Foreclosure in 95340>Question Details

Ron, Other/Just Looking in 95340

how much time do you have after a bank gives foreclosure . I am two moths behind and i cant come up with that kind of money in one week . $3,500

Asked by Ron, 95340 Thu Jan 28, 2010

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6
Hi Ron,
Call your bank and ask them your options.
Let them know you fell behind.
They may work something out with you.
Be nice to them and they may be nice to you.
Your loan is a business transaction and their motivation is to collect the debt and yours is to keep your home.
Usually after 90 days, a bank will start the foreclosure process of filing and sending you a Notice of Default.
being two months behind you might consider a loan modification, ( understand that your credit report may suffer a little )
While most here appear to be telling you to short sell or loan modify you should consider your options and do something.
Yow might also consider consulting an attorney and a CPA
If it does get worse, just stay away from the vulture investors.

I wish you the best,

Harold Sharpe
So Cal Homes Realty
http://www.southern-california-home.com/upsidedown.html
0 votes Thank Flag Link Sat Jan 30, 2010
Hi Ron,
You need a modification, avoid short sale or foreclosure your future depends on it.
Many will advise you to go the short sale root but short sale is a form of foreclosure and carries negative credit ramification like foreclosure, so make short sale a last resort.
See the ramifications of short sale and foreclosure below.
Now if you really want to avoid any form of foreclosure and save your home you need to get serious, it will take a lot of time, energy and you will get frustrated but the results will be worth it. You need to start to be proactive instead of reactive, you need to start a dialog with your lender and you need to document everything you do. It may not seem like it but banks do not want to foreclose and the government has stepped in offering a few different modification packages to the banks. When you call you will be on hold forever (document it), you will need to ask to speek with supervisors, and even administrators (document names and numbers), and you will repeated send documents that will get lost in the shuffle (make copies). In most cases your lender no longer owns your loan ask who owns it and start communicating directly with them instead of a middle man. Try try and try again, I have had foreclosure sales pushed off as many 6 times in one case, twice at 4:00 the day before the auction date. If the bank does start the foreclosure process which they will even if you are working on a solution (it is called covering their A**) you need to show up in court and show the judge proof that you are being proactive and the bank is not cooperating with all that documentation you have accumulated. Judges do no like uncooperative banks.
Modifications very but you should be able to lower your payment by 1/3, have past due amounts and charges eliminated, and/or your interest rate reduced. Most modifications will have a 3 month trial periods prior to making the changes permanent.

Ramifications of Foreclosure or Short Sale
Here are some of the ramifications of foreclosure or short sale, there are many more like your job, yes employers are checking credit records these days.
Your credit score to be reduced by 200-300 points, short sale a little less 100-200 points.
A foreclosure stays on your credit report for 10 years, as does a short sale but the short sale is less intrusive.
After you have gone thru foreclosure, short sale or deed-in-lieu-of there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Period to Buy After Foreclosure
* Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
* Buying After a Foreclosure with Extenuating Circumstances
The waiting period is 3 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure with Extenuating Circumstances
The waiting period is 2 years up to 7 years.
* Buying After a Short Sale
The waiting period is 2 up to 3 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. It's a reason to stay current on your payments while the home is on the market as a short sale.
In addition to the waiting period, some loans require 10% down and a minimum FICO score. The home you purchase must be your principal place of residence, not a rental nor a vacation home.
Lastly most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.
0 votes Thank Flag Link Fri Jan 29, 2010
Hi Ron, First I would like to say, I understand how difficult this is for you. Several of my clients are in short sale status. That means they owe more on their home than it is worth - so they can't refinance to get a lower payment. You do have options and the options depend on whether you want to make things work.
Whatever option you choose, it would be advantageous for you to check with an accountant about the financial consequences that come with your decisions.
1) You could ask for Loan Modification - ask your lender for a MORATORIUM on your house payments. Be prepared to submit a hardship letter and financials (including bank statements and tax returns and profit and loss for the time period since your last tax filing. If the lender approves a moratorium, you will be able to collect yourself, and they just put the deferred interest back into the loan. You end up paying it, but may have 6 months without having to make a payment.
2) You could talk with a realtor who knows about short sales - most do these days - (my sales last year were 90% short sales) - Don't be fooled by the term Short Sale - it is not a short process. It takes months to negotiate once you receive an offer. As a realtor, I had so many short sales work, that I was caught off guard when the bank took one back before we were able to close the sale. Make sure your realtor not only talks with the bank negotiators, but continues to check with the foreclosure attorneys to make sure it does not go back to the bank.
3) The fact that you are only 2 months behind may play in your favor. You have time to request a Loan Modification - that stops the foreclosure process while they review the modification. The modifications will keep coming up with new things you need to submit - and they won't foreclose while it is in modification.
The thing to remember is... the banks don't want an empty house on their books either. They want you to be able to work out your problems and get back on track. There are so many foreclosures the markets are all getting flooded, so if you work with the bank - and show that you care, then you have a good chance of doing something. The worst thing you can do... is NOTHING.
4) Finally - if you do end up getting foreclosed on and don't do anything to stop it, I am not sure what the laws are in your state, but - in Idaho, it is a minimum of 4 months from the first notice of default before a foreclosure sale. AND - if it does go to foreclosure, and you have not moved out - then the lender will have to hire an attorney to evict you - and it is easier for them to give you "cash for keys" they only do that if you keep the house in good condition and move out by a certain date. The realtor they hire to sell the house will contact you about that - usually within a few days of the foreclosure sale. Not all companies offer the same amount - but I have seen $1400 for moving out within 5 days.
0 votes Thank Flag Link Fri Jan 29, 2010
If your only down two months try making one payment. They will most likely accept it. Lenders typically do not start foreclosure until after the 4 month of deliquency. It is best to make payments and look at your options. The more payments you are down the more difficult to work it out. There are a number of options but try to keep your options open so you can make the right decision.

