House Foreclosure Questions

kilee

DIS Veteran
Joined
Jan 20, 2003
Messages
9,456
I have some questions regarding what happens if your home goes into foreclosure.
Alittle background-- dh and I first off have a privately held mortgage. However, we hold the title, went through closing, all the same as a traditional mortgage. The mortgage holders is not the type that would be willing to work anything out. She has more money than she know what to do with and thinks everyone must.
That being said dh and I are getting in way over our heads. Since the week of 4th of July work has been terrible for him. Usually is right around the 4th, but it usually picks back up by the end of July. It hasn't picked back up at his work or in the industry. He was bringing home an average of $1300-1500 biweekly. Since that week we've been seeing $300-500 avg bi-weekly. That is a massive paycut as anyone can see.
We didn't have any savings it was all spent on a medical crisis that happened a few years ago. That being said, we are also in the middle of a current bankruptcy (chpt 13). We are really not poor money managers, just a series of bad events. Just to avoid the "flames"-- our bankruptcy did not have 1 single credit card in it, nor do we carry credit cards. We had over $85,000 in debt from a staph infection from a kidney stone that wound my dh in critical condition. We had no health insurance to cover the ordeal. We were trying to pay back what we could- but there was 4 hospitals involved, 4 weeks of meds from a visting nurse company at $700 a day, 3 surgeries, more doctors than you can shake a stick at... you get the picture. We couldn't even send everyone $20.00/month and have any money left. This would of been compounded on $10,000 in medical bills I was trying to pay from a surgery I had a few months previous. They started getting judgements, going after our bank accts, ect... we felt we had no choice but to file. They are now getting a portion paid back, but it's much more managable.
Fast forward, I now work 2 jobs and ebay like crazy. Dh works fulltime as a truck driver hauling steel- and it wouldn't be possible for him to pull a second job, he doesn't know when he'll be home. I am starting a 3rd job this Thursday. So, we are physically tapped out on hrs to work. DH hasn't wanted to leave his job because of the benefits and such. The industry is bad on a whole, and he feels he needs to give it a while longer to "tough it out".
Now my questions..........
I cannot and will not be able to pay my village property taxes that are due on 9/30, nor can I pay my mortgage that was due 9/1, nor will I be able to pay the school tax due on 11/1. We had a major car repair that I HAVE to get my car out of hock w/ what little money I have left. They've had the car for a few weeks (I couldn't pay it), and I'm going to be racking up $5/day storage fee if I don't get it this week. I am behind on my utilities, they are to the point I cannot put them off any further, otherwise they'll get shut off. So I am pretty much left w/ little to no money. So while everything else is going up weekly (gas, milk, electric, ect), our pay is going steadily down. My one job my hrs were recently cut and I haven't see a raise in 5 yrs, the other job they just cut our pay- bringing my check down about $20/week. My ebay sales- well for the first time in 4 yrs they are down 45% this year. It's just been an awful financial year.

So, if I cannot pay these things, how does foreclosure work?? The judge when we filed bankruptcy told us if we miss just 1 pymt the mortgage holder could go after a foreclosure notice. Do you get any notice to get out of the house and move? I am stressed to the point I've been having chest pains the last few weeks and I am crying all the time. I feel lost, embarassed, and ashamed. I've posted this 3 times and erased before I actually posted. However, I feel like I need a little background info of what could happen to start preparing for the worst.
 
I don't know the answer but I wanted to say I'm sorry about all that has happened to you. It must be really difficult to deal with everything falling apart at once. Could you try to talk to the morgage holder and work out some kind of payment plan?
 
