Foreclosure process?

[KNJWDW]

Can anyone explain the foreclosure process to me? Unfortunately, my brother just received notice from his mortgage company (BOA I think) that his house is in foreclosure. He is a self-employed carpenter and just can not make a go of it any more. Also today, his MIL passed away unexpectedly. So, he is quite overwhelmed at the moment. What is the first thing to be done with this notice? Contact a lawyer? How long can they stay in the house? I have tried looking online, but I haven't found any good info on this yet. I would appreciate any light that someone could shed on this mess. TIA

 

[ajk912]

What form did he get exactly? If he got a Notice of Intent to Accelerate that means that Bank of America is going to start the foreclosure process. I *think* from this point he'll have 4, maybe 5 months? A few months after that he'll get a notice on his door, in the mail, or other notice of a sheriff's sale. Once that happens he'll have to vacate pretty quickly- I think if he vacates within 30 days (ish) he may be eligible for Cash for Keys (where they pay him to vacate the property if the property is left intact and broom swept.)

I have NOT gone through this process myself, but this is the way I understand the foreclosure process by reading on the boards, watching the news, etc. So it may not be 100% accurate but it's the way I understand it. Have you googled for a message board? Maybe even creditboards.net might have something.

 

[mickeyfan 2000]

here is how the whole process.
1.st he will get a letter from the bank letting him know he is behind
they will call him to try and work it out the time frame veried by state
2. they will file the complaint with the clerk of courts in the county where he lives. He will them be served by a process server a copy of the complaint. lis pendens and a copy of the summons. HE will then have 20 days to respond( type up a letter stating why you are not able to pay the mortgage and what happend, send this to the clerk of courts and the lawyer who is representing the banks) this will be after he gets serves.
3. the bank will have to meet any county and judge requirements before they can proceed.
Next the bank will then scheduled a summary judgment hearing ( this is where they go to the judge and the judge at that time will issue a sale date of the home. You will get a copy of the notice of hearing in the mail strongly suggest you go to the hearing. The judge will tell the bank how much they can get judgment for. Some states the bank can come back after you for any money they lost in the sale of the house
4. the judge will issue a sale date
5. the house will be sold
6th the will schedule a writ of possession hearing to have you evicted from the house.

Stay in the house and save up your money while you can. Some states the process can take 6 months to a year for the the eviction to happen. but it depends on the sate and how far behind the court system is.

Sorry so long I actually work for a law firm that specializes in the foreclosure process.

Hope this helps

 

[barbarabini]

Depends on the state:

For those with judicial foreclosure:
1. Notice of intent to foreclose
2. followed months later by an actual complaint to foreclose,
3. Followed by mediation or default
4. Followed by default judgment
5. Followed by writ of execution/ sheriff sales date
6. Followed by multiple stays
7. Followed by final sheriff's sale if not cured.

In NJ we are looking at about 18 mos -2 years from time of complaint. I think that is slightly less time than in NY.

So from Notice of intent, you are looking at almost 2 1/2 to 3 years. (time may vary).

 

[KNJWDW]

Thanks everyone for the info. so far, I really appreciate it. I don't know what kind of notice he has received. He lives in Wisconsin and I know something has been registered with the county he lives in.

 

[averill94]

Not much to add just want to say sorry your brother is going through this.
Around here in NY many people that are foreclosure or are in pre foreclosure are people that are STILL working but just cannot make the payments. The banks should never have given these loans out. Even trying for a modification is a joke ...."declined -due to not having enough income". Umm you gave me a loan 6 years ago on this income.....guess their guidelines changed after giving out these loans to people buying houses at obscene purchase prices.

It is such a disgrace and very sad.

Many people are also saying it is the tip of the iceberg. I have two on my block that I know of.
Off soap box.
Good luck

 

[Jex]

Yep, its the banks fault, sure isn't the home buyer who signed for a mortgage that they knew they couldn't afford.

 

[seashoreCM]

Common job interview question: Where do you see yourself five years from now?

Someone having trouble making the mortgage payments should get some help answering the above question. Depending on his circumstances, ceasing mortgage payments, declaring bankruptcy, and staying in the house as long as possible may be a suitable solution for some. Money not spent paying rent during this time (did someone say 2-1/2 to 3 years?) can be used for such purposes as deferred medical and dental work.

