Question:

What would you do if you were close to loosing

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Your home, due to lack of payment, i owe two months and i'm going to need about 5,000 to get up to speed...first of all its hard enough to save 2500 monthly payment...i make aprox. 950 /week and its hard keeping up with the payment..it used to be 1700 600 = 2300 now is aprox. 2700 monthly and its hard to keep up..should i giveup the house and just GO RENT ???

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  1. If you cant make payments then u cant make payments, simple as that, but if you are just a little bit behind look to friends or family for finacial support, you cant really take out a loan to pay it off cuz that makes abosuletly no sense, you may be forced to rent but if u get a decent rate and u can save up your money you can make your way back to ownership. Its better to have money to work with than to be trying to pay off a loan that is just adding up.

    A less likely solution but still plosable solution is to have a second income, a spouse or partner could get a job to help pay, if your single it makes more sense to rent for the time being. It isnt the end of the world, it sucks to lose your house but if you sell and rent it will feel a whole lot better having a couple dollars in your pocket and it really does take money to make money so there you go.


  2. The president signed a bill that would help homeowners save their homes. There is still hope.

  3. First, I would contact the mortgage company and let them know that I was in a distress situation and ask them to work with you in getting you back current on your payments.  You could ask them to defer the missed payments until the end of your contract or you could ask them to renogtiate your contract to a lesser monthly installment payment.

    I would expect the reason for the drastic raise in the mortgage payment amount is due to the fixed rate expiring and now your adjustable rate mortgage rate kicked in and you are paying 11 or 12 per cent interest on your note instead of the 5.5 or 6 percent of the original payment plan.

    If you can show that either the mortgage company or the real estate broker committed some type of fraud (upping your income, misstating your assets, communicating what figure they wanted the house appraised at in order to get you qualified for the loan, etc.) you can get Fannie Mae to make the mortgage company "buy back" the loan.

    If this happens you can renogtiate your loan (at the current appraised value of your home), not the inflated value you paid a few years ago.

    If you walk away from your mortgage the lender will sell your home at an auction (at a drastically reduced figure) and you will receive an IRS Form 1099 for the diference between what you still owe on your loan and the figure they sold the house for and you will have to pay income tax on that figure.

    Mortgage companies do not want an empty house that they cannot sell on today's market.  See if you can't get them to work with you.

    I hope all this infrormation helps.  Good luck.  

  4. Contact your lender and see if you can work out a deal.  Under normal circumstances lenders will often work with you, but in the current market, lenders are very willing to work with you.  See if they will tack the two missed payments onto the end of your loan, and reduce your interest rate to a level you can afford.  Your lender does not want to be a landlord, so it is in thier interest as well as yours to solve your problem.

  5. I have to echo a lot of the remarks here - contact your Lender to work something out. Contact a realtor to put the house on the market - hopefully it will sell.

    Don't just walk away from your house though -- do everything possible to save your credit.

  6. I don't understand why people get into mortgages that are more expensive than they can afford! If your mortgage is more than a week's pay, you can't afford that house.

  7. yes you should you are way over the 30 percent they suggest your mortgage not be compared to income.At 950 a week your morgaga at the highest should be 1140 to live comfortable.One last option you can find out if you qualify for the governments new program to reduce your mortgage.

  8. I'll be back in a minute.  I'm taking a breather.

  9. First, contact your bank and try to refinance.  Bush just signed a bill to help save people like you so try that avenue.  You should push and push your lender to help get you on a fixed plan you can afford.  

    Second, if the first doesn't work, talk to your bank about short selling your house.  That means you can sell it for less than you owe and walk away.  It hurts less than foreclosure and you can live in your house (without making payments) until it sells.

    Third, if you do decide to just walk away... Live there until they kick you out, that way you can at least get a few free months out and save your money.  

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