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Mortgage Forbearance – can it prevent foreclosure of my house?

Submitted by wendylynn93 on Thu, 08/28/2008 - 14:47
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I hope i did the right thing. we were behind on our mortgage july and august and my bank offered a mortgage forbearance which is new to them, they are doing this to help prevent people from losing their houses.
What it does, if not familiar, it wont refinance, it just takes up to 3 payments that you are late on and spread that over the loan for a yr or possibly 2. I did it for one year.
the only thing about it is that if we are late they dont have to go through a 30 day letter, they can go right to forclosure. So that scares me about mortgage forbearance. but instead of paying 2 payments plus sept 1st payments.
It made our payment go up just over another $100/month, which is scary, but at least we are caught up.
anyone else doing anything like this?


I am going through the same thing right now. I would prefer to go through mortgage forbearance instead of the foreclosure process. I was so upset about this situation and was glad to start making regular payments plus a little extra. It is only for a year and I can afford it. I am still looking toward the future and working with a real estate agent to see if I can time the market to sell the house and possibily make some money off of selling it. I will be putting in on the market soon. I am hopeful that it will sell. My problem is not the price, but finding someone who will qualify for the mortgage.


Submitted by bdouble on Thu, 08/28/2008 - 21:19

bdouble

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Good luck with selling your home, i know around here houses are not selling very well and if they are they are selling cheap. I know what you mean about finding someone who would qualify for mortgage forbearance, things are tough right now.
We got our house on a repo in the first place over 6 yrs ago. the house is over a hundred yrs old, needed lots of work, well still does, its all money! But when we first moved in we had to invest in all new wiring and a new box, which was quite a bit for us at the time. I know if we did sell we would get more than what we bought it for. Unfortunatly we live in town and our taxes are nuts so our escrow is higher than our principal payment!! that is what is hurting right now, other wise out payment wouldnt be much over $300 and i like the escrow there is no way we could have came up with $1100 for summer taxes : ( and we dont even get anything for it, still have to pay seperate for our water/sewer.
hope you sell at the price you are looking for, good luck : )


Submitted by on Fri, 08/29/2008 - 04:12

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James, if you get this loan you are already 3/4 of the way
through the foreclosure, one slip up you don't have a
way out ahead of the foreclosure sale. It's risky at best.


Submitted by on Sun, 09/28/2008 - 14:49

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well we did the mortgage forbearance, we took the 2 months we were behind and had it stretched out but itcould only go out 11 months because we have a balloon mortgage and it is up in sept next yr so it raised our payment about a hundred $$$ : (
But at least it helped us when we needed it, we have to watch very close that we are not late, or they will be right there on us.
thanks


Submitted by wendylynn93 on Mon, 10/13/2008 - 06:12

wendylynn93

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To a homeowner, foreclosure is a shocking experience. When foreclosure takes place, it is extremely costly to the homeowners because not only have they lost their home, they have also lost any equity they may have built up in the property. (Equity is the difference between the true market value of the property and the balance owed and/or the total amount of all liens against the property). Along with the loss of all equity, people losing their property due to foreclosure also lose the amount of their original down payment and any money spent on improvements since they bought the home.

As we mentioned earlier, there are many reasons why property (home) owners find themselves in the type of financial trouble that could result in foreclosure.


Submitted by on Fri, 10/31/2008 - 05:22

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hello this is mike i arrange a webminar ,and provide training mortgage forbearance training To a homeowner, foreclosure is a shocking experience. When foreclosure takes place, it is extremely costly to the homeowners because not only have they lost their home, they have also lost any equity they may have built up in the property. (Equity is the difference between the true market value of the property and the balance owed and/or the total amount of all liens against the property). Along with the loss of all equity, people losing their property due to foreclosure also lose the amount of their original down payment and any money spent on improvements since they bought the home.

As we mentioned earlier, there are many reasons why property (home) owners find themselves in the type of financial trouble that could result in foreclosure.


Submitted by mikefreetips on Fri, 10/31/2008 - 05:32

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i am trying to do loan modification on my 2-nd home. i don't know what documentation they require and bank don't tell me. I can't afford loosing it, i worked too hard for 20 % downpayment. Price went down a lot and i have 5 y.fix loan interest only. I less than 1 1/2 year, it will be adjustable loan & i am going to be stuck with it. No refinancing would be possible because of the market prices so low. Well, i am stressed.


