5 ms·

I stopped paying my mortgage 14 days ago for the first time in my life. I was lucky enough to get a deferral, and I now have the massive triple payment due date

by noad 6y ago

I stopped paying my mortgage 14 days ago for the first time in my life. I was lucky enough to get a deferral, and I now have the massive triple payment due date looming in August with no idea of how to pay it. Best job currently seems to be delivery driver at $16/hr. There is absolutely no way I will avoid homelessness unless things change significantly, and soon. I have an engineering degree from a good school, I played by the rules, I worked hard. Doesn't seem to matter much. The joke around here is that the $1200 check is enough money to buy a really nice shotgun to kill yourself with.

nugget 6y ago
1. Were you laid off recently? If so, are you getting the supplemental $600/week in Federal UI benefits, on top of whatever your State provides? It varies by State but with the Fed supplemental you should be receiving between $835/week (in Mississippi) and $1,423/week (in Massachusetts). If you have kids, the amount may increase further. In most States you will also qualify for free or heavily subsidized health care via the ACA.[1] 2. If your loan is owned by the Feds (as about 90% of private residential mortgages are) then I believe the deferred loan amount is added to the end of your loan via an extension of the amortization schedule. You can also defer payments for up to 12 months. You would not owe a lump sum in August.[2] 3. Even if you quit paying your mortgage and intentionally chose foreclosure as your best option (as many did in 2009-2010), it's unlikely the foreclosure would occur within the next 12 months. [1] https://fileunemployment.org/unemployment-benefits/unemployment-benefits-comparison-by-state/ https://fileunemployment.org/unemployment-benefits/unemploym... [2] https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ https://www.consumerfinance.gov/about-us/blog/guide-coronavi...
- hnrodey 6y ago
  A few weeks ago I looked in to the CARES act provisions for mortgages. tl;dr it's largely dependent on how each lender wants to implement. There are lenders that will go the deferred payments then balloon or seek a loan modification. I'm not 100% sure what a loan modification. Other lenders will simply extend the term of your mortgage by how many payments were missed.
  - nugget 6y ago
    90% of mortgages in the US are owned or insured by Fannie or Freddie. The Federal Government has provided rules that mortgage servicers are required to follow for these loans. I am guessing that the majority of the other 10%/privately owned mortgages are non-conforming jumbo loans, typically in more expensive areas.
    - csharptwdec19 6y ago
      FWIW the rules were a bit murkier until within the last week additional guidelines were released.
      - hnrodey 6y ago
        Any link/source you can share on that?
        gamblor956 6y ago
        https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options https://www.consumerfinance.gov/about-us/blog/guide-coronavi... Despite the wording, approval is not at the discretion of the financial institution. If the loan is federally backed, the financial institution must approve mortgage relief. Moreover, currently they are not even allowed to seek proof of financial distress.
    - hnrodey 6y ago
      I researched this topic several weeks ago and I stand behind my original post. My researched showed that the intent of the CARES Act was for loan term extensions however that's largely been left up to the discretion of each lender. I have a 30 year fixed rate conforming conventional mortgage. This is ver-batim from their COVID-19 assistance page. >Important: The terms of this Forbearance Plan, and any additional Forbearance Plan(s), do not include forgiveness of any amounts. The total amount of payments suspended during a Forbearance Period will become due and payable at the end of the Forbearance Period, and you will be required to either repay the suspended payments in full or make other arrangements for how you will repay the suspended payments, such as qualifying for a loan modification or another assistance option. If your loan is owned by Fannie Mae or Freddie Mac, or if you have an FHA, VA, or USDA loan, your loan is likely subject to the CARES Act. The CARES Act allows for a forbearance of up to 180 days upon request, with an extension of up to an additional 180 days if your hardship is ongoing. The initial Forbearance Plan suspends payments for three months. If your financial hardship remains at the end of this Forbearance Plan and you are unable to resume your normal monthly payments, contact XXX for assistance. You may request additional Forbearance Plan(s) in three-month increments, up to a total of twelve months from the starting date of this Forbearance Plan, or seek another assistance option. Even if your loan is not covered by the CARES Act, if you have a hardship you may contact us to request assistance. Please call xxx for further assistance.
