sort of freaking out

[thedenverduo]

We got a notice of intent to foreclose today.

I am in panic mode right now, which I know isn't helping. I think I am mostly freaking out because I really have no idea what foreclosure really is and what options are available to us. Please help o wise ones!

Some background: we did a Home Affordable Modification on our house back in April. I was (and am) really happy about that. Basically our interest rate is reduced to like 1.125% for the next 5 years and then it will slowly go back up to 6.25%. Then my hubby had emergency surgery. He was out of work for almost 3 months, and the hospital bills are nuts. Dh is the primary earner in our house, but I did pick up as many hours as I could at work. We still fell really behind on everything. Then when he did go back to work it was only limited hours because he was on light duty from the surgery. Long story short: we are 5 months behind on our mortgage.

I know that if we had 6 months we could get totally caught up because dh is back at work and making ok money.

I have a call in to a local HUD counselor who is going to call me back in a couple days.

I called the mortgage company and they said they would work with us if could pay 2500 up front, and then agree to a repayment plan. The repayment plan is fine, but the I literally have 6 dollars in checking right now and no lines of credit, so I can't swing the 2500 up front.

How does this work? Do I need to try to borrow the 2500? How long do we have until they kick us out of our house? Please please please tell me there is hope. It is so frustrating because if they just left us alone for 5 or 6 months we would be fine, but I feel so worried that we are going to lose our house before then.

Please help me calm down and any/all advice is appreciated! TIA!

[zebra15]

Im sure someone on here will have more info then I do. However in my state and city they are getting quick with the sale dates on foreclosures. If you read the paperwork there should be a foreclousre sale date on it. Meaning the date the bank is scheduled to sell the home.

Some banks are willing to work with homeowners, others not so much. It sounds like your bank already worked with you to give you a modification and you fell behind on that... IDK if they are going to give you anything else... It sounds like you are 4-6 mos behind and you need another 6 mos?? That really leaves the bank waiting for 12 mos to bring the loan current...
Have you made any payments in full and on time since the modification?

In my state its something like 60 days from the date of notice to date of sale.

I know this isnt what you want to hear but many times the foreclosure is a blessing in disguise. Even if you worked to 'save' the house, letting it go can be the best thing. ( i dont know you financials or history but many times this is the case)

[neetling]

no advice just ((hugs))

[pitter_patter]

I'd try to borrow the $2500 from family, sell anything you can on craigslist, etc. Have you been in contact with the bank at all over the last 5 months that you've been unable to pay your mortgage? If you can't come up with the money they want the foreclosure will proceed and your house will be auctioned and you'll have to move.

As a last resort you can file for Chapter 13 bankruptcy protection to halt any foreclosure proceedings and work out a debt repayment plan for all of your debts (medical, mortgage, credit card, auto).

[thedenverduo]

Thanks for your responses everyone.

We have called family and no one is able to lend us the 2500. Maybe I should see if a couple people could lend us smaller amounts. I did our budget for the next 6 weeks tonight and we can come up with 4500 dollars by the end of October for the mortgage company. We have been in contact with them throughout the whole thing. And we've been on this new payment thing since January when we started the modification... so we made 4 payments on time before the medical stuff came up.

I think i may call them tomorrow and try to press the issue a little bit... they want 2500 now and 2000 in October which equals 4500. And I will have the 4500 just not in the order they want it, so maybe they will arrange some other kind of payment schedule with me?

I am also anxious to talk to the HUD foreclosure counselor, so I am really hoping they can help and answer my questions, but I am trying not to get my hopes up.

We are pretty committed to hanging on to our house right now. The timing of everything just seems awful, but I am hopeful that in a few months we will be on top of everything again and build up our emergency fund again.

Do any of you have experience with HUD counselors?

Also, there is no sale date set yet... we just got a notice from the lawyers that our mortgage company is using to do the foreclosure, basically just informing us of our rights. It says on there that if we ask them to provide proof of the debt and who we owe they will pause their proceedings until they get us that info. Should I do that just to stall them a little?

Ugh. It is so frustrating! You know the feeling of "Ok. We have a good budget now. A good plan. Good income. Let's get out of debt!" and them something nuts happens that makes you want to throw up.

Any comments/experiences/advice are welcome, you guys are helping me flesh things out a little and get my head around it.

[mamaofprincesses]

I would definitely ask for the details of what is owed, and to whom.

Do you have anything of great value to sell? A car, furniture, electronics?

I would also consult a bankruptcy attorney to see if that is a good option, given the medical debt.

GL!

[luv-my-boys]

Originally Posted by thedenverduo

It says on there that if we ask them to provide proof of the debt and who we owe they will pause their proceedings until they get us that info. Should I do that just to stall them a little?

.

YES!!! Its your right to actually have them present the debt in full to you so take advantage of that opportunity to buy you some time to meet with the counselor.

[redvlagrl]

Oh, hugs, mama! Sounds terrible. I don't have any advice, but could you sell your car/a car? That would be a quick way to raise the funds. Could you rely on rides from friends and family to get to the grocery store etc until you can afford to buy a beater?

[Poddi]

If it's me I'd pawn my engagement ring for the cash right now. You'll have more cash next month, right? Then you can get it back. Not necessarily in a pawn shop, either. If you have a friend or relative who's reluctant to lend you money, give them your rings to give them assurance that you'd pay back asap.

[carfreemama]

It sounds like you're so close to making it! I think the suggestion to just sell whatever you can, no matter what it is, is a good one. It sounds like you really want to hang on to your house and I would, too! It doesn't sound like something where you are always going to be struggling with your mortgage, just some really bad luck all at once. So I would do whatever I had to do, including sell my rings (no matter how heartbreaking), in order to get that cash.

Good luck with this.