Foreclosure in 92882>Question Details

RachelNicole, Home Owner in 92882

Should I let my home go in to foreclosure?

Asked by RachelNicole, 92882 Wed Jul 13, 2011

Here's my dilemma...My husband and I bought a house in July 2008, and immediately after found out that one of the bedrooms, the patio and backyard fence was not permitted, this was not disclosed during escrow, but when we found out, we had already given notice to our landlord and figured we would just deal with the permits once we moved in. Well we could not get it permitted because it was not properly built and had to do some major demolishing. At the same time, we put new windows in the house because the house really needed them, but the company we used gave us a bad deal on the financing part....long story short, we have struggled with this house since day one and with all the expenses we had to do since the beginning, the house is still in construction mode for which my husband who works 12 hour shifts cannot do on his own and we can't afford to pay for someone to do. We live in the Inland Empire, which gets really hot in the summer and freezing cold in the winter, we have no AC or

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67
Rachel,

Imagine that you are standing in front of a closed door, and I offered you the choice of keeping what you've got, or trading it all for what's behind that door.

This is not like "Let's Make a Deal" because I'mm going to tell you that what's behind that door is bad; You just don't know HOW BAD!

You've heard about it from other people, but you REALLY don't know.

Well, let me tell you, from what you've told us; YOU DO NOT WANT TO GO THROUGH THAT DOOR!!!!

If there is anyway in HECK for you to keep that house, fix it, and put up with some heat; Please, please do it.

I realize that it doesn't look good now, and my heart goes out to you, but it can and will get much worse: If I lived down there, I would sit down with you and paint you a picture.

Believe me, you do not want to go thru a Shortsale or a Foreclosure.

Good luck and may God bless
4 votes Thank Flag Link Wed Jul 13, 2011
Short sale or foreclosure:
FORECLOSURE

SUCCESSFUL SHORT SALES

Future Fannie Mae Loan - Primary Residence

A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period of 5 years

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage after 2 years

Future Fannie Mae Loan - Non-Primary Residence

An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae-backed investment mortgage for a period of 7 years

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage after 2 years

Credit Score

Score may be lowered anywhere from 250 to more than 300 points. Typically will affect a credit score for over 3 years

Late payments on mortgage will show, and after sale, mortgage is normally reported as "paid as agreed", "paid as negotiated" or "settled." This can lower the score as little as 50 points if all other payments are being made. A short sale's effect can be as brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record permanently, and on a person's credit history for 10 years or more

A short sale is not reported on a credit history. There is no specific reporting item for "short "sale." The loan is typically reported "paid in full, settled."

Security Clearance

Foreclosure is the most challenging issue against a security clearance outside a serious misdemeanor or felony conviction. If a client has a foreclosure and is a police officer, in the military, in the CIA, security or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated.

On its own, a short sale does not challenge most security clearances

Current Employment

Employers have the right and are actively checking the credit of all employees who are in sensitive positions. In many cases, a foreclosure is reason for immediate reassignment or termination

A short sale is not reported on a credit report and is therefore not a challenge to employment

Future Employment

Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have (besides bankruptcy/charge off) and in most cases will challenge employment

A short sale is not reported on a credit report and is therefore not a challenge to future employment

Deficiency Judgment

In 100% of foreclosures (except in those non-deficiency judgment states), the bank has the right to pursue a deficiency judgment

In some successful short sales, it is possible to convince the lender to sign a release and give up their right to pursue a deficiency judgment against the homeowner

Deficiency Judgment (amount)

In a foreclosure, the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment

In a properly managed short sale, the home is sold at a price that should be close to market value, and in almost all cases will be better than an REO sale resulting in a lower deficiency

Deficiency Judgment (statute of limitations)

In a foreclosure, the first mortgage holder has 6 months to file for a deficiency judgment (the second mortgage holder has 6 years).

If the mortgage holder does not release their right to pursue a deficiency judgment they have up to 6 years to file and seek a deficiency judgment.

