Ways to Stop Foreclosure

[Judith]

If Chase does not come through with an affordable loan for us, what are our chances of being able to refinance our home w/o knowing what it is worth - I know we are now upside down in our home. I was told by an appraiser that all the homes in my neighborhood have either been sold through a short sale or foreclosure.

[Cat Damiano]

Judith,

Here is a little secret between us............
Just call a Realtor and have them do a CMA (Comparitive Market Analysis) on your property.........tell them that you were thinking of selling in the near future, of course you wouldn't be under any obligation and you are not required to sign anything for them to do this service for you.........they offer these for free.......

[Judith]

I spoke with an appraiser this week - she ran some comps on homes that sold over the last 6 months in my neighborhood. The only homes that sold were all short sales and one foreclosure. The neighborhood is only 3 years old! I've been pondering about taking money out of my deferred comp and buying a home with a more manageable monthly mortgage payment. What do you think?

[Cat Damiano]

Judith.........

This was posted on a previous post by a mortgage loan underwriter about this very thing..........so I will repost it for your knowledge too......this is from the lenders standpoint..........


Previously posted by an underwriter in another members thread relating to this thread:
To represent to the new lender that things are AOK with the old properties and compel/induce the lender to make a new loan on a property with the express intention that after you get that loan the old properties are going to be either Shorted or just plain Walk Away is really, really a problem.....like loan fraud. We are not tolerating it and when we catch it and believe me sooner or later we will, well......we are not to happy with the situation. There is a SAR report filed and that can be very detrimental to anyone in the industry...that is a Suspicious Activity Report that is filed with the Treasury Department. The Feds can often and will more and more become involved in these matters as it is now the "new" thing....

It is considered confirmed material misrepresentation and they will act on it, so I do not advise that anyone consider doing it.

Do they catch everyone, no, but they are looking for it now as it has become epidemic and we are rather PO'd about it. So, do I like what the lenders did on these loans, no I do not, but can we continue to allow the excesses of the past that got us here? I have declined so many of these loans that were build on smoke and mirrors...and rightfully so it appears...we can not let this mind set continue, our credit markets are completely in disarray, we are verging on total recession and we are going there to the glee of the rest of the world with our high and mighty position that we have taken for so long....

So I do not support or advise the continuation of the issues that got us here in the first place.

[Judith]

So underwriters are looking into the problem of people bailing and getting into an affordable mortgage. What choice do they have? If lenders are still FORCING people to pay the newly adjusted rate - as our is nearly $900.00 more a month - and refusing to work with us, again, what choice do we have? We tried to refinance our home over a year ago and did not find any takers due to the fact that we did not have enough equity in our home. I, personally, as well as my husband, would love to stay in our home, but we cannot afford the adjusted increase. And if no lender is willing to work with us, what do we do? Chase has still not given us any notification that they will redo our loan. Should we hire an attorney?

[Cat Damiano]

Most in the same situation are renting until they build their credit back up and get past the situation, on a foreclosure you need to be at least 3 years past it with payments made to all tradelines of credit on time during those 3 yrs............it is obtaining a new " mortgage loan" that would be considered fraudulent.

You can hire an attorney...National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys or try a non profit to help with the modification like HOPE at 1-888-995-HOPE.

If you are going through the modification process with Chase, they are modifying most of their loans as long as you can show that you can afford the modification going forward........