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Foreclosure in Seattle : Real Estate Advice

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Activity 70
Sat Dec 3, 2016
Michael Ross answered:
First, let me address the particular home that you were looking at: It is in default on a loan of less than $200,000. That's on a home that would probably sell for over $600,000 as a fixer. That means that the person will probably bring the loan current or sell it the traditional way, pay off the loan and realize a substantial gain.

That home has entered the foreclosure process but has not been foreclosed on. The significant difference is that a home in the foreclosure process is not really for sale--the owner has just become delinquent in his/her mortgage and a public notice has been filed that starts the foreclosure process.

You can, however, buy an already foreclosed home (one that the lender has taken possession of) and there are some good deals to be had on those homes. Get a good real estate agent (like me) and they can provide you with a list of those homes. Foreclosed homes allow for you to be represented by an agent and it's a good idea because those types of listings can get a little tricky--like having shut-off utilities and hidden defects

If you want to have some fun searching for foreclosed homes in the internet you can see some by searching for the "HUD homestore"
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Tue Sep 13, 2016
Kary Krismer answered:
You really need to talk to an attorney about your specific situation, but deficiency judgments are rather rare in Washington assuming the security document was a deed of trust.

If there is a deficiency judgment, you will likely be responsible for some costs, primarily attorney fees and other foreclosure costs. But typically your responsibility for costs ends at the point of the foreclosure sale, not the later sale where the bank lists the property using an agent.

Again you need to talk to an attorney. Your being liable for a deficiency will depend on specific facts, including your income/assets and type of loan (e.g. USDA).
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Tue Aug 2, 2016
Kary Krismer answered:
You need to talk to an attorney about your options. My thought would be you might be able to have the property placed into receivership, and then having the receiver sell the property, but I am not at all familiar with that process, so I can't say that will work. You would need a creditor/debtor attorney or maybe a real estate attorney.

At this point neither banks is probably all that interested in speeding things up because the value of the asset is likely increasing rather than decreasing.
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Wed Jul 20, 2016
Golderj answered:
Check 64.34.364 section 11 if you obtain through foreclosure you are not responsible for previous HOA s
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Thu Jul 7, 2016
Kary Krismer answered:
Washington's Supreme Court just ruled that the banks do not have the right to do this. There is apparently a class action lawsuit over the practice.

http://www.courts.wa.gov/opinions/pdf/920818.pdf ... more
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Mon Jul 4, 2016
Marcy Baskin asked:
Yesterday I discovered my house had been broken into by Safeguard Properties. To add insult to injury, they left the house unsecured, garage unlocked, lockbox open and accessible (the lockbox…
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Fri May 6, 2016
Kary Krismer answered:
If the buyer buys prior to foreclosure, they would either have to pay off the mortgage in full, or get the lender to approve a short sale. If the lender approves a short sale the buyer would buy the property free and clear of that lender's lien interest. The seller may or may not owe the balance to the lender, depending on whether or not the lender agrees to release the seller. ... more
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Sat Apr 9, 2016
Susie Kay answered:
Thu Feb 25, 2016
Ted Clevenger answered:
Hi Julia,

Are you wanting to look for a foreclosed home specifically? Is this so that the cost is lower? You would want to get in contact with an agent for sure. You can also call agencies and ask for a short sale list. As far as paying for the home, there are sometimes extra fees included. The seller may want you to pay the transfer tax and maybe some of the escrow. Give me a call if you would like and we can discuss this further. 360.594.4033 ... more
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Wed Feb 10, 2016
Elizabethhmcalpine asked:
Sat May 9, 2015
Dan Tabit answered:
Ripley,
As long as they aren't using a weapon to compel you it may be legal to ask. Realize that as a member of the HOA, you are a partial owner of the common areas that the dues are intended for. What you don't pay now may come back to you as part of a special assessment or increase in dues to cover your predecessor and others defaults.
If you want to know the law, ask an lawyer.
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Sun Feb 22, 2015
Vikram Deol answered:
Tue Feb 17, 2015
Kary Krismer answered:
The distressed property law may prohibit it in some instances, or further transactions which might result--I don't remember what it was like after amendment. Those amendments pretty much exempted real estate agents. If you're interested you can check out RCW 61.34.xxx. http://app.leg.wa.gov/rcw/default.aspx?cite=61.34

If you have any questions you should consult an attorney.
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Tue Oct 28, 2014
Kary Krismer answered:
This is the second time in 12 hours I'm going to give this answer: "Do you mean houses owned by the bank? If so, I would not limit yourself to them. I used to do a fair amount of REOs, but they are not the bargain that they once were." I'll expand a bit on that now that I'm not using my phone to answer.