Helene M Moore
Windermeree Prestige Properties
702-275-2192.
3 votes Thank Flag Link Sun Aug 7, 2011
This scenario doesn't make sense. Did you know about the non permitted items before you closed the sale? When did you find out? You must have known before closing, because "...when we found out, we had already given notice to our landlord...". Are you current with your payments? What kind of loan did you get? An FHA or conventional loan would not be obtainable on a property with no heating source. If you bought this property as a rehab, you certainly knew about that before you closed. Sounds like you're looking for a way out of a situation you no longer want to deal with. I don't see how any of the answers here can be of any help to you because your situation has not been fully explained.
1 vote Thank Flag Link Fri Aug 12, 2011
Come on........You're tougher than that!! Put on an extra layer and belly up. You can deal with this. At least try a short sale before you bail.
1 vote Thank Flag Link Thu Aug 11, 2011
When you bought your home you must have purchased title insurance. Depending on what type of policy you purchased, you may be able to go after your title insurance to cover the cost of any work required by not having the correct permits in place. I have seen entire basements gutted and refinihsed and th ecost was covered by title insurance becuse the proper permits werent pulled at the time of the initial basement construction.
1 vote Thank Flag Link Thu Aug 11, 2011
What a dilema you have gotten into. I know that if you walk away they still have the right to go after you.
You need to contact a bankrupcy attorney advisor to see if there is a kind of bankrupcy for your situation.
Better to get a professionals help in that arena, but don't just walk away. Do it the right way.
1 vote Thank Flag Link Tue Aug 9, 2011
Sure John,

From my experience most attorneys will give a free consultation if they can make some money from a lawsuits. To clarify though, the attorney will get paid through a non disclosure suit if there is a case to be had. They will likely ask or 1/3rd of the settlement. I'm not one for sewing everyone but there has to be more to this. I doesn't sound like the seller gave full disclosure or the agent looked out for the buyers best interest. There may be a hang up if the buyer signed the arbitration agreement on the RPA. I always remove it on my contracts. I know there are a lot of free, general advice, resources out there but I think we are only getting 10% of this story. If this was a client who walked into my office I'd have to ask a lot of questions. That's why I say call an attorney and to put an ellipsis on this (one who was referred by a family or friend.)
1 vote Thank Flag Link Fri Jul 15, 2011
I'll be the 22nd person to say it. CALL A REAL ESTATE ATTORNEY. You have a huge bag of worms here that goes beyond just the foreclosure.
1 vote Thank Flag Link Thu Jul 14, 2011
I think I just answered this question but I'll do happy to do it again.

To sum it up based on your first highlighted question. If you allow the home to go into foreclosure and just walk away you'd be considered a flake and would have a difficult and long time reestablishing your credit and it can come back to haunt you in other ways as well i.e. employment and other business opportunities. Employers don't like flakes.

Now if you go through a short sale you will be viewed as a distressed homeowner and victim of a collapsed RE market trying to negotiate a business deal. Your credit won't be nearly as jeopardized. It's a bit of a grinding and grueling experience but it's better than just throwing in the towel and running away.
1 vote Thank Flag Link Thu Jul 14, 2011
Hi Rachel
I would also say call an REal EState attorney, I will be happy to give you a couple of referral if you need them.
Foreclose not alway the best thing.
Please feel free to call
Best of Luck
Sincerely
Cindy
1 vote Thank Flag Link Wed Jul 13, 2011
You should consult an attorney. Find on that specializies in RE.

If you are thinking about walking away, you should still consult an attorney.
1 vote Thank Flag Link Wed Jul 13, 2011
RachelNicole,

I am sad to hear about your unfortunate living conditions and the burden of the situation.
Everyones' situation is different and no one answer is right for everyone. If you haven't short sold or undergone any foreclosure proceedings feel free to give me an email at dhernandez@primelending.com

If you are holding a 1st and 2nd mortgage there exists a dirty secret. Depending on your situation, its usually beneficial to stop payment on the 2nd mortgage, in order for an action to take place they must assume the 1st mortgage. Is this your situation? I doubt it, but if so you may have more options available to help you keep your house.

