Dealing With Mortgage Co. - Posted by V.P.

Posted by V.P. on December 18, 2000 at 20:28:07:

I do appreciate the input.I do have some ideas on restructuring my current debt so as to get back on track as soon as possible.Just need to buy some time to keep from losing my investment and equity.

Thanks again!

Dealing With Mortgage Co. - Posted by V.P.

Posted by V.P. on December 18, 2000 at 08:49:04:

Hopefully some of the financing veterans here can give me some ideas.This ,I’m sure is a well known story and now it seems I have a part in it.

Due to a long list of unforeseen circumstances,I have moved into a place that I bought and completely remodeled with the intentions of selling it.Was on the market for several months,listed with a realtor (actually the one I bought it from)that gave me absolutely zero service.

It is now my home and business losses (and loss of business) have contributed to putting me two payments past due.Naturally,I have other debts and expenses that I am also dealing with.

This week,I am starting new employment and will no longer be full time self employed (for the foreseeable future) with an income that will do nothing more than meet my obligations.

Question is,is there a way to deal with a mortgage company on past due payments without expensive refinancincg? At this point I can not afford another round of points and closing costs or higher payments. That may not even be an option anyway due to the situation of the past couple of months.All of my resources have been used up with nothing but future income to work with.

The credit history that I have worked so hard to build over the past several years appears to be in jeopardy, along with the thought of buying,rehabbing and selling (for now).

I would appreciate any ideas on how to deal with my mortgage company. This property is in Texas.

Rent it out, rent a room - Posted by Steve

Posted by Steve on December 20, 2000 at 19:58:39:

Put your place up for rent. Then use a portion of the deposit to rent a room somewhere. Use the difference to help catch up on debt.

Re: Dealing With Mortgage Co. - Posted by Ed Garcia

Posted by Ed Garcia on December 18, 2000 at 18:23:38:


Your question is not as much one of financing, as it is of restructuring debt.

V.P. You have 4 options.

  1. To sell the house.
  2. To take on a partner, and sell half of the deal to someone else.
  3. To get a job making more money, allowing you to afford the house.
  4. To bring in some roommates helping you with the rent.

To refinance it, increasing the debt service would not be the answer. In order to get the current lender to work with you, you have to give them a buyable program of repayment. You don’t sound as though you have one. Ri9ght now I’m thinking ROOMMATE.

Ed Garcia

Re: Dealing With Mortgage Co. - Posted by Ryan

Posted by Ryan on December 18, 2000 at 13:16:11:

I know that a good portion of mortgage companys will work with you if you contact them and explain the situation. The mortgage company will ask you to submit what they call a hardship letter. In this letter you explain your financial situation and what you are doing to mend it and why in the future you will be able to make the loan payments. IF they accept it often they will roll the late loan payments and late fees back into the loan and let you start fresh. I have heard of them rolling as much as 6 months back in. It is easier for a loan company to work with you than to foreclose on the house and have to resell it.