Would You Qualify?

Facing a Foreclosure? One solution is to negotiate a repayment plan with your mortgage company.

For a mortgage company to accept a repayment program (also known as a forbearance), among other things, you must be able to prove to the bank that you are on the road to recovery. Financially speaking, this means that you need to be saving excess money on a monthly basis after paying all of your expenses.

To calculate whether you are running a deficit or a surplus every month, use the following expense list as a guide:

Rent or home mortgage payment: $- amount

________

Are real estate taxes included' y/n ________

Is property insurance included' y/n ________

Utilities:

Electric ________

Heating fuel ________

Water and sewer ________

Cable television ________

Telephone ________

Internet ________

Home maintenance (repair and upkeep) ________

Food ________

Clothing ________

Laundry and dry cleaning ________

Medical and dental expenses ________

Transportation (not including car payments) ________

Recreation, clubs and entertainment, newspaper, magazines, etc. ________

Charitable contributions ________

Insurance: (separate from wages or home mortgage payments)

Homeowner's or renter's ________

Life ________

Health ________

Auto ________

Other (specify) ________

Taxes (separate from wages or home mortgage payments)

Personal Property Taxes (a) ________

Other Taxes (b)_________________________ ________

Installment payments:

Auto ________

2nd mortgage payment ________

Credit Cards ________

Other ________

Alimony, maintenance, and support paid to others ________

Childcare ________

Regular expenses from operation of business ________

Total Monthly Expenses: ________

A. Total Projected Monthly Income: ________

B. Total Projected Monthly Expenses: ________

C. Excess Income (A minus B) ________

If you are running a deficit every month, you will be better off selling your home prior to the auction date.

If you have determined that you have a surplus at the end of every month, chances are your mortgage company will be interested in working with you. For more details, contact a local foreclosure counselor who can guide you through the negotiating process.

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