Parents facing foreclosure, loan not in their name. Need help!

[eaglesfan21]

My parents are nearing foreclosure on their house. They're behind 3 months in payments mainly because they've fallen behind in the past and have been trying to catch up ever since.

The catch is the house loan is under my grandmother's name. My mother has power of attorney and has already sought modification (based off my mom's past income and grandmother's SS I believe) of the loan but the payments are still too high for them to afford. The thing is that my grandmother does not even live in the house. She doesn't even live in the states anymore.

They have been living there and making payments on the house since day one, for almost 7 years now. Since the housing market has plundered, any home equity is out of the question.

My father is currently unemployed and my mother's income significantly decreased because of cut overtime hours. Since the loan is not under their name, what power do they have? Is this just a hopeless situation? Just a matter of if you can't afford it, leave?

How long before they're kicked out?

Any insight into this situation and what options they may or may not have would be very much appreciated.

[Seadragon]

Read this post make the letter and see if that helps:

Letter to your mortgage servicer.

Call the HUD office for the HARP program.

after that look for ways to help your grandmother with legal help she can check with legal aid because she makes the least. Unfortunately the rest of you would have to not mention you are over there.

That is some good advice but without help yu all are going down.
What kind of work does your father do? And You? there may be something I can do about helping with that situation(even if it involves some issues that would prevent from working)

[2ndTimeAround]

Originally Posted by eaglesfan21

...Any insight into this situation and what options they may or may not have would be very much appreciated.

Not Enough Information, you asking for help, you need to gives us something we can analyze.

I do not know your situation as far as the loan terms - being either a conventional or FHA loan. You do not mention who the lender is? What is your balance. What is your interest rate? What is the Gross monthly house hold income? Lastly what is the payment breakdown for the loan, taxes and insurance.

You being three months down in a Judicial state, is still going to be a while before the actual foreclosure happens.

One thing is for sure, every missed payment goes right back into the loan, make the balance higher. If you already had a low interest rate already, with a larger loan balance is only going to make for a larger payment later.

You mention having already sought modification, did they give you one? If your mother signed the mod agreement, you have to wait a min of 12 months before you can reapply for another modification.

I see a problem that your father is currently unemployed and my mother's income significantly decreased because of cut overtime hours. Even if you did get a smaller payment, knowing the history of trouble payments, chances are your going to run into trouble again.

Having power of attorney, you might be able sign her name and speak on her behalf. You mention her SS check, was tells me your depositing into her checking account.

If your grand mother is older than 62, you can pump up her income an additional 25%. On modifications showing affordability, household income is considered. Meaning you can use other people's income not even on the loan.

To other things can be considered - have a contribution from a family member, on renting out a room to show affordability. On the right hand - you have to have the right paper work. On the left hand - you need to show monthly deposits into your credit account each month.

Without knowing everything further - I would suggest you try to chance up on those three missed payments. Because you only going to make a bad situation worst.

You mention your father is currently unemployed, he needs to reinvent himself. The job he previously had is gone. He needs to take an inventory of what he knows how to do.

In your state - through the unemployment office, they offer educational assistance. He should learn a new trade. If not - tell him he needs to learn how the flip hamburgers at your local McDonald's.

Almost everyday when I work with people in foreclosure. I see that a spouse or a family member that was laid off months ago, siting around doing nothing to help their future.

Today one of my closest friends lost her home to foreclosure. She was the only one working two jobs. , Her husband - who drove a dump truck, for the last two years showed little if any income. For two years they didn't make any mortgage payments, so the loan balance grew to the point where it was no-longer affordable. I questioned her continuously about her husband. She said he's visiting his family (out of country), or he's went to see his friends (another state) , or another excuse....

Today they received a notice they no longer own their home......