Sale Date Is Feb 3 - Advice Desperately Sought!!!!
HELP!! Our home is in Forclosure, and the loan servicer is Fairbanks Capital; our original loan was $82,000 in 1999. In 2001 my company shut down all it's offices and I lost a $63,000/yr. job, was out of work for 8 months, and finally found a job at $30k/yr which I worked until I found a better job last year. Needless to say we got behind on mortgage payments, and finally ended up on foreclosure list last year; at that time we received a forebearance agreement from Fairbanks, but it doubled the payment and we ended up not able to keep it up so they foreclosed. The house is scheduled for sale Feb. 3; they are saying the loan is now $101,000. We saw a bankruptcy attorney yesterday and he was quite closed about any advice on what we should do, just directed toward Chapter 13...however, he said that our unsecured debt would be included in the court payments and estimates it along with the mortgage of $889 the court payment will be around $800/month - we couldn't afford the $1487 per month on the forebearance and I can't see how anything can change to make us able to pay even more. Our dream has turned to a nightmare, and I don't want to make it worse...we tried to sell our home last fall and no one bought, it does need new flooring, screens, new blinds, just alot of updates to make it sellable in this market, which we can't afford because of the high payments....what should we do? Any advice would be welcome - we are wanting to sell the home but were hoping to recoup some of our investment, but that's looking more and more insane - I guess my question is which is better to do? Bankruptcy that we probably will not be able to afford or letting the house foreclose and move on with our lives?
What do you estimate the house to be worth as is and after repair?
Considering that we dropped the price to $109k when trying to sell it and it still didn't sell, I'd estimate that the cost of new flooring, blinds & window screens alone would be around $5k to get it into condition to sell; we've already put fresh paint throughout the inside; the outside needs painting but it's got a brick front so another thousand? for the paint outside; the back yard fence needs replaced (is propped up in several places) which would be another grand...more than we have
I am sorry to hear about your situation. At this point, with the short time frame to work with, I would suggest your find another attorney and fast (TODAY). Only an attorney in your area will be able to help with your specific situation.
Best of luck!
Fairbanks Capital Strikes Again!!! They are quite poular in the lending arena. They buy many loans and seem to be quite ruthless when it come to the people they deal with. I was late on 1 payment a few years ago and they ordered an appraisal on the house and then charged me for it...I didn't know they could do that! I see here, they don't play very much!! I guess we all need to be careful!!
As far as we are concerned, they don't play at all! Yes, they have added so many fees & charges to our loan that an $82k loan is now $101k...and of course we've been making our payments, have been late as described before, but not to the tune of $20k...we would be smart to file chap 7 and walk away now, just talked to a very great attorney this morning who is going to help and I feel so much better, I just want away from Fairbanks as fast as I can get away - if anyone ever gets involved with them - don't walk, RUN! Also, they are in the settlement process with HUD & the FTC, evidently agreeing to pay $40 million to the damaged customers of loans they serviced, however I'm sure that none of us will ever see the money, in class action it's the attorneys who win, but I'm glad that they'll have to pay, and who knows, maybe change their ways although so far they haven't.....thanks for the advice!