Foreclosure in 85032>Question Details

Jcordero1623, Home Buyer in 85032

I'm way behind on my mortgage after losing my job. Can anyone help me by answering some questions?

Asked by Jcordero1623, 85032 Mon Jun 7, 2010

My mortage is 13 payments behind and the bank is telling me that I either need 10k to catch up or a short sale or foreclosure. I don't qualify for another loan modification as the one that passed recently I wasn't able to pay on. Is this it for me? Am I going to have to sell my home? I have a new job now, at half the income, but the bank says that its 10k or I should expect foreclosure proceedings. I feel so trapped. Is there anything I can do short of looking for a loan shark to gimme 10k?

Help the community by answering this question:


Consult an attorney. Most people wait too long to find help, when something could be done to negotiate with the bank. A short sale may be your best bet if you are unable to negotiate a repayment plan with the bank. Given that you stated you have half your previous income, it may be unlikely that you'll ever catch up or be able to keep up with your mortgage. A short sale should enable you to get a fresh start with your current income and save your credit from further decline.
1 vote Thank Flag Link Mon Jun 7, 2010
Hi "J,"

I'm sorry to hear about your current predicament, however you are not alone. There are thousands of people like you struggling. You are at a cross roads where you are going to have to make some tough decisions soon. Here is what I would do:

1) Contact a HUD approved counselor for your area (link below). They will give you the skinny on whether you might qualify for new loan modification or if a short sale or foreclosure is the option for you. They can work directly with the lender for you on a loan modification and their services are free of charge since they are nonprofits.
2. Contact an accountant or CPA to learn about any tax implications if you go the short sale/foreclosure route.
3. Contact an attorney for legal advice to find out if there will be any deficiencies owed on the property if you go the short sale/foreclosure route.

If you end up having to do a short sale contract a Realtor that is experienced in handling these because not all Realtors are. And remember there are lots of people here that can help ease your anxiety by answering most of your questions. We're here to help :)
0 votes Thank Flag Link Fri Jan 7, 2011
If you have had a loan modification they will not offer you another one. My experience is that most of the loan modifications do not give you the help that you really need. Although they have a forebarence program that allows you to put the back payments on the loan and they reamortize the loan. See if they would do this instead. if not I am sorry to say, but you should get your home on the market as soon as possible, and try to short sell it.
0 votes Thank Flag Link Sat Sep 4, 2010
Hi there

Regret to hear of your problem, but at least you have a job.

You do have two options:

1). Start a short sale
2). Get a lawyer

Good luck.
Web Reference:
0 votes Thank Flag Link Sun Jun 27, 2010

It's best to get an attorney involved to help you. Call Kelly at 602-619-0870. Please tell her Kristine asked you to call. She can help answer any questions and provide you with low cost, or no cost attorneys.
0 votes Thank Flag Link Sun Jun 27, 2010
I am sorry to hear of your situation Jcordero, yet happy for you that you have found another job. Just know that there is no longer that 'stigma' of yester-years because of the vastness of the situation.... YOU ARE NOT ALONE!
I work with a company that specializes in helping with situations like yours in the Phoenix area, no cost to you. Leave a message with your number and best time to call you back if I am not able to answer:
0 votes Thank Flag Link Mon Jun 7, 2010
Why not consider consulting with an attorney who specializes in real estate before making any decisions, see exactly what options you may have, and protect any other assets as well--most professionals do offer a free consultation, or contact your local Legal Aid Society for attorneys who do pro bono work--free of charge --your attorney can best advise--do avoid foreclosure if at all possible.
0 votes Thank Flag Link Mon Jun 7, 2010
Hello J Cordero,

Many homeowners are faced with this situation. You missed payments on your loan mod so you are now disqualified from the program that is understandable as that is the way it works. The bank has given you some options it is up to you to decide whether you wish to continue obtaining additional debt to hang onto a property that is already over incumbered.

Choice One:
Borrow the 10K to catch up on your mortgage and begin making your payments based on the original terms of your loan and find a way to also pay back the 10K. Here is where you need to be honest with yourself and ask - Can I really afford this or am I just postponing the inevitable? How underwater are you should also play a big factor in your decision.

Choice Two:
Short sale, you will no longer own your home but at least it did not go to foreclosure. In two years, assuming you have restored your credit after 13 months of missed payments and have some savings you can purchase again for whatever the market value is.

Do not let the bank foreclose. This will be on your credit report and it will be a very long time for you to recover.
0 votes Thank Flag Link Mon Jun 7, 2010
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