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wntosmle
my bank is still calling but i received the letter of intent to foreclose in may now i just got a letter from a law office stating they are attempting to collect the balance. whats the next step? and about how long do i have before we have to move out?
Answer
Each lender have their own procedures as to when to file a foreclosure against a person that is behind in their mortgage payments. Some file foreclosure procedures immediately after one payment is missed, some as long as 3-9 months or more after missing your first monthly payment.
There are two types of foreclosures normally used in the United States
Non-Judicial Foreclosure
Most lenders use the non-judicial foreclosure procedure. No courts or lawyers are involved.
Under this procedure normally the lender has the right to sell the property after completing the foreclosure procedure. The lender, under this procedure can not normally sue for a judgment after the sale. You do not have the right to reclaim the house under any circumstance.
Under a non-judicial foreclosure and the lender has decided to foreclose on you they issue a "Notice of Default/Foreclosure" this document is recorded at the county recorders office where the property is located.
You will receive a copy of this notice in the mail as well as one will be delivered to your front door.
At this point you now have 90 days to bring the mortgage current, refinance the mortgage or do what ever you want to do to keep your property. Your lender might entertain the idea of refinancing your mortgage for you at this stage.
Once the 90 day period is over the lender then decides to record a "Notice of Sale" at the county recorders office. You will receive a copy in the mail as well as someone will deliver one to your front door. This notice will have a sale date and place of sale.
Once this document has been recorded you now have 20 days in which to refinance or cure your foreclosure. Most lenders will not entertain the idea of refinancing their own loan once this document has been issued. Some might, but most will not. At this point the lender is interested in you paying the mortgage off or bringing it current.
At the sale if the property is sold to someone, they have to get the property recorded in their name so there is lots of legal work to be done before they officially own the property.
This new owner will contact you when all the legal documents are signed and between the two of you select a time for you to move. You might be required to pay rent for the time you stay there but this is between you and the new buyer.
If the property does not sell then the lender has to get a few legal matters taken care of so they have to wait until the legal matters are completed. This normally take 5-7 business days or less.
If this happens once all the legal matters are taken care of the lender normally hires a real estate agency to take care of their real estate sales.
An agent from the agency will contact you about the date and time of your departure. In some instances they will offer you a sum of cash for you to move.
If you are not required to go to court and has not received documents from a court stating that you must appear. This is probably the procedure being used by your lender.
Judicial Foreclosure
If the lender decide to use the judicial foreclosure procedure you will be issued a summons to appear in court. The court will set the time and date of appearance as well as when you will have to vacate the property.
If the lender use the judicial foreclosure procedure they are allowed by law to file a deficiency judgment against you.
Most lenders, though the law allow them to file for a deficiency judgment, do not do so. they would just rather sell the property, write any loss off and move on without other legal problems that might cost them money and then would have to collect on the judgment if they won.
On the other hand the law also allow you the right to reclaim your house after the foreclosure procedure has been completed in some instances any where from three months and in some states up to a year.
If you received a document stating that you have to appear in court and a date for you appearance has been set, your lender is probably using this procedure.
This method of foreclosure is used only by a few lenders where both procedures are allowed.
Under either procedure if the bank can not reclaim the entire loan amount from the sale of the property they claim they have a loss. Since this is a loss to them someone had to have a gain. You are the one considered having the gain, therefore the lender would then send the current owner a 1099 indicating the amount of gain they had.
Upon receipt of the 1099 they must file this gain with their year end taxes as to the amount of gain you have.
Your loan docs you signed would indicate the type foreclosure procedure your lender would use. Check them carefully.
For tax and legal matters you should always consult with your tax consultant and attorney.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Each lender have their own procedures as to when to file a foreclosure against a person that is behind in their mortgage payments. Some file foreclosure procedures immediately after one payment is missed, some as long as 3-9 months or more after missing your first monthly payment.
There are two types of foreclosures normally used in the United States
Non-Judicial Foreclosure
Most lenders use the non-judicial foreclosure procedure. No courts or lawyers are involved.
