Home Mortgage

Question

Doris asks:

We own a home with my father in law. We have never made a late payment (past the 30 day mark) but our interest rate just jumped and it is becoming very difficult to make the payment prior to the 30 days late.

We have been weighing our options and are not sure what we should do. We owe $460 on our home and according to a few lenders/appraisers, our house is valued at $470 to $475. Our first and second loan are with different companies. We have listed the house but with the market the way it is, you can’t get a 100% loan so whoever were to buy our home would have to come in a substantial down payment. That possibly will not happen.

Do you think a DIL is a possibility? My father in law just added my husband to the title a few weeks ago but my father in law is the only one on the loan. If a DIL is an option, who’s credit will it affect?

Answer

larry answers:

You should first talk to the lender and make your situation clear to him. See what the options are that he provides to you. There are lot’s options like Forbearance or Mortgage Modification. If no options avail for you, only then you can request your lender for Short sale or Deed in lieu of foreclosure.

Deed in lieu of foreclosure is much better option than foreclosure because it will affect your Credit Score less than foreclosure. Deed in lieu of foreclosure will drop your credit score 80 to 100 points but foreclosure will drop your credit score 200 to 300 points.

I think both your husband’s and father in law’s credit will be affected but you father in law’s credit will be more affected as his name is on the loan.

Source: Mortgagefit.com

Get a Chicago Home Mortgage Today!

Question:

Carmen asks:

I received notice of default in October 2008, I am in a loan review with my mortgage company right now. It has been almost 3 months since they began reviewing my loan, and although I call on a weekly basis, they tell me it is still in review for a payment plan. I have also been told, by a lawyer, that if I cannot accept the repayment plan, to look into a Quick Deed option. My question is, what steps do I need to take now, and how long does it take to do a loan review? The longer it takes the more I will have to pay, I was already 3 payments behind and now it has been another 3 months, so that is six months of payments. Every time I call Countrywide they tell me I am still in review and should receive documents on a payment agreement via Fed Ex. They don’t give me a time frame. I am confused and they are NOT helping.

Answer:

gmakerley asks:

you need to stay on top of them. keep in mind that mortgage companies/banks, etc. were not at all prepared for this onslaught of mortgage problems. their staffing is woefully inadequate as a result. there are thousands of others in the same boat as you, and getting back quickly to each has obviously been a hardship for the lenders.

if you don’t already have an advocate (lawyer, counselor) on your side in dealing with them, then you ought to find one so you can exert a bit more pressure.

we don’t often think so, but most of the lenders are doing their best to try to work with each client. timing might be off, and might be terrible, so it’s best to be persistent in order to obtain results.

Are you in Minneapolis looking for a Minneapolis home mortgage?