I was not underwater....my home has about 40% equity. I am self employed, but due to the economy and family illness I got behind in my mortgage.
I got 3 + payments behind. Received a NOD...notice of acceleration. Wanted entire mortgage paid. Next day the sheriff was at my door with court summons to foreclose.
Called their attorney to explore options and they told me they needed X amount of $ (several thousand) to reinstate the loan. Money I did not have. They never mentioned that there may be other options!
I then called lender and they told me an amount needed to stop foreclosure and reinstate loan...still too much. They also said I might be eligible for a loan modification. I said let's try that. They set me up on a two month payment plan for the time during the modification process.
Received the paperwork....completed it meticulously. (And then rechecked it numerous times to be sure I wasn't forgetting anything that they could use to prolong the process.) Then sent it back and called them every other day to check the status. I spoke to the modification agents nicely and told them I was very anxious to get the modification done and told them if ANYTHING else was needed I would get it right to them.
Loan mod was approved 23 days after I applied for it. All but $500.00 of the expenses were put at the end of the mortgage......interest rate was reduced by 33% so my payment was reduced also.
Foreclosure is being dismissed.
Also, during this time....I paid $200 dollars to my attorney to file for an extension of time to answer the foreclosure action. I needed more time to work with mortgage company and get the modification.
I am posting this to let others know that there are options if you want to keep your home. YOU have to make the effort though. You have to call them relentlessly....do not wait for them to call you, both before and during the process. They are swamped right now with thousands of folks who are in the same place you are, you do not want to fall through any cracks.
There are also options in court.....our county has a no cost mediation process where a mediation team works with you and your lender to find a way of saving your home. The foreclosure is put on hold while this process takes place. Call the court where the foreclosure was filed and explore this option in your county.
Above all, if you want to keep your home and you have income, even if it is reduced, there are options out there that may help!!! Don't shut down and accept the foreclosure action without fighting.
DM
I got 3 + payments behind. Received a NOD...notice of acceleration. Wanted entire mortgage paid. Next day the sheriff was at my door with court summons to foreclose.
Called their attorney to explore options and they told me they needed X amount of $ (several thousand) to reinstate the loan. Money I did not have. They never mentioned that there may be other options!
I then called lender and they told me an amount needed to stop foreclosure and reinstate loan...still too much. They also said I might be eligible for a loan modification. I said let's try that. They set me up on a two month payment plan for the time during the modification process.
Received the paperwork....completed it meticulously. (And then rechecked it numerous times to be sure I wasn't forgetting anything that they could use to prolong the process.) Then sent it back and called them every other day to check the status. I spoke to the modification agents nicely and told them I was very anxious to get the modification done and told them if ANYTHING else was needed I would get it right to them.
Loan mod was approved 23 days after I applied for it. All but $500.00 of the expenses were put at the end of the mortgage......interest rate was reduced by 33% so my payment was reduced also.
Foreclosure is being dismissed.
Also, during this time....I paid $200 dollars to my attorney to file for an extension of time to answer the foreclosure action. I needed more time to work with mortgage company and get the modification.
I am posting this to let others know that there are options if you want to keep your home. YOU have to make the effort though. You have to call them relentlessly....do not wait for them to call you, both before and during the process. They are swamped right now with thousands of folks who are in the same place you are, you do not want to fall through any cracks.
There are also options in court.....our county has a no cost mediation process where a mediation team works with you and your lender to find a way of saving your home. The foreclosure is put on hold while this process takes place. Call the court where the foreclosure was filed and explore this option in your county.
Above all, if you want to keep your home and you have income, even if it is reduced, there are options out there that may help!!! Don't shut down and accept the foreclosure action without fighting.
DM
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