Question: I got a letter from the bank saying that my house is up for auction. What can i do so the i won’t lose my house? I need a number where I could get help.
Answer:
Plan A, if you are in a position to begin making your payments again, plus an additional amount until you are caught up, is to contact Loss Mitigation Department (never collections), and ask to arrange a forebearance agreement. You will be asked to supply financial information to prove you have the earnings to support your new arrangement. This is the path of least resistance, and easiest on your credit.
Plan B is to ask the lender to take the total you are behind, and restructure your loan, so you are current, with slightly higher payments and a new term, whether it be 30 years or 15, etc. This is only if Plan A is not an option. Other lenders might be interested if you have enough equity, but be very, very cautious about the new interest rate.
Plan C is to sell the property retail, pay off your loan, use whatever overage is left to start over with a much lower budget (even renting) until you’re in a stronger financial/credit position.
Plan D is to seek protection under the bankruptcy act. Call several bankruptcy attorneys and pick their brains, as much as they’ll let you, without coming into the office. With each one you talk to, you’ll get more knowledgeable (stronger). If you decide on filing BK, pick the attorney who inspired the most confidence, was nicest with his/her time, and is the most reasonable in price and terms of payment.
Plan E is to deal with any of those people sending you cards and letters. Although they may be nice and/or honest people, they’re in this to make money, and it has to come from your property. Many of them want to take title to your property, let you rent for a year, and offer it back to you at a higher price at the end of the year. A tiny fraction of people in your position wind up keeping their property at the end of the year. Although most of these investors are honest, many don’t know what they’re doing, so consult a professional who will look out for your interests.