Good Luck
0 votes Thank Flag Link Sun Sep 22, 2013
you should never give up. There are many options:
Shortsale- you may have to compromise with the bank
try to sale with a listing agent.
0 votes Thank Flag Link Sun Sep 22, 2013
LOL! This question is over two years old and I don't think Rachael has a clue. I not even seeing where she ever responded to one comment.
0 votes Thank Flag Link Sun Sep 22, 2013
I just always wanted to know what the "or..." was in her comment. Kinda felt I was left hangin!
Flag Sun Sep 22, 2013
Rachel,

I'm sure everyone on this site would love to hear an update about your experience.

How did it go? What was the outcome? often times we provide opinions and advice here and we never hear back. It's always nice to get closure. Can you fill us all in? Thanks!

Ray Wright
Realtor & Certified Pre-foreclosure Specialist
Keller Williams Realty
Direct: 951-354-1303
Email: RayWright@kw.com
0 votes Thank Flag Link Sat Sep 21, 2013
I would do a short sale as this will allow you to stay in the home at least 6 months with out making a payment. Also I have been getting my clients any where from $3000 to $7500 for their moving costs from the bank. A short sale will allow you to buy in only 2 years where a foreclosure will take 7-10 for you to purchase again. Doing a short sale is the best way to go all around. Make sure you hire an agent that knows what they are doing and has experience with short sales and can negotiate the most money for you and your family.
0 votes Thank Flag Link Sun Oct 2, 2011
consider using the property as a vacation rental on vrbo dot com. This may yield a higher return than expected, and you may be able to forgoe the foreclosure.
0 votes Thank Flag Link Tue Sep 6, 2011
Also the non permitted areas were demolished 3 months after purchase and brought up to city code, FYI.
0 votes Thank Flag Link Tue Sep 6, 2011
Okay well after reading the responses over the past few weeks, we are deciding on a short sale. Given the condition of the home I'm assuming we'll be looking at the interest of someone who wants to buy a fixer upper and can invest in the home. I think someone asked when did we learn of the areas of the house that were not permitted, the city sent a fax to the real estate office on 7/14, we were notified on 7/21, we closed on 7/31. Anyhow, that was 3 years ago, not sure of the statue of limitations on recuperating damages from whomever the fault lays on, the fact is our situation hasn't changed much. In 3 years we have NEVER missed a payment or have been late on a payment but we can't live like this either. We've all had some serious health issues now though we really don't care what happens to our credit, we want to be sure we did everything before we had no choice but to let it go. So yes I will be looking for a Real Estate Attorney in the Corona, CA area and hopefully someone will want to buy this 4bed, 2bath 9,000sqft fixer upper! Thank you all:)
0 votes Thank Flag Link Tue Sep 6, 2011
Rachel,

Sorry to hear about your situation. However, there is hope. If attempting a short sale, the appraiser will adjust the value based on the unpermitted additions and not include them in the overall value of the home. For example, if your home was a 4 bedroom, 3 bath with one bedroom and one bath being unpermitted...the home will be valued based on comps of 3 bedroom, 2 bath homes in the area.

DO NOT GO INTO FORECLOSURE. After working for a few years helping homeowners in default, you find that most people do not act fast enough. A short sale will get you out from under the debt, save a little bit of your credit score, get you a little extra time in your home, and allow you to purchase another home sooner than if you let it go.

Get an agent who knows the foreclosure process to help you. You will need an agent to assist you with a short sale as most of the big lenders use an online program called Equator to facilitate the process. Make sure they have handled this situation before because if you get a rookie it could prove costly.

The main thing is to act fast. Most of the time, the borrower will wait and wait on a Loan Modification but those are very rarely granted and I've seen them be denied a week before the Trustee's Sale is scheduled. Many people hold on hope until a Notice of Trustee Sale has been filed (which states your home will go to sale in 30 days) and by then, it's tough to complete all the necessary steps for a sale.

Consider this timeline if you go into default:

Notice of Default - you have 90 days to get current
Notice of Trustee Sale - 30 days to get current on the loan or it is sold to the highest bidder

Although it can be done sooner, I like to have 60 days to market a property, receive a solid offer, and present it to the bank to at least have the sale postponed.

