This is but one passage in your life. Don't let it get the best of you. A lot of folks have suffered tremendously during the past few years. This hasn't been easy for anyone. You have your whole life ahead of you. Consider this a reprieve and move forward. The best is yet to come.
This is what I help my clients who just closed on a short sale & need to go out & rent. They're not going to look golden on their credit report, so we have to make them look like people who hit a bump in the road, not just another application & a bunch of numbers that the landlord is looking at.
Let me know if you'd like some good pointers for a cover letter for a rental property. My office is constantly getting new rental properties available, we have a property management co. in our building, I could refer you to.
Realtor Since 1996
Main Street Realtors
You have received some good answers here:
1. If your home is not yet foreclosed yet, it is possible to stop the auction. We have a program that does it. Stopping the auction gives you the opportunity to stay in your home for another month or two. Then you try to stop the auction again. We have had people stay in their home for as long as 24 months before the home sold. This also gives you an opportunity to short sell your home and avoid a foreclosure on your credit history.
2. If the home has been foreclosed, someone will contact you representing the bank. Ask for relocation assistance, also known as cash for keys.
3. Regarding deficiency judgments, California passed legislation recently that prevents first mortgage holders from filing deficiency judgments against their borrowers. The whole situation is kind of technical, feel free to call me and I can provide you with more information.
I wish you the best of luck.
ERA Buy America Real Estate Services
I can get auctions postponed, I do this all the time with Wells Fargo, I've postponed auction within hours of it going on the auction block.
It is still possible to get your home sold withOUT your having a foreclosure on your credit.
Please let me help you, I'm just minutes away. Email or call me directly, I don't look back on this same Trulia posting for new answers.
Realtor Since 1996
Main Street Realtors
As far as deficiency judgements/liability, you need to discuss with your tax consultant on that, if you don't have one I can recommend one.
If it has already sold, then it either was purchased by an investor or new homeowner who will want possession soon, or it was not purchased and became Bank Owned/REO (Real Estate Owned). If it is REO, then they tend to move a little slower.
If there is a shortfall, will you receive a deficiency judgement? That depends on various factors. Will you receive a 1099 for the debt forgiveness? Assume yes. Will it be taxable? That depends on various factors, so consult with a CPA.
"What if you home sells for more than your loan balance?" That would be tragic to foreclose a home with equity. Why wouldn't you or didn't sell it with the help of a Realtor?
You have asked some good questions and I understand your worries.
Call me to discuss these important questions.
CA DRE #01384088
I wish you the very best, and if I can be of any assistance, please do not hesitate to call 562-293-4881 or email me LongBeachCoastalteam@gmail.com (Even if ya just wanna talk a bit to feel better)
President Obama signed a bill that states you have 90 days after a foreclosure sale to vacate the property. This may only apply to renters whose landlords have lost the property to foreclosure, but I believe it also has verbage to protect you, the former owner of the property. If the sheriff shows up prior to the end of that 90 days, inform him that you know your rights. You may, in that time, need the services of an attorney to help enforce this right. As for deficiency judgments, certain states allow for them. But let me tell you how that typically goes - a deficiency judgment is an expensive process and has many legalities attached to it for a bank that would pursue it. However, since there is a huge cost to the lender and all of the legal red tape that goes with it - many lenders will not pursue that avenue since they are already out of a lot of money to secure the property, and then maintain it. If it sells for more than the outstanding balance plus attorney's fees and costs, and accruing interest, it may be forfeited to the bank any way. In a foreclosure, the bank is usually the first, and often times, the ONLY person or persons who show up at the auction. After the sale, the new owners, usually the bank itself, informs you that they are the owners and will require you to vacate. But remember this as well - even after a sale such as this -some states, such as Indiana, where I am from, allows you, by law, 1 year after a fc sale to redeem the property. So you SHOULD have time if your state has similar laws. You see, banks do not typically WANT to foreclose because that spells an automatic loss to them, but will pursue it if you do not respond with either money or some kind of legal stay such as a bankruptcy notice. ( and even in bankruptcy, you may end up losing your house anyways due to liquidation. BUT, in a chapter 13, you can continue to stay in your home as long as you are making your regular payments AND the trustee payments of the arrearages as stipulated in your Ch. 13 agreement. If you take the air out of all of this I just wrote, you can say you have 90 days up to 1 year or even more (check fc laws of your state) to vacate or redeem your property.
It seams that you are very advanced in the foreclosure process. However, if the auction hasn't happened yet, you still have a chance to stop foreclosure. The path to avoid foreclosure is:
1) You can apply for modification. That will delay your foreclosure.
2) You can short sell you home through the government sponsored HAFA program and get $3,000 to move out of your home.
3) You can consult a lawyer about bankruptcy that in some cases can stop foreclosure. Please see the video bellow.
It seams that the foreclosure is non-judicial, in this case there is no deficiency judgement. If your house sells for more you will get the difference. Non-judicial foreclosures are faster, the redemption period is 90 days and you have another 20 days after the notice of sale.
To avoid foreclosure, if it did not happened yet, you can try to short sale your house. I can help you with this. Please concact me and I will provide with all your info and help to avoid foreclosure.
Regarding deficiency judgment, California is a non dificency state, so you will not receive that, but there are tax consequeaces.
Please give me a call for more details. I'm a broker for over 11 years and I specialized on Short Sales.
American Investor Properties, Inc.
DRE License # 01294012
835 Ohio Ave.,
Long Beach, CA 90804
Don't worry about the bank but take care of your family now and if it were me I would wait for the cash for keys offer (if it is foreclosed already), if the first offer sounds too low wait it out, they'll probably come up a bit.
Since I live in 90808 as well, I can tell you renting a 3-bed/2-bath house comes in at around $1850-2300 Mo.
God Bless and best wishes!