Foreclosure in Joppa>Question Details

Cathy, Both Buyer and Seller in Joppa, MD

My husband lost his job and we now can't afford the mortgage. Our home has lost value and we are being told

Asked by Cathy, Joppa, MD Sun Feb 1, 2009

that we can only sell for no more than $299,000 at most, we owe $287,000 so after paying a realtor I'm sure we will owe. We need to make some money to move. We are going to foreclose and hope to bank what we can make a month to put away. I have 2 questions - If we can make one months payment and miss 2 after that but can make the next months but miss the next, are we in the foreclosure process because we have missed 3 payments or 4 payments but not consecutively?

Once a person forecloses are they ever able to buy a home again .. and if just one spouses credit has the foreclose and not the other, will that person be able to buy a home if there name was not on the mortgage but on the deed?

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4
Cathy,
As a real estate agent I cannot offer legal advice, I can say that in Maryland a lender cannot begin foreclosure proceedings until you are 90 days late. From there it takes another 3-4 weeks before an auction can take place and another 30 days for the sale to be ratified by the courts.

First you need to decide if you want to keep the home. Depending on your situation you may qualify for a loan modification which could possibly reduce your payments to 31% of your current gross income. There is specific criteria that must be met and much of that depends the type of loan you currently have.

If you do not want to keep your home or feel you can't, you may have options to do a short sale or a deed-in-lieu of foreclosure. A short sale is where the home is sold for less than what is currently owed and a deed-in-lieu you basically are giving the house back to the lender. Beginning April 5th (and in some cases sooner) there will be new guidelines in place regarding short sales and deed-in-lieu’ s which will hopefully make the process much easier than it has been in the past. The new guidelines are not mandatory for lenders to follow, however my research tells me that about 85% of lenders have agreed to participate. In the new guidelines there is an allowance for a seller to receive $1,500 back to use towards relocation expenses.

All of the options available will affect your credit, even a loan modification. Loan modifications are supposed to reflect the least amount of damage to the credit, followed by short sale, then deed-in-lieu and finally the most damaging, foreclosure. Under short sales, deed-in-lieu and foreclosure you would be able to purchase another home in the future, but each process carries its own waiting period and requirement of re-established credit. FHA recently announced that if you are not currently behind on your mortgage and need to do a short sale, they will allow one to immediately re-purchase another home so long as they meet the regular underwriting criteria.

Cathy, I am local to your area and if I can be of any assistance to you, please do not hesitate to contact me. I also have an informational website that will explain things in more detail, just long onto mdforeclosurealternatives.com.
0 votes Thank Flag Link Wed Feb 10, 2010
Cathy I am not a broker nor agent, therefore, I can not give any advice in regards to your question. But I can offer you and your husband opportunity to make some money. If you both are serious about making some money please contact me at legallypassgo@gmail.com and I can further discuss this opportunity. You may or may not be interested but what would it cost you? Just a little bit of your time which I understand is precious. Hope to hear from both you and your husband Cathy.
0 votes Thank Flag Link Wed Feb 10, 2010
The site below may provide answers to your questions on short sales, foreclosures, and bank owned homes. Good luck.
0 votes Thank Flag Link Sat Feb 7, 2009
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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Cathy - A bank typically will notify an owner and inform them of foreclosure, have you recieved that notice yet? My advice to you would be to contact your bank, and see if you can work out putting the missed payments on the end of the loan, or seek a loan modification/renegotiation... doing nothing is the worst thing to do, being proactive and speaking with the bank is a great start.

Foreclosure does ding the credit pretty badly, but it does not necessarily mean you can't ever buy a home, a short sale is easier to recover from, that is where the bank will accept less than what is owed. I always advise people to speak with their attorney on these matters.
0 votes Thank Flag Link Sun Feb 1, 2009
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