Looking for foreclosure alternatives

My home is going to be foreclosed if I don't do something about it. I don't know the best way to consolidate my debt to avoid losing my home. I've got about $15,000 in credit card debt and my mortgage rate recently jumped - so I cannot afford to pay anymore. What are my options?

I've heard about options for selling my home, but I'm not sure that's the right thing. I've thought a lot about loan modification but don't know where to get started. Can anyone share their experience?

Favorite Quote:
"Don't waste yourself in rejection, nor bark against the bad, but chant the beauty of the good." -Ralph Waldo Emerson

I need Loan Modification Help

Edited: 06/26/2010 at 07:04AM by Moderator : link removed

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Minna Reid

Real Estate Broker · Southington, Connecticut

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Feb 02 '09, 06:50 PM

Chances are if you're already near foreclosure your credit is nowhere good enough to get a consolidation loan. If the home is worth keeping ( ie not upside down, and it can be modifed to a point of affordability) you might pursue that. If thats not an option, sell the house (short if you have to ). Your still stuck with credit card debt though unless you file bankruptcy or work out repayment plans with your lenders.

Edited: 06/26/2010 at 07:08AM

Rob Lawrence

· Rhode Island

38 posts
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Feb 08 '09, 09:22 PM

You can do a loan modification or deed in Lieu and just hand it over to the bank. The point is that you must work with your bank to see what they are willing to do. Many banks are willing to make changes.

Edited: 06/26/2010 at 07:12AM

Vicci Fain

Loss Mitigation Specialist · Oklahoma City, Oklahoma

4 posts
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Feb 09 '09, 05:48 AM

You can do a Loan Audit. With a Loan Audit we look for any fraud or misrepresentations in your loan which could entitle you to get money damages and / or a new lower rate loan. This is not a Loan Modification. [SOLICITATION REMOVED]

Edited: 06/26/2010 at 07:12AM by Moderator

Mitsu O'Riley

Real Estate Consultant · Savannah, Georgia

81 posts
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Feb 12 '09, 09:13 PM

Call your bank's workout dept. They will lower your rate if that will keep you financially stable to stay in your house. You can also call your credit card companies, tell them of your financial issues. They will "close the account and set up repayment plan for you. If you end up defaulting, then eventually they will offer a low settlement for the debt, but that will hurt your credit. Good Luck.

Edited: 06/26/2010 at 07:15AM

N/A N/A

Real Estate Consultant · California

4 posts
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Feb 16 '09, 04:57 PM

I'm sorry to hear about your home.

I agree with others that you need to seek a loan modification. But I wouldn't suggest trying to do it on your own.

Remember, your loan is a legal and binding contract that you agreed to. And to stop the foreclosure and get your loan changed is more than most people know how to do. That's why over 80% that try to do it themselves fail.

I would highly suggest finding an attorney that specializes in mortgage law and let them handle it.

Just my 2Â¢

Edited: 06/26/2010 at 07:17AM

Ro Williams

Loss Mitigation Specialist · Florida

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Mar 07 '09, 04:41 AM

There are so many questions that need to be answered here, but to start if you do want to keep your home, then as others have stated you do need to seek assistance. From experience it is very difficult for a homeowner to work with the banks, therefore, I would suggest finding a loss mitigation service to assist you in the process. Email me if you are still in need of help: [REMOVED]

Edited: 06/26/2010 at 07:30AM by Administrator

Dick Green

Residential Real Estate Broker · Conroe, Texas

1,596 posts
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Mar 15 '09, 06:55 PM

Hi Jeff,

Check back....Let's us know how things are going.

Edited: 06/26/2010 at 07:35AM

Thomas Muttwill

Real Estate Investor · Austin, Texas

28 posts
1 award
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Mar 17 '09, 01:36 AM

Hi Devyn,

Sorry to hear you are going through such a rough time and it is sad to see how many more families are facing the same circumstances. Please update us on your status?

Blessings,

Tom

Edited: 06/26/2010 at 07:36AM

Greg X

Loss Mitigation Specialist · Mesa, Arizona

27 posts
50 influence

Mar 19 '09, 07:57 PM

Devyn,

Answer these questions:

1) Are you upside down in the home? The bigger that amount, the bigger the potential payment reduction can be.

2) Can you demonstrate financial hardship. I'm guessing if you're late on your payments you can. Run your monthly budget, does more go out than comes in? Do you have an idea what an affordable payment would be?

3: You not only want to remain in the home, but if the payment was made affordable, you could make the payment.

Assuming it's cheaper to keep you in the home than it is to foreclose (based on a NPV basis comparing the two options), the bank will modify to an affordable payment. That's if you can get through the maze of loss mitigation in time.

Not sure where you're at, but if it's CA., then once you get the NOD filed, loan mod guys like me are powerless to help. Good luck.

Edited: 06/26/2010 at 07:38AM