Unemployed and close to foreclosure

**Veronica42** · 01-29-2008, 09:54 AM

I am one month behind on my mortgage and I just lost my job 3 weeks ago due to a downsizing of the company. The mortgage company is threatening foreclosure if I dont' have my payment by the end of Jan 31 2008. I have filed for Unemployment but that wont start for another couple of weeks. I am also expecting a severance pay from my previous employer which would help me to get caught up with my payment that I am late. But that wont be deposited in my account until late next week. I have no other methods of gathering any funds before Jan 31 and am petrified I will lose my house.
Does anyone have any suggestions on what I can do.

I am stressed out to the max and do not know which way to turn.

Thank you to all and anyone that can respond.

**LOTrainer** · 01-29-2008, 11:03 AM

Veronica, I am so sorry that you are going through this right now! Unfortunately, because there is no steady job, you wouldn't qualifity for a loan modification from most lenders/servicers out there. I find it hard to believe (though I am not doubting you) that the mortgage company would start the foreclosure process after only a month into default. Typically, you won't see that start to happen until the 3-5 month period of time and then you have 5-7 months prior to eviction.

I would definitely suggest talking with a RE attorney, and try to get them in contact with your servicer's loss mitigation department. I wish you well!

**Veronica42** · 01-29-2008, 11:15 AM

Yes this loan company seems pretty aggressive and has given me Jan 31 as the cut off date. I will be getting my severance pay next week but they don't want to seem to wait.

I will contact them again and ask for the department you mentioned.
Thank you!

**RobM** · 02-02-2008, 09:16 PM

I agree with LOTrainer...this surprises me. The bank doesnt want your house unless you have a ton of equity in it...so assuming that you dont, it is going to cost the bank somewhere around $40-$70k of their money to foreclose on you. I am sorry that you are in this situation, but give the loss mitigation department a call and I am sure they will work it out with you

good luck

**Sean McAlister** · 02-03-2008, 12:07 PM

This is truly an unfortunate. I know that this does not help but realize that you are not alone.

If I were you I would look to family and friends in the short term. Perhaps you could get a loan for a couple of thousand from some one like that. This will allow some time for you to find another job.

Good luck to you
Sean

**sandalwood** · 02-04-2008, 06:10 PM

Veronica,

You didn't mention the lender's name so I don't know how aggressive they are. I am currently in the foreclosure side of the market as an investor. It is my experience that most lenders only threaten when you are one month late and don't do anything until you are 3, 4, 5 or more payments late.

Here in NV they don't file a NOD, for the most part, until someone misses 6 payments. I have 3 clients right now who are over 6 months late and all the lenders are doing is threatening to file.

It sounds like that is the point you are at in your case. Whatever you do, don't panic. Stay calm and like the other posts said, call the loss mitigation department and explain your situation. Do not try to explain your situation to customer service or any other department. None have the authority to do anything. Only loss mitigation is empowered to help.

Having said all that, one of my contracts is sitting at IndyMac bank and when I call, I get a recording saying something to the effect that they are getting so many calls they are not answering any of them. Then the phone hangs up automatically.

You may find yourself in that situation. If so, write them a letter and address it to their loss mitigation dept and send it certified mail, return receipt requested. This will at least put you in contact w/them and if like one of the posts suggests, you need a RE atty, this should help your case.

In the meantime, keep your wits and gather funds as it sounds like you want to keep your home. Concentrate on finding money not only to pay your mtg but on which to live.

EZ for me to say, right? Hopefully this advice has been somewhat useful.

**tsteuwer** · 02-25-2008, 07:27 PM

Originally Posted by sandalwood

Veronica,

You didn't mention the lender's name so I don't know how aggressive they are. I am currently in the foreclosure side of the market as an investor. It is my experience that most lenders only threaten when you are one month late and don't do anything until you are 3, 4, 5 or more payments late.

Here in NV they don't file a NOD, for the most part, until someone misses 6 payments. I have 3 clients right now who are over 6 months late and all the lenders are doing is threatening to file.

It sounds like that is the point you are at in your case. Whatever you do, don't panic. Stay calm and like the other posts said, call the loss mitigation department and explain your situation. Do not try to explain your situation to customer service or any other department. None have the authority to do anything. Only loss mitigation is empowered to help.

Having said all that, one of my contracts is sitting at IndyMac bank and when I call, I get a recording saying something to the effect that they are getting so many calls they are not answering any of them. Then the phone hangs up automatically.

You may find yourself in that situation. If so, write them a letter and address it to their loss mitigation dept and send it certified mail, return receipt requested. This will at least put you in contact w/them and if like one of the posts suggests, you need a RE atty, this should help your case.

In the meantime, keep your wits and gather funds as it sounds like you want to keep your home. Concentrate on finding money not only to pay your mtg but on which to live.

EZ for me to say, right? Hopefully this advice has been somewhat useful.

I totally agree with this post. As he said above, just stay calm. Try and find a job as soon as possible and then catch up. With all the foreclosures in the market, im sure your Bank do not want them at all.

**carlam** · 02-26-2008, 05:05 AM

I know this can be a very stressful time, losing a job and on top of it being threatened by your mortgage company. I am sorry that you are in this situation, but know that you are not alone. Unfortunately, (and shame on the lenders) because of the issues we face in this market with short sales and foreclosures, lenders have no emtional attachment to their clients - only their own pockets, that the moment a payment is not received they start in with the threatening calls of foreclosure. Take a deep breath (or two), call the lender back and ask for "Loss Mitagation" and speak with someone in that department and explain your situation. They should be more understanding, they may not be able to help the phone calls, but it will be documented in their system. Follow up with a letter of hardship and state what you intend to do. Document everything, calls, who you talk with, keep records with dates. Hopefully you will catch up and find a new job and this will be a thing of the past. Remember you are not alone! Wish you the best.