Foreclosure in 07111>Question Details

Jason, Home Buyer in Irvington, NJ

I cant afford my mortgage anymore. I deployed to Iraq and things are getting worse. What can i do?

Asked by Jason, Irvington, NJ Mon Oct 6, 2008

I have perfect credit and I dont wanna hurt my credit.

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Jeremy S. Hill’s answer

If your interest rate is high you can possibly get a loan modification. You may rent your property to help cover the expenses. And you can sell the home. Every situation is unique. But it sounds like you are doing the right thing and exploring your options early instead of later.
1 vote Thank Flag Link Mon Oct 6, 2008
You sound like a very good canidate for a short sale!

Next step is to find a GOOD agent:
0 votes Thank Flag Link Wed Jan 13, 2010
Hi Jason,

I just found this post. I am so sorry some here hasn't poited you in the right direction yet.

The answer to your question is The Servicemembers Civil Relief Act.

This is a link to the complete SCRA Guidelines:

Just a blurb from the site:

Servicemembers Civil Relief Act

The Servicemember's Civil Relief Act (SCRA) expanded and improved the former Soldiers' and Sailors' Civil Relief Act (SSCRA). The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers. A few examples of such obligations you may be protected against are:

Outstanding credit card debt
Mortgage payments
Pending trials
Terminations of lease.

There are also Individual State Programs and Laws for military personell on active duty.

In New Jeresy they enacted:
New Jersey Servicemembers' Civil Relief Act of 2006

I would be willing to assist you at no charge.

Thank You for your service!
Web Reference:
0 votes Thank Flag Link Sat Dec 26, 2009
Jason, as others have said talk to your J.A.G. Ask your C.O. for help if you do not know how. The financial act that was passed for our military who have enough problems just being in iraq or afghanistan should help you.

On a side note, be careful be safe, and come home in one piece. You have the hardest job there is, thank you for taking it.
0 votes Thank Flag Link Thu Nov 12, 2009
First step is to get a local short sale specialist to help with the process, there is no cost involved at all Jason!! Check out
0 votes Thank Flag Link Thu Nov 12, 2009
Federal law : provides military personnel important rights and protection.

Resolve, speak with your Attorney (provided by the military), have Him/Her resolve your issue(s); while you are "ACTIVE".

Further resolve, New Jersey (USA) would like to take this time in thanking you for all that you have done or will do to protect and serve our country.

Make it home
God Bless you and yours
0 votes Thank Flag Link Sat Oct 3, 2009
Most mortgage companies are willing to work with deployed military members and either stop some of the payments until you return or reduce your payment amounts of course each mortgage company is different so you will need to get in touch with them. They will need a copy of your orders and usually a letter from you r commanding officer. I am pretty sure it is called Service Members' Civil Relief Act. (signed Dec 19th of 2003 ??)

Thank you for taking care of our country and assisting those in need.

Wife of military member
0 votes Thank Flag Link Fri Oct 10, 2008
Another thing that you may not be aware of is the "Soldier, Sailor Relief Act". It may not help with your mortgage. I am not sure. However, it will help with small loans and credit cards. The military has free legal advice. You should definately talk to them before doing anything.
0 votes Thank Flag Link Fri Oct 10, 2008
Hi Jason,

If you are unable to afford your home any longer, and you are "upside down" on your equity than a short-sale may be your best option. One of the situations where a person can achieve a quick short-sale without even missing a payment is if the hardship is caused by military deployment or relocation. Are you deployed now? If you are deployed then your lender is actually not allowed to report late payments to your credit. I can give you information to help you make the decision that you will feel the most comfortable with. Feel free to contact me if you would like.
0 votes Thank Flag Link Fri Oct 10, 2008
Option one is to negotiate with lender on your mortgage terms, second is deed in lieu of foreclosure, the bank will take the deed and not foreclose. Or finally foreclose on the property, now being that you are in the service there might be programs available to you by the VA that might be worth looking into
Web Reference:
0 votes Thank Flag Link Mon Oct 6, 2008
Hi Jason, Depending on the type of loan you have, you may qualify for a loan workout called a "special forebearance". If your loan is delinquent, you may be entitled to a longer repayment plan than is usually available. Because of your active military status, you will easily be able to document your hardship circumstances and your lender will be willing to work with you to quickly remedy this situation. They can give you an affordable repayment plan so you can get caught up. Active military are receiving preferential treatment to find loan solutions and foreclosure alternatives. You should definitely contact your lender asap to let them know your circumstances and start the loan workout process. I highly recommend this route instead of allowing your home to go to foreclosure. I am including a link to my website where you can get alot more information, or feel free to email me if want to ask me any specific questions. Good luck!
Susan Gregory
0 votes Thank Flag Link Mon Oct 6, 2008
Jason, I could only include one website link in my previous answer, so here is the other one. Hope these are helpful!

Linda Niehuus
Heritage Texas Country Properties
Brenham, TX
0 votes Thank Flag Link Mon Oct 6, 2008
Hello, Jason. I am truly sorry about your situation. My son served 15 months in Iraq...God bless you for your service.

I am giving you a link to some helpful information. There are protections in place, but with so many unknown variables in your situation, I think it best if you read through this information. Once you have a good understanding what your options are, you should speak with your mortgage company. If you don't get a good result, try contacting your local representative and ask to speak to their military liason. Our local one works wonders on behalf of soldiers. If you still need some ideas, please feel free to call me and I can brainstorm with you.

Best of luck, warrior!

Linda Niehuus
Heritage Texas Country Properties
Brenham, TX
0 votes Thank Flag Link Mon Oct 6, 2008
You have two great answers so far.
You have three options:
1. If you want to keep your home, then you might be able to re-negotiate your mortgage. This is called a "loan modification". Your challenge might be if you obtained the loan with "stated" income and assets, you will now have to apply with "full documentation". If you explain how it came to be that you can no longer afford the mortgage, the lender might work with you.

2. If it appears that you are not going to be able to bring your income up to the point where you can afford payments, then you need to see if you can qualify for a short sale. In this case, perhaps due to your deployment, you need to work quickly. Talk with a Realtor regarding your home's current market value. Your Realtor can then approach the lender and explain your hardship (the reason that you can no longer afford the payments) and persuade the lender that the best thing for them to do is to let you sell the home.

3. The worst option is foreclosure. A short sale will ding your credit, but a foreclosure is worse.

So the best thing to do is talk with a Realtor and start assessing you options NOW. Time is of the essence. Most of this can be done via phone and email, so do not wait.
0 votes Thank Flag Link Mon Oct 6, 2008
Keith Sorem, Real Estate Pro in Glendale, CA

As Jeremy stated, you do have some options but that depends on a number of factors. Are you current on your mortgage? Is your house upside down - do you owe more than its worth at this time or do you have equity in the property? Were you in an ARM and your rate adjusted? If so, you can definitely call your loan modification department to see if they will reset the rate to make the house affordable. There any different options to explore before you make any real decisions and many that can save the impact of a default of your loan on your credit report. If you are interested, please contact me and we can speak directly.

Good luck to you.

Gina Chirico, Sales Associate
Prudential New Jersey Properties
973-992-6363 ext 116
0 votes Thank Flag Link Mon Oct 6, 2008
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