I heard that the Govt was trying to adjust the laws concerning BK in regard to homes that are valued for less than owed? Any details, articles to read?
I work as a Loan Officer – plus I also work with an attorney firm doing loan modifications.
I heard talk that there was going to be a new FHA secure loan, that people could refinance into a lower rate at 90% of the new appraised value. That was a couple of weeks ago, so far I haven’t heard anything. I have also heard that the lenders have to agree to accept the loss. Realistically for a bank to throw away $1000′s in profit is not rashionable.
You could get an attorney to do a short sale, and sell your home to a friend at a reduced price, or walk away and and give the keys to the bank.
If you file BK – you will save your home, but all you are doing is postponing the debt.
(We had a lady last week that hadn’t made her mortgage payment in five years. She filed BK, and the bankruptcy expired. She wanted to keep her home, our attorneys are negotiating with her lender to reinstate her loan.)
The easiest way is to do a loan modification, where your arrears are restructured into a new loan with your current lender. Depending a your amount owed, the original interest rate, plus how many months you are behind. It is possible to get a lower payment then you originally had.
Every modification is different – everyday I speak to homeowners in your situation. PM me if you have any specific questions….
