Is there help besides chapter 13?

[darwinsti]

We haven't been formally served the foreclosure with date of sale. Though we are approximately 4 months delinquent. We don't want to file chapter 13 as we are only 7 years out of chapter 7. USDA rural development is our mortgage lender. They told my wife that they don't "defer" any payments to get your loan current. I have tried several methods that are listed on their main website to get our loan current(due to my change in position, and change in income.) . Is there a company who will refinance us in our position? Our credit is less that good at this time. Can anyone give some good advice other than 13?
Thanks for any help

[Moe Bedard]

Hello and welcome to Loan Safe!

Here is some info I have on USDA loans:

your mortgage is insured by the United States Rural Housing Service (formerly the “Farmers’ Home Administration” or “FmHA”), you may be entitled to enter into an agreement to avoid foreclosure.

The U.S. Rural Housing Service can be contacted at (800) 793-8861.

Your mortgage is probably insured by the USDA/RDA if your mortgage papers or other closing documents refer to the USRDA, FmHA or “section 502 Single-Family Housing Program”

The USDA/RDA also offers payment moratoriums, Delinquency Workout Agreements (”DWA’s”), and protective advances to assist program beneficiaries.

Has a sale date been set yet?

What Moe sez, you need to contact your local HUD/FHA office and get direction directly to the USDA Rural Housing office near you, they will work with you, the lender that is servicing has to take direction from them. Please, please in the morning start calling and locate the USDA Rural Housing Office in your area and make and appointment ASAP. They have been from my experience very good about working with borrower's who have demonstrated hardship, which with a income reduction due to job issues they can and will be very sympathetic to.

[darwinsti]

There hasn't been a sale date set. I talked to the winton NC office today and the gentleman told me the account hadn't been "flagged" yet? but said since it was accellerated that they couldn't do anything unless we paid the arrears "In full". They won't accept any partial payments they say, yet they took $3535.00 from our federal tax refund. I was told that legally, they have to send that back to us due to it not being payment in full. I don't know what to do.

I do not understand that the USDA Rural Housing that I worked with, granted years ago, was not that different. They went the distance for the borrower in distress. Have you gotten the number to the local office and made an appointment to go see them. I am really at a loss as to their refusal to assist as in the past they were tremendous to a fault.

Do you have a local state representative - Federal type that you can contact regarding the problem, since this is Federal program you might be able to get a congressional intervention?