally to a new buyer, any deficiency will be sought by the lender. It is possible to stall 6-12 months.

donald e · #5 (**permalink**) 12-05-2007, 07:31 PM

oh boy r u in trouble, no they wont go right to foreclosure u have a minimum of 90 days from the last payment u made, and then the legals, sheriffs sale, etc. can take 2-6 months, etc. the problem is u r on the hook for any short fall between what u owe and what they sell it for. pmi protects the lender and not u, so if there is a short fall u will see it along with the foreclosure on ur credit report for years to come. be aware that the clock is always running on the principal and interest late payments, and legal fees which will far out weigh whatever the bank gets for the home. Va. has been hard hit by the housing slump and its not unusual to see homes in this siutation. If you owe more than 210000 on the house you are in serious financial difficulty. it could stop u from buying another property. several ways out of this bankruptcy to stall foreclosure, bankruptcy after foreclosure to erase any short fall, or contact the lender and discuss givng up the deed in lieu of foreclosure. YOU NEED LEGAL HELP TALK WITH A GOOD REAL ESTATE/BANKRUPTCY ATTORNEY NOW BEFORE FORECLOSURE STARTS

877YouKeep · #6 (**permalink**) 12-08-2007, 08:51 AM

Ok, stop trying to scare people. You are right foreclosure is not filed or a To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. is not sent until 90 days past due. At which point the mortgage company will not allow payments. During the demand period the case has not been To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.. Unless you know what you are doing the only options are repayment plan or reinstatement with the collection department.

Check out this area to see To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.