Anyone been through a foreclosure?(long)

[Missamoncus]

Well, let me see if I can explain this correctly- My husband and I found the house of our dreams in a small town about 30 miles from where we had a doublewide trailer on 1 acre. We rented the doublewide to a family with kids and moved into our new house. Now , when I say house of our dreams,. don't get the wrong impression-its a 1,500 sq foot fixer upper built in 77, but it is on 6 acres on the river .
About three months ago-our renters gave us a half-months rent and said
they would get the rest to us soon-he had had a problem at work and had worked fewer hours but would catch up next week- well he never did-everytime we called he had some excuse and was sure he would catch up soon-then he got a job fixing up the hurricane houses on the Texas/Louisiana border and he was going to make $25.00 an hour so he would catch up very soon! ( you see where this is heading?) I asked him if he was planning on moving out to the coast since thats where he was working. He said, " No, my parole officer won't let me move. " Okay, that was a major clue. So another two weeks went by and we gave them a pay or pack notice. He called and said he was going to get a big paycheck on the 15th and he would pay us two months rent then. Well, in the mean time, we got a foreclosure notice on the property because , after having paid double mortgages for months while finding renters, putting the down on the new house and paying my first semester graduate school tuition, if they didn't pay us., we couldn't pay that mortgage. So , we go to collect our big rent check and guess what? THEY MOVED OUT! I know, I know it was a stupid position to put ourselves in , so please don't flame me, not because I don't deserve it, but because I just can't take it right now. My sweet husband is pacing around the house muttering, " people are trash, people are just trash " and we are trying not to show our 3 year old how upset and scared we are. What really happens in a foreclosure? We will call the mortgage co. tomorrow and explain what happened , but I don't know what they will be willing to do. I know that , if it comes to it and they auction off the property, they will come after us for the difference in what they get and what we owe, but how do they do that?
If we can't find some way to work this out, will a foreclosure haunt us forever? I have visions of us all huddled around an oil barrell fire in finger gloves singing blues songs.

Melissa

 

[SillyMe]

Why don't you put it up for sale quick?

 

[jenks0718]

Find a realtor and put the trailer on the market quick. Fax the listing agreement to the foreclosure department and this will hold them for a little while. Price it just right and hope it sells

 

[punkin]

I'm a little confused. Is it a letter of forclosure or letter of delinquency?

Call the mortgage company and see if you can get an extension to pay. They would usually rather do this, than have to go through the expense of forclosure and selling the property. You can usually work out a deal.

Even in the worst case scenario, a forclosure only stays on your credit report for 10 years so it will not haunt you forever.

 

[arminnie]

I don't know about Texas law now, but about 15 years ago, the mortgage company could come back against you for a "deficiency judgement" if the property sells (at auction) for less than the amount of the mortgage.

I lived in Texas in the 80s when everything went bust and knew several people who had to let their house go back. When a house sells at auction after foreclosure, the bank just wants to get rid of it very quickly, and it will usually go for a low price.

I would call the mortgage company immediately. Usually they will work with you. I knew people who avoided foreclosure by working out a deal where they sent $10 a month (in lieu of a $700 payment) until they got a jobs again.

Also the bank might sell the "deficiency judgement" to a collection agent.

Some states do not provide for deficiency judgements, but Texas did at one time.

 

[lesroi]

Here are some informational sites on foreclosures in Texas:


http://stopforeclosure.com/Texas_Foreclosure_Law.htm

http://www.foreclosureuniversity.com/studycenter/foreclosurelaws/texas.php


Hope it all works out for you. (To answer your other question, yes, a foreclosure will haunt you forever. The previous poster was right. If they sell it and take a loss, you will likely be hit with a deficiency judgement, meaning, you owe and you don't even have the property anymore!)

 

[Missamoncus]

Thanks to all who have taken the time to answer this thread ( and privately)
I called a friend who is a realtor this evening and he is going to list it in the morning and try to help us get it sold quick. We will also call the mortgage co. in the morning and tell them we have listed it and see if they will give us some time.

Melissa

 

[punkin]

So what happened?

 

[MsLeFever]

I'm in the same boat! We had to move to a new state because I lost my job and we've desperately been trying to sell the old house. It's been on the market since last APRIL and we are stretched very thin. We would sell this and not make a penny and that would be great....but no offers.

It's scary isn't it? Fingers crossed for both of us!

 

[Disney Doll]

I'd call the mortgage holder and explain the situation.

My DH is a realtor who used to handle foreclosure properties. Really, banks and mortgage companies don't want to own real estate. They are often willing to make special arrangements regarding mortgage payments in circumastances like this, until properties sell or finances change.

 

[missypie]

1. Call the mortgage company. Talk to a real person who has the authority to make desisions. Find out if your loan is in the foreclosure department, or just delinquent accounts. Don't rely upon anything anyone tells you unless they are a decision maker; get any agreements in writing.

2. Try to enter into a "work out" so that you make reduced payments for some amount of time.

3. In Texas, foreclosures can only take place on the 1st Tuesday of every month. The March date is March 7th and the deadline for posting was day before yesterday. If you didn't get a notice for a March foreclosure,then the earliest they can foreclose is April 4th. (That gives you almost 2 months to sell.) However, if you haven't received a notice of intent to accelerate, you may well have until May.

4. Do not, under any circumstances, refuse your certified mail. Notice given by a lender by certified mail is effective upon deposit, even if you refuse it. You need to accept all certified letters to know what is going on.

5. When the lender gives you a 30 day "Fair Debt Collection Practices Act Notice", ask for written confirmaton of the debt.

Good luck!

 

[dennis99ss]

Is it the trailer and lot which is in trouble or the river property. If it is the river property, I would think you could subdivid. Unless it is low, and subject to flooding, I would guess you could get a decent price for subdivided lots, especially where it seems that you are

 

[missypie]

Is it the trailer and lot which is in trouble or the river property. If it is the river property, I would think you could subdivid. Unless it is low, and subject to flooding, I would guess you could get a decent price for subdivided lots, especially where it seems that you are

Maybe a good idea, but only if the lender will give her the time. She would have to spend several thousand dollars on engineering, go before the city or county planning board, etc. It would take several months and several thousand dollars.

 

[Missamoncus]

Hi , thought I would check back in-

It is the 1 acre with the trailer that is in trouble-not the 6 ac on the river, which my husband says he will leave , " feet first". Subdividing in this area is expensive and time consuming and would not be quick enough to avoid what seems to be coming down the pike. The problem is that we can no longer keep up both mortgages. ( and we never expected to have to for more than a few months as we really thought the trailer was a great rental prospect , being 10 minutes from a major university )
Well, the house is being put on the market as we speak, with ads going in this weekends papers - the university paper, the local paper and the Austin paper. I got a call last night from an " investor" who will go and look at the trailer property today. Cross fingers, toes and anything else you can cross
that this guy is 1: legit 2: wants the property and it happens fast!

Melissa