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04-16-2009 05:45 PM
Thanks for the comments. I have a question though.. HSBC/Discover will reset(if thats the right term) my min. payment and show me as paying current. I'm re-working my budget but I think I can swing it with my new lower mortgage payment. Do you think I would have any luck in requesting GW removal of the previous lates? I didn't think to ask for an interest reduction (duh) but I will.
It's probably a stupid question, but they have already closed my accounts so will my paying help my credit/credit score? I'm not saying I don't want to pay..I do. I just don't know if #'s wise it will make a difference. This isn't sounding right but I hope you understand what I'm trying to say.
04-16-2009 05:46 PM - edited 04-18-2009 08:12 AM
Need more advice. I received my papers for loan modification from the lender. It had the new amount that was quoted to me over the phone which is good for April-June. Then they want a lump payment of 10,000. This is not what was presented to me. I was told they had a new program and after giving all of my information was quoted the reduced amount and told the loan would be modified.
Also, any suggestions on how to move forward with the wellsfargo loan that was turned to collection and they are threating to sue. Wells fargo does not negotiate with CCCS which at this time I don't know if I'm staying with them.
04-18-2009 09:21 AM
Farmgirl, it appears to me that the "telephone" negotiations are not reliable. I would therefore stick to written communications so that terms and timelines are clear and without question.
I would NOT request GW at this point. It would do zero if you get a GW, only to later find that you cannot keep up and end up with the lates again. They won't GW you again anytime soon. I would wait till you have your mortgage negotiated and working.
And, you all ready know my opinion: You need shelter, food, clothing, medical. You do not need credit. You need to stop making credit score decisions and start making life back on track decisions.
I suggested previously that you speak to a BK attorney, not to actually go BK, but to get the info and know your options. You have talked with a CCCS and have had questionable results....they negotiated deals that fell through which you were able to secure directly (yourself) better terms....and some of your creditors won't deal with them at all. Thus, they are not a solution in my opinion.
You need first to sit down and create a budget. You need to know what your income. You need to create a budget for necessities (see above what I consider necessities). Then you can see what is left over. If there is left over, you can use that to negotiate or settle CC's and other debt. But if not, what good is there in negotiating a deal. If you do not have the income, don't have the health to generate more income and are too far behind to get caught up and the creditors want large lumps ($10k), then don't make things worse.
You asked for my input. I'm not going to sugar coat it. You may have to go BK. You may not. If you really don't want to, then you are going to have to get the mortgage company to play ball. Start with a letter which describes the following "non-negotiable" points;
1. All past due amounts must be put to the back of the loan.
2. I can only pay $XXX dollars per month in payment.
3. I cannot pay any lump sum beyond monthly payments.
If they can't do this, what is it you think you can get out of the negotiation? Nothing.
You can look into the government refi and bail out plans to see if qualify in any way. MyFico even has a been promoting a site that can help you decide if you are qualified: http://www.mortgagereliefonline.com/
But in the end, i fear you will have to make some difficult choices. Please do not misinterpret my plain talk with heartless or uncaring. I can empathize completely. I have been in the position of having little or no options and having to make the toughest calls I could remember. But, once you start making them, you begin to get some control back and see some light (hope) at the end of the tunnel.
Good luck on this and hope to hear from you soon
04-18-2009 09:41 AM
Thanks for getting back to me so quickly. I have looked at the government sites however they seem to be for FNMA and FHLMC backed loans. I had put down over 20% when I bought my house and went conventional. I think I will call a lawyer Monday to discuss my options.
Thanks again for all the great advice.
04-18-2009 10:13 AM
Don't forget the budget first. The attorney will need to see that possibly. But do call for an appointment tomorrow.
Write the letter to the mortgage company, you never know what they will say. But if I understood, you can't afford the amount of payment right now, even if they put all past to the back. This means you would require a refi at lower APR to make it work. So you might ask for that, a lower APR so that the payments are lower.
ALSO DISCUSS: a short sale. This is where the mortgage company is facing foreclosure or bankruptcy (by you) and thus agrees to sell the home at market value (less than owed) rather than taking it through foreclosure or bankruptcy. Because if you go BK, but cannot handle the mortgage payments, you won't keep it anyway.
My brother and family had a bad negative equity situation compounded by ARM interest rate spike. They moved out of the home to something more affordable and got the home put under a short sale agreement with the lender (Countrywide, I think). They did not make payments, but the lender did not foreclose as part of the agreement. Foreclosure is sure to depress the value and the method of sale and the lender opted to go the short sale route.
Also, if you determine you will need to go BK, at that time, try to sell some "stuff" that you have before Bk. Things you don't need, don't want, don't use, don't remember, can live without/ are a luxury. Use a garage sale, craigslist and ebay. With the money you make off that, see if you can GW and settle some of the small balance CC's.
If you can manage to get an account or two at zero balance, they won't have to be included in the BK. If you have credit that survives the BK, then you will be ahead of the game down the road when credit becomes a factor for you again.
If you find out that BK is your only option, the cleaner you go through it, the better you come out long term. So, it is better to not wait till you have compeletely hit bottom on all fronts.
04-18-2009 12:23 PM
Thank You....working on my budget today with some recalculations. Your right I can't afford the current mortgage payment as it is 70% of my monthly insurance check. However I would have been able to afford the NEW plan they supposedly had. I'm still going to talk to the back as well as an attorney.
Thank you for all of your input.