satisfaction 6y ago
How much did you save for a rainy day, did you have 6 months of expenses put away prior to financing cars, going on vacation, buying technology, stopping at starbucks, eating out?
- toomuchtodo 6y ago
  Show some empathy. EDIT: If it's sarcasm, it's in poor taste.
- sp332 6y ago
  I think this is supposed to be a joke ("buying technology"?) but I downvoted it because it doesn't contribute anything.
- antishatter 6y ago
  If you consider the purpose of emergency savings, the overwhelming majority of folks (even savers) weren't planning for an entire global economic collapse.
  - DamnYuppie 6y ago
    I don't understand this comment, the purpose of emergency savings is for an unknown emergency. I think a pandemic would meet that criteria.
    - Izkata 6y ago
      Economic collapse, not pandemic. The idea behind typical emergency savings is for personal emergencies where stores/etc would still be business as usual, which isn't the case now.
      - mghfreud 6y ago
        How does that make any difference? In both cases, you loose your job, you live of your emergency savings for 6-12 month (hoping things are resolved in 6-12 months, but I do not think things will be back to normal in 6-12 months in this specific case). Isn't this what the emergency fund is for?
mannanj 6y ago
From this response it seems like one big problem for most people is a lack of clarity around and education for what options are really available to us. I consider myself pretty educated and even I can't figure out that the mortgage loan may be deferrable or extended to end. It was refinanced before, but is it federally owned? Can it be extended after the 3-months or is it all due at once? IDK. Where do I go to find out? Is it an online forum like this one, and if so, why is it that hard? Most people wont have that luxury.
- engineer_22 6y ago
  Talk to your mortgage servicer. They have a vested interest in keeping you in your home. Foreclosure is an expensive and time consuming option for the lender.
  - mannanj 6y ago
    The difficulties I have with this are everyone says to do that, but the provider does not accept calls. Every single time i've tried to call, they leave us waiting with the typical "we're busy with calls" but sends us to thew website (which doesn't let us have that conversation). After about an hour or two the call hangs up saying we will be called back. Never do get that call back. I've repeated these results many times. I figure that reality versus the "theory" is that everyone is calling for this option right now, and if the mortgage companies could work on delaying payments for everyone they would be out of business eventually. Some people probably can't be helped, some can. I feel like it's more akin to a lottery.
    - salawat 6y ago
      The term is statistical multiplexing I believe, and our society has been pretty much predicated on it for my entire lifespan.
- billme 6y ago
  Simple Google searches turn up a massive amount of useful information. It’s complex topic and no single answer is going to be right for everyone. Start research now, don’t wait, if you think you might have issues, contact your lender as soon as possible. Related terms: - Mortgage forbearance - Credit report - mortgage relief options - proof of hardship - borrower assistance
engineer_22 6y ago
My parents went through a bankruptcy when I was a boy, they lost everything. All the assets of the business they owned were auctioned by the bank right from the property we lived on. We were thrown out of our house in the middle of a cold March. I remember a lot of what happened and what that felt like. Even as a child it was no fun. Mom says just focus on making it through one day at a time, it's gunna be a bumpy ride, just hang on. Things will happen that make you uncomfortable. Then you'll get to a "new normal", and you can start to rebuild from there. For practical money advice during a crisis seek out Dave Ramsey. He's gotten a lot of people through this type of thing and went through it himself. Good luck. Don't buy a shotgun.
- wonderwonder 6y ago
  I went through a personal bankruptcy when I was younger (Ch. 7 due to 2008 collapse), it was no big deal. Paid the attorney, had all of my debt wiped out and re-assumed the mortgage and car payment. I did not have a business so different experience than your parent. If you have few assets and very limited income a BK can be a good option. Don't get me wrong, it was not something I felt good about but sometimes you absolutely need a reset and it does not make sense to suffer financially for decades when a viable solution presents itself. From a purely logical perspective it can often make sense.