Under this procedure normally the lender has the right to sell the property after completing the foreclosure procedure. The lender, under this procedure can not normally sue for a judgment after the sale. You do not have the right to reclaim the house under any circumstance.
Under a non-judicial foreclosure and the lender has decided to foreclose on you they issue a "Notice of Default/Foreclosure" this document is recorded at the county recorders office where the property is located.
You will receive a copy of this notice in the mail as well as one will be delivered to your front door.
At this point you now have 90 days to bring the mortgage current, refinance the mortgage or do what ever you want to do to keep your property. Your lender might entertain the idea of refinancing your mortgage for you at this stage.
Once the 90 day period is over the lender then decides to record a "Notice of Sale" at the county recorders office. You will receive a copy in the mail as well as someone will deliver one to your front door. This notice will have a sale date and place of sale.
Once this document has been recorded you now have 20 days in which to refinance or cure your foreclosure. Most lenders will not entertain the idea of refinancing their own loan once this document has been issued. Some might, but most will not. At this point the lender is interested in you paying the mortgage off or bringing it current.
At the sale if the property is sold to someone, they have to get the property recorded in their name so there is lots of legal work to be done before they officially own the property.
This new owner will contact you when all the legal documents are signed and between the two of you select a time for you to move. You might be required to pay rent for the time you stay there but this is between you and the new buyer.
If the property does not sell then the lender has to get a few legal matters taken care of so they have to wait until the legal matters are completed. This normally take 5-7 business days or less.
If this happens once all the legal matters are taken care of the lender normally hires a real estate agency to take care of their real estate sales.
An agent from the agency will contact you about the date and time of your departure. In some instances they will offer you a sum of cash for you to move.
If you are not required to go to court and has not received documents from a court stating that you must appear. This is probably the procedure being used by your lender.
Judicial Foreclosure
If the lender decide to use the judicial foreclosure procedure you will be issued a summons to appear in court. The court will set the time and date of appearance as well as when you will have to vacate the property.
If the lender use the judicial foreclosure procedure they are allowed by law to file a deficiency judgment against you.
Most lenders, though the law allow them to file for a deficiency judgment, do not do so. they would just rather sell the property, write any loss off and move on without other legal problems that might cost them money and then would have to collect on the judgment if they won.
On the other hand the law also allow you the right to reclaim your house after the foreclosure procedure has been completed in some instances any where from three months and in some states up to a year.
If you received a document stating that you have to appear in court and a date for you appearance has been set, your lender is probably using this procedure.
This method of foreclosure is used only by a few lenders where both procedures are allowed.
Under either procedure if the bank can not reclaim the entire loan amount from the sale of the property they claim they have a loss. Since this is a loss to them someone had to have a gain. You are the one considered having the gain, therefore the lender would then send the current owner a 1099 indicating the amount of gain they had.
Upon receipt of the 1099 they must file this gain with their year end taxes as to the amount of gain you have.
Your loan docs you signed would indicate the type foreclosure procedure your lender would use. Check them carefully.
For tax and legal matters you should always consult with your tax consultant and attorney.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Anyone have a link or info to the bank of america rent to own home loan program?
Chris
My in-laws heard of the program but we're looking for more info on it. Anyone heard of it or have info or a link?
Answer
Sorry Banks do not rent homes, that I know of.
Sorry Banks do not rent homes, that I know of.
What percentage of home loans are in default in America?
debbie in
I keep seeing the statistic 2.1 Mil in default. What percentage of home loans does that represent?
Answer
You're a would-be buyer who's been sitting stubbornly on the sidelines, having seen home prices soar to nonsensical levels, waiting for their inevitable fall back to Earth. Eventually, you say, the time will be right to tiptoe into the market.
Lately, you've seen prices slipping. And you've heard about foreclosed homes being thrown on the market at bargain prices.
Well? Are we there yet? Should you check out a discounted home in foreclosure? After all, there will be more than 1 million foreclosures over the next two years, according to the National Association of Realtors. A house in foreclosure might well offer a great deal.
