House Foreclosure Questions

[summerrluvv]

Thank you-- I will definetly call for an appt then. This helps a lot to know this does happen and there might be options.

It happens much more often than people think. The foreclosure rate in our area is at it's highest, especially amongst those with ARM. The rates are going up, along with taxes and everything else and the payments are just out of their reach. It's a tough situation, but everything will work out in the end, it always does. Good luck

 

[SillyMe]

I hope everything works out for you.

 

[Aimeedyan]

No advice but did want to offer

I watched my dad face a similar situation as your own and it was painful to not be able to help him at all. He was able to sell his home before the foreclosure and lost a lot of money on what it *should* have gone for but it was worth it to him to not have the foreclosure on his record. I don't know if that is the right answer or not but just what he and his lawyer decided was the best.

 

[CarolA]

As I read this, I keep coming back to two things...
1. It's not a traditional mortgage. While there are laws that protect you, by going this route you may have give the lender a way around them... Take your mortgage agreement and ALL other documents regarding this house to the lawyer with you. (And if you hold the deed that may make things harder on the creditor....I am not sure what you mean by title since I equate that with a car not a house)
2. I get the feeling that once you get over this crisis it might be worth considering selling this house EVEN at a loss.... I am reading between the lines and I may be wrong, but it appears to me that the mortgage payments are taking a HUGE chunk of your income. If you could sell it for the outstanding debt and move into a cheap rental that might be the way to go.

I agree with your DH as you already know insurance is NOT something that you can afford to do without.... However, he might consider looking for some temp work??

 

[summerrluvv]

As I read this, I keep coming back to two things...
1. It's not a traditional mortgage. While there are laws that protect you, by going this route you may have give the lender a way around them... Take your mortgage agreement and ALL other documents regarding this house to the lawyer with you. (And if you hold the deed that may make things harder on the creditor....I am not sure what you mean by title since I equate that with a car not a house)
2. I get the feeling that once you get over this crisis it might be worth considering selling this house EVEN at a loss.... I am reading between the lines and I may be wrong, but it appears to me that the mortgage payments are taking a HUGE chunk of your income. If you could sell it for the outstanding debt and move into a cheap rental that might be the way to go.

I agree with your DH as you already know insurance is NOT something that you can afford to do without.... However, he might consider looking for some temp work??

When someone is in BK, the BK trustee owns the house basically....so the lender would not be able to just take the house from them without going through the proper channels.

 

[CarolA]

When someone is in BK, the BK trustee owns the house basically....so the lender would not be able to just take the house from them without going through the proper channels.

That would NORMALLY be true, but as I read the OP I don't think this house was included in the bankruptcy, that's part of what I meant by them giving up some of thier protection by using this private financing....It does not sound like the house is being paid as part of the bankruptcy but is seperate debt to the bankrutpcy. (Sounds like a mess to me!) My dad did this for someone one time, carried the note since they couldn't qualify and when they didn't pay it was more like evicting a leasee then a homeowner and therefore easier....

 

[Sherri]

Good luck with everything. I'm glad you did decide to post, if nothing else, you can always get support from the disboard. It sounds like a lot of good advice was given to. I'm sure things have to be very difficult now, just hang in there.

 

[summerrluvv]

That would NORMALLY be true, but as I read the OP I don't think this house was included in the bankruptcy, that's part of what I meant by them giving up some of thier protection by using this private financing....It does not sound like the house is being paid as part of the bankruptcy but is seperate debt to the bankrutpcy. (Sounds like a mess to me!) My dad did this for someone one time, carried the note since they couldn't qualify and when they didn't pay it was more like evicting a leasee then a homeowner and therefore easier....

If you own a house and it's in your name, it's an asset and is always included in a BK, regardless of the financing.

 

[CarolA]

Yes, but if you finance it AFTER the bankruptcy etc. then that debt is NOT in the bankruptcy...... (or if you didn't list the debt in bankruptcy... I have seen folks attempt to do that!)

 

[lucyanna girl]

I don't have any advice but I did want to say how sorry I am for all your troubles. And yes, I can understand all too well how things beyond your control can fall on you like a stack of domino's. Take heart, as my DH says "No one stays on top forever and no one stays on bottom either". It sounds to me as if you and your DH are doing all you possibly can.



Penny

 

[kimmikayb]

Don't ya just hate money problems? And it stresses you out so much, which makes it worse because you feel sick....sending you lots of

You've gotten some good advice. I do know foreclosure usually takes a long time. Could it possibly be that your DH's work will pick up soon, combined with your new job...mabye things will get better soon??

 

[missypie]

The time a foreclosure takes varies greatly from state to state; in some states it takes 6 months, in othrs less than two months.

Here is my advice: Call the closest law school to you and ask if they have a legal clinic. If they don't, call the next closest one, until you find a legal clinic that will help you. The students at the legal clinic will be very birght, very motivated to help you, and will be suiprvised by an experienced attorney. Wish I could help more, but it woudl be malpractice if I gave foreclosure advise for any state other than the one in which I am licensed. Good luck!

 

[ClarabelleCowFan]

So sorry you are going thru this.