  - toomuchtodo 6y ago
    For those who need and heed this advice, there is a YC backed 501c3 nonprofit called Upsolve who will help you through your bankruptcy filing. Please do not fear bankruptcy if you need this type of economic relief. https://upsolve.org/ https://upsolve.org/ https://news.ycombinator.com/item?id=18980861 https://news.ycombinator.com/item?id=18980861
  - schoolornot 6y ago
    > it was no big deal. Paid the attorney, had all of my debt wiped out Right here is the problem with the US. Why should all your creditors need to pound sand for your financial mismanagement? I'm okay with deferred payments, restructuring, and other types of payment plans but why do we allow people to wipe their slates clean? It's legalized theft.
k3oni 6y ago
I'm sorry to hear about this man. Please check into your forbearance payment options as there might be more to it then you expect and you might have other options on the table, see [1]. [1] - https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ https://www.consumerfinance.gov/about-us/blog/guide-coronavi...
iancmceachern 6y ago
What kind of engineer are you? Email me (address in profile) and I'll see what I can do. Edit - thanks for the comments, updated the about field in my profile with my email.
- fermienrico 6y ago
  I think you forgot to put the email address on your profile.
  - deleted 6y ago
    [deleted]
- sp332 6y ago
  Only mods can see the email field. If you want other people to see it, add it to the "about" field as well.
antishatter 6y ago
You can borrow from your 401k for 3 years without penalty right now FYI, hoping for the best for you. Stay Strong, do what you can, it's not your fault.
antishatter 6y ago
They are going to have to pass a bill to push the arrearance payments off. With a little luck you may be ok.
segmondy 6y ago
You can have them tack all payments at the end of your loan. Find out if your mortgage is backed by Fannie Mae & Freddie Mac, if so, you should easily get this. You can even possibly get deferral for up to a year.
rb808 6y ago
It depends on which state you are in, but if you have a non-recourse loan and bought the house with a small deposit which you can lose, it might be a good strategy just to stop paying the mortgage until you get repossessed. In many states it takes a long time even when things are normal. In 2008 many people got to live in their house for years without paying. You'll screw up your credit and probably lose your equity but might be worth it. Do some research.
- woofyman 6y ago
  If the bank sells the house for less than the mortgage, the IRS will consider the difference income.
  - gamblor956 6y ago
    Known as "cancellation of indebtedness income." https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation https://www.irs.gov/newsroom/home-foreclosure-and-debt-cance... Foreclosure of non-recourse loans does not trigger cancellation of indebtedness income. Instead, it could trigger capital gains.
_curious_ 6y ago
Stay positive, it's only a phase and you will come out stronger on the other end...bonus is that you'll know what it's like to truly be alive :)
nostrademons 6y ago
Just stay in your house without paying the mortgage. The court system is going to be completely overloaded once it opens back up again, so it's unlikely that they'll be able push a foreclosure through anytime soon, let alone an eviction. It'll probably be at least a year before they can push the paperwork through to actually take possession of the property, and by that time there's a good chance the issuing bank will be bankrupt. We're rapidly entering an era where possession is 9/10ths of the law. Hold onto physical possession, because you can't count on the law still being there. (On second thought, as someone looking to buy a house in the near future - please do vacate the property, and leave it in good condition, so it can be sold for cheap in a foreclosure auction and I can buy it. </haha-only-serious>)
Anon4Now 6y ago
The good news is that banks really do not want to foreclose on delinquent loans. It's a long legal process, and it's a money loser for them. I can't guarantee jack squat, but most likely the bank would be willing to work with you to keep the home. If you can make even small partial payments, that will work well in your favor.
rukittenme 6y ago
