that you’re in financial crisis and need emergency help. Do not
ignore the problem. Establish a budget. Prioritize your debts
(breaking out essential from non-essential) Contact your lender.
generally sent by Lender after missing 3rd
an emergency budget (be honest). Have something prepared for when you
begin the process of negotiating*
with your lender. Consider hiring an attorney at this point. If you
are over the age of 62, you may qualify for a reverse mortgage.
Period: the period of time, which is usually a year, that you live
out your equity in the property.
the Bank/Lender. A letter specifying your Workout Plan, with a
proposed amount you can pay, should be prepared with the following
Emergency budget; this
should have been done in Step 2
Statement of hardship:
a simple honest statement providing what caused this hardship; i.e.
laid off from work; death of a provider, etc.
Proof of earnings: to
establish your ability to pay what you indicate in your Workout Plan
Tax documents for
previous 2 years: this establishes credibility
Bank statements for 3
months: this establishes credibility
3: Sheriff’s Sale/Eviction
– last resort – last steps if nothing from phase 1 or 2 have been
satisfied with the lender.
nothing above has been successful and you satisfy the means test
(seek attorney advice) bankruptcy may be your only alternative. There
are two types of bankruptcies: Chapter 7 and Chapter 13. Once a
Chapter 13 bankruptcy has been filed, there is an immediate STAY in
all proceedings, including eviction and/or sale. Chapter 7
bankruptcies won’t necessarily stop a foreclosure; however in 95%
of all cases, you won’t lose your assets. In filing bankruptcy all
the documents in Step 3 will be required.
cost money too. The filing fee is $299, plus you will have attorney
fees to pay, which can range anywhere from $800 to $1500. Explore