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Step 1
Determine if you qualify for a new loan or are eligible to modify the current mortgage loan. If your property in Kansas is nearing foreclosure, this option may not be valid. However, if you experience a change in income and suspect that you will not be able to make full mortgage payments, immediately negotiate a lesser interest rate or smaller monthly payments for the loan you currently have. You want to use this option while your credit worthiness is still high and your financial problems are not severe enough to completely limit your ability to pay a lower mortgage amount.
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Step 2
Explain the depth and severity of your financial hardship and ask for an extension. In most cases, Kansas banks will only allow an extention for payments that are less than 45 days delinquent. This is a preventative measure and should only used if you can recover the deliquent amount and get back on track relatively soon. By law a Kansas mortgage company can foreclose a property after a payment is late by one day. However, most Kansas mortgage companies wait until a homeowner is three to four months past due. Take advantage of the beginning stages of the foreclosure process. Use the time to proactively inquire about assistance programs offered by your lending institution.
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Step 3
Apply for forbearance in Kansas. To qualify for a forbearance in Kansas, the loan must be delinquent for a minimum of four months, but cannot exceed one year. You must also be able to start making payments for the full mortgage amount. You would need to file the forbearance with the bank.
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Step 4
Determine if you are eligible for a partial claim. If you have an FHA loan, you may request a one-time payment from the FHA Insurance Fund. You may qualify for a partial claim if have a strong payment history, can document your financial hardship (and are able to show that you are no longer experiencing that hardship). The mortgage must be at least four months in default and you cannot have a forbearance pending or in effect.
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Step 5
Consider a Deed-in-Lieu. If you use this option, you are essentially giving the house back to the bank. Use this optoin to protect your credit; you will not, however, be able to protect the property or retain ownership of it. You may qualify if you are behind in payments (e.g. a default status) and have run out of other options; you were unable to sell the home; and you have no other property in default.
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Step 6
Resort to your last option. Ask the bank to agree to a short sale of the property. A short sale is when you subtract the total amount owed to a Kansas bank from the estimated sale price of the real estate property. If the short sale is approved, this is the amount that the bank would receive.
Comments
pitsy43 said
on 6/19/2009 If you want help answering a foreclosure summons go to www.summonsreply.com. It gives a template for you to write your answer and also a standard defense that anyone can use. It also provides an example of an answer to a summons written by a certified lawyer, so that you can make sure you've done it right.
You should file an answer even if it is late. I used SummonsReply myself and I highly recommend it to anyone who doesn't have the money to spend thousands on a lawyer. I still recommend getting the advice from a lawyer as to what defenses you should use, but that you can get for free from an initial consultation and the website will explain that too. Once you get the tips from the site, answering your summons is rather easy, and it's pretty ridiculous that lawyers charge so much to do it.
Doing it myself gave me enough time to get a loan modification from my lender without spend...