> Best job currently seems to be delivery driver at $16/hr. There is absolutely no way I will avoid homelessness unless things change significantly, and soon. Take the delivery job and rent an apartment when the bank forecloses. You won't be homeless. $16/hr is good money. --- Judging by the tenor of the responses you've received already this comment will not get a lot of positive attention. But here goes... You should have six months expenses saved. Period. You own a home and "have an engineering degree from a good school". Saving is both an intentional act and a privilege. It sounds to me you had the privilege (you have a house and a good degree) but lacked the intention. I say this as a person who has not always had the privilege of saving money. And who knows how fragile life feels when you are on the edge.
polskno288 6y ago
Hey everyone, this guy worked hard too, thinking that meant something while headlines like “inequality is up, so are profits!” were the norm for the last 30 years! I cannot feel very bad for Americans who at scale preferred a society that ignored the distress of their neighbors and communities all these years “Please may I have another opportunity today, father?” It’s not that hard: Take control of the political narrative from elites. Varoufakis revealed there’s nothing but made up political equivocation behind their decisions Physics has yet to define the causative mechanism aside from violence that has economically lifted aristocrats, despite all the hullabaloo about them being intertwined Switch off the computers and say no more until they they capitulate We don’t have to honor arrangements negotiated in bad faith Greenspan testified to Congress in 1997 part of their philosophy was fostering economic anxiety in workers to keep them in the same job Steve Jobs worked with other companies to depress wages It’s all over government record, obfuscated by jargon and noise But grandma or something might be disappointed I guess. No more Apple phones, Johnny! Enjoy homelessness then
diob 6y ago
I hope this pandemic forces more folks to realize that it's possible to do everything right and still need help or a safety net. Who am I kidding though. . . Folks will continue to think that anyone down on their luck deserves it. I'm a damn hard worker, and I've saved a shit ton of money, but don't think I fool myself into knowing that's enough. If I got cancer tomorrow, it'd all be a big fucking waste.
- copperx 6y ago
  I don't follow you last sentence. Why would it be a waste?
  - diob 6y ago
    I would be utterly drained financially. Most bankruptcy in the USA is due to healthcare. So after diligently saving / working hard / "doing things right" I'd end up in the same situation as someone who lives paycheck to paycheck. My family and I would very likely lose all our assets / financial security in the long run. That to me would be one hell of a waste. It's why I'm a huge believer in social safety nets / programs. They help everyone. You may be lucky today, but believe me, most people hit snake eyes eventually. If not you, a loved one will.
- fred_is_fred 6y ago
  The best safety net is the one you weave yourself in the form of 3-6 months of savings. I know this is difficult to do but it is not impossible - it does require sacrificing some things. I drive an 11 year old car for example. I am hopeful that between unemployment I can stretch my 4 months savings to 6 or 8 before having to tap my 401k.
  - diob 6y ago
    I don't think you read my comment closely. I have almost 4 years of savings right now that I could depend if I wanted to (hell, I could pay off my house if I wanted to, but I know it's better to keep this money in case I need it for an "emergency"). My point was that it doesn't end up making as big a difference as the "personal responsibility" folks like to claim. Don't fall into the trap of thinking you're an island, or that you're to blame if things go utterly sideways. It's possible to do everything "right" and still need help from society at some point. If I got cancer tomorrow (and the odds of cancer eventually are damn high), I could almost guarantee you that I'd be declaring bankruptcy in the long term. I would lose everything. To be honest, it upsets me that you're falling into the trap of thinking fiscal responsibility is the end all be all, even after witnessing this pandemic destroy hard working folks like yourself. Yes, people need to save for things. But folks shouldn't be bankrupted or ruined by uncontrollable forces, that's what societal safety nets are for. It's not one or the other (fiscal responsibility or societal safety nets), we can do both!
downerending 6y ago
Sympathies, can relate. If you're not married, you might do what I did, which was to convince a poor single mom to take me in. Worked out surprisingly well for us. Beyond that, if that shotgun ever starts looking too good, drinking worked for me. Yeah, not great long-term, but definitely helped me "flatten the curve". Godspeed.

