Foreclosure in 08109>Question Details

Segafour, Other/Just Looking in Jersey City, NJ

if a house has been in preforclosure for 1yr than placed on short sale no money pd on house how can owner move back in and keep house after 1 1/2 yrs

Asked by Segafour, Jersey City, NJ Tue Jun 14, 2011

owner has not pd mortgage in over 2yrs now claims he can keep house if he chooses how is this possible. when house has been in preforcloser and now shortsale.

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Lots of good answers here. It is common for homeowners to do this and the banks love it because they would rather see a home occupied than vacant. Although the homeowner holds title until foreclosure the house is still considered a bank asset. The homeowner enjoys not making mortgage payments and the bank enjoys seeing their asset being taken care of until, or if, the property actually goes into foreclosure at some point in time. I am seeing more pre-foreclosed homes not going into foreclosure for 2-3 years at a time.

It is interesting to think that If a mortgage payment is $900 a month x 24 months = $21,600. Even more disturbing is if the bank offers to a homeowner any special short sale programs that will actually give cash back to a home owner, say $10,000 or so as incentive to "Get back on their feet," for lack of better words.
0 votes Thank Flag Link Wed Jun 15, 2011
The Short Sale allows them to stay tile the sale is final, it helps keep the property from being destroyed by vandals as so many REOs do when left empty! As fars as once a short sale becomes final, they are out of there, you as a short sale buyer need to view the house before making an offer, make sure that you Realtor lists all the appliances to be included in the sale, or the owner will have the right to take the appliances with them, Be very sure to do a walk through the day before or the morning of closing to ensure that the owners don't walk off with items include in the sale. Demand that the owner be out ob the day of closing or sooner., and be very sure to get the keys on day of closing, if anything is not right, demand the bank ensure that the sale is as the sale included or you will not sign the final papers due to breech!
0 votes Thank Flag Link Wed Jun 15, 2011
If the house has not sold, the owner still owns it. He can live there.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Wed Jun 15, 2011
The other possibility is that he found some way of bringing the loan current. If an owner pays the past due payments, fees, etc, they stop the foreclosure and stay in the house as if nothing happened and just continue to make regular payments.

I have seen homes in Jersey City where the homeowner has not paid the mortgage in over a year and the bank and note even started the foreclosure process. Once they do it still takes 18 to 24 months in New Jersey for the home to finally be foreclosed on. I am not sure the reason for the banks' delay but I know it is happening. And the entire time the owner can stay in the home as long as they wish.
0 votes Thank Flag Link Wed Jun 15, 2011

Simply stated, the home"s ownership remains that of the owner until the "Foreclosure" is final, regardless of pre-foreclosure or short sale conditions.

We are finding that moving out and then moving back in to a pre-foreclosure is very common, quite possibly because of people reacting to their situation prior to understanding the full extent of their situation.

0 votes Thank Flag Link Wed Jun 15, 2011
The answer is very simple... He owns the house. The bank has not foreclosed. He can move in and oout as much as he wants untl the bank actually takes ownership.
He did the smart thing, you should never walk away from your home. Walking away from your home is strategic default and is very dangerous. Look here...

Larry Sarlo CDPE
Certified Distressed Property Expert
RE/MAX Prferred
0 votes Thank Flag Link Wed Jun 15, 2011
I have never had that occur, it is still going to be sold whether by Sheriff's sale or Bank so typically you cant get it back. However I did know of a fellow that was losing his house and the family was able to buy it as a short sale from the bank in time before the foreclosure process. I hope all works out.

Helen Cocuzza Realtor Associate
Better Homes & Gardens Real Estate Mary Holder Office
0 votes Thank Flag Link Tue Jun 14, 2011
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