Going from a foreclosured home to a new one before foreclosure is over...????

[thelittlemermaid]

How in the world does someone go from having a house in forclosure and then turn around and buy a new house before the forclosure is over with? It seems a person in the family is engaged to such a person who has done this. In the mist of all this besides buying a new house they just put in a new pool, went on a cruise and after the cruise went to Disney World. This whole trip was over the course of 2 weeks.

WTH!?!?! What is my DH and I doing wrong? We would love to have a new house, but would never dream of just letting it go back to the bank.

It seems like if you don't play by the rules you get everything. If you do play by the rules you get crapped on!

So frustrated!!!

 

[Luvchefmic]

How in the world does someone go from having a house in forclosure and then turn around and buy a new house before the forclosure is over with? It seems a person in the family is engaged to such a person who has done this. In the mist of all this besides buying a new house they just put in a new pool, went on a cruise and after the cruise went to Disney World. This whole trip was over the course of 2 weeks.

WTH!?!?! What is my DH and I doing wrong? We would love to have a new house, but would never dream of just letting it go back to the bank.

It seems like if you don't play by the rules you get everything. If you do play by the rules you get crapped on!
So frustrated!!!

See I don't believe that in the long run...we struggle ...day to day financially , get through another day and do it all again tomorrow with gratitude. We hold our heads up high and have a clear conscience (sp?) sounds to me you & DH are doing everything right I wouldn't give a seconds worth of thought to what they are doing.

 

[wdwfan16]

How in the world does someone go from having a house in forclosure and then turn around and buy a new house before the forclosure is over with? It seems a person in the family is engaged to such a person who has done this. In the mist of all this besides buying a new house they just put in a new pool, went on a cruise and after the cruise went to Disney World. This whole trip was over the course of 2 weeks.

WTH!?!?! What is my DH and I doing wrong? We would love to have a new house, but would never dream of just letting it go back to the bank.

It seems like if you don't play by the rules you get everything. If you do play by the rules you get crapped on!

So frustrated!!!

It is possible he stopped making payments and banked the mortgage. A $3K mortgage is $36K in the bank after a year. It is also possible that they used your family member's credit to buy the house.

In the short term it may seem like you are being cheated when you play by the ruled but you win over the long term. It is best not to worry how others have X and you don't and just focus on what you have.

 

[thelittlemermaid]

It is possible he stopped making payments and banked the mortgage. A $3K mortgage is $36K in the bank after a year. It is also possible that they used your family member's credit to buy the house.

In the short term it may seem like you are being cheated when you play by the ruled but you win over the long term. It is best not to worry how others have X and you don't and just focus on what you have.

Nope, didn't use family members credit. She is no where listed, it's in his name only. The cost of the new home was $93,500. Foreclosure went to court on 6/2/2010 and the new house was bought at the end of 2009. Don't see how this could be done or even allowed....

It just gets to me cause of these foreclosured homes my DH and I can not sell our house and make any sort of a profit. If we sold our house for what the auditor says its worth, we would still owe the bank around $20K cause of property values going down cause of foreclosures.

 

[manhattan]

I totally agree with OP! And I have even had people tell me that they are not going to pay their mortgage and use that money for cruises! DH and I think the same thing, we work and are honest, but it seems everyone else is doing things by a different set of rules. One person even sat with my DH and gave him a step by step on how to get the system to work for us. I just can't do it....

 

[Alexander]

I know others have said to not let this bother you, but there are so many people out there milking the system, it is crazy frustrating! We pay some of the highest state taxes in the country and it makes me so mad to watch people living off my taxes because they don't want to work. And I don't want to hear about how they "want" to work, but there are just no jobs.

Welfare used to be a safety net to hold you up until you could get back on your feet, today it is a hammock with generations of families laying around in it!

 

[crisi]

Some people commit fraud.

 

[cglaura]

Also look at it in the long term. By doing everthing honest and correctly now, it xx amount of years when you are ready to retire, you will probably have no mortgage and good savings.

People who live like your family member, often don't plan for the future. They want what they want and they want it now.

So in xx amount of years you will be able to relax, and they will still probably be working working working.

I firmly believe you get what you give in this world. It may take a long time for that good to come back to you, but it will.

In any case, at least you can sleep easy knowing you were true to yourself and a good honest human being.

 

[secretpantssam]

Also look at it in the long term. By doing everthing honest and correctly now, it xx amount of years when you are ready to retire, you will probably have no mortgage and good savings.

People who live like your family member, often don't plan for the future. They want what they want and they want it now.

So in xx amount of years you will be able to relax, and they will still probably be working working working.

I firmly believe you get what you give in this world. It may take a long time for that good to come back to you, but it will.

In any case, at least you can sleep easy knowing you were true to yourself and a good honest human being.

This is very true! You may forget about why you're working hard and being honest, but it will pay off in the end!

 

[bettymae1121]

If a bank is stupid enough to give a person a mortgage with in moments of them being foreclosed on, the bank deserves what it gets, quite frankly. Responsibility works both ways, lenders also need to have some common sense before handing out tens of thousands of dollars to people.

