Customer notice of default filed on them early November.
House value about $1,200,000
Bought for $500000 thirty years ago
Loan amount in
default $110000 filed October 28, 2022
Options to foreclosure:
Here are a couple strategies:
1. Sell and take the money to pay cash for a home in lower price point and save some of the cash.
cons: she will have capital gains, has to move
2. Refinance with a reverse mortgage and only pay property taxes and insurance
cons: costly, need to know exactly what her social security income is if she can qualify
then do things to increase income (roomate, part time gig work). She is old enough. Unsure
what her income really is... around $2000
3. Get a hard money loan
cons: short term only good for 18 months, VERY expensive, then she needs a
plan how to exit from this which probably is to sell
4. File bankruptcy
cons: good for 18 months, ruins credit, she won't be able to get a loan. Only option to sell when
the bankruptcy is discharged. Stressful.
5. There are shared equity companies which are 10 years BUT she has to qualify
with her social security. They check to see she is maintaining house to their standards.
Eventually she sells and they get paid and take the gains.
Cons: need income to qualify, get less when sold, costs, lack of choice in managing home
6. Get the San Francisco HELP loan which is $50000 LOAN
This does not stop the foreclosure, it is not enough to pay off the exiting
$110000 approximate owed. This program takes 3 months to get approved.
She has to qualify with social security now for $160000 loan. Home counselors
have zero ability to negotiate with the servicer and lender.
cons: not enough time and not enough money in the $50000 loan to fix the
problem
7. Do nothing. Bank sells the house for $500000 to insider on the due date and
she might get nothing. The costs of legal and foreclosure are added daily to the
balance.
cons: stress and homeless
What we need to help her:
Social security award letter (it's pink and black and white and is mailed Feb 1 each year
mortgage bill
contact for fire insurance agent
Then we can help advise if she can qualify for a loan or what to do.
