Foreclosure?

Question

My Home is in Foreclosure I owe$30K more than what it is worth!!! Has anyone ever heard of your bank reducing what you OWE on a property to it's current value? I owe $235 and its worth $219K now.

My Attorney advised me that when i convert back to a chapter 7 that the money lost at auction will be included in my chapter 7. its too late for a short sale right now and i cannot sell my home in two weeks either!

ALSO, when i got the Loan i was working in the same building as the lender as a escrow officer. I was making commission per deal and did not even make a base salary. I went Stated and wrote a letter to the mortgage lender that i make such and such per month per transaction when really i was probably making half of that......Can i Sue my Lender for bad business practice. It was WAY to easy for me to get in my home with no real base salary and no Income Verification. I have always had good credit until now i did not realize that a 10 on my first and a 12 on my second was going to be so much int the long run i just wanted my dream home, and now i am miserable and confused?

Answer 1

It is in your best interest to sell the house ASAP yourself.

The bank will sell the house quickly and will get a rock bottom price of (say) $180K. They will use the $180K to pay off the $235K and still come after you for the $55K balance.

If you sell on your own for $219K, you will only owe $16K and I am sure you can get a personal loan and pay it off over time.

Take control ASAP and sell your house before there are many more people like you and your home price goes down more.
Good Luck!!!

Answer 2

Yes, it's called a "Short Sale". It's where the lender agrees to accept less than what's owed in order for you to sell the home.

If the numbers are correct, you should list your home at 200k, that way you can get an approval from the lender and still qualify the buyer to purchase the home. However, I think your auction is in 2 weeks, so your lender might not give you an extension.

Regards

EDIT:
Krissy, then your best bet is to follow the advice of your lawyer and let your bankruptcy shield you from the loss of the property. Good luck!

Answer 3

what's owed isn't the current value (that goes up & down depending on the market) but rather what's owed to the bank on the money borrowed. i am assuming it is a conventional 30 year fixed rate mortgage set at whatever the prime was plus certain am't of points over that. it takes a full 30 years when paid just on what's owed each month. it can be shortened when you either double the am't paid monthly or re-finance on balance due. sorry to hear about what's happening to you but there are possible ways out. first, while it might be too late to do this, but go to the bank & see if an arrangement can be met. they want your money, not your house. there's also credit specialists. they operate for a fee but possibly save your credit & your house. during that time, you might want to sell the house, take the money, pay off whomever & get yourself a small & cheaper place. it's trying times out there in the real world but if the opponents use lawyers to get their rights observed, so can you. good luck!

Answer 4

When you file BK, the bank should cease foreclosure procedures. Ask your attorney. At least they did do this for a client of mine. I forget how she pulled it off but if I were you, I would dump the property.

By the way as far as suing the lender, you signed the loan application and swore you were telling the truth on it. Did the lender force you to sign it? If so then you have a case....

I do loans and I get people telling me they make 20,000 a month because they've learned the drill after talking to a bunch of people. Their score is good enough to make it happen and it isn't my job to go down to their work and interview the boss.

Answer 5

1.Stop paying and save all the money you can.

2. try the short sale.

3. if it does not sell challenge every thing to extend the time be fore they kick you out, delay delay.

4 start to move your stuff one week before they are giving you the boot.

5. prepare a home inspection " sure would be a shame if it burnt down before the bank got it and all your stuff was out do to some wiring problem that you did not know about.

6 make a bunch on copy's of your house keys and sell them to homeless fore 10 bucks each may be less or more. give them a move in date the day after they take the house. " that sure would be a pain in the *** for the bank to have a bunch of squatters, and piss off that pesky neighbor"

7. check out this web site you may be able to sue. http://www.breakingbubble.com/

8. Best of luck

Answer 6

You need to get a Realtor that will help you with a short sell. I am doing one right now on a property that is worth 60K less that I owe. My loan with Chase bank is $240 and my house is being sold for $180. They will be forgiving 60K. They buyers are closing next week.

There are some hoops to jump through, so find a Realtor that knows the drill.

Answer 7

Sort of.

It is called a short sale. Banks will not reduce the amount they will accept to what it is worth as a rule. They reduce it to what they think is reasonable given the situation. The lender in 1st expects any junior liens (lenders in 2nd, etc) to take more of a hit.

Answer 8

I believe if you sell it before the bank, you can payoff the loan and keep the profit. Unless the bank already owns it, then I believe it is too late.

Answer 9

It sounds like you got one of those no down variable interest rate loans, it's possible you owe more than what it's worth.

Answer 10

Yes, things can be worked out with your bank! Don't let anyone tell you otherwise!

If you want to give me specifics, I may be able to help you out, but realize also that you have very little time, so we need to work fast.

e-Mail me if you are interested.