Who to talk to for money, foreclosure problems?

Question

Hello.

I bought a condo at the height of the market, got approved for a loan that I shouldn't have got, now am scraping by every month trying to pay my mortgage and unsecured debt. I went to talk to a lawyer who I thought was going to give me advice on my property and my bills but it was just a bankruptcy lawyer. About a year ago I used a non-profit organization to consolidate all my credit card debt to try to pay them back. I'm more concerned about my mortgage (I can rent a house with a pool for less!) as I am falling behind again and I just did a remodification 3 months ago! Is there someone(real estate lawyer, financial advisor) who will look at my entire debt to income situation and advise me in a particular direction? Thanks for all your help.

Answer 1

You've already done exactly what you are asking an advisor to do.  You are overextended and , if only you could know the future, you'd know what to do.  

If we knew that the condo would continue to drop in value today.... but be worth $300,000 more in 7 years, we'd tell you to hold on.  But it might continue dropping for 10 years.  Not likely but possible.

One fellow said "I'm tired of holding on by my fingernails" which sums it all up.  No one else can make the tough decision you have to make.  If you stop paying, your credit is ruined.  If you keep paying, your quality of life is ruined.

Answer 2

If you don't want to loose your home- loan modification will work for you. Check on the web your lender - they have loan modification packages ready or use professionals- attorneys who will help you to do this not the way you did by yourself- repayment plan with your mortgage lender, only permanent solution- lowering your monthly mortgage payments, interest rate so you can stay in your condo. Be prepared to provide them with your financial statements, tax returns and hardship letter explaining your current situation.

Answer 3

You should not have accepted a loan modification agreement that you could not afford. How did they come up with that modification? Go back to them and tell them that the numbers don't add up and it's only a metter of time before you go behind again.

As for the non profit credit counsellors. Some of them are a joke. Why don't you take the unsecured debt and tell them that it's not getting paid period. Then you'll have enough funds to keep the home. it sounds like your credit is already destrowyed. Try to keep a clean credit card or two so that you are able to use them after the fact to rebuild your credit.

Answer 4

Sounds like you have done what can be done to help you.  If you've gone to the loan modification route and its still too much, then there isn't much more you can do.  You might want to try another modification and contact your lender but there is only so much the lender can do.  

Looks like you have some major decisions to make.  I can't give you any advise as I don't know your entire situation but there is life after bankruptcy or foreclosure.  I know this isn't the answer you were looking for but you may not have any other choice.  

Seek professional help in this case.  You might have unintentionally bitten off more than you can chew.

Good luck.

Answer 5

You need to contact your lender ASAP.  Lenders are VERY VERY VERY willing to work with clients so they don't foreclose.  But they can't help until YOU take the first step and call them ASAP.

Answer 6

The best thing that you can do is talk to the Bank/Mortgage company and let them know the situation.  They dont want you to default just as much as you.  Most of the companies are really good about working on a solution that works for you.  You just need to be willing to tell them you need help.  The other thing that you may want to consider is selling your property.  There are ways to go about selling your home if you need to, no matter how much you owe.  Find a local Realtor and discuss your options.