When posters on the DIS post about how they are mad at their deadbeat friend/relative/co-worker that they loaned that person money and never got repayed, about 99% of the replies are "you knew they were a deadbeat...why did you loan them money in the first place?". Same thing applies to banks. You knew they had a 500 credit score and a recent foreclosure, and you lended to them anyway. Don't be surprised if this bites you in the butt, Mr. Smarty-Pants Mega-Bank.

Anyway, I know sometimes it's easier said than done but I don't worry about what other people do, I just worry about what I'm doing. I have enough stress without getting mad at others cheating the system. I only worry about it at the voting booth, when deciding who to vote for (someone looking to change the system to cut down on fraud, for example). Beyond that, I just "keep my eyes on my paper" as my teachers used to say!

 

[MrsPete]

Also look at it in the long term. By doing everthing honest and correctly now, it xx amount of years when you are ready to retire, you will probably have no mortgage and good savings . . . So in xx amount of years you will be able to relax, and they will still probably be working working working . . .

I'd like to believe that, but in my more cynical moments I think that those people who didn't save will be receiving social security checks and medical benefits, while those of us who worked and saved will be told, "Sorry, you don't need it as much as other people".

 

[MrsPete]

If a bank is stupid enough to give a person a mortgage with in moments of them being foreclosed on, the bank deserves what it gets, quite frankly. Responsibility works both ways, lenders also need to have some common sense before handing out tens of thousands of dollars to people.

While I agree with you, there's really very little risk for the bank. Customer defaulted on a loan? No biggie: His PMI insurance will take care of your loss, and you can sell the house. Also, the taxpayers'll give you a nice, fat bailout.

 

[DreadpiratK]

Until a foreclosure is final, it does not appear on a credit report, however the late payments that led to the foreclosure do, so I don't know how people do it. Seems like there must be some kind of shady dealings going on there. But, rest assured that person is likely to be in for foreclosure again in a few years, and eventually it will catch up with them in a big way. Once you've lived high on the hog by not paying your debts, it's awfully tempting to do it again, and again, and eventually it all collapses around you. At least I want to think that!

 

[Colleen27]

Well, that's the trick - to do it before the foreclosure hits the credit report and does so much damage that buying or even renting anything decent will be completely out of the question. We've known some people who have downsized that way when foreclosure was inevitable and there was no way to sell the larger, more expensive house in this market. So they stop paying the mortgage, bank the payments, and either pay cash or get a much smaller mortgage on a new, more modest home.

I hate reading about people who are doing that just to have more disposable income, because it'll be outrage over those people that ends up causing changes in the rules and policies that will keep people like our friends and neighbors - who lost jobs, burned through savings, and ended up in positions earning a fraction of what they need to make ends meet - from having even that desperate, last-ditch option for staying out of the trap of being evicted without the credit rating to secure even a decent rental.

 

[thelittlemermaid]

Thanks everyone for the replies!

I know I shouldn't let it get to me, but when she is posting to Facebook saying how they have just moved into their new house, putting in a new pool, etc. She's throwing it into anyones face who can read her status. Then she posts how they are going on a cruise and going to Disney World afterwards and that their vaca will be a good 2 weeks, I just want to pull her through my laptop and slap her.

You know what they say about Karma, I hope it comes back and bites her and him in the butt!

 

[crisi]

If it bugs you, report them to the IRS. People playing these games are usually cheating on their taxes, too.

 

[czycropper]

OP - trust me that it will be coming back to bite and I would say within the next couple of years. The new law that went into effect is going to take care of that - their is a clause that says that all mortgages given in the last couple of years will be "looked & reviewed" in an effort to prevent what's happened in the past - I have this information from a friend who is an Ex. VP at a bank and the banks are a little upset that they have to do it. So sooner or later it will come out for your relative.

 

[TnTWalter]

she is marrying the loser. Karma. Right there.

 

[herdtoDisney]

OP, I understand how you feel! With my family, we were priced out of a home during the peak years (despite both working) and we rented, all the while watching other people taking crazy mortgages and HELOCS and buying everything in sight. Meanwhile, people acted like we were losers for renting an apt with all our kids.

When everything crashed, we ended up getting our beloved home, which had been way out of our range in the peak! It was a foreclosure. I kind of felt bad for the people who had lost it-but, kind of didn't either, because apparently they had bought two houses with the idea of 'flipping' them, and lost them both...but not before filling my house with garbage and causing damage.

Anyhow, it's funny how things work out.

 

[nunzia]

I know others have said to not let this bother you, but there are so many people out there milking the system, it is crazy frustrating! We pay some of the highest state taxes in the country and it makes me so mad to watch people living off my taxes because they don't want to work. And I don't want to hear about how they "want" to work, but there are just no jobs.

Welfare used to be a safety net to hold you up until you could get back on your feet, today it is a hammock with generations of families laying around in it!

I agree with everything this poster said..I see it every day...