No flames here, just big :grouphug: Things happen sometimes that are NOT our fault and what you need now is some advice/help - NOT a lecture. That being said, I don't know what the laws are in your state. Here in Washington, it's very difficult to foreclose on a property. If you lose your house, where will you live? Do you have someplace to go? If you are going to pay rent you might as well pay your mortgage, even if it means working 3 or 4 jobs for the next few months. Have you checked with a free legal service company? They are usually in the blue pages in the front of the phone book, they can tell you the foreclosure laws in your state. You can probably even find the info on the web. Best of luck to you, I hope everything works out!
 

sorry don't know foreclosure laws. But maybe you should rethink your jobs if one of them is only giving you 20$ Retail and food service pay more and have plenty of hours to go around!
 
Sorry this thing posted before i was done

i just wanted to also say, hi hope everything gets better :hug: :grouphug:
 
Also check with the HUD laws. There are different plans about paying the payments on a mortgage to avoid foreclosure. I think you can even get payments deferred to the end of the loan.
Good luck on what you decide on. We've been there, done that.
Kim
 
kilee said:
I have some questions regarding what happens if your home goes into foreclosure.
Alittle background-- dh and I first off have a privately held mortgage. However, we hold the title, went through closing, all the same as a traditional mortgage. The mortgage holders is not the type that would be willing to work anything out. She has more money than she know what to do with and thinks everyone must.
That being said dh and I are getting in way over our heads. Since the week of 4th of July work has been terrible for him. Usually is right around the 4th, but it usually picks back up by the end of July. It hasn't picked back up at his work or in the industry. He was bringing home an average of $1300-1500 biweekly. Since that week we've been seeing $300-500 avg bi-weekly. That is a massive paycut as anyone can see.
We didn't have any savings it was all spent on a medical crisis that happened a few years ago. That being said, we are also in the middle of a current bankruptcy (chpt 13). We are really not poor money managers, just a series of bad events. Just to avoid the "flames"-- our bankruptcy did not have 1 single credit card in it, nor do we carry credit cards. We had over $85,000 in debt from a staph infection from a kidney stone that wound my dh in critical condition. We had no health insurance to cover the ordeal. We were trying to pay back what we could- but there was 4 hospitals involved, 4 weeks of meds from a visting nurse company at $700 a day, 3 surgeries, more doctors than you can shake a stick at... you get the picture. We couldn't even send everyone $20.00/month and have any money left. This would of been compounded on $10,000 in medical bills I was trying to pay from a surgery I had a few months previous. They started getting judgements, going after our bank accts, ect... we felt we had no choice but to file. They are now getting a portion paid back, but it's much more managable.
Fast forward, I now work 2 jobs and ebay like crazy. Dh works fulltime as a truck driver hauling steel- and it wouldn't be possible for him to pull a second job, he doesn't know when he'll be home. I am starting a 3rd job this Thursday. So, we are physically tapped out on hrs to work. DH hasn't wanted to leave his job because of the benefits and such. The industry is bad on a whole, and he feels he needs to give it a while longer to "tough it out".
Now my questions..........
I cannot and will not be able to pay my village property taxes that are due on 9/30, nor can I pay my mortgage that was due 9/1, nor will I be able to pay the school tax due on 11/1. We had a major car repair that I HAVE to get my car out of hock w/ what little money I have left. They've had the car for a few weeks (I couldn't pay it), and I'm going to be racking up $5/day storage fee if I don't get it this week. I am behind on my utilities, they are to the point I cannot put them off any further, otherwise they'll get shut off. So I am pretty much left w/ little to no money. So while everything else is going up weekly (gas, milk, electric, ect), our pay is going steadily down. My one job my hrs were recently cut and I haven't see a raise in 5 yrs, the other job they just cut our pay- bringing my check down about $20/week. My ebay sales- well for the first time in 4 yrs they are down 45% this year. It's just been an awful financial year.

So, if I cannot pay these things, how does foreclosure work?? The judge when we filed bankruptcy told us if we miss just 1 pymt the mortgage holder could go after a foreclosure notice. Do you get any notice to get out of the house and move? I am stressed to the point I've been having chest pains the last few weeks and I am crying all the time. I feel lost, embarassed, and ashamed. I've posted this 3 times and erased before I actually posted. However, I feel like I need a little background info of what could happen to start preparing for the worst.


