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OT- Foreclosure, how soon?

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  • OT- Foreclosure, how soon?

    I have been unemployed for almost five months this year, with a son living here who has been unemployed for most of a year (both in the machine trades).

    I am working again, not long enough to get holiday pay (ouch). Had some things hit that I have not been able to make my December house payment (I am sure you are familiar with the kind of list- insurance, payments, increases, etc). Things have been tight and stuff has fallen behind- but not the house payment until now. I was honest about any additional work I got on unemployment, so any money made didn't get me ahead (it was deducted from the benefit- which was sparse to begin with).

    I called the mortgage company to explain what was going on (11 days late at this point), the person I talked to was very nasty and accused me of being irresponsible, etc. if you are working your house payment comes first, etc. I tried to explain doing the best I can before I was hung up on. Most other creditors have been willing to work things out. I have a 12 year history on my mortgage and never missed a payment.

    I will be able to make both payments after the first one has been due for 36 days. There has been so much other stuff that has fallen behind that I am not particularly worried about my credit- can't give it much more of a ding than it already has- just wanted to be sure that 36 days won't get me foreclosed. Anyone have experience with this?

  • #2
    makes you hope that friendly banker falls on some hard times.


    • #3
      Thankfully, I have no experience with this.

      I will say that I feel for you and respect that you've been very honest with your lender and the UI system.

      I sincerely hope all will work out.
      Design to 0.0001", measure to 1/32", cut with an axe, grind to fit


      • #4
        Unless you are buying on contract most mortgages have 1 year before they can foreclose and put you on the street. I would try to find some sort of legit credit consulting agency in your area. No 800 numbers off the internet, TV or Radio ads, no payment to anyone up front. Go to where you bank and ask them.

        What will happen if you get to far behind, they have the right to refuse partial or late payments unless the entire amount and late fees are all paid at one time. .. maybe someone else can jump in here with better advice.

        The lady on the phone was almost right, let your credit cards and other non-secured stuff go to collection, pay the electric, gas and house payment.
        Last edited by wmgeorge; 01-05-2010, 08:43 PM.
        Retired - Journeyman Refrigeration Pipefitter - Master Electrician - Fine Line Automation CNC 4x4 Router


        • #5
          Originally posted by toolmaker76
          I will be able to make both payments after the first one has been due for 36 days. There has been so much other stuff that has fallen behind that I am not particularly worried about my credit- can't give it much more of a ding than it already has- just wanted to be sure that 36 days won't get me foreclosed. Anyone have experience with this?
          Strictly speaking in the terms of the mortgage contract most probably yes, but in practice it doesn't usually work that way.

          Especially given the reported state of the US housing market (I'm assuming you are in the US), the mortgagor will not be in a hurry to add another empty house to their stockpile.

          The most important thing is to stay on the front foot with the finance provider, tell them IN WRITING what your situation is, what you realistically expect to be able to do in the way of repayments.


          • #6
            The government has some kind of help as a go between. That's the only thing they have done good. Anyway check with your federal rep or senator for where to go. Or, Check with your bank and see if they know who to see.

            Please don't try one of the companies that promise to cut your payments and all kinds of other crap for a fee. They are lying and will take your money and do nothing.
            It's only ink and paper


            • #7
              I sincerely doubt 36 days past the due date will result in anything more than some unpleasant phone calls and a ding on your credit score.


              • #8
                36 days ?

                Short answer, if it is a typical mortgage like mine here in Texas, no way in hell. I know someone who has not made a house payment in 10 months, still lives in the house. Standard mortgage, in Texas.

                Yes, they can call, yes they can send letters, but that is about it.

                Your best bet, for your sanity, just ignore the calls from the mortgage company if you are only "late". You are paying a late fee for being late, and having a credit score ding too, be late and let it go at that.
                The people that are calling from a mortgage company can be really "$#!%#" on the phone. Save yourself an upset stomach.



                • #9
                  Thanks- I am in the U.S.A. I don't expect to need credit counseling (yet) just to keep working- should have all caught up within two months. Even got some work on the side in my own shop that is promising- which will help get me ahead eventually.

