Associate Lending Manager
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.
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, REALTORÂ®
Windermere Real Estate - UTAH
Salt Lake City and Park City
2348 South Foothill Drive
Salt Lake City Utah, 84109
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.
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
Shane & Cathi Hughes
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.
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.