by noad 6y ago

nugget 6y ago

1. Were you laid off recently? If so, are you getting the supplemental $600/week in Federal UI benefits, on top of whatever your State provides? It varies by State but with the Fed supplemental you should be receiving between $835/week (in Mississippi) and $1,423/week (in Massachusetts). If you have kids, the amount may increase further. In most States you will also qualify for free or heavily subsidized health care via the ACA.[1] 2. If your loan is owned by the Feds (as about 90% of private residential mortgages are) then I believe the deferred loan amount is added to the end of your loan via an extension of the amortization schedule. You can also defer payments for up to 12 months. You would not owe a lump sum in August.[2] 3. Even if you quit paying your mortgage and intentionally chose foreclosure as your best option (as many did in 2009-2010), it's unlikely the foreclosure would occur within the next 12 months. [1] https://fileunemployment.org/unemployment-benefits/unemployment-benefits-comparison-by-state/ https://fileunemployment.org/unemployment-benefits/unemploym... [2] https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ https://www.consumerfinance.gov/about-us/blog/guide-coronavi...

hnrodey 6y ago
A few weeks ago I looked in to the CARES act provisions for mortgages. tl;dr it's largely dependent on how each lender wants to implement. There are lenders that will go the deferred payments then balloon or seek a loan modification. I'm not 100% sure what a loan modification. Other lenders will simply extend the term of your mortgage by how many payments were missed.
- nugget 6y ago
  90% of mortgages in the US are owned or insured by Fannie or Freddie. The Federal Government has provided rules that mortgage servicers are required to follow for these loans. I am guessing that the majority of the other 10%/privately owned mortgages are non-conforming jumbo loans, typically in more expensive areas.
  - csharptwdec19 6y ago
    FWIW the rules were a bit murkier until within the last week additional guidelines were released.
    - hnrodey 6y ago
      Any link/source you can share on that?
      - gamblor956 6y ago
        https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options https://www.consumerfinance.gov/about-us/blog/guide-coronavi... Despite the wording, approval is not at the discretion of the financial institution. If the loan is federally backed, the financial institution must approve mortgage relief. Moreover, currently they are not even allowed to seek proof of financial distress.
  - hnrodey 6y ago
    I researched this topic several weeks ago and I stand behind my original post. My researched showed that the intent of the CARES Act was for loan term extensions however that's largely been left up to the discretion of each lender. I have a 30 year fixed rate conforming conventional mortgage. This is ver-batim from their COVID-19 assistance page. >Important: The terms of this Forbearance Plan, and any additional Forbearance Plan(s), do not include forgiveness of any amounts. The total amount of payments suspended during a Forbearance Period will become due and payable at the end of the Forbearance Period, and you will be required to either repay the suspended payments in full or make other arrangements for how you will repay the suspended payments, such as qualifying for a loan modification or another assistance option. If your loan is owned by Fannie Mae or Freddie Mac, or if you have an FHA, VA, or USDA loan, your loan is likely subject to the CARES Act. The CARES Act allows for a forbearance of up to 180 days upon request, with an extension of up to an additional 180 days if your hardship is ongoing. The initial Forbearance Plan suspends payments for three months. If your financial hardship remains at the end of this Forbearance Plan and you are unable to resume your normal monthly payments, contact XXX for assistance. You may request additional Forbearance Plan(s) in three-month increments, up to a total of twelve months from the starting date of this Forbearance Plan, or seek another assistance option. Even if your loan is not covered by the CARES Act, if you have a hardship you may contact us to request assistance. Please call xxx for further assistance.

satisfaction 6y ago

How much did you save for a rainy day, did you have 6 months of expenses put away prior to financing cars, going on vacation, buying technology, stopping at starbucks, eating out?

toomuchtodo 6y ago
Show some empathy. EDIT: If it's sarcasm, it's in poor taste.
sp332 6y ago
I think this is supposed to be a joke ("buying technology"?) but I downvoted it because it doesn't contribute anything.
antishatter 6y ago
If you consider the purpose of emergency savings, the overwhelming majority of folks (even savers) weren't planning for an entire global economic collapse.
- DamnYuppie 6y ago
  I don't understand this comment, the purpose of emergency savings is for an unknown emergency. I think a pandemic would meet that criteria.
  - Izkata 6y ago
    Economic collapse, not pandemic. The idea behind typical emergency savings is for personal emergencies where stores/etc would still be business as usual, which isn't the case now.
    - mghfreud 6y ago
      How does that make any difference? In both cases, you loose your job, you live of your emergency savings for 6-12 month (hoping things are resolved in 6-12 months, but I do not think things will be back to normal in 6-12 months in this specific case). Isn't this what the emergency fund is for?

mannanj 6y ago

From this response it seems like one big problem for most people is a lack of clarity around and education for what options are really available to us. I consider myself pretty educated and even I can't figure out that the mortgage loan may be deferrable or extended to end. It was refinanced before, but is it federally owned? Can it be extended after the 3-months or is it all due at once? IDK. Where do I go to find out? Is it an online forum like this one, and if so, why is it that hard? Most people wont have that luxury.

engineer_22 6y ago
Talk to your mortgage servicer. They have a vested interest in keeping you in your home. Foreclosure is an expensive and time consuming option for the lender.
- mannanj 6y ago
  The difficulties I have with this are everyone says to do that, but the provider does not accept calls. Every single time i've tried to call, they leave us waiting with the typical "we're busy with calls" but sends us to thew website (which doesn't let us have that conversation). After about an hour or two the call hangs up saying we will be called back. Never do get that call back. I've repeated these results many times. I figure that reality versus the "theory" is that everyone is calling for this option right now, and if the mortgage companies could work on delaying payments for everyone they would be out of business eventually. Some people probably can't be helped, some can. I feel like it's more akin to a lottery.
  - salawat 6y ago
    The term is statistical multiplexing I believe, and our society has been pretty much predicated on it for my entire lifespan.
billme 6y ago
Simple Google searches turn up a massive amount of useful information. It’s complex topic and no single answer is going to be right for everyone. Start research now, don’t wait, if you think you might have issues, contact your lender as soon as possible. Related terms: - Mortgage forbearance - Credit report - mortgage relief options - proof of hardship - borrower assistance

engineer_22 6y ago

My parents went through a bankruptcy when I was a boy, they lost everything. All the assets of the business they owned were auctioned by the bank right from the property we lived on. We were thrown out of our house in the middle of a cold March. I remember a lot of what happened and what that felt like. Even as a child it was no fun. Mom says just focus on making it through one day at a time, it's gunna be a bumpy ride, just hang on. Things will happen that make you uncomfortable. Then you'll get to a "new normal", and you can start to rebuild from there. For practical money advice during a crisis seek out Dave Ramsey. He's gotten a lot of people through this type of thing and went through it himself. Good luck. Don't buy a shotgun.

