FHA Insured loan and late payment

[newresolve]

My husband and I have an FHA insured loan. We are 1.5 months behind due to my husband's layoff in August. We can continue to make our monthly payment, but have not been able to make up the amount in arrears. GMAC has offered to enter into a repayment plan where we pay a little more each month until caught up, but at this time we are unable to do that.

 

Our loan is FHA insured, and in looking at various options to bring our loan current, I looked into whether or not we could use the "insurance". Everything I've read says we have to be 4-12 months behind before we can tap into the insurance.

 

I'm curious if GMAC is prohibited from starting any type of foreclosure proceedings until we are at least 4 months behind, due to the loan being FHA insured. In other words, what kind of protection does being FHA insured afford us?

 

Is it possible that GMAC could go ahead and foreclose before the 4 month mark? (and so then why bother paying MIP)?

 

Just thinking ahead. Thanks for any and all info.

[cedski]

My husband and I have an FHA insured loan. We are 1.5 months behind due to my husband's layoff in August. We can continue to make our monthly payment, but have not been able to make up the amount in arrears. GMAC has offered to enter into a repayment plan where we pay a little more each month until caught up, but at this time we are unable to do that. Have you asked them about a modification and capitolizing the arrearage?

 

Our loan is FHA insured, and in looking at various options to bring our loan current, I looked into whether or not we could use the "insurance". Everything I've read says we have to be 4-12 months behind before we can tap into the insurance. The insurance is not for you the consumer.......it is for the lender......the lender forecloses and the throught the FHA insurance fund the lender is made whole....it's not something you as a consumer can file a claim against.

 

I'm curious if GMAC is prohibited from starting any type of foreclosure proceedings until we are at least 4 months behind, due to the loan being FHA insured. In other words, what kind of protection does being FHA insured afford us? None.....you have had the benefit of a lower mortgage insurance premium...that was your benefit.

 

Is it possible that GMAC could go ahead and foreclose before the 4 month mark? (and so then why bother paying MIP)?

 

Just thinking ahead. Thanks for any and all info.

[ametha53120]

My mortgage is also FHA backed. I was 3 months behind when I was put into foreclosure. I thought it was the end of the world but it wasn't really that bad. My loan is through Wells Fargo and they really worked with me to get it all worked out. I was put on a loan mod and just completed it. If you have the abiltiy to keep the house try and work something out with them.

[newresolve]

Thanks for the suggestions. I've requested an appointment with a HUD approved housing counselor. I'm wondering if I should work through the counselor or just try to negotiate something directly with the lender.

 

I had not asked for a loan modification or any other type of work-out, and not surprisingly, they didn't offer. If it is an option, wouldn't they throw that on the table?

 

I feel so naive. When I go on the FHA website, it talks about working with your lender to file for a partial claim that's payable when the loan is paid off or house sold - -yet you have to be 4-12 months behind. Doesn't sound like the lender has any incentive to wait four months though if they can foreclose and get the money from the FHA directly.

[cedski]

Thanks for the suggestions. I've requested an appointment with a HUD approved housing counselor. I'm wondering if I should work through the counselor or just try to negotiate something directly with the lender.

 

I had not asked for a loan modification or any other type of work-out, and not surprisingly, they didn't offer. If it is an option, wouldn't they throw that on the table?

 

I feel so naive. When I go on the FHA website, it talks about working with your lender to file for a partial claim that's payable when the loan is paid off or house sold - -yet you have to be 4-12 months behind. Doesn't sound like the lender has any incentive to wait four months though if they can foreclose and get the money from the FHA directly.

 

The loan modification department is not the same as the servicing center.......you have to call and ask for a loan modification.......some lenders are becoming more proactive....but I would suggest you call and initiate the conversation.

[MortgageInsider]

I would definitely get on the phone and initiate things yourself.

 

The lender really doesn't WANT to foreclose on your loan. It's costly for them and they don't want to have to try and sell a house...it's not what they're in business to do.

 

Get someone on the phone who can help you. Good luck.

[newresolve]

Okay, so I did talk to the loss mitigation department and made a payment which "cancelled" the we-are-going-to-foreclose ticking timebomb at least for another month.

 

I also provided my income and expenses information for them to look at doing a loan modification. They say I should hear something by mid-December.

 

I'm not out of the woods, but if I can continue to at least make my monthly payments, hopefully they'll take mercy and roll any overdue amounts into the back of the loan or something like that.

 

Thanks for the suggestion.

 

Hmm, any advice about whether I should still pursue the appointment with the housing counselor?