It hurts it. You see a market to be healthy must be free. Sometimes that means it goes a bit high, other times it means it goes a bit low. A business cycle has to be allowed to happen. All this is doing is slowing down the inevitable and stopping people like me from buying sooner.
It will keep a few undeserving people in a house they did not pay for as they agreed. But how is that a good thing?... more
Well depends on what your credit is like, your income and many more factors. If you have extremely bad credit, foreclosure, short sale, deed-in-lieu-of, deed-for-lease or bankruptcy it may be a long time before you qualify. We have a program that helps people that fall under any of those categories. The program "Mortgage Training Program" through a series of steps will get anyone approved for a mortgage. The program actually has the client live in their future home as part of the approval process. If anyone is interested visit www.MortgageTrainingProgram.com... more
What if anything can I or should I do? There are lots of "free" help and you can start here first: http://makinghomeaffordable.gov/
If I lose my home, how long will it be until I would be able to purchase again? If shortsale, 3 years. If foreclosure, 5-7 years. If bankruptcy, 10 years.
A friend of mine suggested I try to purchase something small to fall back on if I lose my home . If I did this, wouldn't the 2nd home be in jeopardy also? Yes, you would. But due to the current financial market, it would be very difficult for your to qualify for a second home loan...your current income will have to be sufficient to cover "both" loans. Even if you rent the current home, the lender would allow a max. of 75% rental income to be available for debt service. With all due respect to your friend, his/her suggestion is not a very good one.
Is there anything I can do or should I just accept the inevitable foreclosure so I can start rebuilding? You have to be ready and willing to be persistent to call and followup with your lender(s) and request them to consider a loan modification for you. You (the borrower) does NOT have to be in default to qualify for a loan modification. You only have to demonstrate "eminent" default...which as you've described, if your income drops further, you will be in default.
Get your loan number and check here to see if your loan is a Fannie or a Freddie loan: http://makinghomeaffordable.gov/loan_lookup.html ... if it is, be persistent and request for a loan modification with your lender. The lenders are NOT required to but they are being asked and financially incented by the US Treasury department to consider your loan modification.
If your loan is NOT a Fannie or a Freddie, then ask your lender for their own loan modification programs. Lenders don't advertiser this option, but alternative modification programs (in-house) do exist.
If or when you hit a brick wall (or going in circles) with the bank staff on the phone, then consider working with a non-profit housing counselor: http://makinghomeaffordable.gov/counselor.html ... these people can intervene on your behalf.
If your home is in CA, there's a new law passed in Oct. 2009 - SB94 where "advance fee" for loan modification services is prohibited: http://www.dre.ca.gov/cons_adv_fees_alert.html
There's much more to share with you so please contact me should you have further questions: Contact@ActusPropertySolutions.com
Hopes the information helps.... more
Another option is they can sell the home and then rent from the new investor / owner.
As for other govenment options .. at what point do we the tax payers end our bailout of homeowners who got themselves into being behind in payments.
A condo can actually foreclose their lien on a condo and take ownership. The first mortgage will stick with the property so it may not be in the best interests of the condo association to actually take ownership. Some self-serving condo association attorneys may recommend foreclosure to their condo association board because they'll earn significantly higher legal fees with a foreclosures verus a simple lien filing.
Thisis from the Florida Statutes , see link below
718.116 Assessments; liability; lien and priority; interest; collection.--
(1)(a) A unit owner, regardless of how his or her title has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments which come due while he or she is the unit owner. Additionally, a unit owner is jointly and severally liable with the previous owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the owner may have to recover from the previous owner the amounts paid by the owner.
(b) The liability of a first mortgagee or its successor or assignees who acquire title to a unit by foreclosure or by deed in lieu of foreclosure for the unpaid assessments that became due prior to the mortgagee's acquisition of title is limited to the lesser of:
1. The unit's unpaid common expenses and regular periodic assessments which accrued or came due during the 6 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or
2. One percent of the original mortgage debt. The provisions of this paragraph apply only if the first mortgagee joined the association as a defendant in the foreclosure action. Joinder of the association is not required if, on the date the complaint is filed, the association was dissolved or did not maintain an office or agent for service of process at a location which was known to or reasonably discoverable by the mortgagee.... more
You have a multi-tied issue. The house is in your name but the mortgage is in her's.
