YOU ASKED, WE ANSWERED: Your Mortgage Questions

Feb. 8, 2008— -- Last week, "World News with Charles Gibson" invited viewers to submit their questions about mortgages. We read all your submissions and picked the most frequently asked questions for an expert to answer.

We sent those questions to a participating member of HOPE NOW, an alliance of mortgage counselors, servicers, investors, and other market participants. The organization reaches out to homeowners in danger of foreclosure, to provide a unified and coordinated response to help them stay in their homes.

Floyd Robinson answered your questions below. He is president of Consumer Real Estate and Insurance Services Group for Bank of America, a founding member of HOPE NOW.

Bank of America does not originate nor service subprime loans and has one of the lowest foreclosure rates in the nation. As one of the founding members of the HOPE NOW alliance, Bank of America supports efforts to provide awareness of options for homeowners who may be facing foreclosure.

Question: "I have been living in my home for just over 6 years. I am almost 60 years old, and over the last two years, I have had to have both knees replaced and an eye removed. I try very hard to pay everything but for some reason the money does not stretch far enough. My home is in foreclosure right now and I was wondering what to do. I keep getting these things in the mail telling me they will save my home. I guess I would like to know if there is an agency out there to help or should I just give it up and live in my car. Please if you anyway to help me I sure would be in your dept forever. God bless you and thank your for taking the time to read this."

Carol in New York

Floyd Robinson: The first thing you should do is attempt to communicate with your servicer. The servicer is a lender or company that is responsible for handling your loan payments.They also pursue foreclosures when a borrower stops making their payments. Because of the time and expense of foreclosing, while there are not promises, they may be willing to work with you on a repayment plan, or loan modification. Some foreclosure prevention solicitors attempt to assist borrowers and work with lenders. Sadly, many others do not, and there are many news reports of unscrupulous solicitors who are targeting borrowers with various schemes. We advise you to only discuss information with your mortgage servicer or a reputable mortgage counselor. For information on approved mortgage counselors, or to do discuss your specific mortgage situation with an approved counselor, you can contact HOPE NOW hotline at 1.888.995.HOPE.

Question: "I am a 32 year old single mother of two boys, 4 and 5 years of age. In my 2005 divorce settlement, I got the title to our 5 bedroom home in New Boston, NH which was purchased in 2001 for $199,00.00. The current outstanding debt is $260,000.00, $30,000.00 of which is a home equity loan. I put the house on the market in April of 2007 for $295,000.00 at my realtor's suggestion. With the co-signatures of my parents, I was able to purchase in August of 2007 another home in Manchester, NH where I am a 2nd grade teacher. The house in New Boston has not sold and I am facing forclosure or an extremely short sale to an "investor". In October I accepted an offer of $255,000.00 which, because it was a short sale required the approval of my mortgage company. I did not hear from the mortgage company in a timely manner and the buyers backed out. The property was in mint condition and unfortunately this past week my propane heating system did not turn on and the pipes froze and burst. There is significant water damage to the house. My insurance company is not sure that I will be covered, although I have kept the house up. I am at a loss as to what to do and heard about your "kitchen table" segment and offer of help/advice. What is best for me — a short sale (in the $200,000.00 range or less) or foreclosure? Should I get an attorney? Should I sell "as is" or try to get reimbursement from the insurance company and do the repairs? My contract with my real estate agent has run out. Thank you in advance for any help you can give me. I truly am at a loss."

Elisabeth in New Hampshire