Help!Pending forclosure No sale date Yet........what is the next best move?

Question

I am working now $43/hour 32 hours a week as a Nurse, the investor (Wells Fargo)will not work with me at this time (was not able to keep on repayment plan one time last year), I own my home owe $158,000 market value $245,000. 30 year mortgage 1200.00 per month I owe back taxes with lean on property $35,000, and $12,000 misc judgements. 1)There is no sale date on the property yet. 2) I need $15,000 to get the mortgage caught up. 3) My credit has gone down the tubes.......What the hell should i do next? Can i refinance? If so what amount should I ask for?What has to be paid off on my credit report in order to refinance (Judgements liens taxes etc)....I do not want to file for bankruptsy. What should i do next? If I could get a personal loan I would to get this off my back.

The bank has not forclosed on the property as of today, and there is not a date of sale yet.

Answer 1

With being a year behind on your mortgage, I'm amazed they let you go this long.

Did you notify them when you couldn't meet the repayment plan, or just ignore it until they contacted you?

If you had initiated contact, you should have been able to get a loan motification.

But if you have a history of not initiating contact and avoiding them, they're unlikely to be sympathetic.

You're best bet might be to ask them to allow you to have a pre-foreclosure sale. That way you'll be able to recoup some of your equity, and they'll get the balance of their loan.

If they won't agree to a pre-foreclosure sale, you can get a hard money loan at a VERY high interest rate to allow you a little extra time to sell your house so you can pay off the mortage company, have a chance at getting your hands on some of that equity, and salvaging what you can of your credit.

Take this as a wake up call to manage your finances more effectively in the future. Lenders like customers who keep in contact with them. Don't wait for them to call you.

It appears unlikely you'll be able to save your home, but you have a very good chance at getting some of your equity if you can sell it through a pre-foreclosure agreement, or a hard money loan to buy you some time. If you get a hard money loan, don't be stupid and think that you can manage to pay your old mortgage and your hard money loan, you haven't been able to manage the payments as is. Be wise and use the hard money loan to get yourself some time to sell the house to get some equity back.

It's one thing to lose your house, and another thing to not have any cash in your hand.

I hope you're able to stick to a plan to get some of your equity.

(Do some google research on the things I mentioned.)

Good luck.

Answer 2

Did you go to court or did they get a summary or declaratory judgement when you didn't show up? Or has a court case been filed and by whom? If you owe taxes it maybe the tax collectors foreclosing in which case the mortgage company would generally front that money to protect their investment. In any case...

I don't agree with the real estate agent in alabama in as far as you having time to adequately market you house. Feel free to put a for sale sign up and see what happens. Even if you get an offer to buy the house, it is not going to stop whatever foreclosure is going on. And as a buyer, I am not going to want to go through the hassles without some benefit like 30-40% off of the Full market value.

Your first step depending on where you are actually in the process is to stop the sale and bring everything current.

If you can't come up with the funds by borrowing or other means then I would consider filing bankruptcy to stop the sale. You can always dismiss the bankruptcy. I don't think dismissed bankruptcy stay on your credit but check with an expert. And if it does you only need to provide evidence that it was dismissed and not a discharge, which means you went through the process and eliminated your debt. The bankruptcy stigma shouldn't be your concerned anyway since the foreclosure affects it just as much.

If you find someone to refinance, which is not impossible, then all of the liens are going to have to be taken care of so you should factor in the balance owed to wells fargo, the judgements and the tax liens. It is probably going to be close to 100% If you are able to borrow above the total amount, keep some of the proceeds in escrow to pay the monthly payment. For instance, if the total debt was 200K and you were able to get the $245K figure, pay the 200K, then put the $45K in an account that the lender can automatically debit for the monthly payment. That would cover you for awhile, not to mention some lenders will lower the interest rates slightly for automatic payments.

Just a thought. Good luck. All is not hopeless unless you bury your head in the sand and do nothing. How many people have you spoken with at Wells Fargo? If you have made contact with only one person you need to try and speak to a supervisor or manager or vice president to get them to assess your situation. Especially since you are a professional and obviously can sustain a descent job!

Answer 3

You only have one option if they won't work with you and that's to go to a hard money lender and refinance with them. Hard money does not care about credit score or payment history but that's why they charge 10%-12% for an interest rate. You have what looks to be adequate equity to pay everything so you can keep the home. The key is to take this type of loan for a year or two at the most and rebuild your credit and refinance again so you can get a much better interest rate. I know this isn't the most desirable option but it may very well be the only one you have. I hope this helps you but if you need any help or have any further questions please email me [e-mail].

Answer 4

I am a real estate agent in the State of Alabama. Laws vary from state to state.

I would contact a real estate agent immediately and sell the house as close to market value as possible. I would also have the agent looking for me a smaller property - you need to downsize at this time. Take the money you earn from the sale and pay off your taxes and judgements and get in your new, smaller house. Later, correct your credit. I don't think in your current case refinancing will be much of an option. Good luck to you. In a few years you can sell your new smaller house and upgrade to what you want.

Answer 5

i have an investor that NO MATTER THE CREDIT SCORE will lend "hard money" for any reason up to 75%ltv...

they specialize in foreclosure or bankruptcy buyouts...

Looking at your numbers, you would qualify for somewhere near $25,000 cash out to pay the debts you owe...

Now you will have a high interest rate starting off, but, the positives obviously out weigh the rate!!

no bankruptcy, you keep your house, your credit isn't shot even further due to a bankruptcy, or foreclosure, etc....

Give me a call ASAP, before they move any furthrer into foreclosure proceedings..

My name is Jason Fry, i work with a nationwide mortgage lender named Providential Bancorp. You can call me at 312-264-6448, or email me at [e-mail]..

Look forward to assisting you!

Best of luck!

Jason Fry
Mortgage Specialist
Providential Bancorp
312-264-6448

Answer 6

Most all of the above is good advice....but most debtors last recourse if filing for US Bankruptcy Court protection. Warning: this is not without long lasting financial credit consequences...but so also is foreclosure. I would use it as a very last recourse! Just another point of view...I hope I were able to help. Best of luck!

Answer 7

if you have 401k or other be for tax retirement found, that you have not already borrowed against you may be able to take a hard ship withdrawal to stop the foreclosure on the home and pay off the back taxes, as long as it is your primary residents, if you have such a fund check into it asap, and see what you will need to do it if the plain you have allows for such a withdrawal.

Answer 8

I would talk to a lawyer. They would be the only ones who could keep the bank from forclosing. Good luck in keeping your home.

Answer 9

Unfortunately because the bank has already foreclosed, lenders will not refinance you. You should have tried to refi before letting it get this far...contact HUD or an attorney.

Answer 10

Get a GOOD real estate/bankrupcy lawyer immediatly. Please don't wait. You're not going to get the help you need from YAHOO!

There are a lot of options, but only a lawyer who knows the laws in your state and city are going to know the real answers, and you CANNOT wait.