Advice on House and Car Loans
Date: Tue, 07/31/2007 - 22:40
I have never been late before in my life but now we are behind two months and they are already threatening to foreclose my home and take away my car because of late payment.
I have been making payments but just not on time. I am so scared to lose my house. This is all due to a new addition to our family and less funds, not because I'm lazy and not working.
Any advice would be great.
I read a post on these forums the other day where someone had th
I read a post on these forums the other day where someone had their car repoed after 2 months late. I think you are getting in the red zone on a car at 2 months late because its not that hard to repo a car. I think if it has not been repoed by 3 months then you are really lucky. Also if they repo the car they will call the loan in full to get the car back. For example, if you owe 10,000 on the car they will make you pay in full if they can legally. There are some laws that protect against this so it really depends on how late you are.
It is harder to foreclose on a home. I would not recommend being late but I think you could maybe go for 4-6 months but once they start the process they will require you to pay all back payments, penalties and interest to stop the foreclosure. This means if your house payment is $800 and you are 6 months late it will cost you $4,800 plus penalties to stop the foreclosure.
Another big negative to pushing the limits on being late is they will smack you with a default rate. For example, a typical auto loan rate is 8% but if you are 2 months late then the rate doubles and they do not necessarily have to move it back to the 8% if you catch up. Typically they will but they do not have to.
I do not know what other debt you have but it would be wiser to let other things default before you let a house or auto default. I would let things like credit cards and doctor bills slip first. Its in your best interest to keep current on your secured debt.
As far as the house goes, it can be if you are behind even one p
As far as the house goes, it can be if you are behind even one payment...Call your mortgage company and talk with them. Sometimes they have ways they can help you. Be careful of some of those stop foreclosure companies. I did some reading about how they say they will help you and even saw a story on TV about them, but anyway, they say they will help by "buying" your house for you, but then that puts you as a "renter" and they can take the house right out from under you, so be careful. Do talk to your mortgage company though
As far as the car goes, if you are only a payment behind, contact the finance company and see if they can do a deferment for one month. You may still be required to pay the fiance charges, but that would help for one month anyway. They will just put the principal on the end of your loan. Do some calling to all the people you owe, credit cards, loans, etc and see if they will work with you.
