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SOS! Foreclosure (status) pending


Ahntara
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The bad news is...

The good news; It's not me, it's my sweetie. So, for practicality, we will be able to walk from this, after thoroughly trashing his credit and still be able to function under my name/credit.

As many of you may know, lenders have tightened up and are now declaring default/foreclosure status at 90 days past due. My sweetie reached that on Oct 1st.

We have:

Contacted the Homeownership Preservation Foundation

Contacted HUD & FHA, who referred him to other 'counciling' type programs

Contacted NACA.com (not the attorney's organization) - 1st meeting in our area is 10/29, applied online to see if things could be hurried along

Contacted the lender, Indy Mac Bank - they only offer a forebearance for 3 mos, on his 1st mortgage, due to requirements of the 'investor' Wells Fargo. No help at all on the 2nd (he got an 80/20) and no modification of terms, which is what we really need for him to keep the loan/house. He believes it's better to keep what money he has, for liquidity (to rent), rather than pay a partial amount that falls short of curing the default.

Today I plan to start contacting both Congressional Representatives. I figure that if the taxpayer is gonna be asked to foot the bill for bailing out Fannie Mae & Freddie Mac, I see no reason someone can't help us avoid one more overpriced, foreclosed property from joining the problem that caused the need for a bailout.

Any other ideas? Thanks in advance, cuz every suggestion is needed & appreciated.

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I'm guessing...but...I would guess that with all the other foreclosures going on and the nonsense in congress its likely to be awhile before they actually do anything about it. They may get it on the court docket...but, I'd bet there's a back log. And even when they do get the court papers, its likely to take some time to implement.

At the moment, I'd suggest put the money he'd use for payments aside somewhere and wait to see what happens.

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There are several plans either currently available or soon.

the FHA Hope plan will help you, sad thing is that it was introduced with out informing investors/lenders about it, so will take a few months to be a "real" product. Looks easier than the cumbersome FHA Secure.

Then, FHA Secure. Can be done, but what a pain to do. You fit however.

Charles

I have a new quote I am going to put on my signature line, if I can remember how to do that.

"The Best is yet to be", Robert Browning.

There is currently - even before the bailout - plenty of money to lend. Loan guidelines are more firm than before, but they are still flexible. Hang in there. Prayer works. (can I say that?) whoops too late.

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Fannie Mae has a homesaver program that a lot of banks (like Bank of America) are now participating in. Bank of America has issued out thousands of them.

In a nutshell, it is a second mortgage that allows you to bring you current from whatever you are past due in, including a negative escrow account. Your first payment on that loan starts six months later meanwhile everything else begins as if it were current.

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