Foreclosure in North Adams>Question Details

Mgiard777@ao…, Other/Just Looking in North Adams, MA

If my home goes to foreclosure what happen to me financially?

Asked by Mgiard777@aol.com, North Adams, MA Mon Nov 2, 2009

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Anne Meczywor’s answer
If you do decide to try to list and sell, I recommend sticking with a local Realtor who has access to the Berkshire County MLS, since you are located in north Berkshire. If you would like, I can recommend several professionals who have extensive short sale and foreclosure experience who know north Berkshire well and can best market your property where your buyers are most likely to be. They are also likely to be familiar with your lender and your attorney, and can work face to face with them as a team.
0 votes Thank Flag Link Tue Nov 17, 2009
Hello Mgiard 777. Definately research all of your options with professionals before letting your property go to foreclosure. There are options and you have the right to explore those options. Many folks like yourself assume that if foreclosure is eminent, they have no where to turn and let foreclosure take it's course. NOT true!! Email or call me and we can discuss some of these options. I specialize in these types of situations and can help you through it without any cost to you. If I don't hear from you....best of luck to you. arelis@capmitigation.com (413) 726-9022 ext 813
0 votes Thank Flag Link Tue Nov 10, 2009
I see that you are from North Adams. My first question would be, who is your lender? If it is any of the locals, Hoosac Savings, South Adams, Legacy, Greylock, Lee Bank, Williamstown Savings, etc. CALL THEM and try to work things out. Local lenders here will frequently bend over backwards to keep you out of foreclosure. They would reather give you a break now, and keep you as a customer locally for many years to come. Foreclosing costs them a lot of time and money, and they lose the potential interest over the years from the remainder of your loan.

Are you carrying PMI? Depending on the insurer, there may also be options available to you, but you won't know unless you take the initiative and let them know you are willing to step up and get to work. Hiding out, avoiding phone calls and letters will really hurt you. The lender then has no recourse but to foreclose.

Now, if you resorted to a national lender, perhaps someone on-line, your options will be more limitted. Large corporations have page after page of protocols they have to follow, and it it really hard to get them to stray from the script, even if you CAN actually speak to a human at some point.

The advice to get a good attorney and accountant is very good advice. Contact me if you need a referral in that area. I have names in north county of professionals whom I trust. I hope this helps.
0 votes Thank Flag Link Mon Nov 2, 2009
There is no easy answer to this question, since so much depends upon your individual situation. Catherine is right, sometimes a short sale can be a better option, but again, it really depends on your overall financial picture, and whether you have significant debt outside of your mortgage.

In general terms, a foreclosure will keep you from buying another house for 5-7 years--a bankruptcy is 7-10 years. A short sale, done correctly, with prompt and proper credit repair actions begun immediately, could have you back into another home purchase within 3 years.

There have also been numerous incentives offered to lenders to encourage both short sales and loan modifications, both of which are dependent upon your financial situation as the homeowner--they will require the same kinds of paperwork which was required to obtain your loan:
bank statements for 2 months
proof of income for 2 years
other assets

as well as a Hardship Letter, which explains why your financial position has changed.

These are just a few general rules of thumb--you should consult a tax professional as well as an attorney who specializes in foreclosures or bankruptcy to get the complete picture and all ramifications.

Good Luck! Hope this helps.
0 votes Thank Flag Link Mon Nov 2, 2009
You should seek a foreclosure attorney and an accontant. But I was wondering if you tried to do a short sale. This may save your credit score and money more then a foreclosure might.
0 votes Thank Flag Link Mon Nov 2, 2009
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