Preforeclosure / foreclosure questions?

Question

My house is in preforeclosure. We have it for sale but with the holidays it's been slow. We received a notice from the courts & my husband picked up a form that we are to fill out & I guess return to the courts to request a court date. Our realtor recommended we do this to let the judge know we are trying to sell the house. Said it shows our efforts. He said some people don't go cause they don't feel it's worth it. We're wondering if it matters either way, it won't affect the outcome. We'll still be foreclosed on if it doesn't sell. Problem is the notice was dated 12/6. We got it 12/12 & husband wasn't able to pick up form till yesterday. We have until 1/6 to return this form, if that's what we're suppose to do. There is no explanation. What would you do? Does it make a difference either way if we go or not? And what happens if it doesn't sell? When would we request deed in lieu? And should we hire a lawyer now or wait? If wait, when? It's all so confusing.

The forms didn't come via mail...not even in an envelope. Someone dropped it off at the house and gave the papers to my son (we weren't home). The only date listed is the date stamped by the courts (Dec. 6). We have already tried to work with the mortgage co. but they wouldn't reduce payments. The fact is, we are in way over our heads with the mortgage. We don't have a problem losing the house, we just want to go about it the best way by hopefully selling. If going to court will hopefully get them to give us more time to sell, then we will do that. The process so far has been slow. We are dealing with Countrywide and haven't paid since June and we were just served. We did try to make some payments but they rejected them cause it wasn't enough to bring it current. Thanks for your feedback!

Answer 1

I would still fill out and turn in the form. Hold on to the envelope where it is date stamped by the USPS.

Answer 2

Mortgage companies tell me they have no profit in foreclosing on houses....it normally costs large amounts.

If you keep in contact with the courts and with the mortgage company and let them know what specifically you are doing to try and sell, they will give you a lot more time and may help you by allowing you to do a short pay (compromise sale) or something else.

It is real hard not to get depressed when going thru this, but the more care and effort involved and the more you talk with humans at the mortgage company and with the courts, the better off you will be in the long run.

Answer 3

You should consult a bankruptcy lawyer immediatedly. The consultation will allow you to find out what you can do to salvage any equity you may have in your house, or you may find out that your lender will be amenable to re-writing your note to decrease the monthly payments for a limited period of time, e.g. interest only for 24 months.

You cannot know these things unless you speak to an expert who does. He or she will speak to you in a forthright manner. If you cannot save your home, he or she is going to tell you that immediatedly. But if there is a reasonable chance that something can be done to help you hold onto your house, then this is the only meaningful option you have.

Don't forget to vote this November for a President who is actually concerned with the plight of ordinary Americans like yourself and who will compel the Federal Reserve Board to regulate and oversee those financial institutions that serve the real estate market so that another pyramid scheme like the sub-prime mortgage scam cannot occur.

Good luck.

Answer 4

No one here can advise you how to respond to a "form" when we don't know what it says. Your realtor is not a lawyer & is not responsible for any bad advice he may give you. You need to speak to a lawyer about your options. None of the options may be good, but some may be much less bad than others. Whatever a lawyer charges for a consult will be far less than what a bad decision is likely to cost you.