Re: Advice in this tough time.
10-11-2012 02:08 PM
Unfortunately, your situation is made worse by the fact that you transferred that property tax lien to a private lender. As a for-profit company, they're going to be less likely to cooperate with you than your tax assessor's office might have been.
As you're learning now, a property tax loan doesn't rescue you from foreclosure, it merely kicks the can down the road.
I'm guessing you've probably already asked the lender if they have any non-foreclosure solutions to offer and they've said no. But if not, try that first. Maybe they can accommodate you with a refinance, forbearance plan, or some other option. Refi seems unlikely given your score, but it can't hurt to ask!
Do talk to your credit union and see if they can do anything to help. HELOC seems like a stretch with your current credit profile, but if anyone is going to give you a break it will be the credit union you already have an established history with.
Failing those approaches, I'd strongly advise finding an attorney who specializes in foreclosure matters to consult with on what possible ways you have of avoiding the foreclosure. That's your most pressing objective right now, since losing $220k of equity over a $25k lien would be the worst possible outcome. Even if that attorney eventually costs you $10k, remember your return on investment is a potential 1800% - the remaining equity less your debts and expenses.
Consider the possibility that you may end up having to do a short sale of your house, and prepare yourself mentally for that strategy. Ultimately, it's better to sell your home and keep much of the proceeds than lose it all in a foreclosure.
My heart goes out to you in these tough times. Hang in there, and seek the best professional advice you can find!
+1 Some really good advice here^^^^^^^^^.
You need to move on this! Don't sit on your hands now! You have money to work with using your home equity, don't lose it!
Go to your local credit union or local bank and start talking to them.
It sounds as if you are like a lot of people that are going through these tough times. Make sure you sit down and figure out a budget for your current income. Don't keep digging the hole deeper! It is really hard to come to terms with the fact that you might not ever be able to replace the incomes that you once had, but you need to do it.
If worse comes to worse call a realtor and get the house on the market pronto.
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