| Unique Construction to Perm Problem/Foreclosure
I have learned a lot from all of you so far so I thougth I'd register to try to get some real help.
I'll be brief.
My wife and I got a 440K loan to build a home on some property (that we owned). Well, the building process did not go as planned (do they ever) and due to a bad contractor, ended up buying a lot of materials and doing much of the work ourselves. Due to our increased debt and subsequent drop in crediit scores, when the end came GMAC indicated that the would not finance our conversation and said, for all intensive purposes, that we needed to go to the open market and get somebody to buy the loan from them. We tried for about a year with no luck...many turn downs!
We got a breach letter in December saying that if we didn't pay in full by 2/09, we would be Foreclosed on. (We had been paying interest payments on the loan for the entire period). Our last hope had been dashed by another broker, so, as it appeared we were loosing our home, we stopped making payments and are thus about 3 months behind. We had gone through a Modification Broker who indicated that we would have qualified if we had 6 payments in a row on-time...Damn! (Seems like if you pay or not, your screwed in some capacity). So, we thought of going through a modification company to help us.
We have never been contacted by GMAC about modification or the like. Since we dont yet have a "standard mortgage" the Loss Mitigation Dept. doesn't even have record of our involvement with them...wierd!
Anyway, I'm concorned that our file is on a desk about to be processed for foreclosure (the last contact we did have with them indicated we would hear from the legal department...we haven't thus far). I think if we buy 6 more months, this other company should be able to help us...not sure if we'll last this long. We considered bankruptcy but, although it will stall the process, our last lender that we worked wth indicated that it would impact the FHA process they were trying to get for us.
Our home is dropping in price but still has about 130K equity so we're not "underwater" and thus don't seem to qualify for some other government programs. However our Debt/Income and credit has gone down to the point where any standard company won't even touch us.
Not sure what to do.
Thoughts from all you brillant people?
Jeff
Oregon
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