Your Options should you be facing Foreclosure
1. Do Nothing- If a homeowner does nothing, they will most likely will loose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed. Credit reports also disclose this damaging information. Not the best option.
2. Payoff/Refinance- Completely pay off the entire loan amount plus any default amounts and fees. Typically this is accomplished by refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penality because of the recent default. With this option, there should be equity in the home.
3. Reinstatement- Paying the entire default amount plus interest, attorney fees,late fees,taxes, missed payments and fees.
4. Loan Modification- Utilizing the existing mortgage company to capitalize the debt or extend the terms of the lian. This may allow the homeowner to catch up at more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
5. Forebearance- Lender may be able to arrange a repayment plan based on the homewoner’s financial situation. The lender may even be able to provide a tempory payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
6. Parital claim- A loan from the neder for a 2nd loan to include back payments,cost and fees.
7. Deed in Liew of Foreclosure- Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.
8. Bankruptcy- This option can liquidate debt and or allow more time. I can refer you to a qualified bankruptcy attorney.
. Chapter 7 (liquidation) To completely settle personal debt.
. Chapter 13 (Wage earner Plan) Payments are made toward a plan to pay off debt in 3-5 years.
. Chapter 11 (Business Reorganization) A business debt solution
9. Rent the property- when rent will make full payment or you have the ability to make short fall. To do this option, the loan must be brought current.
10 .Sale- If the property has equity (money left over after all loans and monetary encumbrances are paid). The Homeowner may sell home without lender approval through a conventional home sale.
On the other hand a short sale, also known as a pre-foreclosure sale, can be negotiated with your lender by our Real Estate Professional if what is owed is more than the property value

Keith Manson, First Weber Group
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://milwaukeebailout.com
0 votes Thank Flag Link Fri Jan 29, 2010
If your only down two months try making one payment. They will most likely accept it. Lenders typically do not start foreclosure until after the 4 month of deliquency. It is best to make payments and look at your options. The more payments you are down the more difficult to work it out. There are a number of options but try to keep your options open so you can make the right decision.

Your Options should you be facing Foreclosure
1. Do Nothing- If a homeowner does nothing, they will most likely will loose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed. Credit reports also disclose this damaging information. Not the best option.
2. Payoff/Refinance- Completely pay off the entire loan amount plus any default amounts and fees. Typically this is accomplished by refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penality because of the recent default. With this option, there should be equity in the home.
3. Reinstatement- Paying the entire default amount plus interest, attorney fees,late fees,taxes, missed payments and fees.
4. Loan Modification- Utilizing the existing mortgage company to capitalize the debt or extend the terms of the lian. This may allow the homeowner to catch up at more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
5. Forebearance- Lender may be able to arrange a repayment plan based on the homewoner’s financial situation. The lender may even be able to provide a tempory payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
6. Parital claim- A loan from the neder for a 2nd loan to include back payments,cost and fees.
7. Deed in Liew of Foreclosure- Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.
8. Bankruptcy- This option can liquidate debt and or allow more time. I can refer you to a qualified bankruptcy attorney.
. Chapter 7 (liquidation) To completely settle personal debt.
. Chapter 13 (Wage earner Plan) Payments are made toward a plan to pay off debt in 3-5 years.
. Chapter 11 (Business Reorganization) A business debt solution
9. Rent the property- when rent will make full payment or you have the ability to make short fall. To do this option, the loan must be brought current.
10 .Sale- If the property has equity (money left over after all loans and monetary encumbrances are paid). The Homeowner may sell home without lender approval through a conventional home sale.
On the other hand a short sale, also known as a pre-foreclosure sale, can be negotiated with your lender by our Real Estate Professional if what is owed is more than the property value

Keith Manson, First Weber Group
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://milwaukeebailout.com
0 votes Thank Flag Link Fri Jan 29, 2010
Hi Ron,
There are different options. You may be able to contact your lender and make payment arrangements.
If your home is underwater, (worth less than you owe), or if you do have a financial hardship you may want to try to get your loan restructed.
I am happy to help, or answer a few questions. I work for an attorney and also offer a full range of solutions for homeowners like your self to keep their home and reduce unsecured debt.

JoAnna Jensen
Realtor - Legal Assistant
jensenair@hotmail.com
0 votes Thank Flag Link Thu Jan 28, 2010
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