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Already got a mortgage :: RE: What if the mortgage is in foreclosure and the borrower want

Author: jessica
Subject: RE:
Posted: Wed Aug 10, 2005 6:03 am (GMT 0)
Topic Replies: 2

Hi Carol
Welcome to the forums.

I can understand your situation. Anyway, need not worry as there are ways by which you can come out it. The following steps will guide you to overcome this problem.

•Special forbearance: You can ask your lender for a new repayment plan. You may be allowed to lower your payments for a certain time. The company may allow a suspension of your mortgage payments for some time. But this requires negotiation on your part.

•Change in mortgage term: You can request your lender for a change in the mortgage term, so that your monthly payments are reduced.

•Sale of property prior to foreclosure: You can sell your property and pay off the loan. But the appraised value of the property in its present condition must be equal to 70% of your unpaid balance. The sale price of your house must be 95% of the appraised value. The mortgage company allows for such procedure if you have failed to pay for the last two months before the closing date of pre-foreclosure sale. It will agree to it provided you assure them of the sale within 3 to 5 months.

•Partial Claim: Your mortgage may allow you to get an interest free loan from HUD but you must have defaulted for at least 4 months and not more than a year. The partial claim is filed by the company after which HUD makes payments to make your mortgage current. But this requires you to sign a promissory note and a lien is placed on your property until you repay the loan.

If you don't qualify for any of the above, you may conduct a "Deed in Lieu of Foreclosure" under which you can give back the property to the mortgage company.

I would suggest that you consult your lender as well as a housing agency to find out which of the above will be a better option.

Wish to receive your feedback.

Regards,
Jessica.

For the full story see:
http://www.mortgagefit.com/discuss/about221.html
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