If you have any questions or need further assistance, feel free to email me.
0 votes Thank Flag Link Tue Sep 6, 2011
I would also suggest working with your bank to negotiate a short sale (having the bank agree to sell the home for less than you owe in order to avoid foreclosure) in order to salvage your financial future. A short sale will give you an opportunity to sell your home much more attractive rate in order to avoid foreclosure.
0 votes Thank Flag Link Tue Sep 6, 2011
Rachel,
I would suggest you consult with an attorney on this matter. You have a statute of limitations against the seller and the seller’s agent and the company that agent worked for, depending on when you actually discovered these issues. The buyer’s agent also has fiduciary duties that he or she should have made you aware of these issues or may have had a right to protect you in this regard. These reasons are why as professionals, all parties have to disclose all aspects of the property. We,as real estate professionals, have a fiduciary responsibility to all parties in the disclosure process. There are laws protecting buyers in the purchase of 1-4 unit properties.

As far as foreclosure, you need a valid financial harsdship, unfortunately the scenario you have detailed above does not constitute a financial hardship, but my answer would be below for anyone contemplating foreclosure proceedings:

No, if you can work with the bank for a short sale depending on your state laws, you should avoid foreclosure, you have a better chance at negotiating any deficiency judgments; again this depends on local, state and federal laws. You should always discuss this with your own legal representative before you make a decision. If you reside in California and it sounds like you do and are within my area, if the bank allows a short sale there is a new SB law put into place by our Governor declining the banks from going after home owners in a deficiency judgment on a first or second lien.
My advice would be to interview at least 3 professional real estate agents or get the advice of a consultant before you make a decision. Time is of the essence when you are faced with a foreclosure.
SB 458
Governor Brown has signed Senate Bill 458 (Corbett) expanding anti-deficiency protection to all 1-4 residential mortgages or deeds of trust where the beneficiary consents to a short sale, whether a first deed of trust or a junior deed of trust. As an urgency bill, it became effective on July 15 when it was chaptered into law. The new law also limits the short sale anti-deficiency protections by excluding sales where the trustor is a limited partnership or LLC. Existing short sale law enacted in 2010 already excluded corporations.
The new law expands on short sale anti-deficiency legislation passed last year. Senate Bill 931 (Ducheny) was enacted last year in response to concerns that borrowers could have greater liability after a short sale than after a foreclosure. SB 931 prohibited a lender from obtaining a deficiency judgment as to a first mortgage or deed of trust following a short sale. Since SB 931 only applied to first mortgages, homeowners with more than one mortgage could still be liable to a junior note holder after the short sale. The new law addresses that issue.
0 votes Thank Flag Link Tue Sep 6, 2011
I'm sorry to hear about your situation. I feel that considering a short sale would be at least worth the time to discuss with a local agent. You do have options but in my experience a short sale has been a better option for my clients than a foreclosure.
0 votes Thank Flag Link Tue Sep 6, 2011
Well good morning Melissa. Haven't seen you on Trulia for awhile. Good to hear from you. You've always got such knowledgeable information to share. By chance do you have any good acquisition/rehab projects you want to share. We're looking for some good buy, rehab and resale or buy and hold opportunities. I'd be happy to pay you a visit anytime.
0 votes Thank Flag Link Mon Sep 5, 2011
You have so many good answers to this question. One thing that you may want to consider is a short sale is your are upside down on this home and owe more to the bank than the home is worth. Because of SB 458 in California, there are now some obvious advantages of short sale (vs. foreclosure) for certain borrowers in California.
0 votes Thank Flag Link Mon Sep 5, 2011
Whether you let the house go into foreclosure depends on several things, many of which are personal choices.

With all these problems that you have which would cause a lot of money to fix including applying to the city for legalization of the illegal construction which you may or may not get, and with her husband working 12 hours a day, it sounds like the house has been nothing but a misery for you. And without working AC, it is tough living in a house like that. Also, since you bought it in 2008 and the property is in the inland empire, I imagine it may be underwater or have gone down significantly in value, to continue paying the mortgage is too throw good money after bad.

