While you may think that your bank wants to help you through this ordeal, all the bank wants is to recover the loan. They don't want your property, they just want their money. The bank may offer you a forbearance agreement. This agreement allows the bank to take all the missed payments, with interest, attorney fees, late fees, etc., and divide this additional amount by six or 12 months. The bank then adds this amount to your original mortgage payment.
How does the bank expect you to pay more when you are having difficulty making the original payment? Forbearance agreements typically don't work and you end up back in the same situation two or three months down the road.
If this is an option for you we can help. However, missing even one mortgage payment can reduce your credit score dramatically (50 – 70 points). Missing two or three payments can destroy your chances of refinancing and will inevitably start the foreclosure process.
Unfortunately, this is not true. People in situations similar to yours are often forcibly removed from their homes. After your home has been sold to the highest bidder at the Sheriff 's auction, you and your belongings will be moved into the street. We aren't telling you this to scare you, but it does happen and it can be very traumatic. Global Bancorp's Home$aver™ Program may be able to help.
This is not necessarily true. A Chapter 13 Bankruptcy may stop a foreclosure proceeding. However, it will not stop a Sheriff’s Sale. So if the Sheriff’s Sale is scheduled, a Chapter 13 will NOT stop the foreclosure. Also, no lender will give you a home loan until the bankruptcy is dismissed. The bankruptcy can take three to five years before it is dismissed. Fannie Mae will not give you a loan until four years after the dismissal. While a Chapter 13 may stop the foreclosure, it may not be the right decision in the long run.
We have heard this from many of our clients. Unfortunately, there are many companies and individuals who take advantage of people that are in foreclosure. They will charge fees as much as $1,500 or more. However, these companies do very little or nothing to help you with the foreclosure. At Global Bancorp Inc., we do not charge any fees until the day the foreclosure is stopped.
Unfortunately, this is not the case. At the Sheriff’s Sale, the bank starts the bidding at what it is owed (including all the fees). If the house sells for more, that cash will go to other creditors that have liens on the home (2nd mortgages, home equity loans, etc.). Even if there is enough equity when the house is sold to have a positive gain, the original homeowner then has to petition the county for the remainder of the money. When all is said and done, there is usually no money left over for the original homeowner.
You may eventually be able to buy a new house. However, being in foreclosure has typically made your credit score so low that no one will give you financing to purchase a new house. Remember, your credit score is lowered every month while you are in foreclosure.
In general, you can always sell your house. The issue becomes if you have any equity. Unless you can sell the home on your own, you will have to hire a realtor. They will take 5% of the sales price for a fee. There are also other closing costs for the seller that has to be paid at the time of the closing. So, unless you have equity in your home, you may not be able to sell your house unless you have the money to cover the costs involved.
This is also not true. No matter what the circumstances are, you cannot afford the house. This means you should sell the house and keep whatever equity is left in the property. However, if you want to stay in the home, we have a solution for you. You can stay in your home, remain on title, make no mortgage payments during the program and fix your credit.
