Having A Serious Mortgage/Foreclosure Issue?

[Safetyhit]

Grant's spectacular current thread, as well as a recent phone discussion I had with a member here, have inspired me to offer help to anyone in this forum that is either in danger of foreclosure or think that they are getting close.

I have recently begun working for a company that exhibits at SHOT, however before that I earned a living on my own for 3 years helping people who are about to lose their homes as I almost did when I lost a six-figure salary in 2006. I have an extensive background in Real Estate as well as all types of land related financing.

I do not want nor will I accept any money, just want to help any way I can. A simple PM will be sufficient to start.

And if anyone thinks they might be too embarrassed or are above asking for help with such a critical issue, don't be foolish. It can happen to anyone.

Mods: If you feel this thread is inappropriate then please remove. Figured it would be OK, especially just before Christmas. :)

[C4IGrant]

Grant's spectacular current thread, as well as a recent phone discussion I had with a member here, have inspired me to offer help to anyone in this forum that is either in danger of foreclosure or think that they are getting close.

I have recently begun working for a company that exhibits at SHOT, however before that I earned a living on my own for 3 years helping people who are about to lose their homes as I almost did when I lost a six-figure salary in 2006. I have an extensive background in Real Estate as well as all types of land related financing.

I do not want nor will I accept any money, just want to help any way I can. A simple PM will be sufficient to start.

And if anyone thinks they might be to embarrassed or are above asking for help with such a critical issue, don't be foolish. It can happen to anyone.

Mods: If you feel this thread is inappropriate then please remove. Figured it would be OK, especially just before Christmas. :)



This is very kind of you!


C4

[00leland00]

You know, I'm really starting to like the folks around here. These things that you are doing or offering to do speak volumes about your characters. I hope I can extend the same gestures one day.

[Safetyhit]

Since I have already been contacted by 4 members here, I will bump this up a bit for anyone who might not have seen it yesterday.

[mech_eng]

Safetyhit,

Just wanted to say thanks for you offering this service to the members on here.

[BiggLee71]

Thats a kind gesture that I'm sure will help alot of folks out. The current state of the economy has unfortunately forced alot of families backs up against the wall. In sheer desperation, they sometimes seek help from almost anyone who says they can help them. That creates an opportunity for some sleazball predator to con them out of house and home.
I'm glad to see we have an M4 brother who will step up and take his time out to help other members to make sure that they dont get duped by such scum. Your kind efforts will help many I'm sure.

[Irish]

First off I'd like to say thank you for your generous offer.

I don't mind throwing this out on the table as I've talked to a few people who've considered it here locally and it might benefit the whole. I purchased my house in Vegas approx 5 years ago. I put 20% down, got a 30 year fixed at 5.6% and everything on my end has been good to go. However, the price of the house now is less than 50% of what I paid and we're dumping money into a bottomless hole!

There are a few options I've considered after alot of soul searching and truly defining what my moral obligations are and also after coming to the realization that if the boat's sinking I might want to get off. I can have double the house for the price I paid 5 years ago at this point in time.

1st being just walking away. Outside of this being completely against my own beliefs and integrity I know it will damage my credit, along with 50% of this town, althouth it does take approx 14 months to get kicked out when you stop making payments so you do recoup a certain amount of money.

2nd being purchasing a new home, while keeping this one, to take advantage of the current low prices. I would then rent the 1st house or possibly try to make a short sale if possible.

Any thoughts or other options out there? I contacted the lender, BofA, and it's next to impossible to get any sort of info out of them pertaining to lowering the principle or reducing the percentage.

[Safetyhit]

First off I'd like to say thank you for your generous offer.

I don't mind throwing this out on the table as I've talked to a few people who've considered it here locally and it might benefit the whole. I purchased my house in Vegas approx 5 years ago. I put 20% down, got a 30 year fixed at 5.6% and everything on my end has been good to go. However, the price of the house now is less than 50% of what I paid and we're dumping money into a bottomless hole!

There are a few options I've considered after alot of soul searching and truly defining what my moral obligations are and also after coming to the realization that if the boat's sinking I might want to get off. I can have double the house for the price I paid 5 years ago at this point in time.

1st being just walking away. Outside of this being completely against my own beliefs and integrity I know it will damage my credit, along with 50% of this town, althouth it does take approx 14 months to get kicked out when you stop making payments so you do recoup a certain amount of money.

Walking away is always an absolute last resort. There is almost always a better way out. Even if you fall far behind on your payments.


2nd being purchasing a new home, while keeping this one, to take advantage of the current low prices. I would then rent the 1st house or possibly try to make a short sale if possible.


