Resume Mortgage Payments
Question: Sorry about the cross-posting, but I’ve seen mortgage-related questions on all of these groups. Anyway, I’m 5 mos. behind on my mortgage. I recently started working full time again, and want to resume the mortgage payments on my house at the beginning of Feb. Problem is, the bank wants me to resume then also (of course), but at an amount that is almost 40% above what my prior mortgage payment was, so that I can get my loan current in a year. I asked them to consider moving the missed payments to the back end of the mortgage term. Never got a response on this request.
I can just barely afford to resume making my regular mortgage payments; there is no way I can make the inflated payments the bank wants. If I just resume the payments I had been making prior to falling behind, what can happen? Meanwhile, since I have an FHA loan, I’m told that HUD offers a “partial claim” program for people in my situation. Basically they make a payment to the bank that holds my loan for the amount of my missed payments. I then owe HUD the amount, but it’s interest-free. I asked the bank about this and they knew nothing about this program and didn’t sound like they were going to look into it. Any advice much appreciated, thanks in advance.
Answer: If other options fail, one choice may be to file for a Chapter 13 bankruptcy. This will stop any foreclosure and give you up to 5 years to catch up the missed payments.
I have written a Bankruptcy FAQ which should answer many of your questions about what is involved–it may be found at http://users.erols.com/lawyer/FAQ/br_faq.htm. Just keep in mind Attorneys are collection agents as well. Spammer Brett fails to mention he’s probably involved in collections as well. Everything they do is THEIR own best interests. Many people who go bankrupt complain they are still harassed by collection agents. The best thing you can do is not pay until you can work out a deal with the creditor. If you simply don’t pay, you can write a letter to stop the calls, force the creditor to validate the debt, dispute the derogatory with the credit reporting agencies. And even make a deal with the creditor if ever you have the money to pay. If you do nothing the derogatory will be removed in 7 years anyway (yes there is a Jubilee Year Brett). With bankruptcy you are at the mercy of the Judge, it shows for ten years and it will ALWAYS be on your public record. Chap. 13 Bankruptcy is good for keeping your home, that’s true, IF you can pay. In the long run you’ll be sorry because you’ll have your home but you’ll be locked into paying ALL your creditors or lose everything once more. The way to use Bankruptcy to keep you in your home is to file then rescind, file then rescind over and over.
Before you mess yourself up for life so some sleezy attorney can make a few hundred bucks off you go to http://consumers.creditnet.com/straighttalk/board/index.php?s= and ask some others about it who’ve successfully repaired their credit without the use of attorneys or bankruptcy.
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