Foreclosure in Mine Hill>Question Details

Kerry, Other/Just Looking in New Jersey

My mother-in-law is considering foreclosing on her home in New Jersey. The home is worth less than the loan.

Asked by Kerry, New Jersey Thu Apr 2, 2009

She has had it on the market on-and-off for more than a year. She is about to retire and will no longer be able to afford the morgage. She is strongly considering foreclosure. I want to make sure that she is making the right decision and goes about the process correctly. Can anyone give us advice or suggestions on who can help with this process?

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9
Gregory Bain’s answer
Banks are not required to approve every "short" sale that crosses their desk. The difference between what is owed and the sales price can be placed on a 1099 as individual income that the government will want the taxes paid. I want to retire, too. Maybe I'll get advice on how to torch my car and stick it to the insurance company. Or, maybe someone can tell me how get my 401K that is somehow tied into the housing market to show a profit after 20 years of making payments into it.

get a lawyer
Web Reference: http://Ask4Greg.com
1 vote Thank Flag Link Thu Apr 2, 2009
You want advice on how your mother-in-law can stick it to the bank who will stick it to the government who will stick it to the rest of the taxpayers who did not buy a house they can not afford?

Sounds fair to me. Get a lawyer.

free advisor
Web Reference: http://GregoryBain.com
1 vote Thank Flag Link Thu Apr 2, 2009
Your mother in law should also consider Foreclosure Mediation. Foreclosure mediation is an opportunity for qualified homeowners who are facing foreclosure to receive help from housing counselors, attorneys, and a neutral mediator to resolve a loan delinquency.

The program aims to assist homeowners avoid foreclosure by proposing work-out and payment arrangements that balance the interests of the borrower and lender.

See: http://www.judiciary.state.nj.us/civil/foreclosure/mediation.html

My partner and myself are certified foreclosure mediators in New Jersey.

*Please note that this is general information only, and not to be construed as legal advice, if you would like a consultation please feel free to call and make an appointment"
Law Offices of Chang & Scolavino, LLC
Paterson and Freehold, New Jersey
973.925.2525
"Criminal, Real Estate, Litigation and Immigration Law"
"Somos abogados hispanos y entendemos sus problemas"
0 votes Thank Flag Link Sat Apr 4, 2009
Kerry,

Having been forced to live with my Mom due to her medical conditions, I want so deparately to save your Mom form her curent situatuon. Be advised that irregardless of what she might be albe to sell her property for, adult communities to the tune of $75 in OceanCounty may be a option. This will provide her with not only a sense of security, but an envviroment within which she cn can dance, party and attend events that she never thoght she would be able at her age.

Call me for a no obligation consulation, it may just add years to her life and provde yu wtih a peac e of mind that u nhever thought possible . . . I know I never thought it possible fror my mom!

Francesca Parizio, Realtor, ePro
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Fri Apr 3, 2009
Now that the interest rates are at record low and banks are willing to work with homeowners you might have her speak with her lender first explain what is going on. They might work with her to lower her interest rate or extend her loan to a 40 year loan. I would explore all things. It is easy to walk away but it may not be the right thing to do. We are seeing less homes coming on the market because of this and people are buying foreclosed home up in Milwaukee. You Mother in law might have to wait a few years to sell her home but at least she might be able to afford it if she works with the bank.
0 votes Thank Flag Link Fri Apr 3, 2009
Check with a local Realtor and find out what options might be open to your mother in law. Either way, short sale or foreclosure will have an impact on her credit. And as already stated, the bank is not obligated to approve a short sale. If a short sale is approved and it is a primary residence the bank CAN issue a 1099 tax form for the amount of the loan forgiven, but there is an IRS form which allows you to exclude the amount forgiven by the bank so it is not included in income.
0 votes Thank Flag Link Thu Apr 2, 2009
Kerry,

I can understand your in-law situation. The New Jersey market also hit bad and less percentage are selling, so probably that's why it didn't sell last time. Don't give up the hope and hire a good realtor who is experienced in short sale so that they can help your in-law to sell her house, she needs a different marketing and an aggressive agent to sell the house. It's far better than foreclosure. Let me know if you need any referral for an agent who can help her.

Blaison Samuel
Certified Short Sale Specialist
510-366-9405
0 votes Thank Flag Link Thu Apr 2, 2009
First have her speak with an agent that is familiar with short sales. It wont affect her credit as a foreclosure will. She will have to qualify for a short sale. Meaning she cannot have any other assets and she will have to prove her hardship. I know it's a difficult decision but speak to a professional first.
0 votes Thank Flag Link Thu Apr 2, 2009
If she can prove inability to pay consider a short sale. Its better for her/the bank/the taxpayers than foreclosure.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Thu Apr 2, 2009
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