House Foreclosure Questions

[CarolA]

You can't refinance a house and get a new lender while in BK without court permission and the pay off of the BK is required.

You cannot NOT list an asset such as a house on a BK...it just wouldn't be confirmed by the Court and would get dismissed.

I deal with this stuff on a daily basis, so I know what I'm talking about.

I think you are assuming that the new lender is someone who would care. You can do this on a private loan which is what the OP has. If I want to I can loan anyone money regardless of thier bankruptcy status. Unless the person borrowing the money or I wanted them to know the BK court would never know.

It appears my reading was wrong and the OP was in the house at the time of bankruptcy so my assumptions were wrong.

(Trust me, my father did this for his "friends" several times. They moved in and signed a "loan".... LOL ! Basically they were buying the house from him as a private lender. Had the courts ever looked it would have looked just like a rental, but it wasn't... got interesting when they didn't pay.)

 

[DisneyGirl4188]

First of all hugs to you!!!! Your story is going to be more and more common. My sister just lost her home and my heart breaks for her. She had her loan through a bank and was in MI. They both lost their jobs, found jobs working more hours at a much lower wage but were trying so hard to make it! They would send the bank all they could but kept getting futher behind, couldnt pay the utilities, etc. They were behind for several months when they recieved notice of forclusure. They had 2 months to come up with the cash to make the loan current. They couldnt (and didnt ask any family for help) and the house was put up for auction. As I understood it the offer had to be more than the loan amount due for the house to sell. (They were still living at the house) The sherrif did the paper bid auction and the house was sold for more than the amount due. This was in Jan, they had untill July 7 to vacate or come up with the full payment amount (that part confuses me but that was the paperwork) They moved out on July 6. So you dont have to be out tomarrow unless a private loan is much different.
Maybe try a diff lawyer? Or there has to be someone who might be able to help. Good luck, I dont think some people realize how hard some areas have been hit!

Anytime a home goes into foreclosure, attorney fees are assessed. So, if you only owe $100,000 on the home you would have to pay that PLUS the attorney fees (the same goes for reinstating the loan).

The earlier you reinstate/payoff the loan the less the fees will be.

There are times that a home will sell, but the mortgagor can still get the home back (it isn't often, but it can be done).

You will be given time to get all your possessions after a home sells.

 

[mickeysgal]

Just wanted to wish you all the best.

I can't imagine the stress you're under right now. Kudos to you for being so straightforward on these boards. You're certainly wearing your heart on your sleeve.

Please let us know how you're doing.

 

[mickeysgal]

Sorry to hear about your awful problems -- certainly proves that we DO have a healthcare crisis in this country.

Isn't that the sad, awful truth!

 

[summerrluvv]

I think you are assuming that the new lender is someone who would care. You can do this on a private loan which is what the OP has. If I want to I can loan anyone money regardless of thier bankruptcy status. Unless the person borrowing the money or I wanted them to know the BK court would never know.

It appears my reading was wrong and the OP was in the house at the time of bankruptcy so my assumptions were wrong.

(Trust me, my father did this for his "friends" several times. They moved in and signed a "loan".... LOL ! Basically they were buying the house from him as a private lender. Had the courts ever looked it would have looked just like a rental, but it wasn't... got interesting when they didn't pay.)

You can loan me money to pay off my current mortgage, but you as the lender will still be listed as the lienholder on the deed that is on file with the clerk's office with the home being in my name.
The trustee runs an asset search and would pick up on this. You can't just hide the fact that you owe someone money like that, unless the private lender doesn't list themselves on the deed and therefore has absolutely no recourse to collect on the loan and would not be able to foreclose on a property that they had no deeded interest in.

 

[kilee]

I can't imagine the stress you're under right now. Kudos to you for being so straightforward on these boards. You're certainly wearing your heart on your sleeve.

It was a huge step in some aspects. I feel I just have nothing more to hide.....I needed some advice. Not that I think the DIS boards know all, but sometimes there is usually someone who can point you in the right direction. Which I am so grateful happened here. I was prepared for the flames, thankfully they didn't come. Thanks again...