Submitted by on Fri, 02/13/2009 - 14:03

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Loan Modifications do they really exist? Does anyone have a positive experience they would like to share and any helpfull advise/information that would help me. I have been painfully working with Litton Loan since 1/09. Not going any where fast.
Help any one!


Submitted by on Wed, 04/29/2009 - 14:41

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Mortage Forearance saved us from foreclosure. We own a brand new "luxury loft" that, after moving in, we discovered had structural issues with the exterior masonry wall of our unit. Because the builder refused to take responsibilty for the damage we were forced to sue the builder at a cost of $60,000 so far. Because of this, we fell behind on the mortgage and had to ask the mortgage company for assistance. Afte 6months of pleading our case to them they accepted our petition for forebearance and it has bought us much needed time while we are waiting for our court date to arrive next month. No one ever tells you about these options until it is too late. I'm just glad that I was persistent. Now we will be able to keep our home and are working with the mortgage company towards a loan modification because of all the damage to our home.


Submitted by arthur1111 on Mon, 06/15/2009 - 11:18

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I have been out of work due to an auto accident at work since Feb. this year. I am bearly making my house payment.I must have help to pay my auto payment @ food. I was talked into getting a equity loan by my bank at Suntust. I was told that if I kept the loan 6-12 months I could get my 2 house loans combined at a lower rate. My mortgage is 6% @ my equity loan is 13.65%. they now refuse to combined then now. I have used my credit card to the max to pay my bills. The bank told me 2 months ago they could help through the mitigation dept. After wanting 1 month, I am now told I must wait until I am 1-2 months behind on my loan before considering any loan help. In other words, I must ruin my credit totally before any consideration at all. If they refuse to help me, I would be out of a home with my credit ruined. I called my congressman in Ga., Mr. Nathan Deal. His office told me this is why he was against this so call loan bailout.It doesn't make any since to make a person ruin his credit before even considering any help. His office has more than 50 complaints by people just like me. If I could get my loan modified I could keep my house without ruining my credit. Why does the news media not bring this situation up instead of praising obama and congressmen who has put our comtry's citizens in this dilemma?


Submitted by on Tue, 07/28/2009 - 09:37

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My husband and I were very happy that our Lender (GMAC Mortgage) was welling to assist us by placing us in Mortgage Forbearance for 5moths. My husband and I never heard of it, so we went ahead and agreed to it. To make the long story short, we end up having to add $10549.11 on top of Pricipal Balance for the months that we have missed and our monthly payment also went up. Supposedly, my Lender reassured us that they will work on getting our house in Loan Modification while being in Forbearance. Turned out that they could not Modify the loan due to Loan is under FHA. They figured that out after 5months of us in more debt. Ridiculous...Therefore, I do not recommend Mortgage Forbearance. You will end up being in square one with your mortgage.


Submitted by on Sat, 08/01/2009 - 09:09

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Quote:

Originally Posted by Anonymous
I have been out of work due to an auto accident at work since Feb. this year. I am bearly making my house payment.I must have help to pay my auto payment @ food. I was talked into getting a equity loan by my bank at Suntust. I was told that if I kept the loan 6-12 months I could get my 2 house loans combined at a lower rate. My mortgage is 6% @ my equity loan is 13.65%. they now refuse to combined then now. I have used my credit card to the max to pay my bills. The bank told me 2 months ago they could help through the mitigation dept. After wanting 1 month, I am now told I must wait until I am 1-2 months behind on my loan before considering any loan help. In other words, I must ruin my credit totally before any consideration at all. If they refuse to help me, I would be out of a home with my credit ruined. I called my congressman in Ga., Mr. Nathan Deal. His office told me this is why he was against this so call loan bailout.It doesn't make any since to make a person ruin his credit before even considering any help. His office has more than 50 complaints by people just like me. If I could get my loan modified I could keep my house without ruining my credit. Why does the news media not bring this situation up instead of praising obama and congressmen who has put our comtry's citizens in this dilemma?

