I have a family of 6 in a 3 bdrm! Only bought this house to make money and buy a bigger one. I have a1st & 2nd w/ 2 banks. The 1st is ARM that we cannot afford. Bank says we owe more than it's worth and we cant refi. We did 100% financing.I talked to 2 brokers and 4 banks, they all said NO. We decided to let it foreclose. Payment not yet 30days late, but what can I expect? Will I be harassed by the bank? What are the consequences? Can they tap into my bank account? Will I have to file bankruptcy?
2007-08-06 14:50:37 · 4 answers · asked by Hollyhobby 1 in Business & Finance ➔ Renting & Real Estate
you are like many other americans who got caught in the real estate scam of ARMs. sorry.
after reading your circumstance, the best you can do is walk away and let the property fall into foreclosure.
http://www.foreclosures.com/pages/state_laws.asp
the above is a web site that will detail for you the laws and timelines for the foreclosure process in your state.
normally, they will not come after you...as this is not really classified as a "loan" -like your car etc. what you are defaulting on is a deed.
read the website...click on your state....
good luck :)
2007-08-06 15:03:18 · answer #1 · answered by Blue October 6 · 0⤊ 1⤋
you have few suggestions and that they are all undesirable. A foreclosures lowers your credit to 550. you will pay 22% for a motor vehicle very own loan even while the banner says 0 %. a short sale is a nightmare, too. you will sell it for $450,000 and the financial employer will make you an grant. in case you owe them $550,000, they'll provide up $50,000 in case you pay them $20,000 money and sign an IOU for $30,000 at 8%. then you extremely get to sell the domicile and be achieved with it. Your credit will drop to 6 hundred. do not walk away. you're to blame for any injury to the domicile by using vandalism till the foreclosures public sale date. stay till the very final minute. shelter your supplies. in case you do not choose to attend, sign a deed to the financial employer immediately and then that's there difficulty. /
2016-10-09 09:15:11 · answer #2 · answered by courts 4 · 0⤊ 0⤋
It will take a while before they start the foreclosure -- probably around the 90 past due. It will still be a while longer before they actually evict you. But you should probably start sorting thru stuff.
You bought a house that you could not afford using "creative financing". There are going to be a lot of others in the same boat you are in.
Bankruptcy would depend on how many other debt you have.
2007-08-06 14:57:36 · answer #3 · answered by bdancer222 7 · 0⤊ 1⤋
You can expect:
1. To lose your home.
2. Trash your credit.
3. Shortfall to the lender if the note(s) are with recourse.
4. Pay taxes on any shortfall if the note is without recourse.
See if you can't at least work a short sale. It'll still hurt but maybe not quite as badly. Check with the lender's loss mitigation department.
2007-08-06 15:05:08 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