Is Foreclosure for You?

why should the goverment pay for your mistakes ,every one knew what are adjustable loans..how come you guys did not go for the 30yr fixed .no now all are crying for help ..as my mother all ways said you made your bed now lie in it ..............dave

why should the goverment pay for your mistakes ,every one knew what are adjustable loans..how come you guys did not go for the 30yr fixed .no now all are crying for help ..as my mother all ways said you made your bed now lie in it ..............dave

i am also caught in this mortgage mess. I purchased a 2nd home before selling my 1st home and now my blind and shutter business is failing and I am running out of time. Not to mention I still have 1 year left on a business lease as well. I will not be able to pay my January mortgage payment on my new home purchased a year ago. My 1st home has a renter thank God. I am not sure what to do or how to get out of this. Not sure I will be able to find a job to support by bills and I have nowhere to cut. If anyone can offer some advice on how to approach my lender with this situation. I really want to save my credit and home.

I am in a worse situation then this person. I own a blind and shutter business in arizona and things have gone from bad to worse. I own 2 homes and have 1 more year on my business lease left. I signed the contract on my new home because the builder would not refund my deposit back of $25,000. My 1st home wouldn't sell because of the market, but we still stayed hopeful. We have a renter in there now, thank God. Now with my business failing, I will not be able to pay my January mortgage payment or my lease payment on by business location. I have even gotten my insurance license to sell medicare supplements to bring in extra money, but thats going slow. My problem is where can I go and make the type of money I was making in my blinds and shutter business. I am seriously thinking of walking away from my new home. I have no idea what my options are or whom to talk to.
supaheros

From my 20 plus years in the mortgage business, a deed in lieu of foreclosure is generally viewed as a foreclosure, no matter how you slice it. That is unfortunate, but that is the case from a mortgage lender's perspective. The "computers" that read the credit profile and see the word foreclosure, or the mention of the word do not, to my knowledge, have the ability to differentiate. What Mrs. O'Meally might consider first find out what her credit profile looks like (annualcreditreport.com) and see how Chase is reporting her mortgage history. Explain to Chase that they certainly do not want the home back (value $50k less). She might want to see if depending on her age, (not mentioned) she might qualify in Florida for some sort of an exemption on her property tax bill. In Alabama for example, if you are over the age of 65, your property tax bill is reduced. Good Luck and not all mortgage companies are ruthless. Do your homework, shop the rate, ask for a GFE and call the BBB.

In my experience I have seen mortage companies as ruthless crooks that will try and minipulate things and try and take advantage of people. They are sneaky sniveling crooks. Someone should have some type of oversight into what they are up to. I am not for always having Government medling into our lives but these mortgage companies are acting like mafia loan sharks. What do they want? A lung or a kidney?

For our "narrow minded" friend here who doesn't have a clue what an appraiser does. I suggest you Google it and find what I just did. Another thing, a buyer can offer a seller a million dollars for a home that would normally sell for $500,000, but an appraiser would evaluate the house with comparables in the area and come up with a suggested evaluation to the lender. The only way the seller will buy that same property is if that buyer puts down $500,000 from his own pocket, and then gets the lender to loan the rest... If you like, read below from Google...
A component of virtually every mortgage process is the appraisal--an estimate of the value of the home you are purchasing. In most types of mortgages,some sort of an appraisal is required--you simply cannot secure a loan without it.

What An Appraisal Entails

An appraisal is, simply, an "opinion of value" by a professional appraiser who visits the home and inspects the size, condition, quality and function of the home. The appraiser will generate a detailed report and will generally use comparisons to the sale prices of similar homes in the area to determine a value of the home that is being appraised--known as the "subject property. Comparisons can be made to square footage, appearance, amenities and overall condition.

An individual home's value can be adjusted up or down in relation to what properties are actually selling for in the neighborhood. For example, a home with 4 bedrooms will generally carry a higher value than a home--in the same area and in roughly the same condition--with only 3 bedrooms. A home that needs exterior painting will carry a lower value than a similar home that has been recently painted.

Why An Appraisal?

A professional appraisal protects both the lender--so they don't lend too more than a property is worth--as well as they buyer--so they don't PAY too much. If a buyer gets into the heat of the moment and offers a silly (too high) price on a home, the appraisal will often flush it out.

Who Does the Appraisal?

The appraisal will be done by a professional appraiser--in virtually all cases one selected by the lender. Unlike a whole-house inspection, where the buyer should accompany the inspector, buyers rarely are present when an appraisal is done. In most cases, the buyer does not even know the appraisal has been done until after it is completed and is in the lender's hands.

"Appraisers" do not determine the current market prices the buyers do based on what they are willing to pay in an open and competitive market tor a property. To blame "Appraisers" for deliberately inflating value to sell larger loans is just stupid. The appraisers' job is to determine value for a property as of the effective date of the appraisal. It is not thier job to look into the future to see if the housing market will fall apart years later.

reply to Mitzi04@yahoo.com An attorney who represented me long ago in default negotiations with a lender under similar circumstances ( but for a great deal more money) advised me to sign nothing further; that further concessions on my part could only result in less chance of a resolution I could live with. You have threatened bankruptcy ... keep threatening it . Federal court is the very last place creditors with ever devaluating assets for collateral want to be.

It sound like she's just starting the default process. If her credit is still above 500fico score there are FHA Government loans she can qualify for with CO-signers. (etc.) If not , there are at least 5 months left before the property is sold at auction. I'd say get a renter in there month-to-month, pocket the money, and move on.

Its sounds like she's just starting the default process. If her credit is above 500 fico score there are still FHA Government loans she can qualify for with CO-signers(etc.). I would say check on that A.S.A.P.If thats not an option, there's still at least 5 months left before the property is sold at auction. I would say get renter in there month to month, pocket the money, and move on.

I agree it is too easy to walk away from your obligations and the consequences are of doing seem to be fairly manageable. I grew up in a country where as an indivudual you cannot declare bankruptcy.

You are completely liable for your actions anf if you cannot follow-through on your financial commitments your creditors will go after your family. The collateral for a loan on a property is not only the property but also all your income beyond a certain minimum. Similarly, if there is an issue with the property or its title the seller is liable. And since you cannot walk away form your liability there is of course no need for title insurance, home inspection etc. and the closing cost for a property are a few hundred $s in notary fees.

You see the value an effective legal framework can provide to a transaction!

America is such a country where people become depended, debts, loans, student loans, credits, then depression, and the saddest thing is, noone in this world cares if you'll lose your relative or home. If we can't go back then we just have to get through and learn from it and teach our kids not to have credit cards and not to repeat our mistakes. Work - spend, no cash - no spending. Right now everybody just needs to be strong spiritually. You are not able to save your house, at least save your NURVES(health)! We are losing our house too, but we don't care anymore, we will move to the appartment, but to get another job, and more more jobs, and work just for one house payment, what's the point to live when you don't even see your family. Enjoy your life as you can, pray, and things will miracly change, we need a strong FAITH in GOD! Good luck to everyone in finding rent and once again, save your nurves!

Hundreds of thousands for 2 bedroom houses and bungalows? Makes me glad that I live In upstate NY where the weather is cold but you can buy a 4 bedroom cape cod in great condition for $73,000 and you can actually LIVE off the money you earn.