M813 wrote: ↑Thu Apr 23, 2020 6:18 amConsider that during the Great Recession, it took nearly a year to evict many mortgage holders once they entered foreclosure.Jake832 wrote: ↑Wed Apr 22, 2020 4:08 pm<snip>
Note: if anyone is really in a pinch, and you have a mortgage or car payment, call the bank, you can do a "deferment forbearance" or something similar due to covid caused financial distress... basically skip payment and add it to the end of the loan. Think they have to give you 90 days if you need it.
May free up cash if anyone is having a tough time.
The economic fallout of the pandemic will be far worse.
If the worst should befall you, homelessness is not imminent, you'll have time to plan and come up with alternatives.
- pay your mortgage until you can't
- call the bank and ask for forbearance or an extension
- once forbearance runs out, the clock starts ticking and paperwork starts getting processed. 30, 60, 90 day notices. Then you'll enter collections. Then you enter foreclosure. You'll get all sorts of nasty phone calls and letters in the mail but the process is usually pretty slow, especially during times of national hardship.
Don't panic, just accept that your life is going to change and make an exit plan. Figure out if you can afford storage for your belongings. Sell stuff that doesn't have sentimental value or doesn't fulfill an immediate need. Talk to family to see if anyone can take you in. Hold aside some cash for a small, older RV that you can live in if staying with family isn't an option.
For those of you with wives and children, the sooner you warn them that major change will be happening and explain what the plan is, and what sacrifices they'll be required to make, the less jarring it will be and they'll cope with it better.
People who lost everything during the Great Recession and filed for bankruptcy, often cleaned up their credit scores within 4 years and bought homes again once they found steady employment. Foreclosure and bankruptcy are serious, but they're not death sentences.
Excellent advice!
The only thing I would suggest is to reverse the order of these 2 items...
- pay your mortgage until you can't
- call the bank and ask for forbearance or an extension
Call and ask for any sort of loan modification or forbearance at the first sign of not being able to make the payment. The lender may simply offer a loan payment extension (which means in 30,60,90 days or whatever you may have pay in full all missed payments but...) it buys some time to deal with the issue. It also extends the above mentioned time line for foreclosure.
In other instances the lender may be able to add back the missed payments by extending the loan or changing the monthly payment. You never know until you ask and try to get a modification.
In the Great Recession I am aware of people who lived in their home legally for 2 years without making any kind of payment other than to the power company to keep the lights working. I do not recommend that approach; but I do recommend doing whatever you can legally to keep a roof over your head.
Also 1 real issue to be aware of .... debt that is forgiven/waived is considered taxable income to the entity forgiven.
My 24 year old civic is a tough little tank. It earned the name Lil' Truck! 
The only thing not stock on it is the trailer hitch. Even the radio is original. It only has 240k miles on it.
