Comments on: Stuck In Arm,what Can I Do To Avoid Foreclosure?

By: skigator

skigator — Mon, 26 Oct 2009 18:15:28 +0000

If you truly have $100k in equity in the house – sell it, as that is your only avenue to avoid financial ruin. The market is so soft right now, you might have problems selling the house, but if you clear enough to get out of debt – you’d be foolish to stay with your sinking ship. Rent an apratment and save to start over – just think of what great deals will be available on houses in a year from now!

By: linda

linda — Mon, 26 Oct 2009 16:15:45 +0000

sell the house, Down size, sell new cars, buy and pay in full for 1 “one” older model car.
Good Luck, Your going to need all the Luck you can get

By: Zack

Zack — Mon, 26 Oct 2009 14:00:46 +0000

Hi,
I used “Credit Solution” to settle my debt and avoid foreclosure. They managed to reduce my debt up to 58%.It’s legitimate.I came accross this company on NBC News Special Edition.Check it out here:
http://memurl.com/kitalo

By: Phil

Phil — Mon, 26 Oct 2009 08:26:35 +0000

a. Generate more income: You may consider renting one or more of the bedrooms out. Though you lose some privacy, you can use the income to start fixing your credit problem.
b. Trim unnecessary expenses: Cut back on utilities and other unnecessary spendings.
c. Read Susie Orman’s book!

By: Casie

Casie — Mon, 26 Oct 2009 02:11:17 +0000

You & a lot of others who got ARM’s recently. They are meant for short term, then you refinance to a fixed rate. At least, that’s what most good investors do, short term only. Interest only loans are best for short term also. like 1-2 years, then refinance.
You have $100k of available equity in the home? You could refinance a little of it to a fixed loan. Shop around with a few different banks & mortgage companies to see what you can do.

By: Cinderel

Cinderel — Sun, 25 Oct 2009 23:12:38 +0000

Just sell the house. You can’t refinance with a credit score like that and you can’t continue to pay that much for long, plus a foreclosure stays on your credit history just as long as bankruptcy does. Put the house up for sale as quickly as you can, at least you have a good amount of equity so you’ll be left with something. Put that money aside and rent a place to live in while you work to bring your credit score back up. Then you can use the money you have saved to buy another house when the market is better and there are more regulations on these lenders who are handing out variable rate loans like crazy. Do it now before you get behind on any payments or the lender will threaten foreclosure and have more say in approving the sale and you might not end up with much. By the way, do you have a pre-payment penalty? That can really hurt you too because that payment needs to be made and the loan paid in full before the lender will approve the sale. If they can’t get an offer high enough to cover all the fees and costs, you might be forced to make a short sale, which would leave you with nothing and the lender losing out on money. If that’s the scenario, be sure you have it in writing that the lender is accepting the amount of the sale as payment in full of the loan and you are no longer responsible for it. I had to make a short sale early this year and the lender was trying to get me to sign a document saying that they were accepting a certain amount toward the balance of the lien but that I was responsible for the remaining balance. I told my broker there was no way I was signing that and they could just foreclose. They went ahead and took the money as payment in full. They’d rather get whatever money they can now than have to put up the cost to begin foreclosure and put the property up for sale themselves.

By: DebtFree

DebtFree — Sun, 25 Oct 2009 18:26:32 +0000

can’t refi and cant afford payments? may have to sell. go back to renting again for a few years, not a bad thing until you get the mess cleaned up.

By: Landlord

Landlord — Sun, 25 Oct 2009 17:08:11 +0000

Gawd, you make it sound like this is some unexpected thing that happened to you when you were unprepared.
This is what you signed up for. Did you think they were kidding?
You are lucky, you have equity.
Sell the house and buy something in your price range. Your “price range” is whatever you can afford with a FIXED rate loan.
If you can not refi you really have no other options other then selling.

By: all4equi

all4equi — Sun, 25 Oct 2009 16:55:01 +0000

first see if you can transfer all your credit card balances over to one low interest card. that way you aren’t falling behind on multiple cards, you’ll be able to make min payment on 1 card & bring your credit score back up. Then if you have extra bdrms or a basement in the house, rent it out to a student or single professional. Now, talk to your lender-they don’t want to foreclose because then they get stuck with the house in a soft market. They may be willing to work with you to make sure they still get paid & you keep the house.
Also, do you have cars you can trade in or sell & get something cheaper/more gas friendly? Call the utility companies & have them put you on a budget plan-fixed cost every month based on yearly average-so you know what that will be every month. you really need to cut where you can-disconnect cable, internet, landline phone, lower level plan on cell phones,whatever you can truly live without so you can put that towards the mortgage. You really don’t want to lose your home if you don’t have to. Last resort sell the house & rent something inexpensive so you can save up & buy again in a few years. good Luck

By: bigoilma

bigoilma — Sun, 25 Oct 2009 15:51:27 +0000

This is a tough but all-too-common situation. Many of my clients are people in this same situation. If you decide to sell but don’t want to “give it away” in this soft market, I may be able to help. You don’t say where you’re located but I can offer you an option that will work for you by:
1. Protecting your $100k in equity
2. Keeping you from becoming a “landlord” and all of the hassle that entails.
3. Keeps this property from affecting your debt-to-income so that you can buy another house.
I’m associated with a group of investors nationwide and the company that we work with on these deals has been in business since 1984. If we can come up with a solution that works for you, great! If we can’t it never costs you anything to find out.
Contact me if you’d like more information. I can e-mail you a brief overview of what we do.
Best of luck to you.