Much of the mortgage meltdown mess was due to banks and mortgage companies committing usury.

Someone may have made a deposit on a house, then got turned down for a mortgage loan, then told to apply elsewhere for a subprime loan or lose his deposit. Here I say it is morally okay to stay the eviction as long as possible and just live in the house.

NOt sure how many of these took place but I think that a mortgage company or its employees that wrote a non-subprime loan to a subprime borrower and (with perjury and much misrepresentation) got it into the system should not be prosecuted for fraud or anything else and not compelled to make restitution if the payments are still up to date, although at much lower interest rates than Fannie Mae or the investor thought they would get.

 

[averill94]

Yep, its the banks fault, sure isn't the home buyer who signed for a mortgage that they knew they couldn't afford.

Now you are talkin! Amazing that they STILL give loans based on crazy debt to income ratios.....don't let life happen, get sick, worse have a child get sick or GULP let your taxes go up. Pretty sure I have also heard of many people that have taken pay cuts just to keep their jobs. Wonder if the banks or borrowers ever account for that happening?

 

[Jex]

I understand life happens, and i feel for the people who are losing their home due to circumstances beyond their control. However to take a loan you know you can not afford is the same as someone who pays off their credit card every month using the full limit they are granted and amazed when the bill comes and its more than they make in a month. For example say some one has a 30k limit on their credit card but they only have 10k a month income, is its the banks fault for giving them a 30k limit, or does personal responsibility come into play?

 

[Judique]

I understand life happens, and i feel for the people who are losing their home due to circumstances beyond their control. However to take a loan you know you can not afford is the same as someone who pays off their credit card every month using the full limit they are granted and amazed when the bill comes and its more than they make in a month. For example say some one has a 30k limit on their credit card but they only have 10k a month income, is its the banks fault for giving them a 30k limit, or does personal responsibility come into play?

Personal responsibility does come into play.

The situation with credit cards and houses are two different things.

Used to be the mortgage loan officer set people down and told them what they could afford using debt to income ratios and made people clean up debt to qualify for a loan.

They had different ratios for different types of loans, ie Va, FHA or Conventional.

Than they all figured out how to do all sorts of things based on what might happen in the future, ie, get another job get a raise get married and have someone to help pay the loan, whatever. Things such as balloon payments and adjustable rates linked to the prime rate.

Then, it got even more scary - with subprime lending and hucksters out there who just wanted your signature on something no matter what. heck they'd find a way to clean things up and market the loan and sell it and they would not ever have to worry about it again. By the time people were making their first payment they were dealing with a different bank.

And back to the little guy with his bride in tow who thought he could afford a 'big' house - most times it was the first time inside a real estate office. Most times they would trust their 'bank' to have their best interests at heart - that littel thing called fiduciary duty. these people were working to help them get their dream house, right? Not. Not any more. Something really major changed. The American Dream became the American ________. Fill in the blank. Nightmare maybe?

Oh yes - there were plenty of greedy consumers! No doubt.

But that doesn't change the fact that the rules changed. And that the picture painted as normal for the times was not real.

Many people rode the wave expecting it to continue, not recognizing that it was an artificially stimulated environment - created to make a few people wealthy.


so where do you place the blame? On the greedy little guy who wanted more house then he could afford? Or on the greedy banking industry that figured a way to move around lots of money without true value? Or on the government for the bailouts? I see everyone pointing fingers at the other guy and nobody shouldering responsibility - just looking for a way out.

 

[SPBendersky]

This person should seek counsel immediately. I recommend a bankruptcy lawyer as I have seen this happen to fanily. About a year ago I too thought this was my future and had a counsult in the event it would come to pass. It is eye opening. Do not listen to the banks you have rights and protect them is your right. We were ahead of the game and were able to avoid it. You can get additional time and prevent foreclosure.

 

[corie161]

I don't know anything about the foreclosure process, just wanted to say I can feel his pain. My DH is self employed in the construction industry. We've been able thus far to squeak by with odd jobs here and there. It stinks some days because there is no "unemployment" for the self employed.

