Are you facing a home foreclosure?

My husband and I have robbed Peter to pay Paul long enough!!! Two years ago we refinanced our home and decided to refinance our debt into it. Bad mistake. Our mortgage was 50% of our take home pay and we were hoping on future pay raises that just didn't come. With the cost living rising weekly, we are just all out of struggle. We are pursuing a short-sale on our home but we have to be realistic. I feel so bad for our kids who are 5 &3. It breaks my heart and I just need to know there is life after this mess.


Asked by Anonymous at 12:05 AM on Nov. 2, 2008 in Home & Garden

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Answers (14)
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    our lawyer told us that if you just forclose on the house whatever the bank doesnt get to pay the mortgage off you will be held responsible. Example... you owe 150K and they get 100K from the foreclosure sale, you have to pay the other 50K. and they can garnish your wages, put judgments against you, and then you may not be able to get a mortgage until that is paid off. But if you file bankruptcy with it, it will discharge the rest of what you owe. and it doesnt look any worse on your credit. That is what we were told. i would get a free consult with an attorney to see if you are told the same thing, and then while you are at it, you can put all your debt back in. And we are also keeping our cars. As far as your babies go, remember that you will do what you have to, to keep them safe. So dont beat yourself up over that! good luck. May God be with you!

    Answer by babymaddy at 2:21 PM on Apr. 2, 2009

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  • Well I can tell you that my hubby and i are looking to file bankruptcy which is going to basicly forclose on our house. It sucks, but we have already tried to have our loan remodified, and it didnt do enough, they took it down a whole percent! so it only dropped our payments $140. OOOOO dont hurt yourself! LOL Not only that but our neighbor hood has gone down hill big time! So we feel this is the best thing we can do for our family. But i can tell you, you will one day see light. Atleast i hope we both can. Our lawyer said that LEGALY the government has to consider you for a mortgage after 2 years. You may pay a higher interest rate, but you have to be considered for one. Also, you may want to look into doing the same as myself (bankruptcy) because how we have been told is....continue

    Answer by babymaddy at 2:17 PM on Apr. 2, 2009

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  • I want to add that not everyone whom lose there home made a mistake. I didn't get a funny loan. What happen has simply happened to many,My business went under and so did I. You mentioned your children, I have children too. Theyare much older and I tell you they want to lodge where every you lodge. My house was very nice and spacious. Once I got over the things I did to enhance it, the money I've spent on gardening and so forth, I gained peace with myself. I regret filing bankruptcy. Now I keep in mind all of this stuff is " things." When it's paid off, it still isn't really yours. You still have a property tax bill. Now I am working diligently to start my life over. I'll be back in my own business before I know it! You'll be find mom. Cry wipe your eyes and smile...God Bless.

    Answer by Godswk at 6:54 PM on Feb. 17, 2009

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  • To all of you who have commented, thank you. I should probably make our situation a little more clear. We do not have an ARM. We are a fixed conventional rate of 6.375%. With the rise in our property taxes ($600 month) and the general economy, it has made our home unaffordable for us. We have Countrywide who at this time will not help us because we are not defaulted six months or more. The local HUD agency has taken our information, kept in on file but right now helping those closer to foreclosure. I have spoken with a bankruptcy attorney. Filing bankruptcy is not an option. Our home is our debt, not credit cards - so unless we can afford our monthly mortgage - filing bankruptcy will only slow down foreclosure not prevent it.

    Answer by Anonymous at 11:13 PM on Nov. 2, 2008

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  • First of all, seek God and pray for health and better days. Rather than thinking about all the negatives going on in your life at the moment, focus on the positives and how you can make a change for the better. Think of ways and things you can cut down and make extra money. When times are tough, you do need to make a change for the better, whether it be a part time job, a home based business, something to make other sources of income to get out of the bind. Wishing and hoping is definetly not plan B. If would like help in making extra income, please contact me. Sometimes it takes bad moments and desperate measures to turn your life around. Good luck to you.

    Answer by BusinessMom123 at 4:39 PM on Nov. 2, 2008

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  • There is life after Foreclosure. You will be able to purchase again, but not for 3 years. The rules and guidelines have changed over the last year due to the large foreclosure rate. Have you looked into an FHA loan? FHA loans are offering options to people facing foreclosure at reasonable rates. FHA rates as of Friday were around 7%, not sure what your rate is, but on a home loan of $100,000 the payment is $665.30 without your property taxes and insurance. The foreclosure process takes about 6 months and if you file bankruptcy you don't need to go into to foreclosure. If you think an FHA loan will help and you would like more information please ask. I have been a mortgage processor for 10 years and know that this can be a scary time but there are options available.

    Answer by Kari126 at 10:53 AM on Nov. 2, 2008

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  • There is life at foreclosure/bankruptcy but only if you learn from your mistakes. You have to live on cash. That way if money goes down you just readjust the cash flow. We now use only cash but it took hitting rock bottom to learn it.


    Answer by Anonymous at 8:34 AM on Nov. 2, 2008

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  • We are going to be in foreclosure soon because we are filing bankruptcy. With over $10K in medical bills, DH pay dropping about $30-40K a year it took a hit. Even when I went back to work it was not enough to make up the short fall as I only added another 15K when I went full time.

    They over appraised our home (I should have walked away from refinancing when they said several years ago don't worry I will talk to the appraiser and get the amount where we need to get it financed). So now our home between that and the current market is probably $90K over market value. So selling will not be an opition. I offered short sale but we are with a big bank that wasn't hit yet so they are not willing to budge.

    I hate filing bankruptcy but I have learned and plan to help others once we are stable again.

    Answer by Anonymous at 8:31 AM on Nov. 2, 2008

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  • Unfortunately, when many got their mortgages, they could not foresee the future. The banks made risky loans, and people took out mortgages that were at the top of their range, with the hopes that their income would grow. With the economy in a slump, many people are having a hard time right now.

    Try going to your bank and ask them to re-negotiate your mortgage to a more realistic amount, as the price of your home has, in all probability, fallen. If they are willing to do this, and to give you a fixed rate, instead of an adjustable, you might be able to manage staying where you are. Think of it in the bank's it better to have some interest coming in, or to have a house that they are probably going to loose money on if they are able to re-sell it after foreclosing?

    This might be a good point to bring up, if you decide to go this way. I hope you have good luck, and are able to do this...

    Answer by Lizzy321 at 6:50 AM on Nov. 2, 2008

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  • Cont.
    I have two little ones as well, and trust me- you are "Mommy", your little ones do not now nor never will they ever see this as a failure from you. Its a learning lesson, and they will have this experience to grow off of in there own way when they get older. For now, do what you have to do and don't let it affect the kids. Even though they are young, they can tell changes in mood and behaviors, especially if you are hurting. Take care and God bless.

    Answer by BabyBeans0506 at 12:42 AM on Nov. 2, 2008

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