:grouphug: Wow, it takes strength to be very honest. The economy sucks right now and costs keep going up so I can see why you are in your predicament.

I would like to refer you to www.creditboards.com . Those folks are very knowledgable about credit, banktruptcy, etc.

Best wishes to you! :wizard: Please feel free to post an update...
 
First thank you for not flaming.

We cannot get any "credit/loans" until the bankruptcy is discharged (2.5 yrs more), it's not allowed.

The mortgage holder will not work anything out and she'll pay the taxes if she gets the notice we didn't, then go after us. This has been made clear. This women is old and thinks everything should work like clockwork. Like I said she gambles everyday and thinks everyone has that kind of money. She told me once when we were just 2 days late that I better look into welfare if I cannot afford to make my pymts...... :confused3 . I was only late then because of a payroll glitch.

sorry don't know foreclosure laws. But maybe you should rethink your jobs if one of them is only giving you 20$ Retail and food service pay more and have plenty of hours to go around!

I don't make $20, it's $20 less than what I was making per week w/ a pay cut that recently happened. I currently live in a very economically depressed area, it is incredibly hard to find jobs, as there is 1 job for every 30 qualified applicants. I remember just a few years ago Sunday classifieds used to be 20-30 pgs long, now they are 2-3 pgs long. The good news I do start a new job in 2 days. It will pull an extra $600-800 month. We've cut back on everything from cable, even to washing laundry (trying to save on the water bill). We still have internet because my one job is strictly work from home and it's the bread winner on my end. So, we did keep that. This all started w/ dh's income being cut so drastically and we don't know when it will go back up. Thing is he isn't qualified to do anything else that is going to pay more. Unless he can get into a union driving (about 2 more years), the industry he's in pays some of the highest amounts. It was hard to get into to begin w/ and he doesn't want to cut his ties just yet. Because he most likely won't make any more in any other "area" of driving than he is right now. At least if he sticks it out, he has chance things will go back (and they pay 100% of our health insurance- which we have now- so that's a huge plus too).

I'm figuring we'll pay up the utilities by the end of this month, then start socking away for the next month money for an apartment--- depending on how long we'd have. Ironically my mom is a bank manager and she thinks we'd have until early next year before we have to leave. But doesn't know w/ a prvt mortgage.

I want to thank everyone for all the links-- I will be looking at them.
 
Foreclosure with a pending bankruptcy is usually not as easy as one missed payment. Check with your lawyer to find out what your options are.

I think the danger of renting is that you might lose some of the benefit of it being your primary residence. Your home is usually protected under bankruptcy but probably only if you are living there.

:grouphug: Hopefully there will be a light at the end of the tunnel soon.
 
:grouphug: I can't even imagine the stress. Please try to take care of your health thru this. :guilty:

I have no advice, but I'll be thinking of you & DH.

I second the creditboards website. I told a friend about it just about 1 yr ago, & she's really turned their situation around 180 degrees. I'm very proud of her.
 
Was your mortgage in arrears when you filed the chapter 13? Are you on time with your trustee payments? The bank will file a motion for relief from the automatic stay after you miss a few payments...it's usually more than one. It's fixable, but costs money. Another option is to get your case dismissed and refile putting the arrears and taxes into the new chapter 13. Again, more money, but you save your house.

If you can't afford your house and taxes and trustee payments though, you should sell.
 
Sorry about your situation. Processing a foreclosure is not an overnight thing. It will take some time. How much depends on your state laws. I'm going to guess that if you are in Bankruptcy, doing a refi is not a good idea. You will probably end up with a much higher payment due to high interest rates. Most people don't want to deal with a foreclosure. Maybe you can talk to the mortgage holder and do a principal only payment with the additional interest to be added to the note for a while.

ETA - I forgot to mention the selling aspect. If you are in a good market, maybe that is the best bet. Do you have any equity built up yet?
 
