David Hammel, Home Owner in Salt Lake City, UT

In order to keep paying on my home, I need to pay other debt. How long will my lender (Utah Housing) allow, before foreclosure?

Asked by David Hammel, Salt Lake City, UT Sun May 22, 2011

I am working and want to pay all of my debts. I don't want to lose my house. I am going through a divorce and will not be able to afford the house unless my other debts are cleared up first. Need to know what my options are. I have a 1rst and 2nd mortgage. I have had the house for 5 years.

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Mark P Moyes’ answer
You say you'd like to keep your home, but need to pay off your debts first. Have you considered refinancing your home to pay off the debts? If you purchased 5 years ago there is a good chance you could not only payoff your debt, but decrease your interest rate and save money on your payments. Foreclosure is always a last resort. You'll also want to contact your creditors on your other debts to see if they can help you with decreasing your payments. If you were to choose between making your mortgage payment or pay your other bills, your mortgage always needs to come first. If you are late on a mortgage it will affect your credit so much more negatively than anything else. Besides, you need some place to live and if you stop making your mortgage payment then you WILL be foreclosed on eventually. Divorces are always very difficult to deal with. Just know, you do have several options.

Mark Moyes
Associate Lending Manager
Veritas Funding
1 vote Thank Flag Link Mon Jun 6, 2011
I would see if you qualify for a modification. You are not alone in your struggle. Call the HOPE hotline to see if you are a good candidate. It is a service offered by the federal government. The number is 888-995-4673.

If you have an FHA loan then you will want to call the vendor that HUD contracts with for defaults and modifications: Deval LLC 877-622-8525. You will need your FHA case number handy when you call. That can be found on your Note (closing documents) or sometimes on the mortgage statement.

good luck!
1 vote Thank Flag Link Mon Jun 24, 2013
Hello David,
As Dan has mentioned you will suffer some pain financially and with your credit reporting. The first step is to gather all the information regarding you secured and un-secured debts as well as calculate all your variable monthly expenses. Compare to your income and decide if it is realistic that short term changes could help you get back on-track. Then call the mortgage lender and ask if a "Forbearance" is possible, you can also call a few of the larger credit debts and ask for restructuring and new re-payment plans. Since you want to keep the home and you are willing to pay all the debts you may be a good candidate for a Chapter 13 bankruptcy. PLEASE CONSULT your own LEGAL COUNCIL regarding this option.

Good Luck & Thank You for using Trulia!

Kristopher Furrow, REALTOR®
-Associate Broker

Windermere Real Estate - UTAH
Salt Lake City and Park City
2348 South Foothill Drive
Salt Lake City Utah, 84109
Direct: 801.999.8679
Office: 801.485.3151
Fax: 801.485.3152
1 vote Thank Flag Link Sun May 22, 2011
You have several options here but I warn you, each decision will carry different consequences. My first recommendation is to decide where your priorities are. If you pay any reporting debt late, your credit will suffer. If you fall behind on a car payment, auto lenders will look on this worse than if you are late on credit cards. Mortgage lenders don't like being the lowest priority. When you apply for new credit, which one do you want to feel slighted?
Consider meeting with a credit counselor to sort through your priorities and the consequences. Depending on how severe your debts are and how long you'll need to catch up, it may make sense to talk to a BK attorney and know all of your options.
1 vote Thank Flag Link Sun May 22, 2011
Hello Dave,
First I reccomend seeing if you can do a refi, a new FHA loan will go to 95% of current value, if that doesn't work, talk to an attorney ch 13 could be a good option, how long will they take to start forclosure depends, I have seen them work with homeowners on a "case by case" they are easy to talk to since they are small and local and if you are communicating with them that you are working on a solution they probably won't start the process. I would be interested to know how much your debt is? lets say you had to "miss" a few payments to payoff some debt, that went to payoff balances then you could work a "modification" or forbearnace which really is taking back payments and putting it on the back of the loan..of course this would damage your credit, but could be an option for you! BTW we highly recommend Cindee Stone as a lender she is a great problem solver!!! 801-381-3863
Good Luck!!
Shane & Cathi Hughes
REMAX Associates
(801) 518-9121
Web Reference: http://www.shanekhughes.com
0 votes Thank Flag Link Thu Dec 1, 2011

Dan had a great recommendation... you may want to talk to an attorney about how to proceed.... one that specializes in this industry and doesn't demand a large price tag. I have a firm that works with my clients to help them see their best and realistic option and can help you through it as well. It that is interesting to you, email me and I'll send their contact info.
0 votes Thank Flag Link Wed Oct 26, 2011
If you want to stay in your house and lower your payments by half, you may want to consider a house lease back.
0 votes Thank Flag Link Sat Oct 22, 2011
The best thing may be for you to fill out a financial worksheet. This puts the problem in the form of numbers and on paper. Just as your debt to income was calculated when you bought the home, further analysis must be made in order for you to effectively prioritize and make sense of your finances.
Once you have a clear understanding of your personal financial picture, then you can decide what option is best for you. Sitting down with a qualified professional that will give you all of your available options is an important step to making progress. Chance of success is on your side if you go to work early. Procrastinate and options start disappearing rather rapidly.
0 votes Thank Flag Link Fri Jun 3, 2011
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