                  Still fuming about the call- I know that is a tactic of collectors to get the person mad enough to say h*ll with it and just write a check, but I didn't think about that during the call- I held my temper but I was angry.

                  Yep, I would like to see that person and a few people who work for the unemployment system to get a taste of some of this.


                  • #10
                    makes me sad to read your post, i hope that it will work out ok, i remember quite well being absolutly flat broke, its painful, now i'm not broke but after weathering years of crap i finally make a decent enough wage and guess what, i get me a bloody heart attack [x5], whoopy bloody doo, i know things may seem bad but beleive me that what i tell is true, they can and will get worse, its some kind of divine assault course i reckon.
                    either your in the **** in which case i'm sorry, climbing out of the **** in which case i'm glad but thats the dangerous bit because you are just between trials, and the next seems to be harder, i think theres only one way through and thats to not loose faith because it seems you wont ever be dealt a hand you cant play [so far]
                    god bless


                    • #11
                      25 years ago my finances were a mess. I went to Consumer Credit Counseling service. You sign up to give a lump some of money every month and they disperse amoungst your creditors AFTER they get the creditors to drop the interest crap and take reduced monies until the debts are paid off. You will have to sign a statement that you agree not to have any further credit until these obligations have been met. It beats the hell out of bankruptsy and even it's getting harder to get these days.

                      Good luck and keep a stiff upper lip and seek out a credit counselor.
                      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
                      Thank you to our families of soldiers, many of whom have given so much more then the rest of us for the Freedom we enjoy.

                      It is true, there is nothing free about freedom, don't be so quick to give it away.


                      • #12
                        I missed a mortgage payment one time. A week or two after it was due I got a call and said I'd send it out with the next payment. The guy on the phone said it may affect my credit rating if I didn't send it in as soon as possible. I asked him how it would affect my credit rating if I sent him a check for the payment and it bounced. He agreed I should just send the payment in when I had the money.

                        I am sad to say I know of a few people in the foreclosure boat, and at 36 days you have NOTHING to worry about. Now if you were talking 90 days, then you should start getting a bit concerned.

                        andy b.
                        The danger is not that computers will come to think like men - but that men will come to think like computers. - some guy on another forum not dedicated to machining


                        • #13
                          Originally posted by boslab
                          i think theres only one way through and thats to not loose faith because it seems you wont ever be dealt a hand you cant play
                          Sound advice and a good way of looking at things.


                          • #14
                            you need legal advice. each jurisdiction is going to have different time periods, notice periods etc. obviously you don't want to hire a lawyer, but maybe its available via some public access or legal advise hot line....start with attorney generals office in whatever jurisdiction

                            around here anyway, mortgagors in default can extend things a long time by getting in front of a judge. I've seen the downside of it where scoundrels with commercial properties, get 90 day after 90 extension (my dad sold a property to a church of all things and they strung him out for 3 years in defualt on a VTB ) judges seem willing to hold forth hope for any lame story.

                            anyway, that's not the point, you obviously have a good attitude and are working hard to right just be aware that outside of the legislated notice periods there may be other legal avenues...but this depend on jurisdiction (i;d guess by state, but I'm not in the US)

                            sorry you are going through it, congrats though on what sounds like a path to recovery


                            • #15
                              36 days = forclosure. No.
                              But you might look into anything else you might have set up when you originally got the loan to see if there are other consequences.
                              My house payment was set up when I got the loan so it would automatically deduct from an account. It's always worked great and resulted in a perfect payment history for about 15 years now. BUT - if the funds aren't there when they try to draw them out, I will likely face an interest percentage increase and other fees, which knowing how banks are, probably total up to about 6 months of payments or something. Anyways, I'm just diligent about keeping a surplus in the account so I don't face that music. I imagine a sleazy little man laying in wait for folks to stumble on these types of arrangements so they can pounce on them and pull the rug out. Anyways, so far it's worked out OK for me, but the horizon is beginning to look bleak.
                              I figure if the greedy 2 percent want to take everything the other 98% own, then they deserve the crumbling ruin they create for themselves. Just rewards. They can stay here and own all the rubble they want. I learned how to camp comfortably in the woods long ago so I'll be fine.
                              Good luck and I hope things for you have made a turn for the better.