But if you let it go to foreclosure, you need not worry about it financially anymore. But there are consequences that come with a foreclosure. Your credit rating will go down. You will need to find a place to live. And if you had refinanced with a second, the second as a sold-out junior lienholder can come after you for deficiency.
0 votes Thank Flag Link Mon Sep 5, 2011
As already stated here, if you just stop payments and let your house go into foreclosure, you will not be able to be a homeowner again for a very long time.
If you purchased your home in Corona in 2008, there is a good chance that it is worth less than you paid; especially if it is in "construction mode".

The only other options I can suggest are to bring in more money to sell it and pay off your loan or do a short sale. Short sales are sales where you list your property at current market value. You provide your agent with all the documentation necessary to convince the bank that you are unable to continue to make your mortgage payments because of a "hardship". This could be loss of job, salary decrease, illness, divorce, etc. Your agent will work to get the bank to accept the current offer because current circumstances make it impossible for you to make mortgage payments as agreed and a foreclosure is imminent. If this describes your situation, a short sale may be your best option.

Your situation appears to be more involved however, and it is possible that a Real Estate Attorney could help you recover the money you need to correct the situation. It is likely that it wouldn't cost you anything up front to find out because the attorney may represent you in exchange for a percentage of any proceeds they can get for you if they're successful. Please contact a Real Estate Attorney before making a decision.

Unfortunately, houses are commonly sold with unpermitted fences and patios. Many homeowners consider these "do it yourself" projects. Unpermitted bedrooms are also not unheard of, but many times bedroom additions are easier to spot because they are either constructed in the garage, or there may be uneven flooring where you enter it, or other features such as a window, stucco, etc that suggest an addition. If there were to be a fire or other situation that was to compromise the integrity of the unpermitted bedroom, insurance would not cover it. If it were brought to the attention of the authorities, they would require it to be permitted or demolished.
According to Kaplan Real Estate Schools, a reputable school for obtaining the traning for various Real Estate licenses,
"California home inspectors are not required to be licensed. The California Business & Professions Code defines a home inspection as a “a noninvasive, physical examination, performed for a fee in connection with a transfer, as defined in subdivision (e), of real property, of the mechanical, electrical, or plumbing systems or the structural and essential components of a residential dwelling of one to four units designed to identify material defects in those systems, structures and components.”
The most reputable home inspectors are members of ASHI or CREIA. There are situations where they are liable for defictive inspections and most have E & O insurance. Ask a Real Estate attorney.

Title companies are there to ensure that when escrow closes, you actually own the property and no one else has a claim to it. Title insurance insures against someone coming up with a deed or claim and trying to take your house.

When your home was appraised, the appraiser measured it and may have noted a discrepancy between square footage on public record and actual square footage. If there is an unpermitted bedroom, the home would usually measure larger than that stated on public records. Public records are often inaccurate, especially in new construction. In older construction, there are sometimes signs that something is an addition...uneven flooring, sloping ceiling, window, stucco, etc. The lender orders the appraisal to be done to verify that the property is worth the price they are loaning on.

Each state has it's own Real Estate laws and proceedures. I think it would be worth it for you to contact a Real Estate attorney to explore your options before doing anything.
Web Reference: http://CoronasBestHomes.com
0 votes Thank Flag Link Sun Sep 4, 2011
A foreclosure typically affects credit for three years. check with an attorney before making this decision...there may be a lawsuit in the making...for those who abused you....but they take a great deal of time to adjudicate. Sometimes, surrendering the property is the best option for a person. Seek legal council....
0 votes Thank Flag Link Fri Aug 12, 2011
This is an incredibly unfortunate situation. Did you have a home inspection prior to closing? Did the home inspector not notice that the addition was not built to code? Unfortunately, this happens more times than we'd ever like to admit to. You truly need to seek advice from a real estate lawyer. Keep in mind that foreclosing on your home, will make it incredibly difficult, if not impossible for you to purchase another home in the future.