Between 2008 and 2012 REOs were usually priced well. Then our market improved, and the banks noticed. As with any type of situation you can still find some well priced REOs, but it's harder. And I'm not just talking about the list price. You need to remember that with an REO the terms to the buyer are not as good. I addressed some of those issues here: http://www.trulia.com/blog/kary_l_krismer/2011/12/buying_an_reo_foreclosure_distressed_property

Finally, in the Seattle area there simply are not that many REOs. You'd be really limiting yourself if that's all you're looking at.
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Wed Sep 10, 2014
Kary Krismer answered:
I'd like to expand on something Dan brought out, that was implied in the original question--that agents are convincing people to file bankruptcy. As Dan correctly points out, that is not something an agent should be doing, and something I really doubt any agents are doing. The reason that they shouldn't be doing it is that would be practicing law, and a licensing violation. The reason it is rather unlikely is that the Chapter 7 trustee would be very unlikely to use the agent that the homeowner is in contact with. So giving the advice to file bankruptcy would likely result in the loss of a potential client.

But for the distressed homeowners out there I would advise you to consult with a rather sophisticated tax adviser prior to having your house foreclosed. Even entirely ignoring the possibility that the Chapter 7 trustee might attempt to do a short sale, the tax consequences of a foreclosure after a bankruptcy very well may be different than the tax consequences of a foreclosure sale before bankruptcy. While it is likely that only a minority of people facing foreclosure will face a tax impact, that is something that should be known prior to the foreclosure.

How sophisticated would the tax adviser need to be? Probably more sophisticated than what you'd likely find at most places where there's a person on the street with a sign advertising the tax adviser's services. At a minimum they would need to know the treatment of a property in foreclosure if the debt is recourse or non-recourse. Being familiar with basis adjustment after bankruptcy might also be helpful. If a foreclosure prior to filing bankruptcy would result in a $30,000 tax hit, and one after bankruptcy a zero dollar tax hit, spending $300 on an opinion would be money well spent. While that situation might be rare, it's not a possibility that should be ignored.
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Tue Aug 12, 2014
Annette Lawrence answered:
If you 'won the bid' follow the procedures dictated by the auction company.
Unless of course you were simply a pawn in a 'valuation' process.
If you were a represented buyer in the auction, turn your question towards the one you hired.

Hint: A Short Sale IS pre-foreclosure

You may need to wait months/years for the house to re-appear as a bank owned property or foreclosure.

The professional you have representing you will be able to provide your better guidance.
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Mon May 12, 2014
Oscar Gonzales answered:
Marilyn,

So far Trulia has been great for my business. Make sure you stay active on the blogs and advice sections, bring your Profile to 100% and be patient you never know when you're going to get a solid lead it can be week one or the last month.

Good luck,

Oscar Gonzales
WestCo Realty
562-244-2055
BRE#01771716
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Sat May 10, 2014
Ray Akers answered:
Contact the Seattle Tenants Union, and bring a copy of your lease agreement. There is no way to know if the future owner of your condo will be an investor (who needs a tenant) or an owner-occupant (who will ask you to leave). You need to understand your legal rights, and the Tenant's Union is good place to start. Good luck! ... more
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Wed Apr 9, 2014
Peter Nelson answered:
I am no lawyer. But my experience and understanding of the law from having purchased foreclosure condos at auction is that the new owner can be held responsible for up to 6 months of past due HOA dues in the State of Washington. ... more
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Thu Apr 3, 2014
Dave Skow answered:
4/2/2014

Kathy –

Have you been able to locate and purchase a property yet? Do you still need any assistance ?


Dave Skow - WA MLO #278613
Eagle Home Mortgage
w 206 714 9745
dskow@eaglehomemortgage.com
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