There are some things you can do. If you contact your first and second lenders, they will offer you a 12 month plan. What they will do is put the money on the back end of your loan. However, they will report you on your credit report with not paying your loan, therefore showing you didn't make a payment, and will have black marks on your credit report until you can make the payments again. I just thought I would put this out there in case there were family members out there that might be going through this, but didn't want to bring it up.:wink2:
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One more thought that came to mind. If you have to do this, see if you can payoff your credit cards before you do this. The reason being if you have dings against your credit, your credit card companies can use that against you, and jack up your interest rate right away.:wink2: And yes they will do it, and it could be 10% or more.
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Thanks man, it has been a trying time for a lot of us here. I am not in foreclosure, but we are on a tight rope, and if we slip, lose an income or disability, then we will be hit hard. Our income dropped 50% since 2005 and when we bought our house, our payment was not even 15% of our monthly after tax income. Now it is 33% and that doesn't give us much wiggle room. Another year and my income should be back up there, but it is going to be a tough 12-18 months though.
How are you doing?Fin Fan In Cali likes this. -
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Glad to hear that man, it has been interesting for us too. That happens when you have to switch careers without warning :). Thankfully I know I am in a far better place that I was before, and if we can hunker down through this next 12 months then we will be back to where we were before and then ahead.
This will happen to you too, I will ask Wendy next week what she did with your resume and if there is anyone you should call within her organization. Once you get through this, you will be far better off. -
azfinfanmang likes this.
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Exactly as John said. Thousands of people are in the same rut, and he should know he's not alone.
Paying off his credit cards is probably the best thing he can do.Fin Fan In Cali likes this. -
He needs to do the following: Write his current situation down in a letter addressed to the CEO and Customer Service dept. explaining to them his situation (and he is not alone) and that he needs them to put him on a reduced payment plan (for his credit cards) and that if they do not honour his request that he will have to default on them. Ask his mortgage company to reduce his monthly payment but he is not going to default on that, so I wouldn't threaten that and continue to pay his mortgage.
He also needs to call the credit card and mortgage company's customer service lines, and repeat this to them and once again reconfirm that he is in a situation that if they are not flexible he will have to deafult. ASk them for their e-mail and send them a copy of the letter he sent out.
If the companies will not escalate his call and help him, he is going to need to then decide to default. After a month or two of not paying his balance, he will be contacted by their credit collections, have him again tell them his story and ask for their e-mail and send the letter.
He musn't pay and he will get calls and he needs to shut them out. The advantage he has going is that the Credit Cards are unsecured, and they cannot go after his house, his car and his IRA and ERISA Plans (401(k) and 403(b) etc). Every 30 days call them up and see if they will negotiate. Continue to do this until they settle with you.
Make sure he documents every attempt and continue to send an e-mail or letter to whoever he talks to. This is similar to the tactic that these so called debt reduction firms use to pay down your debt to pennies on the dollar. His credit is going to be shot to hell, but that happens if you foreclose anyway, its probably already low anyway. However he needs to stop the behaviour that got him in this mess, generally speaking going back to behaivour our parents had, if they wanted something they saved until they had the cash to pay it off. Credit Cards should only be used to buy something if you are getting reward points and then be paid off automatically.gafinfan, my 2 cents and azfinfanmang like this. -
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Rendering and digital modeling work
AutoCAD for building systems
Furniture design
etc.
Architecture firms just aren't hiring entry level at this point...plenty out there for 3-5 years exp. -
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They had a woman and her husband that were going to lose there home. She ran a business to try to help others save there house. She was on the news chained to her house. The bank would have nothing to do with trying to help her.
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gafinfan likes this.
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I really hate seeing people have to go through these things. I myself am at a crossroad with somebody down on their luck and have no idea what to do.
I let a friend move into my place, somebody I've known for 10 years. He's an insulin dependent diabetic with a host of related problems. Gland, heart kidney etc... So his medical bills are high. He's been laid off of his last 2 jobs, his car needs $800.00 worth of repair and he's 3 months behind on his rent to me, which I'm covering. I'm not wealthy, I make a decent salary and am in no danger of losing my job, but I'm feeling used for continuing to let him slide on rent and other costs. He uses water, electric, food etc... and I'm starting to feel the pinch in my wallet and I'm getting agrivated.
My question is, do I tell him he needs to go, thereby pretty much kissing away all of the back money he owes me (which is thousands at this point), or do I be understanding and continue to help. I'm getting frustrated and am leaning towards giving him 1 more month and that's it. What's the right way to handle this situation?Fin Fan In Cali likes this. -
jupiterfin likes this.
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Aside from an unemployment check which he gets (which is a joke) he's getting no outside assistance. I guess I should see what might be availiable for him. Thanks for the heads up :knucks:Fin Fan In Cali likes this. -
Sorry to hear about all your troubles. I'm not close to foreclosure (knock on wood) but am underwater in terms of equity thanks to decreasing home values. Nothing to really do but ride it out and keep making my payments. And I'm very thankful to be able to do that. Not a luxury everyone has these days...
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Good luck!jupiterfin likes this. -
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just to add to the discussion. i just started working for a company that specializes in mortgage modifications. they do it for a fee of 1% of the loan value. they can lower interest rates and in some cases lower the principal amount if your house is worth less than your mortgage. its handled entirely by lawyers, lawyer to lawyer. the main thing that i have seen that determines whether a bank will listen to you is if you have a genuine hardship, medical, loss of income, etc that proves you cant afford the current payment but you must prove that you could afford the new payment. banks wont let you off the hook if you merely cry poverty. you have to prove it and then you have to prove that you can pay the new rate
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