Foreclosure Happens, But There Are Solutions

re: Foreclosure Happens, But There Are Solutions

Christina Fowler — Wed, 22 Apr 2009 03:54:56 GMT

Hello. We live in the state of kansas and had built our home through a government funded program in 2006. 3 months after moving in we discovered we had mold growing in our brand new home. We went to the builder and usda rural developement and neither party wanted to help fix the situation. We decided to quit making our house pmt. in march 2007. Since they have just now a week ago (2 yrs later) served us with papers for a judgement. We are in the process already of filing bankruptcy though. I was wondering are there any statue of limitations on their behalf of a timeline of them having to file?

RE:Foreclosure Happens, But There Are Solutions

melissa — Thu, 14 Aug 2008 11:00:00 GMT

Just wanted to post what I hope will be helpful information. I am by no means an expert, but have experience in real estate that might not be common knowledge... If you are just realizing that you cannot afford your home, you do have options ( I know very little about the redemption laws/process once foreclosure is iminent). First of all, unless there is significant equity in the proprty, the bank DOES NOT WANT YOUR HOME - they want their money. The banks almost always incur significant losses when foreclosing on a home, so it is in their best interest to help you stay in it (if there is significant equity, contact your lender for a forbearance agreement and get it sold!!!). If no repayment, restructuring, etc can be worked out with the lender or if you just need to sell and can't get out of it for what you owe, consider a "short sale". In order to avoid taking over the house through foreclosure, a lender will almost always agree to you selling the house for less than what is owed. This process is arduous and it WILL negatively impact your credit, but not as much as a foreclosure and other than the possibility of having a tax liability for the loss that the bank agrees to take, you're off the hook. Along with the sale, the bank will give you something (I don't know the formal name of it) that says they are forgiving the rest of the loan. This can work with both a first and second mortgage. If you go to foreclosure, the second knows that it will likely get nothing, so they will usually settle for anywhere from $1000-$3000. If you get someone on the phone who says otherwise, hang up and call back again until you get someone knowledgeable. There are several options available to you !!! But you need to be proactive. Don't wait until the 11th hour and get caught scrambling. The best thing to do when you become aware that you cannot afford your payments is to contact the bank. Keep in mind that if you are in any way behind on your payments, when you call the mortgage company and give them your account number (or call the number on your current statement), they will automatically transfer you to the collections department. THAT IS NOT GOING TO HELP. DO NOT RELY ON THEIR INFORMATION!! Their function is to get the money that is owed and they may not be forthcoming about (or even know about) alternatives. You need to speak to the loss mitigation department. Find an old statement from when your loan was current to get the customer service number. Once you call, do not put in your account number or you'll end up back in the collections dept. Once you get a CSR on the phone, ask for the phone number for their loss mitigation and the person answering SHOULD be your best bet for getting help. Again, if not, hang up and call to speak to someone else. Most loss mit depts are overwhelmed right now and you might not get as quick a response as you'd like, but keep at it and the stats say that you are likely (80%) to be able to save your home from foreclosure. Good luck all!!

RE:Foreclosure Happens, But There Are Solutions

anonymous — Wed, 06 Aug 2008 11:00:00 GMT

we bought an investment home in california and we can no longer make the payments what happens if we let it go, what happens to our excellent credit and can they go after everything we own such as homes that are still in finance? we also have a business what happens to our business?

RE:Foreclosure Happens, But There Are Solutions

Anonymousgirl — Tue, 29 Jul 2008 11:00:00 GMT

In Minnesota there is a right of redemption period for homeowners that have been foreclosed on. Does this mean that we could stay in our home for 6 months after the sheriff's sale without worrying about the bank or person who purchased the home in the sheriff's sale coming in the house and kicking us out or even coming in when they want.

RE:Foreclosure Happens, But There Are Solutions

anoymous — Tue, 22 Jul 2008 11:00:00 GMT

what will happen if two people not married bought a house and one walks away and the other can't pay in michigan. i know foreclosure..but anything else

RE:Foreclosure Happens, But There Are Solutions

Lola — Thu, 03 Jul 2008 11:00:00 GMT

I own a home in Texas and in Las Vegas. I cannot keep both houses. I've decided to foreclose on my home in Las Vegas and file bankruptcy. Will these affect my house in Texas. Will lenders come after me?

RE:Foreclosure Happens, But There Are Solutions

anonymous — Fri, 13 Jun 2008 11:00:00 GMT

what happens with the second mortgage if your home goes into foreclosure, can they come after you for the home equity line of credit amount that is due

RE:Foreclosure Happens, But There Are Solutions

Pam — Mon, 09 Jun 2008 11:00:00 GMT

I owned a home in which I had a first and second mortgage on it. I lost my job and the primary mortgager foreclosed on it. As a result, the bank holding the second mortgage lost their lien on it then sued me for the amount they claimed was "due on contract" plus interest and fees. Is this legal?

RE:Foreclosure Happens, But There Are Solutions

anonymous — Wed, 21 May 2008 11:00:00 GMT

we purchased an investment home out of state with a signed lease agreement. The lessee is 8 months behind to us. We have been making the payments and are current. We cannot continue any longer. We don't want to lose our current home over this. We have excellent credit. It could take 6-18 months to sell investment house at a $80,000 loss. What are our options?

RE:Foreclosure Happens, But There Are Solutions

JMG — Tue, 15 Apr 2008 11:00:00 GMT

People that are entering foreclosure these days purchased properties at twice or three times their realistic value on 100% financing. That is the primary reason they donâ€™t make an effort to prevent the foreclosure process. Another innovative scheme being perpetrated today is that some of those properties are sold to family members of the person allowing the foreclosure to take place under a short sale clause which means the original owner can purchased that property at a later time perhaps under a second short sale. Here we go again.

RE:Foreclosure Happens, But There Are Solutions

MtgProf — Tue, 15 Apr 2008 11:00:00 GMT

Sysan Hoyt asks: Can I purchase my property after it has been foreclosed? Ummm.. how will you pay for it? After the foreclosure, no bank is going to loan you any money anymore and if you have cash on hand, why didnt you use it to stop the foreclosure in the first place?

RE:Foreclosure Happens, But There Are Solutions

Anonymous — Mon, 07 Apr 2008 11:00:00 GMT

RE: Jose's comment of March 27, 2008 You should consult your state's law as to the time frame for the "Right of Redemption" and I'd suggest you obtain an attorney once you know the time frame and if you are within that legal time & you want your home back. Good luck.

RE:Foreclosure Happens, But There Are Solutions

Susan Hoyt — Sun, 06 Apr 2008 11:00:00 GMT

We are in defalut on a property in Las Vegas,we have received the notification of auction for April 17. After the auction can the bank come after us for the remaining balance on the mortgages? Do we have to be looking over our shoulders for the next five to seven years?

RE:Foreclosure Happens, But There Are Solutions

Jose — Thu, 27 Mar 2008 11:00:00 GMT

Can I purchase my property after it has been foreclused

RE:Foreclosure Happens, But There Are Solutions

Anonymous — Wed, 19 Mar 2008 11:00:00 GMT

I am in the process of buying a second home. When this happens I will be renting out my current home. My concern is I am depending on the renter to be able to pay for most of the monthly payment on first house and if I lose my renter I won't be able to keep up with the payments on the house. I live in California and I know the laws are different for forclosures. If the house did forclose, besides taking the house and ruining my credit, what could the mortgage company do to me?