I have no advice, just :grouphug: :grouphug: . I can't imagine what you're going through.

Kimya
 
i am sorry no advice on foreclosure, but i would try selling for what its worth or at least for what you owe.. i know thats hard but its better for you in the long run if they dont take it..
weve had a really bad time when i had back surgery and had to file chapter 7 , we did no pay back , but were abe i to reafrim our house and cars
was most Dr. bills..
My heart goes out to you :grouphug: and heres a few hugs for the few days

:grouphug: :grouphug: :grouphug: :grouphug: :grouphug: :grouphug:
God Bless you and dh..










:
 
We are on time w/ the bankruptcy pymts. They are deducted right from my one check. We did seek advice last week from 2 real estate agents. They both pointed to the 8 houses for sale on my street and said it's a terrible market in our area. Doesn't mean we won't try- but 6 of them have been for sale for over a year.

I am going to contact our bankruptcy attorney tomorrow, who is about as helpful as a squid. He never calls back but I'm hoping he can shed some light on my situation if I can reach him.

The mortgage was in arrears by 2 months because our bank accts had been frozen by judgements (long story) for the medical bills. Funds had been deducted by a garnishment order, and of course the money was not returned. That was when we actually bounced a mortgage check not knowing our bank acct was froze. It ended us up behind on those items. It is not why we filed though, we would of been able to catch that back up at the time. We filed to stop the judgements because w/ them we could not afford our monthly bills. It was also at the same timeframe our village and county tax were due, and the attorney told us and I quote "go ahead and just add these into the bankruptcy" it will give you some extra money and a chance to get ahead. We had all intentions of paying those taxes then, but he was the attorney and it seemed like a good idea at the time. This is why the judge said we cannot miss or be late I think..... :confused3 .
 
I remember reading a magazine article about someone's foreclosure, the one thing that stuck with me was not to move. They had moved out when they got the first notice and it would have been much better if they had stayed. The foreclosure took awhile and they would have had more options had they stayed.

The best thing is to try and get some legal advice. You probably have more options than you think.

Good luck.
 
kilee said:
We are on time w/ the bankruptcy pymts. They are deducted right from my one check. We did seek advice last week from 2 real estate agents. They both pointed to the 8 houses for sale on my street and said it's a terrible market in our area. Doesn't mean we won't try- but 6 of them have been for sale for over a year.

I am going to contact our bankruptcy attorney tomorrow, who is about as helpful as a squid. He never calls back but I'm hoping he can shed some light on my situation if I can reach him.

The mortgage was in arrears by 2 months because our bank accts had been frozen by judgements (long story) for the medical bills. Funds had been deducted by a garnishment order, and of course the money was not returned. That was when we actually bounced a mortgage check not knowing our bank acct was froze. It ended us up behind on those items. It is not why we filed though, we would of been able to catch that back up at the time. We filed to stop the judgements because w/ them we could not afford our monthly bills. It was also at the same timeframe our village and county tax were due, and the attorney told us and I quote "go ahead and just add these into the bankruptcy" it will give you some extra money and a chance to get ahead. We had all intentions of paying those taxes then, but he was the attorney and it seemed like a good idea at the time. This is why the judge said we cannot miss or be late I think..... :confused3 .

Well, I work for a BK atty and deal with this on a daily basis. I would suggest you make an appt. to meet with the atty, I wouldn't bother with phone calls. It's really hard to discuss these things over the phone without feeling rushed by them because they are so busy. The appts in the office come before phone calls and I'm sure that's how it works in most offices.

If you cannot find a buyer for the property, the actual sale of your property by the bank takes a while. Usually months. You will get notice in the mail of the sale date. They first have to file motion for relief with the bankruptcy court and they cannot do anything until after they receive an Order lifting the automatic stay from the BK judge. Then they have to get a sale date.
 
Thank you-- I will definetly call for an appt then. This helps a lot to know this does happen and there might be options.
 


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