wonderwonder 6y ago
I went through a personal bankruptcy when I was younger (Ch. 7 due to 2008 collapse), it was no big deal. Paid the attorney, had all of my debt wiped out and re-assumed the mortgage and car payment. I did not have a business so different experience than your parent. If you have few assets and very limited income a BK can be a good option. Don't get me wrong, it was not something I felt good about but sometimes you absolutely need a reset and it does not make sense to suffer financially for decades when a viable solution presents itself. From a purely logical perspective it can often make sense.
- toomuchtodo 6y ago
  For those who need and heed this advice, there is a YC backed 501c3 nonprofit called Upsolve who will help you through your bankruptcy filing. Please do not fear bankruptcy if you need this type of economic relief. https://upsolve.org/ https://upsolve.org/ https://news.ycombinator.com/item?id=18980861 https://news.ycombinator.com/item?id=18980861
- schoolornot 6y ago
  > it was no big deal. Paid the attorney, had all of my debt wiped out Right here is the problem with the US. Why should all your creditors need to pound sand for your financial mismanagement? I'm okay with deferred payments, restructuring, and other types of payment plans but why do we allow people to wipe their slates clean? It's legalized theft.

k3oni 6y ago

I'm sorry to hear about this man. Please check into your forbearance payment options as there might be more to it then you expect and you might have other options on the table, see [1]. [1] - https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ https://www.consumerfinance.gov/about-us/blog/guide-coronavi...

iancmceachern 6y ago

What kind of engineer are you? Email me (address in profile) and I'll see what I can do. Edit - thanks for the comments, updated the about field in my profile with my email.

fermienrico 6y ago
I think you forgot to put the email address on your profile.
- deleted 6y ago
  [deleted]
sp332 6y ago
Only mods can see the email field. If you want other people to see it, add it to the "about" field as well.

antishatter 6y ago

You can borrow from your 401k for 3 years without penalty right now FYI, hoping for the best for you. Stay Strong, do what you can, it's not your fault.

antishatter 6y ago

They are going to have to pass a bill to push the arrearance payments off. With a little luck you may be ok.

segmondy 6y ago

You can have them tack all payments at the end of your loan. Find out if your mortgage is backed by Fannie Mae & Freddie Mac, if so, you should easily get this. You can even possibly get deferral for up to a year.

rb808 6y ago

It depends on which state you are in, but if you have a non-recourse loan and bought the house with a small deposit which you can lose, it might be a good strategy just to stop paying the mortgage until you get repossessed. In many states it takes a long time even when things are normal. In 2008 many people got to live in their house for years without paying. You'll screw up your credit and probably lose your equity but might be worth it. Do some research.

woofyman 6y ago
If the bank sells the house for less than the mortgage, the IRS will consider the difference income.
- gamblor956 6y ago
  Known as "cancellation of indebtedness income." https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation https://www.irs.gov/newsroom/home-foreclosure-and-debt-cance... Foreclosure of non-recourse loans does not trigger cancellation of indebtedness income. Instead, it could trigger capital gains.

_curious_ 6y ago

Stay positive, it's only a phase and you will come out stronger on the other end...bonus is that you'll know what it's like to truly be alive :)

nostrademons 6y ago

Just stay in your house without paying the mortgage. The court system is going to be completely overloaded once it opens back up again, so it's unlikely that they'll be able push a foreclosure through anytime soon, let alone an eviction. It'll probably be at least a year before they can push the paperwork through to actually take possession of the property, and by that time there's a good chance the issuing bank will be bankrupt. We're rapidly entering an era where possession is 9/10ths of the law. Hold onto physical possession, because you can't count on the law still being there. (On second thought, as someone looking to buy a house in the near future - please do vacate the property, and leave it in good condition, so it can be sold for cheap in a foreclosure auction and I can buy it. </haha-only-serious>)

