$27,000 Personal Loan with $10,000 down payment w/bad credit for emergency to save my home

[Anonymous]

Hi there, in alittle bit of a hard place and need some guidance/advice. My home recently went into Forclosure, long story we fell behind with our mortgage mainly due to my Wife lost her job(my income is half of the payment) and then she was hospitalized for a few months due to illness and couldn’t make it bad to work for a solid year up until a few months ago. My mortgage company did give us alittle forebearance but that has ended and now we are stuck with a 27K balance to catch up and save my home.

We have managed to save up $10,000 but can not come up with the rest in time, the mortgage company wants the 27k in full and not with payments. We have been trying to get a modification but they have been giving us the run around since October saying they need more documents..etc but after looking at their company reviews I have a bad feeling we won’t get it and will lose our home. Our credit is pretty bad(no bankruptcy) but from medical bills and a credit card charge off, student loans. We both have full time jobs with decent income, do you think there is a chance a bank or credit union or lender could give us a emergency loan of that amount and have the 10k down payment to offset the bad credit? Or have any ideas/help, even something high interest is totally okay. Her last car loan was paid in full and we currently own both of our vehicles(nothing super valuable maybe 15K-19k equity in that).

Thanks in advance everyone for reading.

[tcbofade]

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@Anonymous wrote:
Hi there, in alittle bit of a hard place and need some guidance/advice. My home recently went into Forclosure, long story we fell behind with our mortgage mainly due to my Wife lost her job(my income is half of the payment) and then she was hospitalized for a few months due to illness and couldn’t make it bad to work for a solid year up until a few months ago. My mortgage company did give us alittle forebearance but that has ended and now we are stuck with a 27K balance to catch up and save my home.

We have managed to save up $10,000 but can not come up with the rest in time, the mortgage company wants the 27k in full and not with payments. We have been trying to get a modification but they have been giving us the run around since October saying they need more documents..etc but after looking at their company reviews I have a bad feeling we won’t get it and will lose our home. Our credit is pretty bad(no bankruptcy) but from medical bills and a credit card charge off, student loans. We both have full time jobs with decent income, do you think there is a chance a bank or credit union or lender could give us a emergency loan of that amount and have the 10k down payment to offset the bad credit? Or have any ideas/help, even something high interest is totally okay. Her last car loan was paid in full and we currently own both of our vehicles(nothing super valuable maybe 15K-19k equity in that).

Thanks in advance everyone for reading.

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The bad news is that I don't believe any lender is going to help you right now.

The good news is that you listed your own solution.  If you've got $10k in the bank and $17kish worth of an automobile, sell the car.  Save your house.

Buy cheap car.

Yes, I know that sucks.  No, I don't have a better answer.

Good luck!

[Anonymous]

Do either of you have a 401K that you can take a withdrawal or loan from? I hate to suggest robbing a retirement fund, but it may be an option.

[Anonymous]

Tcbo and Sweeper made some respectable recommendations. However, should those prove unfruitful you may want to seriously consider the bankruptcy filling. 

[Anonymous]

I also have to wonder - should you be able to, somehow, come up with the $27,000, will you be able to comfortably make the monthly mortgage payments after that?

Makes little sense to find such a large amount of month only to have a hope and a prayer that your mortgage won’t end up in default again. Just based on your comments, it almost sounds like you have way too much house for your current income level.

[Anonymous]

Not quite to much now, we can comfortably pay the payments and have been able to save 10,000 on the side with hopes of having more before we ran out of time. It was only impossible when she stopped working on 1 income, with both of us working we are fine but if something happened and 1 of us lose our jobs you are correct. I have been with my company for 7 years. Our Mortage is around 2200 monthly without taxes..etc.

Our combined income right now is around 100k vs 120k combined with her previous job. The last car loan we paid in full was for 27k about 6 months ago.

The exact amount is actually around 24,xxx, 30k is just a idea of the range

Also to other replies about the bankruptcy filing, would that just delay the foreclosure process and not actually save the home? Sorry just new to the whole thing.

[CreditCuriosity]

BK7 won't save your house i believe unless your house is basically worth nothing otherwise that is gone.  BK13 I believe your house can be saved.  You also might make to much for a bk7 as well so might not even be an option.  I am no expert in bk, but how i understand them.  One thing that is certain the longer you wait for the solution the worse it will get.  Look at tapping into 401k as other mentioned possibly a loan from family members or sell your cars to save your house.  Best of luck

[bondsandloan]

I would sell the cars! And buy a second-hand one.

[Revelate]

What CC stated is right, you're looking for a Chapter 13: basically that's the consumer redress to have a judge force a payment plan on a lender that's being unreasonable.

In addition to what has already been suggested, I would talk to a couple of lenders about something like a HELOC: might not be feasible, but there's not a lot of rules around those and if you have non-trivial equity in the house and you've re-established income, you might be able to do that to get a lump sum.  Spin your story to a local credit union or two that you have or can get access to and see what they say would be my recommendation, ideally you have this conversation in person.

Beyond that, absolutely look up what the foreclosure timeline is for your state and know where you are on that timeline.

There's also some foreclosure relief services which I think are free, that wouldn't be a bad route to investigate too.  I would probably talk to a lawyer too FWIW.

[Kree]

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@Anonymous wrote:
Hi there, in alittle bit of a hard place and need some guidance/advice. My home recently went into Forclosure, long story we fell behind with our mortgage mainly due to my Wife lost her job(my income is half of the payment) and then she was hospitalized for a few months due to illness and couldn’t make it bad to work for a solid year up until a few months ago. My mortgage company did give us alittle forebearance but that has ended and now we are stuck with a 27K balance to catch up and save my home.

We have managed to save up $10,000 but can not come up with the rest in time, the mortgage company wants the 27k in full and not with payments. We have been trying to get a modification but they have been giving us the run around since October saying they need more documents..etc but after looking at their company reviews I have a bad feeling we won’t get it and will lose our home. Our credit is pretty bad(no bankruptcy) but from medical bills and a credit card charge off, student loans. We both have full time jobs with decent income, do you think there is a chance a bank or credit union or lender could give us a emergency loan of that amount and have the 10k down payment to offset the bad credit? Or have any ideas/help, even something high interest is totally okay. Her last car loan was paid in full and we currently own both of our vehicles(nothing super valuable maybe 15K-19k equity in that).

Thanks in advance everyone for reading.

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DCU will do a vehicle equity loan for up to 120% of the vehicles value. I know because they offered me one when I was looking at personal loans a few months ago.