I am currently working for a Mortgage Modifications Company. We are currently qualifying Nationwide for Loan Modifications. We are achieving an interest rate of 2-4% fixed for 30 years. Homes that are severely up-side down may see a principal reduction. The qualifying ratios used in the "Obama plan" exclude the vast majority of home owners in need of modification and 53% of those small amount who do go back into default within 6months. (with no further opportunities thereafter) Home loan modifications do exist and we do help. I am a customer as well as an employee.


Submitted by on Wed, 11/11/2009 - 14:00

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It would be nice if everyone was on the same page about loan mod/obama mod but everyone is not,90% of them tell you the wrong info and srew you up even more because of them not qualify to handle the job...the worse mortgage company is saxon,run very far away from this company no one knows what they are doing as far as helping your mortgage situation they'll help you to the ground.


Submitted by on Sun, 11/15/2009 - 03:51

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Ok so we went thru the forbearance for 6mo and were told we could refianance the difference from our standard monthly payment and roll it on to the refianance after my work hours returned to normal. now we are told we can't refinance unless we come up with a 8K baloon payment. Our credit score dropped over 100 points and we can't refiance thru another lender because of the damage. So I called our mortgage lender and told them that we asked many questions when we agreed to the program and we were told that this process would NOT damage our credit. If we would have known we would have found another way to make the mortgage. We made this very clear.
So now we are struggling to make our original mortgage plus the $100 baloon payment that starts the first of the year. Denied on a loan Modification.

So now my last hope is to dispute the damaged credit from the forbearance on the grounds of we were never told that this would damage our credit in the first place (which is completely true)

How can I negioate to repair my credit to it's original score before the forbearance? I know the lender is going to fight it why, wouldn't they? They have us right where they want us. Unable to squirm. My wife just called and said that we got a letter from the lender today and it sounds like they won't budge.


Submitted by on Wed, 12/16/2009 - 14:26

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The only way to hold a companies feet to the fire on an agreement is to get it in writing, signed by someone in authority.

If they "tell" you it won't hurt you, ask them to put it in writing. Then, later on when they "forget" what they had promised you, you can use the document to fix your own credit. You have a much better shot at cleaning up your own credit without their help and against their will.

Good luck to asll of you.

Rich Mc


Submitted by on Fri, 01/08/2010 - 10:15

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Our mortgage co put us in forebearance as well while they were suppose to be working on a payment reduction, nothing ever became of it, when we called they gave us the runaround, so on December 15th the balloon was due of 10k which we would not pay. My husband is on permanenet disability, I work but dont make enough money to make this large house payment. Now we are being foreclosed on, what should I do to keep our home?? I dont know where to turn, I get a dead end everywhere I turn.


Submitted by on Sat, 01/09/2010 - 06:20

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I waited 10 months after asking for a modification that I was denied. I am now 4 months behind and have been offered a forbearance, hope this works. Also, as far as your credit being damaged, it couldn't have been anymore damaged than it was with you missing monthly payments or going into foreclosure, or could it?


Submitted by on Sun, 02/07/2010 - 05:47

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Quote:

Originally Posted by wendylynn93
I hope i did the right thing. we were behind on our mortgage july and august and my bank offered a mortgage forbearance which is new to them, they are doing this to help prevent people from losing their houses.
What it does, if not familiar, it wont refinance, it just takes up to 3 payments that you are late on and spread that over the loan for a yr or possibly 2. I did it for one year.
the only thing about it is that if we are late they dont have to go through a 30 day letter, they can go right to forclosure. So that scares me about mortgage forbearance. but instead of paying 2 payments plus sept 1st payments.
It made our payment go up just over another $100/month, which is scary, but at least we are caught up.
anyone else doing anything like this?