Michelle Mangione knows. She and her husband, Jeff Haag, are living in a home in Fallbrook, Calif., that she bought from the owner about three years ago, just before it went into foreclosure. Having paid about $680,000, she estimates she saved about $200,000.
Still, her savings came at a price: a lot of needed work on the house. "You have to be willing to live in a mess for a while," Mangione said recently, as painters were working in the home.
FIND MORE STORIES IN: California | Internet | Michigan | Ohio | Georgia | Las Vegas | Indiana | Earth | National Association of Realtors | David Lereah | Stone Mountain | Fallbrook | Rick Sharga of RealtyTrac
Buying a home in foreclosure isn't easy, and it's hardly without risk. Before you consider plunging into the foreclosure market, be sure to do some in-depth research.
"There are some good buying opportunities," says David Lereah, the NAR's chief economist. "But don't repeat the mistakes of the foreclosed borrowers."
Until recently, some buyers saw little risk in rushing into an adjustable-rate mortgage or an exotic loan with a low or no down payment. Now, many are stuck with soaring payments they can't afford.
With the market sinking for "subprime" borrowers â those with shaky credit or little money to put down â buyers short on cash are finding it harder to get a mortgage. Before you try to buy a home in foreclosure, be sure you have a good credit score and enough cash for a sizable down payment. Prime borrowers, Lereah notes, should still be able to qualify for traditional fixed-rate loans with rates remaining near historic lows.
If you do shop for a home in foreclosure, don't reel in the first one you see. In particular, don't get sucked into an auction right away. Auctions aren't the only way to buy a home in foreclosure, and they can sometimes be the most hazardous.
Here are your main options:
Auction.
The typical one is a state process. It's generally held on the courthouse steps, in the clerk's office or in front of the foreclosed house.
"The auction probably represents the highest potential return but also the highest risk," says Rick Sharga of RealtyTrac, which tracks foreclosures.
That's because buyers typically can't inspect the home in advance of the auction and must pay on the spot in cash or with a cashier's check. It's also possible that the current homeowners will refuse to move out, and then you must deal with an eviction, says Alexis McGee of Foreclosures.com, which provides advice on buying foreclosed homes.
REO (real estate owned)
If a foreclosed home isn't sold at auction â if, for example, the highest offer is less than the homeowner owes the lender â the bank would repossess it. Though the bank will want to unload the home, it won't necessarily do so cheaply. So you aren't guaranteed a fabulous price.
"The bank can take their time in responding to an offer," says Jim McEachern, a buyer's agent in Las Vegas. "It's just a piece of paper on a banker's desk."
Still, you'll be able to arrange an inspection and title insurance. In that way, it's safer than an auction.
Jenny Nelson recently bought a home in Stone Mountain, Ga., from the lender that seized it. She had time to research the home, which had been empty for about a year and was in rough shape. "It's nerve-racking to think what could have happened to this house," she says. Nelson had heard that when the house was vacant, homeless people had moved into it for a while.
Once Nelson hired an inspector, she learned that a broken pipe in the basement had caused mold to grow. Nelson, who had the problem repaired and cleaned up, plans to move in in June.
Pre-foreclosure.
Because an auction is risky and an REO is more costly and time-consuming, some experts recommend buying a home in pre-foreclosure.
You can find a house in pre-foreclosure by studying the public notices about homes in default. The information is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac. You'll pay a fee, though, for their services.
Plus, there will be little if any competition because the home usually isn't up for sale. It's a private deal. You offer a price that's less than market value but more than the amount owed on the bank loan.
"The thing that makes it difficult for people," McGee notes, "is the idea of soliciting somebody who hasn't put a for-sale sign up front."
Buyers don't all have the same opportunities, because the number of foreclosures varies considerably across the USA. The top states now include Ohio, Indiana and Michigan, according to the Mortgage Bankers Association.
Now may be a good time, for example, to buy a home in the Detroit area. "Homes are a lot more affordable than they've been for the last 15 years, and our inventory is at least double what it normally is," says Ron Simpson of the Detroit Association of Realtors.