 

[kilee]

The 2 past due pymts were included in the bankruptcy. We were then told we were of course responsible for all pymts thereafter. Along w/ all taxes. Which is the other huge issue here. I owe a village tax of almost $2000 by 9/30 and a school tax of $3000 by 11/1. If we don't pay them, then the mortgage holder will get the notice. She will then pay them right away, I know she will.

I really don't have any time in the near futre I think I could pay the taxes. I could possibly get the mortgage caught up by the end of the year- but definetly not the property taxes, and I have another that will be due in February.

Another part of the problem is the bankruptcy payments are based on dh's higher income. So, right now they are eating up a HUGE portion of our pay. I'd say 70% of our overall income w/ the money he's making right now. That just doesn't leave enough no matter what way you cut it for us to make ends meet. Now we were supposed to be in a 5yr repayment plan. We are about 18 months in and we only have just a few months over 2 yrs. Because many of the debt holders did not file a claim. I have requested from our lawyer twice about filing to have our payments reduced and respread over the remaining time of the 5yrs. I get no response either way. That would help a lot, it would make the pymts almost 1/2 of what they are. Which would be more suitable w/ the huge decrease in dh's income.

 

[Longsx3]

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.

It sounds like you could convert your Chapter 13 to a 7 include the house in BK and avoid the foreclosure on your credit report. Check with your attorney.

 

[summerrluvv]

Yes, but if you finance it AFTER the bankruptcy etc. then that debt is NOT in the bankruptcy...... (or if you didn't list the debt in bankruptcy... I have seen folks attempt to do that!)

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.

 

[DisneyGirl4188]

First,

Second, I haven't read through all the responses, so this may have been addressed already.

Foreclosures do vary from state to state. In MD, it can take as little as 2 months. In DE, it can takes YEARS. I'm not sure about NY.

When the home goes into foreclosure you will receive a notice (actually, you should receive a demand letter prior to foreclosure. You will be given an amount to pay to bring it current. If you can't, then it will go to foreclosure).

After it is in foreclosure, you can either reinstate (bring current) or payoff. You can try to sell the home will it is in foreclosure, so you can look into that route.

Depending on the state, notices will be filed in the paper, so you may have people calling you or coming to look at the property (they want to see what it looks like in case they buy it at the foreclosure sale).

There may be people offering to reinstate the loan for you, but be VERY CAREFUL. Usually, they will reinstate the loan and you will then have to pay them back. If you default, the home goes to them (no foreclosure). They may also offer to buy your home, and then let you rent. Again, be very careful.

If the home goes to sale and is bought the new owners should notify you of when to be out. If you don't go willingly, they will begin eviction proceedings. This can also happen if the home reverts back to the bank. Again, eviction proceedings can vary as to the time.

It never hurts to speak to the bank and explain the situation. Many times, they will be willing to work with you and set up payment arrangments (either rewrite the mortgage or just have a separate agreement in regards to the payment). I know you aren't in a conventional mortgage, but you can still try and make arrangements.

Now, since you have an attorney, he will need to be the one contacting the attorney handling the foreclosure. If you aren't happy with your current attorney, you need to find someone else.

The above information is what happens in a standard foreclosure. Since you also are in a BK, then some of this may change. You need to speak to an attorney though.

(I used to work for a bankruptcy attorney for the bank. If you need more information I am happy to help, but I don't have experience with NY, only DC, MD, VA, DE, and WV).

Good Luck.

 

[tar heel]

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

I don't know anything about foreclosure, but one thing that struck me is that you seem to be doing everything you can to bring in extra $. I realize your DH has a full-time job and just isn't being scheduled, but couldn't he pick up some temp work? Obviously, his regular job would come first and he would cancel if he got called in for regular work. This isn't ideal, of course, but you are in a true crisis and every cent would help.

 

[budbeerlady]

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!

 

[kilee]

I should clarify-- w/ dh's work he hauls steal. It goes from Buffalo, NY to either places in Toronoto, Chicago, Detroit, and Geary (IN), rarely to Ohio. The problem being, he's still working all week, just not making the same. He leaves usually on Sunday or Monday- is home late Friday night or Saturday morning. He also gets home 1 or 2 times during the week for a few hrs. (long enough to have a meal, shower, and go back). Problem being, things are really slow and they are only getting 1/4 of the weight/loads they were getting meaning a huge cut in pay. So far this week is already better. He's leaving shortly for his 3 "run" and it's a 3rd full load for this week. That hasn't happened in a few months. So, he wouldn't be home to work another job.

I was just wondering if I'd come home from work one day and not be able to get into our house and we'd be out all our stuff inside. I was wondering if we'd get more than a few days notice to be out if it comes to that. This has been really worrying me.....I couldn't imagine going through all this but losing all our possessions too. Not that we have much, but it's still ours. We do have an appointment w/ the attorney late next week and we'll see what he recommends doing.

Someone mentioned converting our Chpt 13, but the lawyer put the cars into the bankruptcy....... I don't know why---he said we'd get a better deal on them. I honestly think we should of "shopped around" for an attorney. So, if we converted I don't know what would happen to them. I have a list of questions for him next week. I got a gas shut off notice today......I'm trying to not get discouraged....I do know once you hit rock bottom there is no place to go but up.