You transferred the property without the consent of the lender and that is a violation of the mortgage.
They actually can foreclosure if they want to.
She can't short sale it from under you because you have to sign the deed.
You need to go back to your divorce attorney and have them get you out of this jam since they did not advise you that you would be in violation of her mortgage.
Best of luck!... more
Are you wanting to do a short sale? If so, list with an agent specializing in short sales and have them negotiate it. Only consult with the attorney for advise. If you use the attorney to negotiate you do two things that slows down the process. 1. You add yet another office in which you are just a number to them into the mix and 2. When the banks gets contacted by an attorney, they automatically have to send the file to their legal department which slows down the process tremendously.
You should, however, consult an attorney for advise, but using them to negotiate is not favorable. Be prepared to contribute to the loss on the heloc.
Try calling Sean St. Clair with Lassiter Law Firm 480-218-4445 or Adam Buck - 480-603-4988 for legal advise... more
Some will help but I'm not convinced they care about it much. To many guidelines and pressure from the Government makes them drag their feet. Especially sound local banks you think would want to help the community.
It is possible but not often done. It depends on the bank and their current policy and who you get to work on your file.
It is also possible for the bank simply to remove derogatory reporting. They may say they can't remove something but in fact they can.
Or, they can substitute "unrated", which is neither good nor bad. Unrated as an alternative to "paid - settled" is a great outcome but even if you can't get the bank to agree to this, it is still important to try.
Then there is another move. You can write a letter to the bank demanding this as part of the conditions for the short sale, and then continue with the short sale and complete it. That way you can then challenge the derogatory credit report afterwards and you have a shot at getting it removed based upon your letter. The bank may not have the appetite or staff to handle the challenge, and depending upon your state laws, they may have to remove the derogatory report anywhere from 10 to 30 days later.
Remember, they can only remove what is involved with them. If you have other lates or collections, you have to deal with those too. Short Sales have a much lower impact on your credit than foreclosures.
There is a new program from the government that is available next month called HAFA which is supposed to make Short Sales easier. Not all banks are participating.
Please contact me if you need more help with your Short Sale. I am a CDPE, Certified Distressed Property Expert.
Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® Lic #00476662
Taylor Place Real Estate, Carlsbad CA... more
If the government distributed the approved stimulus money evenly to every citizen, most could pay their homes off and there would be fewer foreclosures. But how would that help line their pockets, or buy unpopular votes?... more
I am very sorry to hear that you got caught in the crush of the falling real estate market.
Yes, you can pay cash for a home. If you walk away from your home, while it may be possible to obtain a loan soon after a foreclosure, it will not be easy, and you will pay dearly for it in your interest rate and fees. These are known as hard-money loans.
Before you decide to walk away, at least look into the option of a short sale. These sales are more involved than a traditional sale, but foreclosure is not a cake-walk either. Short-selling is often a better option for people who can "un-qualify" themselves from their current mortgage.
I have included a link to www.CDPE.com, which is a starting point to answer some questions about short sales vs. foreclosure. If I can be of further help, please feel free to contact me.
I wish you the best, and better things to come!
It's more difficult but it can happen.
More importantly, if you find a way to get the bank to accept the short sale without missing a payment, you can qualify to purchase right away under FHA guidelines
If you miss any payments, there will be a 3-4 year waiting period before you can qualify for financing depending on the type of loan you're applying for.... more
Here in the Boston area we are seeing a lot of buyers out at this time. I think most are finally seeing that this may be the bottom and may want to take advantage of the market before things change.... more
You'd have the "burden" whether you short sell or foreclose, but it's more likely to be less if you short sell, because they bank won't tack on their legal fees.
You're more protected doing a short sale.
It's difficult to discuss over trulia. So if you'd like, you can either chat with me over skype (username: napleshomes) or email (email@example.com) or call 239-206-4500 or 1-800-801-6080.
I can explain to you what the difference is why short sales has always been a better way (aside from the fact that a foreclosure stay on your credit for 7 -10 years, while a short sale goes away within 2-3 years)