Good Luck!
0 votes Thank Flag Link Fri Aug 12, 2011
Do not do the foreclosure option...do whatever it takes to get the basics covered..such as AC. "Downsize" your dream house to just simply have four walls...avoid buying anything like furniture, big screen tvs, etc.

If your husband is working that hard, maybe consider leveraging the cash flow to better use that money.

LIfe and owning a house is a struggle...no renovation EVER happens in 20 minutes like on TV...ever, anywhere on the globe. Once you understand that, stop beating yourself up, step back, take a deep breath and only focus on the basics..no patio, no fence..just four walls nice and clean.

A little more pain now is better than ruining the next 7 yrs of your life.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Thu Aug 11, 2011
This is a bad situation, but not uncommon. Get legal advice from a Real Estate lawyer to find out your options before letting your house go into foreclosure. There is always a way to work this out if you get the right advice. Your Real estate Lawyer and expert Real Estate Agent with experience in destressed properties can help you.
0 votes Thank Flag Link Thu Aug 11, 2011
That will ruin your chances for purchasing a better home for 5 to 7 years."

Seriously, how is this such a bad thing? Not being able to put a tight debt noose on for 7 years? I see how this is bad for the banks.
0 votes Thank Flag Link Thu Aug 11, 2011
Never let your home go into foreclosure. If you cant get some sort of modification, short sale. But never let the home go to foreclosure. That will ruin your chances for purchasing a better home for 5 to 7 years.
0 votes Thank Flag Link Thu Aug 11, 2011
You most definitely need legal advice in addition to a consultation with a local real estate agent in order to make an informed decision. I would explore what recourse you have for the non disclosed items when the property was purchased by you as well as what the current value of the home is relative to what you owe. I believe that if you arm yourself with these facts the answer will become clear and you will know what to do. Best of Luck!
0 votes Thank Flag Link Thu Aug 11, 2011
Currently a foreclosure stays on your credit record for 7 years and is public record for longer than that. A short sale or deed in lieu of indicates to creditors in the future that you at least tried to do the right thing. Moving forward credit will be even more important, do the right thing for yourself and try and work it out. You should talk to an attorney.
0 votes Thank Flag Link Thu Aug 11, 2011
Walking away is the right way. Deny the bank, insurers, and realtors that would benefit by staying.
0 votes Thank Flag Link Tue Aug 9, 2011
Every state has difference laws regarding foreclosure, but in NJ there are several options. Before you decide to walk away, speak to an attorney or real estate agent who specializes in distressed properties. If you owe more on your home than the balance of your mortgage, you could pursue a short sale or deed in lieu of foreclosure. Either of these methods will leave your credit scores in much better shape than a foreclosure - that is the last thing you want to do.
Your siutatoin is not unusual, but reach out to an expert and get some good advice;
0 votes Thank Flag Link Tue Aug 9, 2011
Default. Walk away. Do not ever buy a home again. Rent and be free of debt.
0 votes Thank Flag Link Tue Aug 9, 2011
Never, just let your house go. In my opinion try a short sale and see if you can relieve your problem that way if you ar upside down on your mortgage. If not then look at what it would take to get you out of the home after paying your expenses, it might be better than dumping more money in the home.
0 votes Thank Flag Link Tue Aug 9, 2011
Hi Rachel,

Your story is unfortunate, but not rare. Depending on your state, it may be too late to pursue a tort claim, but there may be some breach of contract or warranty issues that you may be able to pursue legally because in most states the statute of limitations on contracts is longer than that for torts. Basically, reach out to an attorney in your area for legal advice on how your may be able to remedy the situation. Try to avoid foreclosure if you can ban exploring the various options discussed by the other commentators here such as short sale. You may be able to save your credit and recoup your financial investments, but it will take some more action and work on your part. Unfortunately, fixing the situation will take time, but your proactive action so far will pay off.
Web Reference: http://www.brianponder.com
0 votes Thank Flag Link Tue Aug 9, 2011
Helene! Thumbs up on that answer albeit somewhat winded. But then I'm guilty of the same. But one has to get their point across.
0 votes Thank Flag Link Sun Aug 7, 2011
Justin, please enlighten me: "short sales are a very easy simple process"? On what planet are you engaged in short sales?...........................Or, what banks are you dickering short sales with? I'd love to be in bed with those banks.
0 votes Thank Flag Link Sun Aug 7, 2011
rachel,