Anon4Now 6y ago

The good news is that banks really do not want to foreclose on delinquent loans. It's a long legal process, and it's a money loser for them. I can't guarantee jack squat, but most likely the bank would be willing to work with you to keep the home. If you can make even small partial payments, that will work well in your favor.

rukittenme 6y ago

> Best job currently seems to be delivery driver at $16/hr. There is absolutely no way I will avoid homelessness unless things change significantly, and soon. Take the delivery job and rent an apartment when the bank forecloses. You won't be homeless. $16/hr is good money. --- Judging by the tenor of the responses you've received already this comment will not get a lot of positive attention. But here goes... You should have six months expenses saved. Period. You own a home and "have an engineering degree from a good school". Saving is both an intentional act and a privilege. It sounds to me you had the privilege (you have a house and a good degree) but lacked the intention. I say this as a person who has not always had the privilege of saving money. And who knows how fragile life feels when you are on the edge.

polskno288 6y ago

Hey everyone, this guy worked hard too, thinking that meant something while headlines like “inequality is up, so are profits!” were the norm for the last 30 years! I cannot feel very bad for Americans who at scale preferred a society that ignored the distress of their neighbors and communities all these years “Please may I have another opportunity today, father?” It’s not that hard: Take control of the political narrative from elites. Varoufakis revealed there’s nothing but made up political equivocation behind their decisions Physics has yet to define the causative mechanism aside from violence that has economically lifted aristocrats, despite all the hullabaloo about them being intertwined Switch off the computers and say no more until they they capitulate We don’t have to honor arrangements negotiated in bad faith Greenspan testified to Congress in 1997 part of their philosophy was fostering economic anxiety in workers to keep them in the same job Steve Jobs worked with other companies to depress wages It’s all over government record, obfuscated by jargon and noise But grandma or something might be disappointed I guess. No more Apple phones, Johnny! Enjoy homelessness then

diob 6y ago

I hope this pandemic forces more folks to realize that it's possible to do everything right and still need help or a safety net. Who am I kidding though. . . Folks will continue to think that anyone down on their luck deserves it. I'm a damn hard worker, and I've saved a shit ton of money, but don't think I fool myself into knowing that's enough. If I got cancer tomorrow, it'd all be a big fucking waste.

copperx 6y ago
I don't follow you last sentence. Why would it be a waste?
- diob 6y ago
  I would be utterly drained financially. Most bankruptcy in the USA is due to healthcare. So after diligently saving / working hard / "doing things right" I'd end up in the same situation as someone who lives paycheck to paycheck. My family and I would very likely lose all our assets / financial security in the long run. That to me would be one hell of a waste. It's why I'm a huge believer in social safety nets / programs. They help everyone. You may be lucky today, but believe me, most people hit snake eyes eventually. If not you, a loved one will.
fred_is_fred 6y ago
The best safety net is the one you weave yourself in the form of 3-6 months of savings. I know this is difficult to do but it is not impossible - it does require sacrificing some things. I drive an 11 year old car for example. I am hopeful that between unemployment I can stretch my 4 months savings to 6 or 8 before having to tap my 401k.
- diob 6y ago
  I don't think you read my comment closely. I have almost 4 years of savings right now that I could depend if I wanted to (hell, I could pay off my house if I wanted to, but I know it's better to keep this money in case I need it for an "emergency"). My point was that it doesn't end up making as big a difference as the "personal responsibility" folks like to claim. Don't fall into the trap of thinking you're an island, or that you're to blame if things go utterly sideways. It's possible to do everything "right" and still need help from society at some point. If I got cancer tomorrow (and the odds of cancer eventually are damn high), I could almost guarantee you that I'd be declaring bankruptcy in the long term. I would lose everything. To be honest, it upsets me that you're falling into the trap of thinking fiscal responsibility is the end all be all, even after witnessing this pandemic destroy hard working folks like yourself. Yes, people need to save for things. But folks shouldn't be bankrupted or ruined by uncontrollable forces, that's what societal safety nets are for. It's not one or the other (fiscal responsibility or societal safety nets), we can do both!

downerending 6y ago

Sympathies, can relate. If you're not married, you might do what I did, which was to convince a poor single mom to take me in. Worked out surprisingly well for us. Beyond that, if that shotgun ever starts looking too good, drinking worked for me. Yeah, not great long-term, but definitely helped me "flatten the curve". Godspeed.