 

[cherielln]

I'm so sorry for your troubles. If the mortgage is privately held with an investor you should be able to work things out by having a heart to heart with her. Maybe consider looking for a mediator to help you when you talk to her. The Buffalo New York area is being hit very hard economically, especially in real estate. As an investor SHE DOES NOT want to have to sell that house right now. She could actually lose money on the investment. If you go on bid4assets, ebay, or any number of realtor websites (I can't put the url's in this email) you will see how low houses are going for in that area and get an idea what I mean. If she is old she might not understand that the prices are in a downturn. If you have any friends that are realtors ask them to do an analysis of your home for what it would sell for. You could use this to talk with your lender or if you find you do have equity in it you could sell it. If you go the sales route you should price it to sell fast because time is not on your side. Maybe even consider contacting one of those "I buy Houses" investors. They won't give you much but they might save you from having a foreclosure on your credit.

Regarding the laws in NY state - I'm not sure but you can easily access them online by doing a google search. Whatever you do, do not let your fear cause you to do nothing. That's the worst thing you can do.

Good luck,
-Cheri

 

[summerrluvv]

If you go the sales route you should price it to sell fast because time is not on your side. Maybe even consider contacting one of those "I buy Houses" investors. They won't give you much but they might save you from having a foreclosure on your credit.



Good luck,
-Cheri

No offense, but worst advice ever. Those "I buy your foreclosure" deals are scams 90% of the time. We had a woman come in recently that fell victim to one of those and she was paid $5,000 for her house that was worth a ton more than she owed to the bank. They forged her deed, put lawyers names on the contract that didn't facilitate the deal and the house still ended up in foreclosure. That's just one story out of a bunch that happen every single day because these creeps prey on vulnerable people scared of losing it all.

 

[claudia]

I have no advice to offer you, but I can offer I am so sorry for all that you are going through....

 

[casey49781]

to you and your dh,,,this happens alot to good people, doesnt mean you are still not a good person,,,, best of luck to you and your family, it will get better,,,,,

 

[CarolAnnC]

I am so sorry to hear of these financial woes. I will keep you in my prayers and I have faith that things will turn around for you. Hugs..

 

[kilee]

I really do want to thank everyone once again for all the advice and kind thoughts. I really took a huge leap in opening up, for fear of a huge flaming when I don't think I could of taken anymore.

Bright side-- things are a tiny bit better. A bunch of guys (almost 2 dozen)left dh's work all at once(over a 10 day period). Pretty much running scared over the lack of work and pay, as it really came out of no where. Well, it helped us because less guys means there has been a bit more work to go around. DH's checks have been better, not where they were before, but much better. At least to the point I can manage them a bit more.

I contacted our bankruptcy attorney who is filing w/ the court to have our pymts lowered. W/ the decrease in income, and the fact many of our medical providers didn't file, he said we could probably drop the pymts by about 30%. This does mean they will go the original 5 full yrs, but it will help for now.

I did start that new job I mentioned, I've managed to find a few extra projects there. I talked to the doctor there, and he has been giving me an extra day's work above and beyond what I was hired for. So, for the meantime it's helping. I just sent a check to catch the mortgage right up through now. Our next pymt is due 10/1 and I should be able to make it by 10/15. Not ideal but better than I was looking at I should say.

Now, the taxes are still hanging over our heads. The village tax will go to the county for collection on Monday. However, we should be able to pay it by the end of the year. That is the only wrench in the plan right now. If the mortgage holder gets the notice we didn't pay the taxes (which I have informed her of), she may take it upon herself to pay them and go after us for them. When she can then demand them paid to her in 30 days I guess (this is what the attorney told us). So, we are doing everything we can right now to scrimp and save to get them together. My mom did say if we fall short we could borrow a cash advance from her credit card. I really don't want to go that route for anything though. #1 it would cost us more to pay back, #2 my mom's not good about lending money anyhow. It could cause problems in the long run w/ our relationship. So, who knows on that one for now.

 

[MissMinnie]

Sorry to hear about your financial problems and glad there is some relief coming your way. Hang in there. I went through a bad time a few years ago after a layoff, and know how you feel.