Q & A: Getting Back on Financial Track

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Due to some financial difficulty we have not been able to pay our mortgage for about 12 months. We recently received a foreclosure notice and we are trying to get back on track - is there anything we can do?
 
That's going to be difficult. You likely owe a lot of back interest which will need to be accounted for somehow. However, it's quite possible the bank may not want to foreclose due to the expense and time that it takes. What you should do is call the bank and talk to the loss mitigation department. Advise them of your situation, but that you would like to stay in the house and would like to discuss options in order to do that. Do not necessarily speak to the first person that picks up the phone as they may not be sympathetic. Look to speak to a supervisor. You may also want to seek the advice of an experienced real estate attorney.

I recently saw a short sale property that I liked very much. I saw it in the paper and then drove by the property. How do I go about getting the correct information about the property? Do I contact a bank, broker?
 
If you saw it in the paper there should be some information there on the property. Aside from that, any local broker would be able to let you know and/or show you the property. You can also look it up on the internet to get information on the listing agent.
 
My parents are in their 80's and own a townhome on Long Island. They want to sell it as they need some cash coming in as they have outlived their funds. I can't have my 88 year old parents moving at their age and I am not in a financial position to help them, or I would. Can they get a reverse mortgage? What do they need to do to qualify?
 
A reverse mortgage is dependent upon age and equity in a property. They should be well qualified for a reverse mortgage but, you need to check on the property. You indicated they live in a townhouse, which is likely considered a condo. Most reverse mortgage products are administered through FHA, which does not work with all condos. Search FHA approved condos on the internet to see if it approved. If it is, you should be in good shape.

When I purchased my first home my husband and I took a 7 year ARM. Now those 7 years are coming to a close - will our lender contact us? Do we contact them? What if we want to go with another lender? Do we have to reapply?
 
Your lender should be contacting you a month or 2 prior to the interest rate adjustment to let you know what the new rate will be. You might want to consider it because the rate may very well be lower. That said, if you go with another lender, it will be considered a re-finance and you must re-apply.
 

Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to: Reporters@WPCnews.com