About Michael Brotherton Expertise Consumer/Debtor Rights Advocate.
Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years.
Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com.
FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY.
Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be.
Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems.
www.financialemergency.com (copy and paste in browser).
Experience 30 years experience negotiating disputes and resolving financial issues related to consumer debt, corporate debt, and mortgage restructuriing.
Question First, thank you so much for your consideration of people's problems here. I will definitely recommend! I'm hoping that somewhere, somehow, there will be relief for my problem, because I feel like I'm suffocating from it and my health is suffering.
My FHA mortgaged Florida homesteaded home is in foreclosure. At the time that my ex-husband and I managed to stop proceedings in October last year, we were 2 weeks from auction. We had the house up for sale for almost a year, and it almost went to one of those 'we buy ugly houses' sharks -- except I had two judgments against me and there is a lien on the house. We bought & mortgaged the house for $46,000 in 1998 and had a perfect payment record until the divorce in 2003.
I was homeless working part time in October 2007, when my mortgage company and I entered into a forbearance agreement for $500/mo. With fees and everything over the years the mortgage amount was now $52,000. My ex permitted my dog and me to move back into the house and I made all the payments.
The agreement ended in August and I contacted the mortgage company to find out what was now to be done. I now have a full time job which nets $1,900 / mo. The mortgage company came back to me with a 2-yr agreement to pay $12,000 ($1,011 / mo)and bring my loan current. I explained to them that I had car trouble, vet bills, dental, and other emergencies, and this wld be putting a lot of pressure on me. I asked on two occasions if the agreement could be stretched to 3 years, and put my position in writing. They refused saying simply that this would not be possible.
Since I found no one to advise me for free while I was surviving on potatoes, going to work, I ended up signing the agreement -- since with no savings I could not find another, cheaper alternative for housing. With the utilities and all the other expenses of living (even on potatoes), I cannot make it on my salary, so now at 50+ I am cleaning offices on the side and just squeaking by.
I don't know how long I can keep this up, and since my job is related to equity trading, there is no security. The stress and fatique are becoming debilitating.
I heard there is now money to bail out people in FHA housing distress. Do you have any recommendations for me? What should I do?
Thanks so much again for being here.
Answer Apparently your mortgage company is more concerned with collecting money than fixing theproblem. You have many options with an FHA loan. Modification, forbearance, partial claim, special forbearance. ALl of these can fix your problem, reduce payments and give you a fresh start. This is your right under the FHA loan program. I would not consent to any other forbearance plans. Ask them for a modification. This can reduce interest and bring your account current without increasing your payments. Under the new housing laws signed recently FHA has been given special authority to modify loans. ALthough they have always been able to do this they are under pressure from Washington to fix the foreclosure problem.
Call your lender and ask for the loss mitigation dept. and ask them for a modification. You will need to provide financial documentation and info along with a hardship letter. The process takes about two months and if your home is in foreclosure they should put it on hold at some point in the process.
Fear not. Things arent as bad as they may seem. Be assertive and dont take no for an answer. If the rep at he bank doesnt work with you go to his supervisor or write or call HUD and file a complaint. They will get the point and help with your problem. I have settled many FHA foreclosures and I know their programs well.
Hang in there. DO what you gotta do and you will be fine.
