What should I do??

[needhelp86]

My husband was transferred to TN in 2004. We sold a house in OH on land contract. The buyers backed out in Dec. 2006. I called the mortgage company in OH and asked for reduced interest-only payments. They refused, gave us an offer and made it VERY clear that it was our only option. The offer--reduced payments of $800 for Jan., Feb., & March of 2007, payments of $1940 April, May, June, July, Aug, Sept 2007. (normal payment--$1260). We had no choice so we signed. We put our house on the market in Jan. 2007. It still has not sold. We made the Jan., Feb. & March $800 payments on time. Made the April $1940 on time and tried once again in May to negotiate a lower payment. The mortgage company would not budge. Sent a $1940 payment in May. We have borrowed money from every source possible to make the payments on the OH house. I just cancelled the payment on the $1940 check I sent for June. We just can't do it AND cover our expenses in TN. I just found out, on top of everything else, that the mortgage company has been reporting us on our credit reports as delinquent since Dec. 2006 even though we signed their agreement and up until this month, have kept it!!!

Our plan is to wait until August when our realtor's contract is up and then put our house up for auction. What can we do to hold the bank off until then? Should I make a partial payment and hope they take it? What kind of action can they realistically take in 2 months? Is there a better plan we should consider? We're really desperate and will appreciate ANY help.

 

[seniorjudge]

The only solution to this is money.

The more you give your lender, the happier they will be.

 

[needhelp86]

I already know that! I came to this forum for some expert advice. Can anyone answer my questions in my original post? I really am desperate and I'm seeking some legitimate advice.

 

[seniorjudge]

Q: What can we do to hold the bank off until then?

A: Pay as much money as you can.



Q: Should I make a partial payment and hope they take it?

A: Yes.



Q: What kind of action can they realistically take in 2 months?

A: Foreclose.



Q: Is there a better plan we should consider?

A: No.

 

[shirteesdotnet]

I had a couple of friends who defaulted on their loan payments and the banks swooped in very fast and foreclosed on them.

I think the problem is with the way you sold the house. Did you file any documents of the sale? Did you record the sale of the house in any way? If you didnt, you have nothing and no one to go after. If you felt a problem, you could have easily backed out of the "land contract" first in essence kicking them out unless they could come up with the money.

If you made your payments on time to the loan company they have no reason to report you. You can easily have that fixed my making several calls and straightening all that out. You need proof of your on time payments. If the pseudo owners were paying your loan for you (mistake) and they are the ones that defaulted, I think you could also clear that up with the credit reporting agencies. There is always your district representatives if you have trouble clearing your good name with credit agencies. He/She will be more than happy to fix things as long as everything is on the up and up and you have full proof you made payments on time.

A valuable lesson was learned selling a home as a land contract. Especially if it was to a relative. I wouldnt trust my own brother (and I dont, hes a tricky guy who graduated from Dale Carnegie university).