My wife and I, like so many other people got into too much debt. We got behind a couple payments on our mortgage, and worked with our lender who suggested a forebearance. We actually were granted two. It sounded great, our mortgage payments were cut almost in half, and allowed us to get caught up on and even pay off some other debts. I understood the agreement that the balance owed would either be spread out over time or added to the end of the mortgage. Was I ever wrong. When my second forebearance agreement ended, we received a letter from our lender saying we now owe over $10,000 in back payments, and payment was expected immediately. I pleaded with them saying there's no way we can come up with that kind of money out of pocket as we were basically living week to week. They said the best they could do was pay 1/2 the amount (5000) or they will go straight to the foreclosure process. I asked them if I could at least make a regular payment to show that I'm making an effort and not get even further behind. There response was if you send any less than 1/2 the amount owed, your money will be promptly returned to you. I am absolutely dumbfounded that they would do this to us. We do not qualify for the govt's mortgage modification, and I told them that even if they foreclosed on our home, there's no way they could sell it for anywhere near what we owe as the property values in our area are terrible. Something tells me the govt will bail out the mortgage companies on a "short-sale," but will do nothing for us hard-working, middle class. I know my debt problems are my fault, and believe me I am working to end that problem, but right now I'm about ready to throw in the towel. I am working with H.U.D. to see if they can help us but I expect my family is going to be out on the street soon. Anyone got any suggestions?


Submitted by on Wed, 04/21/2010 - 17:35

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Mortgage forbearance does damage the credit.Even if it is promised that it would not hurt the credit report it does,so it is better not to believe.Even with people who had not missed on any payments or had no issues with the credit report tends to see that they had lost points after forbearance.Forbearance on student loan also takes a toll over the credit score,thereby ruining your credit score.This happens because until the forbearance is paid in full the bank accounts will still show the payments to be delinquent.


Submitted by Rebecca Miller on Fri, 04/23/2010 - 10:50

Rebecca Miller

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Our Mortgage lender Wachovia/Wells Fargo suggested we take a 3 month forbearance on our fixed 30 yr mortgage, while we filed for HAMP Loan Modification-which after 9 agonizing mos was denied to us. We were not behind but were struggling, so I accepted the Forbearance. However, since we started payments again since Sept 09, I noticed every payment we make goes towards interests nothing to Principal. I called Wells Fargo yesterday and asked why, they said because of the forbearance every payment from 9/09 to ??? I have to pay late fees and interest fees to Lender which will probably go on for 2 yrs. So nothing is going into Principal. They never advised me of this when they offered Forbearance. I back to square 1. now I owe even more. I'll never get caught up. I was late 2 payments March & April because I'm still struggling. So anyways, I feel like I was duped by Wachovia/Wells Fargo. Does anyone out there know if this even legal????Help!!!!!


Submitted by on Sun, 05/09/2010 - 08:07

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Hey I went threw a forbearance mortgage and my mortgage went up higher and I'm back where I'm at but I talk to a place that goiing to help me get a modification I found out that a forbearance is different from a modidication so my lender didn't tell me that it was a differents. A forbearance is for a short time and a modification is final with the forbearance u in up paying more with a modification you can pay less on your mortagage that's why lender give you a forbearance. And not a modification after my forbearance down the road they cut my hubby hours and I have to have a hysterectomy and with the short time disability sucks pay me five weeks afther surgery we fell Behind again so I know wtih the forbearance they got a chnce to. Take my home but I talk to someone and they said it look like I got the run around. So I have a appointment the 24 So I hope its not to late. Any suggestion do I have a hope


Submitted by on Thu, 06/17/2010 - 16:58

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almost two years ago in a hurricanne we needed to skip a payment or make intest payment and we were offered forbearence lord what we did not know about forbearence. Sence then we shortly got to pay half notes for about 3 months and keep getting the run around to make a very long story short they want let us pay our note and now crediters are how saying we owe$18000.00 in back payments and have screwed our credit up. what can we do . please help 911 we need some advice


Submitted by on Sun, 06/27/2010 - 21:39

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Quote:

Originally Posted by Anonymous
does mortgage forbearance damages your credit

Yes it does. They report the difference that you dont pay on your mortgage. I had perfect credit before i started this program. I have been on it since Nov 09 and still havent received an answer of whether they are going to do a loan modification.


