our house is going to be foreclosed on. We can no longer afford payments. Do we need an attorney?

Asked by Sheila, Saint Paul, MN Mon Jul 5, 2010

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Steve Vennem…, Agent, Pine Springs, MN
Tue Apr 24, 2012
I would get Realtor who can help you sell your home on a short sale you shouldnt need a lawyer. If you plan on filing a bk then you want a lawyer or if you have a 2nd mortgage you may want some advice of a good realtor. http://www.mnhomescontractfordeed.com
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Roger Peters…, Agent, Woodbury, MN
Fri Apr 20, 2012
Yes, or an experienced realtor to help navigate you through the process. If you have any other specific questions please feel free to contact me at roger@Petersen-Properties.com
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Bob Movin-On, , Hartford, CT
Mon Jul 5, 2010
I would start out with the bank directly they have programs to help troubled home owners, mainly a loan modification. When you speak with them write everything down; time you called, how long you waited on hold, person you spoke with, the conversation, the more the better. That information could be helpful if it gets to the legal process of foreclosure.
If it gets to the point of a foreclosure filing then an attorney is very beneficial, as is your information that you tried to work with the lender. PROACTIVE goes a long way in court.
Your last resort, and the lender will suggest this, will be to try a short sale or to give the bank your deed-in-lieu-of foreclosure, but be aware those are forms of foreclosure and you will lose your home as well as have many difficult life changing years ahead.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like; insurance rates, your job (yes employers are checking credit records these days).

Your credit score will be reduced by 200-400 points, short sale and deed-in-lieu-of a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
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Anna M Brocco, Agent, Williston Park, NY
Mon Jul 5, 2010
Yes, before considering anything, do consult with an attorney who specializes in real estate--he/she will be your best source of information as it relates to you. Have you tried contacting the lender and asking for a loan modification--either way do consult with an attorney.
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, ,
Mon Jul 5, 2010
Hi Sheila,

I am sorry to hear that you are in this situation. You have been given good advice here. Based on this advice, you may want to drill down on the benefits of using a short sale for your relief rather than going through a foreclosure.

All the best,
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Debra B Albe…, Agent, Port St Lucie, FL
Mon Jul 5, 2010
My answer to this question is ALLWAYS...YES you do. You need a qualified real estate atty. in your area to be the go between for you to your lender. He or she will be up on the current real estate law, know your rights and negotiate with the lender on your behalf. You do not want to have and "unknown" hanging out there during the process

Debbie Albert, PA
Coldwell Banker Residential
Web Reference:  http://www.ronanddebbie.net
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Scott Godzyk, Agent, Manchester, NH
Mon Jul 5, 2010
Sheila your best bet is to contact your bank, let them know what your hardship is and ask if tehy can help. if you have the ability to make any payment then ask if you can complete a loan modification. They can reduce your interest rate which lowers your payments and they can take what you are behind and add it to teh totla you owe. If you have no ability to pay, then you should ask to complete a short sale. They can lower the amount you owe to allow you to sell the property, either one avoids foreclosure.

If you want to complete the short sale you should hire an agent who is experienced in short sales who can assist you with this

good luck working things out

please see my blog for more details


Web Reference:  http://www.ScottSellsNH.com
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