If you missed it last week, our house went into active foreclosure about ten days ago.
We knew this day was coming.
Foreclosure proceedings on the house started over a year ago. We just didn’t know when it would officially become “active.”
I’m sharing this because I’ve gotten quite a few suggestions on what we should be doing or if we’ve tried certain routes yet, and I also don’t think most people know exactly what can happen when you get behind on your mortgage.
As you know, we were unprepared for any emergencies or unexpected expenses and when my husband had two unplanned surgeries that left him unable to work for extended periods of time, we fell behind. Way behind.
What you may not know is that when you fall behind on your mortgage, if your mortgage company operates the way ours does, they will not accept a partial payment.
You have to give them the entire amount you are behind in order to catch up.
When you get behind by one payment, you may think you will be able to make that up easily.
But when you can’t manage to scrape together two months of payments and then you fall three and four and seven and twelve payments behind, coming up with the entire arrearage can be very difficult or even impossible.
That’s the situation we find ourselves in. We are so far behind now there is now way we can come up with the total amount all at once.
That’s why I wrote that post last week. The one about keeping up with the Joneses.
If you are living week to week and cannot keep up with your expenses, now is the time to start cutting the fat out of your expenses. You do not want to end up in the situation we are in now!
Your mortgage company will give you the option of applying for a modification. If they decide you qualify then they can tack the entire amount you are behind onto the back end of your mortgage and you can start with a clean slate. Sometimes they will even reduce your monthly payment.
We have applied twice for a modification already and been shot down both times.
So you also know, when you are applying for a modification, the biggest thing the mortgage company is looking at is the amount of money you are making each month vs. the amount of expenses you have each month.
Any time your circumstances change, you can reapply for a modification.
Last week I sent in one more application for a modification. It’s our last hurrah as far as that option goes.
Once all the required documents are received, the foreclosure proceedings are suspended until a decision is made.
If we aren’t approved, we will have to find a way to come up with the entire amount we are behind or we will lose the house.
I’ve worked super hard to get our expenses down. Now that we have a regular income to rely on between the two of us working, I am hoping we get the thumbs up.
I was told we could find out as early as Friday.
So if you could send out some really positive, you’re gonna be approved type of vibes (or “likes”) that would be really awesome.
And hopefully the third times a charm.