Can I buy back my house if it's foreclosed on?

Asked by Susie, Estero, FL Sat Feb 21, 2009

I bought a home as TIC in FL with my boyfriend about 2 years ago for $187,000. Our mortgage pmt is $1,500/mo including taxes and ins. We have always paid on time, but we are expecting that he will be laid off in the next 3 months. House is now worth $155K according to Zillow but I estimate that we could get about $140K right now. He wants to quit paying on house so that he can pay off truck ($9K) before job loss. He has about $8K, and I have about $20K plus two other pieces of land. He wants to live in the house and save the $20K that we would've been paying to the lender. I don't want to ruin my credit; we both have about 750-800 credit scores. Currently we make $80K/year so no loan mod.

Could he assume loan? Is this common? He couldn't refinance without my name because house isn't worth what we owe. If we could get my name off and foreclose, I could keep my credit and have about $40K to put down on the house to buy it back. Bank might sell for about $100K if foreclosed.

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Marc Comisar, Agent, Bonita Springs, FL
Fri Jul 23, 2010
Susie....did you ever resolve this? Did you consider a Short Sale? We specialize in these and also in the Estero area.
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Anna M Brocco, Agent, Williston Park, NY
Tue Dec 1, 2009
Unfortunately, you cannot buy back after a foreclosure--it is strongly recommended that you do all that is possible in trying to get a loan modification; speak to any attorney specializing in Real Estate that does loan modifications or any qualified loan office/broker.

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Dominic Pall…, Agent, Naples, FL
Tue Dec 1, 2009
President Obama is pushing the banks to help more people in situations like yours. Contact your lender and talk to them about a Loan modification .
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Tom Teece, , Lehigh Acres, FL
Sun Feb 22, 2009
Hi Susie,

I commend you on the action you've taken so far in assessing your finances. You are a perfect candidate for financial counseling that will help you decide what to do based on your available options. You don't need to be late on your mortgage payments to get that help, usually for free. I'm referring to the publically funded, US Dept of Housing and Urban Development (HUD)-approved housing counseling agencies. The HUD-approved counseling can be done online or over the phone, and is available in English and Spanish. The Hope hotline is 1-888-995-HOPE. Their website is The online version takes about 45 minutes to complete. By the way, they provide your lenders with 3rd-party verification of your financial hardship. That alone goes a long way toward getting your loan modification or short sale approved to avoid foreclosure. And even if it doesn't work out in the end, you'll know you did everything within your control to settle your debts honorably. Wishing you the best from your neighbor in Lehigh Acres.

Best regards, Tom
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Danielle Sha…, Agent, Cape Coral, FL
Sat Feb 21, 2009

I'm sorry to say that you won't be able to buy your home back if it's foreclosed on. Once a home forecloses and goes back on the market, the bank has taken every precaution to cover their butts legally once there's a purchaser in the picture. When you submit an offer, the bank will send an addendum back (anywhere from 5-13 pages long) and one clause in the addendum is that you cannot have been the previous property owner. It must be an arms length sale, meaning that a relative of yours or even yourself, can be involved in a purchase with the bank. You're definitely not the first person to think of that scenario :). The clause also states that the bank can take legal action later down the line if they find out that it wasn't an arms length transaction, including reimbursement for their legal fees. I'd also hate to see you lose the credit rating you've both worked so hard for.

Zillow really isn't the best indicator of market value, due to several reasons. Zillow doesn't take into account condition of the property, upgrades, etc. The most current sales aren't necessarily included and neither are pending sales, which are a fairly good indicator where prices are headed, specifically if it's been several months since a home sold in your neighborhood.

Anyhow, I would recommend talking to your mortgage company and his auto finance company. With the economy being the way it is, if you give them a heads up about a possible layoff they may surprise you and come up with a way to work things out.

I don't know of any loans that are assumable anymore aside from certain VA loans, but those have to be at least 20+ years old. If you go back and look through your closing papers, there should be a section to that effect somewhere in your mortgage docs. You may be able to refinance if your loan is owned by Fannie or your lender and talk to them. Don't get discouraged if one phone call doesn't get you anywhere - keep trying!! In the end, the effort, albeit frustrating, will be worth it.

I hope this helped!!!
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Keith Manson-…, , Milwaukee, WI
Sat Feb 21, 2009
I would suggest contacting the mortgage company and see what you can do with a mod. The income will not have effect on your consideration for the mod. It will not be tied to the stimulus package but if your right about the value, there might be room to negotiate with the bank.

It is not wise to role the dice on your future and that is what is sounds like you are doing and a lot of thing could go wrong causing you bigger problems! If you are on the mortgage you will be foreclosed on and your credit will be effected.
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