Upside Down Mortgage

Posts Tagged ‘default’

Mortgage Default Notice

Question: How do the following affect your credit?

Foreclosure vs. notice of default vs. missing two mortgage payments, vs. short sale after notice of default. Does a short sale where a person with a loan convinces the lender to take less than what is owed have a larger negetaive effect on credit than curing the loan? And to what extent?

Answer: If you have the ability to "cure" the loan that is the best route to travel. Even if you cure the loan and then sell so you don't get yourself into the same position again. You do not want a foreclosure to go through. If you do not have the ability to cure the loan, then you will want to try to work a short sale. However there are deadlines on a short sale so make sure that if you decide to go this route that you move quickly.

DIY Mortgage Loan Modification Homeowners BEWARE

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Buy The Truth About Your Bad Home Loan

Mortgage Default Assistance

Question: Who & where do I start for assistance?

I inherited my home when my parent passed away. I'm now listed on the deed and have paid the mortgage on time for 3 yrs. Mom had an adjustable rate 3 yrs ago. Mortgage payment has jumped another $600.00 extra monthly.It's now $2000.00monthly. It was 4 yrs ago when I I filed for chapter 7. Now that my student loan is out of default do I contact the mortgage company to apply in my name or a broker to look for a lower mortgage home.? Also do I get the equity if any from paying this mortgage for 3 yrs?

Answer: First, I would contact a mortgage broker who can do both conventional and FHA loans. If you're in Nevada or California, contact me through my site www.MLS-Nevada.com and I'll point you in the right direction.

See if you can qualify for a refinance at a fixed rate with a monthly payment lower than you're currently paying.

About your equity:
Equity is the value of the home minus how much is owed on the home (and closing costs). So, whatever equity is in the house is yours. UNLESS you lose the house to foreclosure. Laws vary state to state, but in Nevada when the bank repossesses a home or it's sold at auction...the owner gets nothing regardless of how much equity was in the home.

If refinancing isn't possible right now, and you can't make up the difference in payments, consider renting out a room to pay the extra $600 until your credit is in better shape to refinance...just a thought.

One more point I should mention:
If your name is not on the loan, and there's no equity or negative equity in the home, and you simply want to walk away...as long as you're sure the loan is not in your name, it should not affect your credit if the home is foreclosed on. Laws vary state to state, but in Nevada it would take 5-8 months of non payment before you would be evicted. Check with an attorney before making a decision as described above!

Mortgage Assistance : What Happens if You Default on a Second Mortgage?