Letting your home go into foreclosure and being foreclosed on are two different things. What am I getting at? Foreclosure is a process that takes months during that time you could sell the house in its current condition to someone who would be able to finish the unfinished work and own the home or sell it. Here is the best part, you can sell the house for LESS than you owe to the bank, it is true. Your situation sounds perfect for a short sale and short sales are a very easy simple process. You can live in your house the whole time during this process, you can continue making mortgage payments or it if is too difficult you can stop as this would be what triggers the foreclosure process to start. NOW, it takes 3 months before your lender can begin to foreclose on you. From that point to the actual foreclosure "Sale" is months down the road, giving you and your agent plenty of time to complete a short sale! CNN said it best, "Don't foreclose, DO a SHORT SALE!" :)
Here is my blog on short sales,
http://blog.house-guy.com

you can get through this!!
0 votes Thank Flag Link Mon Jul 18, 2011
I just want to say that I admired Terry Perdue's humane and measured response.
0 votes Thank Flag Link Mon Jul 18, 2011
Dear Rachel,

Your unfortunate dilemna is a testimony to others who may think I can do a rehab job. As I hear in your words it is more than a job. It is a nighmare. Finding reliable tradesmen, permits, escrows, liens, city compliances, etc. Before you waive the flag of surrender go to your local city or county building to see if there is help in the form of grants to help you fix and save your home. If you and your family really feel your home is a black hole just sucking up money prepare to make your exit. You can let your lender know that you can no longer afford your home and it needs numerous repairs. They may give you some assistance or direction into how to resolve this issue. I would also recommend talking to an attorney who may suggest bankruptcy or negotiate with your lender on you deeding your home back to the bank in lieu of foreclosure, short sale or straight sale. Also, if you feel that you purchased your home with the previous seller not disclosing items you state are not permitted you may have a recourse with this, so please mention this to the attorney.Your realtor may also be a good source to help you so reach out to this person. Rachel, no matter how this ends a dream home, that is turned into a house horror can take a toll on your mental health and physical health so make a exit list and work towards it now.
0 votes Thank Flag Link Mon Jul 18, 2011
First, I would contact my State Real Estate Board to advise you of the process for a non-disclosure complaint, secondly, I would contact a Real Estate Attorney. Foreclosure is not a good option if it is possible to negotiate with the lender or sell the property before the foreclosure. You may be eligible for a short sale. Explore all your options before you make a final decision.
Paulette Teel, SRES
Pearson Real Estate
San Antonio, Texas
http://www.PauletteTeel.com
0 votes Thank Flag Link Fri Jul 15, 2011
Contact a reputable Real Estate Company and ask their recommendation for a Real Estate Attorney they trust. Ask for a quick overview of your rights and then set up an appt. for consultion. It might cost you a small fee but you will be getting professional advice that could save your credit from the disaster of foreclosure!! It may just be worth it. Please don't ask uncle Phil or Aunt Lila, ask someone who knows the business and will lead you in the right direction!
0 votes Thank Flag Link Fri Jul 15, 2011
You're right about the one free consultation. However, I'm starting to see a lot of the so called free interviews being done with a phone call. If the attorney doesn't think they'll benefit from the case or that the client doesn't have the financial huts' bah or the case is just too small or convoluted they'll decline right there.

Additionally, I don't know of too many attorney's nowadays that will take small RE cases on a contingency basis. It's been my experience that these types of cases are mostly fee for service. Now if it's a large liability action where there's lot's of deep pockets in the mix that's another story.
0 votes Thank Flag Link Fri Jul 15, 2011
Stephen, Free legal representation? Ffor my own edification how does that work? Not trying to be confrontational. Just curious.
0 votes Thank Flag Link Fri Jul 15, 2011
Your legal advice will likely be free if you have a nondisclosure lawsuit on your hands.
0 votes Thank Flag Link Fri Jul 15, 2011
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