Challenge the Foreclosure on the grounds that the Plaintiff does not have a claim for which relief can be granted because they cannot prove ownership of the debt. This shifts the proof of burden to them and will delay the foreclosure long enough to make a settlement.

You typically have to file this Answer within 21 days in most judicial foreclosure states, however, you can file a late answer with the appropriate excuses.

Dont walk away, they'll come after you fore any money left over and ruin your credit. However, if you ask them to prove ownership of the note and mortgage, and the Lender cannot provide the court the documentation....you could put them in a position to modify or make a good settlement.

You won't be approached by a realtor offering cash for keys until way after the auction, and its only Fannie and Freddie who offer Cash for Keys.

I would talk to a CDPE (Certified Distressed Property Expert in your area.

I am attaching a link for a website that foreclosure solutions, short sales explained many resources for you, Frequently Asked Questions.

If you do not know a CDPE agent they can be found on another website.

Please let me know if you need help we do care.

Do nothing, wait until the bank sends a representative to contact your mother after the foreclosure.

You will get nothing out of either transaction. If you do the cash for keys, you will probably end up with zero, if you do a short sale, or foreclosure, you cannot get anything. The only way to get something is to sell your house for more than you owe the bank.

I have a chart comparing the choices of short sale (Where you sell, but there isn't enough money to pay the bank) and foreclosure (where you give the house back to the bank). Basically, with short sale, you can be back on your feet within 18 months to 3 years, vs. 5-7 years for foreclosure. There are job implications as well. I am trying to upload this document to my website - if you want a copy, just email me, until I can figure out how to get this thing more readily accessible!

But I totally agree - do NOT pay anyone for advice, information, "loan modification help" etc. It can all be done for free unless you need help determining if bankruptcy is a better choice, or to determine what if any the tax liabilities are in any decision. 925-989-9559

Also, do NOT pay ANYONE advance fees to assist you with a loan modification. Those are most likely scams.

It's not a all clear to me that foreclosure is the best option, and I don't have enough information to provide any sound advice.

First call should be to Wachovia's Exisitng Loan Assistance. Perhaps the present loan can be modified in some way that lets her keep the house.

There are three different numbers to call, depending on where the payment is sent.
If it's sent to a California or Georgia address, call 800/642-0257. from 6:00 AM 6:00 PM Pacific Time Monday thru Friday; till 3:00 on Saturday.
If it's send to Texas or North Caroline, call 866/642-9405 Call 5:00 AM - 5:30 PM Pacific Time Monday thru Friday
If it's sent to Virginia call 866/975-1814 6:00 AM - 3:00 PM Pacific Time

If a loan modification is not in the cards (and Wachovia says they will tell you within two weeks, without the reams of data that some banks require) then the next best is to sell the home before foreclosure, in what's called a "short sale". Wachovia will give you a reasonable to time to do that without foreclosing, and I'd be happy to help if that's the best path.

Only if neither of those two options is possible is a Foreclosure sale in order.

I'd be happy to help if you want to send me more information (confidentially - click on my picture for a direct email.

Notice of Default? = Bank sends notice that borrower is three or more months behind on payments is only the first stage. Has there been Foreclosure sale date set? How far out?

CFK is also taxable and they will issue a 1099. It's an agreement to move within certain timeframe, so read the agreement carefully.

I wouldn't expect much from the bank either, it's nominal compared to the amount they have lost.

Lala,

At what point is the foreclosure currently in? Based on your posting, it sounds like it nay be too late to consider a short sale, which would be less damaging to your mother's credit.

The cash for keys is usually done through a local real estate agent who is instructed by the asset manager (who works for the bank) to make the cash for keys offer. The amount can vary depending on a number of factors, but it can generally range from $1,000-$5,000.


Craig Lawler
Security Pacific Real Estate Services
Craig@RealEstateCraig.com
Cell: 925-698-2581

Hi Lala,

The Cash for keys is when the REO realtor for the bank shows up and asks the occupants to vacate the property because the agent wants to list the property for sale. At that time some occupants request cash for keys to vacate the property. Usually the bank will offer cash if you can move in a few days the dollar amount depends on the value of the house. If your house is $100k in value the bank is going to offer you less than if the house is worth $1mm in value.

I hope this helps. Also, there is a Workshop coming up that you or your mother want to check out , let me know I will get information to you. Take care!

Hi Lala. That depends on the value of your mom's home. Try contacting Wachivia's "Loss Mitigation" department. These are the folks who handle the foreclosure process. If there is equity in the home, you might want to consider trying to sell the home quickly, This will avoid foreclosure. If there is little or no equity, you might want to try to "short sell" the home with the assistance of a real estate professional.

Robert Greenblatt
Keller Williams