 

[katrina1122]

Yep, its the banks fault, sure isn't the home buyer who signed for a mortgage that they knew they couldn't afford.

Umm, what about those of us who bought well under what we were approved for and always paid more than the minimum each month for 4 years, but spouse later was laid off from 3 different jobs and finally used up all of his unemployment looking for a new job, so we had to take out loans to open a business where after a year he is finally making what his unemployment was? And me who works full time for a gov't which has had a cost of living freeze for 3 years and I'm at the top pay of my position and can NEVER get a raise in it again unless a position in a higher title is created for me, but they have a highering freeze so no new position has been created in 4 years? That's our fault? How were we supposed to view that to be our future?

Yet, we make our payments every month for a house which is undervalued and these no-fault banks won't let us re-do our mortgage for a better interest rate? Rather they say to go into default? Um, ok. You keep thinking that!

 

[Jex]

Umm, what about those of us who bought well under what we were approved for and always paid more than the minimum each month for 4 years, but spouse later was laid off from 3 different jobs and finally used up all of his unemployment looking for a new job, so we had to take out loans to open a business where after a year he is finally making what his unemployment was? And me who works full time for a gov't which has had a cost of living freeze for 3 years and I'm at the top pay of my position and can NEVER get a raise in it again unless a position in a higher title is created for me, but they have a highering freeze so no new position has been created in 4 years? That's our fault? How were we supposed to view that to be our future?

Yet, we make our payments every month for a house which is undervalued and these no-fault banks won't let us re-do our mortgage for a better interest rate? Rather they say to go into default? Um, ok. You keep thinking that!

So should I be reimbursed for my stocks have that went down in value since the bank/brokerage let me buy them? Or should I just understand that somethings go down in value?

 

[mikkiwikki]

So should I be reimbursed for my stocks have that went down in value since the bank/brokerage let me buy them? Or should I just understand that somethings go down in value?

No but you should seek counsel from an educator..specifically someone skilled in english grammar.

 

[Lizzy2]

loansafe dot org is really helpful site with LOTS of info that would help your brother. to both of you- He is not the only one

 

[M5ward]

Personal responsibility does come into play.

The situation with credit cards and houses are two different things.

Used to be the mortgage loan officer set people down and told them what they could afford using debt to income ratios and made people clean up debt to qualify for a loan.

They had different ratios for different types of loans, ie Va, FHA or Conventional.

Than they all figured out how to do all sorts of things based on what might happen in the future, ie, get another job get a raise get married and have someone to help pay the loan, whatever. Things such as balloon payments and adjustable rates linked to the prime rate.

Then, it got even more scary - with subprime lending and hucksters out there who just wanted your signature on something no matter what. heck they'd find a way to clean things up and market the loan and sell it and they would not ever have to worry about it again. By the time people were making their first payment they were dealing with a different bank.

And back to the little guy with his bride in tow who thought he could afford a 'big' house - most times it was the first time inside a real estate office. Most times they would trust their 'bank' to have their best interests at heart - that littel thing called fiduciary duty. these people were working to help them get their dream house, right? Not. Not any more. Something really major changed. The American Dream became the American ________. Fill in the blank. Nightmare maybe?

Oh yes - there were plenty of greedy consumers! No doubt.

But that doesn't change the fact that the rules changed. And that the picture painted as normal for the times was not real.

Many people rode the wave expecting it to continue, not recognizing that it was an artificially stimulated environment - created to make a few people wealthy.


so where do you place the blame? On the greedy little guy who wanted more house then he could afford? Or on the greedy banking industry that figured a way to move around lots of money without true value? Or on the government for the bailouts? I see everyone pointing fingers at the other guy and nobody shouldering responsibility - just looking for a way out.

This is all true and right to the point.

No but you should seek counsel from an educator..specifically someone skilled in english grammar.

Grammar police alert!

 

[happygirl]

No but you should seek counsel from an educator..specifically someone skilled in english grammar.

Pot meet kettle LOL

 

[Jex]

Pot meet kettle LOL

She was correct, that late night post from my phone was pretty bad. However it could have been worse. I could have used my credit card on a site that a quick Google search shows is not legitimate