How long before we have to move out? Can we move out now? Also, do you notify your mortgage companies so they can speed up the inevitable foreclosure? There is no saving our home, so please, only answers to my questions.
2007-03-08 03:33:26 · 8 answers · asked by kalamibe 2 in Business & Finance ➔ Renting & Real Estate
We have consulted an attorney and a realtor. Because of the amount we owe and how much this house is actually worth, a short sale isn't possible. The re-payment plan to get back on track will have us paying over $5000 a month, we just can't do it!
2007-03-08 03:53:17 · update #1
One more thing, our mortgage hasn't been paid since December...
2007-03-08 03:54:46 · update #2
Some users have made excellent suggestions. Also talk to Realtors to see if they can help you sell the home. If you foreclose, your credit will be shot.
If this is your primary home, talk to an attorney, if selling, or stopping the foreclosure is impossiable; Chapter 13 may save your home.
Call a lawyer now, if the mortgage holder sells your home for less than is what is owed, you will be served with what is called a "deficency letter". This means that you will still owe the balance.
Say you owe $125,000, and the bank sells the home for $110,000 you have NO HOME and still owe $15,000..... Call an attorney now.
2007-03-08 03:56:29 · answer #1 · answered by phantsoft 2 · 1⤊ 0⤋
Technically you do not have to move until the auction has completed. Even then you might find that they will not evict until a bit later if the bank takes the property back.
If you want to speed things up you can agree to hand the property back to the lender. They do not need to accept and there are some good reasons why they will not. Or they might accept the deed. Your attorney can tell you how the process works. Deed in lieu is the phrase. It can be slightly less negative on a credit report so there is an advantage to you if they accept. The key reason they will say no is if there are junior liens that they want wiped out through the foreclosure process.
You can move out at any time. You might want to move earlier as your credit might be in better shape early in the process compared to late in the process when more things show up. That can help when apply to rent a property.
If you have other questions feel free to get in touch. There is no magic but you seem pretty realistic about the options at this point.
You may have a right of redemption based on the state. This means that after the auction is over you still have time to show up with the full amount owned plus all fees and other costs so you can redeem the property. Something to know about but not something that sounds likely to matter in your situation. Just be aware in case something significant changes in your financial future.
2007-03-08 13:23:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It would be nice to have all those professionals helping you, but I think it would be better to reserve the cash to keep a roof over your head. I would suggest that it is in your best interest to sell the home, rather than leave it to the lender. You are obligated to pay the amount you borrowed.
Even if you sell the home for less that what you borrowed, you are minimizing the amount of money you own that lender. So instead of owing say $500k, maybe you can owe them $50K.
Understand that if the lender repossess you owe all those repossession costs (a considerable amount). But the worst problem is that once it is reposed the lender now calls the shots. They can decide to keep the property on the market in hope of getting the highest possible price. Prices could fall. And you are still responsible for (the full amount of the loan + loan & repo costs – whatever they sell it for). You could be up on the hook for a much higher amount, especially in a declining market.
As far as moving out, first I’d suggest saving your money for first, last and security. And stay in the current house as long as you can. I’d suggest getting an off-site storage and moving the majority of your possessions there. When the Marshals show up they don’t let you take much. Technically that house and everything in it belongs to the lender.
Also you might want to prearrange your crash pad (where you are going to go immediately after eviction but before you can get into a rental.) I think this is the single biggest mistake many people make. Not having a plan, they go to a hotel and burn up the money they need to get into a rental. Then they are homeless, and from there it all comes apart jobs, family.
Sorry for your loss.
Every Bad thing that happens contains the seed of a greater good, all we have to do is search for the opportunity and cultivate it. I hope you come through these difficult times to enjoy future prosperity.
2007-03-08 12:17:03 · answer #3 · answered by James H 5 · 0⤊ 0⤋
Deed in lieu of foreclosure not hurting your credit is a myth. It will still hurt your credit, just not as much. Offering deed in lieu of foreclosure would giver you a firm move out date. You can just move out now if you choose to do so. You are under no obligation to stay there and if you are ready to move on I would suggest doing the deed in lieu of foreclosure.
If you don't do this The bank will proceed to foreclosure and usually the house is offered for auction on the courthouse steps (depending on your state). If no-one buys it the bank may offer you cash for keys, usually just a couple hundred dollars. If you take that you usually have a few days to move out with all of your possessions leaving the house in the same condition (don't trash it). If you don't take it they will evict you. If there really is no saving it you do have some time to move.
Either way your credit is hurt and if a short sale is not possible then I would suggest you start looking for a place to live now. Your credit will recover in several years. It is a sad situation but it is happening more and more every day. Best of luck to you in the future.
2007-03-08 13:45:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I will humbly disagree with your statement that there is no saving your home.
Go see these folks
National Home Recovery Program for foreclosures http://www.nhrp.com/
Buena Suerte
Additional Details
If after going to the suggested link above there is still no hope then I suggest you offer the lender a deed in lieu of foreclosure in an attempt to at least save your credit.
2007-03-08 11:38:06 · answer #5 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
1. Make sure you have an excellent attorney.
2. While consulting the attorney ask about the possibilities of selling the home. You may be able to sell it quickly and make enough to settle alot of debt, save your credit, and even walk away with some money ---- maybe.
I am a Realtor in New Jersey...... good luck!!!
PatrickTheRealtor@yahoo.com
2007-03-08 11:46:33 · answer #6 · answered by patricktherealtor 1 · 0⤊ 1⤋
Normally you have to be 90-days past due for the foreclosure process to even start. You can contact your lender and tell them that you are moving out and that they can have possession of the house as soon as you move.
2007-03-08 11:39:17 · answer #7 · answered by ? 7 · 0⤊ 0⤋
Where is your home located? I may be able to help.
2007-03-08 11:54:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