Foreclosure University Loan Modifications

Loan modification on first but not home equity line of credit. Can they still foreclose?

January 8th, 2016 by Jarad

Question:  I have a first and a home equity line of credit. Payments stopped being made on both of them almost one year ago. However, I applied for a loan modification on both, and due to a bank error, only the first was modified. The equity line was sent to a collections agency. I am in the final stages of modification on the first. If my first is modified, what happens to the equity line of credit? Can they still foreclose?

Answer:  – The answer is Yes. Your second mortgage can still foreclose if you don’t make your payments. The first mortgage has nothing to do with the 2nd mortgage unless it’s with the same bank. For some reason, it seems as though some homeowners think that if they don’t pay the 2nd it will just disappear. So they keep paying the first mortgage and forget the 2nd. Well eventually they will foreclose.

So if I were you, you need to try and negotiate something with the 2nd. At least let them know you are trying to make payments or work out a solution. I’ve found that they are much more negotiable when a 3rd party talks to them. You might even have a good case for a settlement depending on your situation and the value of the property. But if they do settle for a fraction of the amount, you need to be in a position to pay it off. Or you can borrow the money from someone you know and let them become the 2nd lien holder and make payments to them.

Also understand that modifications are only temporary solutions just to give you time to better your financial situation. So make sure you don’t outlay a bunch of cash to modify only to find yourself in a worse situation or a situation where the 2nd won’t do anything and you’re forced to sell anyway. Then you’ve just lost money that you probably couldn’t afford to lose anyway.

Keep in mind too, the good modifications will cost you little if any upfront. They just add what you owe onto the back of the loan and re-calculate your payment.



Avoid Foreclosure With These Homeowner Options

September 13th, 2012 by Jarad

Avoid Foreclosure – Here are Options of Homeowners

Avoid ForeclosureThere are a ton of homeowners right now struggling to make payments and hoping to avoid foreclosure because let’s face, things just aren’t the same as they were before the market took a dive.

People are working harder and longer for about half or a third of what they use to make. Retirement accounts look about as good as they did when you first started dumping into it. Any savings has been depleted.

And now to make things worse, even if you wanted to sell your home, most homeowners wouldn’t be able to because their home is not worth what they paid for it. Yes, nearly 25% of all homeowners are underwater or upside down, meaning they owe more than what their home is worth. […read more]



Behind on my house payments with PNC.

March 22nd, 2012 by Jarad

Question:  I am behind on my house payments with PNC. I filled out the loan modification package as they instructed 4 WEEKS AGO and I still don’t know anything. I have an appt. to meet with a HUD attorney in Oakland next week. She said we should talk before I contact PNC myself. She said that since my loan is FHA that PNC HAS to ‘work with me’ in regards to OBAMA loan mod. packages, etc. Does anyone know what my chances are with PNC? I do have a legitimate hardship. I have Cornea Ecstasia which caused me to go blind. I had a cornea transplant over 1 1/2 years ago and subsequently missed a lot of work and got behind. My hardship is documented by two physicians AND I had to be retrained since I am no longer able to teach/see in the classroom as I have for over 20 years. I don’t want to lose my home and now PNC is not accepting any payments at all until my problem is remedied. How long will this process take? HELP!!!



If I stop making payments now do they have to go thru foreclosure all over again?

January 16th, 2011 by Jarad

Question:  I had rented my house out and thought I could never save it but about 8 months of no payments they said lets do a loan mod. Took another year before I got it. In the meantime they knew I did not live in it and had rented it (told them) and I was working 100 miles away. They insisted that it be owner occupied and told them I would have to quite…no cares here so I did hoping I get could work here. So now I am not making enough to pay the mortgage with the modification. With the terms I will never pay this house off. the mortgage is $200 more than its worth.
If I stop making payments now do they have to go thru
foreclosure all over again. Read my mod agreement and nothing has addressed that question. HELP…thank you

Answer:  – Yes they will start the foreclosure process all over again.



Can an individual get a home modification for a home equity loan?

October 19th, 2009 by Jarad

Question: Can an individual get a home modification for a home equity loan?

Answer: -Anything is possible if the mortgage company is motivated enough.



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