I am thinking about going this route, better than Bkruptcy what, how , when did you go and do it and what are the positive outcomes and negatives? With Citi Bank at $1>00 a completely insolvent bank, a share my loan etc this is just a total mess.
No I am not an idiot who banked out, I have paid on time for 8 yrs and just lost my job. No balloon etc crazy loans just a normal 30 yrs.
thanks
I’m really sorry to hear about your troubles.
You may want to move your post over the Lavender Room to get some more response.
Hey HiKai:
Sorry to hear of your troubles, too. I have not gone the foreclosure route or the bankruptcy work. I’ve worked for mortgage companies in default management. Even though the bank or owner of your note may go upside down, there are different agencies that will take over (in receivership) the assets of the company. Your loan would be considered an asset. If the bank went upside down, you still would be responsible for making payments to the agency and/or it’s appointee to make monthly payments. BUT, you have a loss of income situation.
First, if you have not already filed, file for unemployment. Depending upon where you are located, you can do this on-line. As an example, in the State of California, everything can be completed through the on-line services. I’m assuming that you have worked hard and that you have paid taxes, etc., There is no shame in filing for unemployment. With unemployment benefits, you may still be able to continue making monthly payments. If you are like many of my friends, they don’t like to be on unemployment and are trying to get a job as quickly as possible to get off unemployment. With unemployment benefits, it gives you some income to work with.
If you are short of making a full monthly payment with unemployment benefits, consider contacting your lender for a modification. This could be asking them to extend the length of the loan from 30 to 40 years. You might consider asking them to accept interest only payments until such time that you can make a full payment. They might consider placing the unpaid principal at the end of the loan. These are just a couple of options. Depending upon the state you are living in, there are states that have placed a moratorium on banks/servicers in starting the foreclosure process. This might work to your benefit. When working with the servicer, keep extremely detailed notes including: Date, Name of Person, the office (city) location, and exactly what you discuss/agree upon. When you have a good understanding as to agreed, repeat it and confirm that it is exactly what was said. Then ask, what is the next step and who will be doing it. Don’t end the conversation until you have an understanding of the next step and who will be doing it.
If you are considering bankruptcy, you can eliminate unsecured debt (i.e. revolving credit and credit cards). The house in a Chapter 13 bankruptcy might be included with in the bankruptcy proceedings. Congress just the other day passed a bill authorizing bankruptcy judges to basically rewrite the loans by reducing balances and/or reducing the interest rate. I’m sure the servicing companies and investors are going to object (i.e. file lawsuits to prevent or postpone this bill from going further.)
You might consider contacting a real estate or a bankruptcy attorney for more authoritative and knowledgeable advice.
If you want to take this offline with more specific questions, you can e-mail me at Cyclingmaniac2004@Yahoo.com
Rich