Have you considered the reality of qualifying for an investment property (2nd home) while still affording your primary residence? This would require exceptional credit, very good income and likely some assets as well. If that is a problem, maybe consider a lease-to-purchase scenario. But remember, your home's value will increase again, though it may never go back to where it was in any time soon.


Any thoughts or other options out there? I contacted the lender, BofA, and it's next to impossible to get any sort of info out of them pertaining to lowering the principle or reducing the percentage.


If your rate is still at 5.625%, then there is almost nowhere to go as far as lowering the rate, except for maybe on a very temporary basis. Principal reductions are extremely difficult to obtain no matter who your lender, but BOA is really bad with them. They would likely entertain the short-sale first, as they take the hit but at the same time are rid of the now troublesome borrower.

If you really need to go, the short-sale does seem to be your answer. You can walk away with a degree of dignity and owe nothing (though some states charge taxes on the written off amount, considering it profit to the borrower:rolleyes:). Your credit is going to suffer to a degree, but not as bad as a straight foreclosure.

And remember, there may be some type of other program, even a temporary one, they can put you in to help you out for 6-12 months. That gives you time to think while saving you some money.


Let me know if there is anything else I can do.

[Safetyhit]

Thats a kind gesture that I'm sure will help alot of folks out. The current state of the economy has unfortunately forced alot of families backs up against the wall. In sheer desperation, they sometimes seek help from almost anyone who says they can help them. That creates an opportunity for some sleazball predator to con them out of house and home.
I'm glad to see we have an M4 brother who will step up and take his time out to help other members to make sure that they dont get duped by such scum. Your kind efforts will help many I'm sure.



First off, thank-you and everyone else for the kind words.

I just want to say one very general thing in regard to what Big Lee said above. This to anyone who is either looking at an impending foreclosure/loan modification, may be one day soon or know someone they care about heading down the difficult road.

Very few loan modification (3rd party) companies will actually help you in a proactive manner. They will usually take between $1,500 and $4,000 of your money, make a half-hearted phone call and say they tried. This is very rarely sufficient for a variety of reasons.

While most actually mean well, very few lenders will help you proactively, either. You need to consider that there are often thousands of folks working at the places, sometimes at call centers all over the country. No one is accountable, especially at the lowest levels. Sally will tell you one thing, Katie will tell you something else. Then call back confused and Hernando will make you feel even worse.

Information is constantly lost or misconstrued. You can be disconnected for no reason after spending 30 minutes trying to get to the right person in the right department. And even "supervisors" can be unfathomably inept. Take no answer or circumstance for granted, ever.

Ask questions, demand accountability if necessary. They do not want your home or the associated legal costs that accompany a foreclosure filing, but it can seem like they do if you let one or two dopes dissuade you prematurely. Some circumstances are unresolvable, but usually this is not the case with due diligence.

[Rider]

That is a very nice offer SafetyHit.

I am knee deep in buying a home. Got the contact signed, got a 4.75% fixed mortgage things were going smoothly until today when the seller said they want/need to stay 18 more days (until there new house is ready). This screws me up because I had already rented a truck, arranged childcare, got my buddies coming over, am paying rent/mortgage, insurance, taxes, utilities etc here and then will be there for the 18 days.

What should I charge per diem for the actual losses and inconvenience? Cost plus what? Do I demand payment up front (take the rent from them off the closing price, or get a check?)

This threw me for a loop........they had otherwise been decent about fixing the stuff that needed fixing. We had briefly talked about this scenario PRIOR til the contract and we moved back the close to accomodate, now they want to go even later then that.

[Safetyhit]

I am knee deep in buying a home. Got the contact signed, got a 4.75% fixed mortgage things were going smoothly until today when the seller said they want/need to stay 18 more days (until there new house is ready). This screws me up because I had already rented a truck, arranged childcare, got my buddies coming over, am paying rent/mortgage, insurance, taxes, utilities etc here and then will be there for the 18 days.

What should I charge per diem for the actual losses and inconvenience? Cost plus what? Do I demand payment up front (take the rent from them off the closing price, or get a check?)

This threw me for a loop........they had otherwise been decent about fixing the stuff that needed fixing. We had briefly talked about this scenario PRIOR til the contract and we moved back the close to accomodate, now they want to go even later then that.


Well, let me first say that you did very well with your rate. That's about the best rate possible today without going negative amortization.

What happened to you is fairly common. Usually the two parties assess their specific damages and allow consideration for them. If it gets bad an attorney may be necessary, but usually the Real Estate agent(s) can smooth such issues out. The title company can also do some calculations at closing to make allowances for certain things if both parties agree they are fair.

Try to keep a level head, as getting upset will only add to the confusion. See what they offer you for your undoubtedly major inconvenience and go from there.