Tax Deed Looming

[soapdish]

good morning we haven't been able to pay our property taxes for the past 3 years, tax deed is in the works. we've been in the house 14 years. in over our heads from the start, refinanced 9 years ago to an ARM, we've had late payments for years. the rate is finally back down to 9.5 percent. 2nd mortgage also. our FICO scores are low 500s, lots of late pays, charge offs, a couple judgments, house + 44 acres appraised at $438,000 in 1996, we owe 200,000 does anyone have suggestions about how to get out of this situation? we'd like to stay, it's a special place. we've tried lots of things, still hoping to work with lender, called project hope, etc will anyone lend us money on the equity with our late payments and low scores? thanks L

[Anonymous]

How much are all the taxes, judgements, and chargeoffs.  There is a good chance that they would want all of this stuff paid off through the close.  The problem you have is that if you could not make the payments on time or the tax payments and other stuff, refinancing the house just bundles all the bills you could not pay into one and puts all the risk on one lender.  You would probably need a full year of clean credit to refi, but maybe the FHA refi program (although that is more intended for people who got caught in the mortgage mess a couple years ago) 

Without knowing income amounts, total debts, total monthly payments, employment history, etc it is hard to give concrete info.

[Lel]

Given the fact that you should have a gob of equity in your home and land, you should eventually be able to do a cash-out refinance to cover all your obligations. You might even be able to find a lender to do it now, but you're going to get hit with a fairly steep interest rate given your checkered credit history.

I don't want to be judgmental here, but I think you and your spouse/SO need to sit down and figure out a way to manage your debt. I realize that everyone's circumstances are different, but from your message it appears that you have been having issues for 10 years or longer. You are fortunate to have a home on a nice plot of land, so you should take strides to make sure that you are not forcibly sent off. If you don't make some changes, then you could be in the same situation again in another 10 years. Best of luck.

[soapdish]

Thank You, Mickie - I won't bore you with all the specifics, but I think you get the drift that we're kind of out of luck, even with FHA. 

[soapdish]

Thank you, Lel

You are very right, and I don't think judgmental. 

It's a combination of over our heads from the start, difficult circumstances like illnesses, job losses, long periods of unemployment and just plain ignorance.  we've been very successful people in our earlier lives, and pride has made us go into denial about our situation.   We've always been able to pull off a hail mary at the last moment. 

I never realized until I found this board how all our bad history has been affecting our credit.  I mean, I knew it was bad, but didn't realize the full difficulty of our situation. 

we really don't have that much debt, but we really have not handled it well.  when I got sick, I lost my memory and concentration, got depressed and let everything slide, it was many years before I was properly treated and regained my brain. 

I don't want to be unrealistic, but there might be hope.  Any suggestions on how to find a lender that might consider us? 

We're both working and healthy (er) now, so we've got the income.  Our 1st mortgage lender has been very patient and working with us, they told us we could refi with them if we had 6 months of on-time payments with them, we have the income and the equity.  we just can't seem to get caught up to that point. 

We just need an infusion of cash now to pay the property taxes, catch up a couple mortgage payments, and then start working on PFD the niggling little collections.  most of the COs are close to SOL and CRTP and will fall off next year. 

that's where I was hoping, blind hope, that a lender would consider a HELOC, but it sure doesn't look good with those back taxes. 

Thanks again for your answer - L

Message Edited by soapdish on 09-15-2008 09:44 AM

[Anonymous]

Maybe you could try prosper.com to get that infusion of cash to get caught up on your mortgage and stay caught up for the 6 months so you can refi. Obviously this would work only if you were able to pay back the loan.

[WannaHouse]

I am just another poster..but if you don't need/use the 44 acres, can you sell it off or at least 40 acres and keep the house and 4 acres?

[Lel]

I would suggest working with your first lender, but it appears that you have already explored that route and it's not viable at this time. Lenders in general are tightening their criteria, but the impression I get from these boards is that there is some variability depending on region and circumstances. I would suggest getting all your info together and taking it to a mortgage banker to see what's possible in your area.

[DallasLoanGuy]

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Lel wrote:
Given the fact that you should have a gob of equity in your home and land, you should eventually be able to do a cash-out refinance to cover all your obligations. doubtful You might even be able to find a lender to do it now, but you're going to get hit with a fairly steep interest rate given your checkered credit history.

I don't want to be judgmental here, but I think you and your spouse/SO need to sit down and figure out a way to manage your debt. I realize that everyone's circumstances are different, but from your message it appears that you have been having issues for 10 years or longer. You are fortunate to have a home on a nice plot of land, so you should take strides to make sure that you are not forcibly sent off. If you don't make some changes, then you could be in the same situation again in another 10 years. Best of luck.

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[DallasLoanGuy]

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soapdish wrote:
good morning we haven't been able to pay our property taxes for the past 3 years, tax deed is in the works. we've been in the house 14 years. in over our heads from the start, refinanced 9 years ago to an ARM, we've had late payments for years. the rate is finally back down to 9.5 percent. 2nd mortgage also. our FICO scores are low 500s, lots of late pays, charge offs, a couple judgments, house + 44 acres appraised at $438,000 in 1996, we owe 200,000 does anyone have suggestions about how to get out of this situation? we'd like to stay, it's a special place. we've tried lots of things, still hoping to work with lender, called project hope, etc will anyone lend us money on the equity with our late payments and low scores? thanks L

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if you cant make your payments now, i am not sure anyone will consolidate you.