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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am 4 months behind on my mortgage and I have a home in New

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I am 4 months behind on my mortgage and I have a home in New York, with no mortgage (paid). I am also approximately $24,00 in debt with creditors, which I am late on payments. What are my options? I live in Upper Marlboro, MD.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

So sorry to hear of your dilemna. I will strive to provide you with legal information to assist you.

I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information on this open and nonconfidential forum.

Do you want to keep your home? If so, have you attempted to modify your mortgage?
Customer: replied 6 years ago.
I have applied for a loan modification (several times) with Wells Fargo and have been denied each time. I would like to keep my home at a lower mortgage payment. I am prepared to do a short sell, if I do not receive a lower payment.
Customer: replied 6 years ago.

What is my option?

Expert:  Ellen replied 6 years ago.
Hello,

The first thing to be aware of is that a lender is not going to modify a fully performing loan. You will typically need to be 90 to 120 days behind before they will discuss modification. They will only modify to mitigate their risk . Therefore it is only now that you are 4 months behind in payments they will typically discuss modification.

In order to obtain a modification, you will need to convince your lender that a modification to allow a short sale or new payment plan will mitigate the lender's losses. To do this you will need to show the lender that the property would not yield the amount of the mortgage in a foreclosure sale, that you cannot pay the current payments and that you would be able to pay a reasonably lower payment or short sell at a more favorable price than a foreclosure sale.

To clarify, there are three prongs to convincing the lender that a modification will mitigate the lender's losses:
1. Convince the lender that the property would not yield the amount of the mortgage in a foreclosure sale,
2. Convince the lender that the you cannot pay the current payments - show the lender that there are no other assets available to pay a deficiency.
3. Convince the lender that you would be able to pay a reasonably lower payment or short sell at a more favorable price than a foreclosure sale.


I hope that this helps you.
Ellen and other Bankruptcy Law Specialists are ready to help you

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