do to job loss had to relocate to another state. home in michigan has been on market for 6 months no takers yet even after multible reductions in price. can't afford two homes any more so have'nt paid for the home in michigan (taxes are due also) recieved notice of foreclosure to take place 30th august. with bankrupcy laws that have changed what do you do first? talk w/lawyer or take pre bankrupcy class/ I never in my 50yrs thought I would have to do something like this. is foreclosure worse than a bankrupcy? can't even do a short sale no lookers. if I give the bank the deed back I also have a equity loan and have no equity left in the home. the auction will take place on the 30th I don't know what to do first. I'm humiliated at the thought of all this happenning. will I ever get a loan again? how much upfront to file bankrupcy? any help is appreciated.
2007-08-19 09:31:07 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I would file bankruptcy and hope you can go chapter 7. You can fix your credit in about 1 - 2 years and you can resolve all of your debt.
Is definitely an opionion. Would consult realestate attorney
2007-08-19 09:55:38 · answer #1 · answered by Thomas K 3 · 0⤊ 1⤋
Filing bankruptcy will not help if you can not make the payments. You are gonna lose the house any way and a bankruptcy simple prolong the agony. You will not have the expense of an attorney, who will continue to tell you to hold out as long as you can pay him/her.
You should contact the current lender and offer the property back to the bank with a deed-in-lieu of foreclosure. This will remove you from the responsibility of the mortgage, taxes and insurance.
Tell them of your situation and explain to them that you thought you would be able to sell the property, but under the current situation it is impossible for you to accomplish this.
You want to speak with the loss mitigation specialist of your mortgage company. Don't let them put you off on some $5.00 an hour clerk. Be persistent and explain you situation to this person once you get him.
If all else fail and they refuse to corporate with you, let the house go. That is the least of you concerns. You have done the best you possible could under the circumstance.
You attempted to sell the house, you kept up the mortgage payments as long as you could. Now you are gonna call and see if they will take a deed-in-lieu of foreclosure.
Some borrower's would have stopped paying the old mortgage after about 2 months, seeing that there were not possible buyers.
Don't beat yourself up, the big boys are protected with tax write offs and other ways of protecting themselves without losing money.
Your concern now is to keep your present mortgage payments current and take care of your family.
I would not be concerned with my credit as long as you keep the mortgage current on your new home you have purchased.
There will be a few questions, but simply write a letter of explanation that you had purchased another home, you thought you would be able to pay both mortgages, but it took longer than expected. Since funds were scarce you stopped making payments on the old house, it did not sell therefore the deed-in-lieu of foreclosure.
You should keep the closing documents on your new house as well as the foreclosure documents on your old house proving that at the time they over lapped each other.
Your credit will not take such a big hit as others that had not purchased another home already, such as you. Make your mortgage payments on time especially for the next 24 months on time and you will find that the foreclosure will not affect your ability to refinance or get other credit at all. Just a letter of explanation as I explained above.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-19 10:16:31 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
I'm sorry but you aren't alone. There isn't much anyone can do. If the sheriff sales is at the end of August, at least most of the agony is over. As for your credit history, well it's something a lot of folks are going to have to work on for the next few years.
If it's any consolation, I'm 54, a Realtor in the business for 20 years and in the same boat. Both my husband and I work in the business. So it's double for us. Try finding a "job" at our age and having been out of the workforce for 20 years.
All I can offer is a big Hug and wishes of better days ahead.
2007-08-19 09:47:48 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Wow, that become incredibly low down. besides, law enforcement officials can accompany you to the homestead to invite in case you may have the valuables, no rely if it is offered ouch. the subsequent step is to take this to a courtroom as regulation enforcement isn't waiting to intrude as that is a civil rely. purely an lawyer can propose you in this further. A officer would supply you recommendations, yet no longer be certain to allow you comprehend which you would be able to purely pass in and get it. stable success to you. call an lawyer good away. This coming from an officer of 18 years.
2016-12-12 06:50:48 · answer #4 · answered by ? 4 · 0⤊ 0⤋
No. forclosure is not as bad as bankruptcy. You are only dealing with the house in question. Bankrupcy is dealing with all of your bills and your assets. could include selling off assets to settle debts. Talk with the bank. Something should be able to be done. Maybe talk to a Realitor and see if it is possible to have them handle it as a rental. In Ohio they will make sure it is rented escrow part of the rent for repairs and make the bank not as well providing that there is not a lot of repairs that need done befpre someone could move in.
2007-08-19 09:45:08 · answer #5 · answered by Fred W 2 · 0⤊ 1⤋
Talk to A lawyer with lots of experience in this area.
2007-08-19 09:38:47 · answer #6 · answered by JJ 3 · 0⤊ 1⤋