Can My Mortgage Company Really Foreclose on Me?

Seeking Advice
1

I’m in Florida and have been hit hard by two storms (Helene and Milton) recently. Between damages to my home and my daughter’s new diagnosis, I fell behind on my mortgage for November and December. I paid November late, intending to catch up by February, but my mortgage company refused the payment. They sent a letter saying I need to pay the full amount owed or face foreclosure. They’ve also sent someone to appraise the house.

It feels like they’re targeting me because my house is worth $600k, and I only owe $140k after years of extra payments. They want three months’ worth of payments, including late fees, by January 1st, or they won’t accept anything less. I’m considering pulling from my 401k, but that will take two weeks. I’m overwhelmed and unsure what to do. Any advice on handling this?

2

You should call your mortgage company and ask about a loan modification. They might be able to work something out with you.

3

Arden said:
You should call your mortgage company and ask about a loan modification. They might be able to work something out with you.

Loan modifications can help, but be cautious about the terms they offer. Explore other options as well.

4

Would selling the house be an option to prevent foreclosure? Alternatively, could you take out a personal loan or use a credit card to cover the balance? It’d be awful to lose your house over a few months of missed payments. How much do you need to get current with them?

5

@Aris
I’m behind for two months at $3200 each, plus late fees that bring the total to $7200. I paid November, but they rejected it. By January, they want $10,400 to cover everything. I feel like they’re pushing this because I owe so little compared to the value of the house.

6

@Uma
You should consider a 401k loan or a personal loan immediately to cover the balance. Since they’re rejecting partial payments, it’s clear they’re serious about foreclosure. Contact them to request an extension until your loan comes through. Best of luck to you.

7

Look into finding a hard money lender in your area. They typically charge higher interest, but it could help you catch up on your mortgage and avoid foreclosure. Once you’re caught up, consider selling the house or taking on extra work to pay the loan off quickly. This approach helped me when I was facing foreclosure after falling four months behind.

8

Have you checked if you qualify for a loan modification or forbearance? Some lenders allow for up to 12 months of forbearance, though you might have to pay the missed payments in full afterward.