mortgage question- being late on a payment (real estate, foreclose)

[meoner]

Going through some tough times financially. Have been asking our mortgage company for help since December & they keep declining us because my husband is collecting unemployment. We are on our 5th try of requesting a modification.
Don't have the money to pay this month and will need to take money out of our savings account in order to pay... Giving the mortgage company another month in hopes that they will be able to cut our payment down.
Obviously cannot keep taking money our of savings to pay the mortgage, will eventually have no savings an no house.

Has anyone just not paid their mortgage? What happens the following month, do they bill you for 2 months + late fees? And if you just continue not to pay, what do you think the chances are that the mortgage company will actually contact us and try to work something out? It seems that they just don't want to help if you are current on payments...

any advice would be greatly appreciated!

[SilverBulletZ06]

They won't charge you twice but you will be carrying outstanding debt, pay a late fee, and negatively affect your credit.

[sheena12]

First let me say that I am so sorry to hear about your problems.
So much depends upon how much equity you have in the house, the market in your particular area and the bank you are working with.
As a general rule, after 3 months of non-payment they will serve you with a notice of " intent to foreclose".
I would avoid this at all costs. If you have savings use them to keep no more than ONE month behind - they really cannot do anything if you are only running one month behind. At three months they can call the mortgage due - asking for the full amount of the loan.
I am not an attorney or a real estate broker but I am quite knowledgeable about the law in this respect and there are a number of ways that this could play itself out - depending upon how much you owe, how much the house it works and how much your lender wants the house.
The old axiom was "banks are not in the real estate business" - meaning that they do not want your house. This is sort of true, BUT as you have found out they do not always want to work with you
Especially when your husband is unemployed.
If you were my sister or best friend I would tell you what I have just told you. Then I wold move to a less expensive area with homes under 150,000 and a pay scale that is commensurate with Long Island's.
Best of luck and dm me if you want further information.

[Elke Mariotti]

It would help to know who your lender is.

Also, do you have only one mortgage or is there a Home Equity Loan or Home Equity Line of Credit as well (commonly referred to as "a second"). If you have a "second", is it from the same lender or a different one?

[LongIslandCitizen]

Use your savings to Leave Long Island and relocate to a place that is less stressful and treats you like an actual citizen.

[meoner]

we have 2 mortgages, both with different banks.

[FrmlyBklyn]

Originally Posted by meoner

we have 2 mortgages, both with different banks.

I'd be more concerned with paying the first (primary) mortgage since they hold the primary lien against the house. The second mortgage bank holds a secondary lien against the house, meaning they come in last to get their money back. Also, I believe they will not be able to foreclose on you if you are current with the first, since as secondary holders they sit below the primary bank. The primary bank holds all the cards when foreclosing - secondary banks usually wind up taking it on the chin with second mortgages/HELOC's.

[brucew]

What does this have to do with Long Island? You should be posting this in the mortgage forum.

[LifeInLI]

I would say you are in way over your head like so many other people. How long have you had this home already?

[I_Love_LI_but]

Originally Posted by sheena12

Then I wold move to a less expensive area with homes under 150,000 and a pay scale that is commensurate with Long Island's.

Where would that be?