Submitted by on Mon, 06/28/2010 - 09:25

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We are almost 4 months behind on our $6,189.00 monthly mortgage, which doesn't include rpoerty taxes and insurance of $22,000. We have never been a day late making our payments. But due to medical and huge investments the past two and half years had to resort to loving off our principle. The sad part we bought the house for $900.000, financed $770.00, balance now $521,000. We added a built in pool. a barn, landscaping approximately another $225,000. ,a $200,000 kitchen remodel. a $600,000 addition in 2005, all paid in cash.
Now the bank is saying they will do a forbearance, we don't have all the details, but they want our other house which is paid in full, as collateral too. WTF. Isn't the house enough???? I hate for something to happen and end up losing both houses. Everyone tells us not tp do it. We're at lost. Any suggestion, besides talk to a lawyer? We plan on doing that.
.


Submitted by on Wed, 10/27/2010 - 14:58

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[sir i first would like to say that i am sorry for you sistuation but it was not OBAMA or his cabinte..Had they not given out the stimulus do you realize where this country would be right now!!!this mess came from 8 years of bush and only bush.and no one said anything as he was waging wars and making the whole world mad at the USA.thank GOD FOR obama AND him saving us from a definite depression..IT TOOK 8 YEARS TO GET HERE SO DONT EXPECT HIM TO FIX IT IN ONE OR TWO YEARS BUT SLOWLY BUT SURELY IT WILL GET BETTER..I KNOW FOR A FACTQUOTE=Anonymous;454397]I have been out of work due to an auto accident at work since Feb. this year. I am bearly making my house payment.I must have help to pay my auto payment @ food. I was talked into getting a equity loan by my bank at Suntust. I was told that if I kept the loan 6-12 months I could get my 2 house loans combined at a lower rate. My mortgage is 6% @ my equity loan is 13.65%. they now refuse to combined then now. I have used my credit card to the max to pay my bills. The bank told me 2 months ago they could help through the mitigation dept. After wanting 1 month, I am now told I must wait until I am 1-2 months behind on my loan before considering any loan help. In other words, I must ruin my credit totally before any consideration at all. If they refuse to help me, I would be out of a home with my credit ruined. I called my congressman in Ga., Mr. Nathan Deal. His office told me this is why he was against this so call loan bailout.It doesn't make any since to make a person ruin his credit before even considering any help. His office has more than 50 complaints by people just like me. If I could get my loan modified I could keep my house without ruining my credit. Why does the news media not bring this situation up instead of praising obama and congressmen who has put our comtry's citizens in this dilemma?[/QUOTE]


Submitted by on Sun, 10/31/2010 - 18:08

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THIS WHOLE MESS WITH OUR MORTGAGE problems is from bush and his lack of leadership and concern for the poor working man..he was all about the rich getting richer and the poor getting poorer..it really did take 8 years of bush to get in this mess but OBAMA saved the country by doing the stimulus and i do beleive if he had not we would have went into a deep deep depression and it like now would take lnoger to dig our way out of it..i have always been rep. but now with all their violence and attacking people at the town meetings and stuff i must say that i will always now vote democrat cause they care for real about the poor man regardless the lies you may hear..good luck to all with mortgage issues...TELL YOUR FAMILY AND FRIENDS TO VOTE DEMOCRAT OR YOU WILL REGRET IT FOR SURE...!!!


Submitted by on Sun, 10/31/2010 - 18:17

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You are confused. President Bush tried 16 times to regulate the banks who were doing the subprime loans. Congressman Frank and Senator Dodd were the main players who opposed his attempts to stop the madness. Please get your facts straight.


Submitted by on Sun, 11/21/2010 - 21:49

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President Bush TRIED 16 times!!!! His attempts to stop the madness!!! He just ended up leaving this country in the crapper when he left. Epic failure! The banks have had way to much muscle for way to long. Sad thing is there is very little we can do about it. They get bailed out and we get hosed. Who runs this country? Banks!


Submitted by on Fri, 04/29/2011 - 21:02

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No, its not all Bush's fault. He warned Congress 3 times where the house market was headed. What happened was the loans that were produced and the standards they used and people wanting to live the American Dream. That is what happened. Construction always goes up and down and what has happened to America has happened before. While Bush was in office it was the roaring 1920s. So, you tell me could it just be history repeating itself and we know where that lead us.


Submitted by on Tue, 07/19/2011 - 12:12

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