Simpson says he recently sold one home in foreclosure for $415,000 that would have cost $600,000 not long ago.
Not every would-be buyer in such areas, of course, can capitalize on the attractive prices, because many have lost jobs themselves. In fact, the main reason for foreclosure is unemployment, says Jay Brinkmann of MBA.
But be aware: Some homeowners don't even try to stop foreclosure, because of something wrong with the neighborhood or structurally with the house.
"There are various reasons for people to live rent-free for close to a year, ride through the process and let it go into foreclosure," Brinkmann says.
If you're too nervous about buying a home in foreclosure, consider other options to find attractive deals. The overbuilding of homes in some parts of the USA, for example, has swelled the supply for buyers.
Some who have done it say buying a home in foreclosure is best suited to buyers who can accept the stress and hard work.
"You have to have vision and patience and be able to live in a little chaos," says Mangione, the happy buyer.
You're a would-be buyer who's been sitting stubbornly on the sidelines, having seen home prices soar to nonsensical levels, waiting for their inevitable fall back to Earth. Eventually, you say, the time will be right to tiptoe into the market.
Lately, you've seen prices slipping. And you've heard about foreclosed homes being thrown on the market at bargain prices.
Well? Are we there yet? Should you check out a discounted home in foreclosure? After all, there will be more than 1 million foreclosures over the next two years, according to the National Association of Realtors. A house in foreclosure might well offer a great deal.
Michelle Mangione knows. She and her husband, Jeff Haag, are living in a home in Fallbrook, Calif., that she bought from the owner about three years ago, just before it went into foreclosure. Having paid about $680,000, she estimates she saved about $200,000.
Still, her savings came at a price: a lot of needed work on the house. "You have to be willing to live in a mess for a while," Mangione said recently, as painters were working in the home.
FIND MORE STORIES IN: California | Internet | Michigan | Ohio | Georgia | Las Vegas | Indiana | Earth | National Association of Realtors | David Lereah | Stone Mountain | Fallbrook | Rick Sharga of RealtyTrac
Buying a home in foreclosure isn't easy, and it's hardly without risk. Before you consider plunging into the foreclosure market, be sure to do some in-depth research.
"There are some good buying opportunities," says David Lereah, the NAR's chief economist. "But don't repeat the mistakes of the foreclosed borrowers."
Until recently, some buyers saw little risk in rushing into an adjustable-rate mortgage or an exotic loan with a low or no down payment. Now, many are stuck with soaring payments they can't afford.
With the market sinking for "subprime" borrowers â those with shaky credit or little money to put down â buyers short on cash are finding it harder to get a mortgage. Before you try to buy a home in foreclosure, be sure you have a good credit score and enough cash for a sizable down payment. Prime borrowers, Lereah notes, should still be able to qualify for traditional fixed-rate loans with rates remaining near historic lows.
If you do shop for a home in foreclosure, don't reel in the first one you see. In particular, don't get sucked into an auction right away. Auctions aren't the only way to buy a home in foreclosure, and they can sometimes be the most hazardous.
Here are your main options:
Auction.
The typical one is a state process. It's generally held on the courthouse steps, in the clerk's office or in front of the foreclosed house.
"The auction probably represents the highest potential return but also the highest risk," says Rick Sharga of RealtyTrac, which tracks foreclosures.
That's because buyers typically can't inspect the home in advance of the auction and must pay on the spot in cash or with a cashier's check. It's also possible that the current homeowners will refuse to move out, and then you must deal with an eviction, says Alexis McGee of Foreclosures.com, which provides advice on buying foreclosed homes.
REO (real estate owned)
If a foreclosed home isn't sold at auction â if, for example, the highest offer is less than the homeowner owes the lender â the bank would repossess it. Though the bank will want to unload the home, it won't necessarily do so cheaply. So you aren't guaranteed a fabulous price.
"The bank can take their time in responding to an offer," says Jim McEachern, a buyer's agent in Las Vegas. "It's just a piece of paper on a banker's desk."
Still, you'll be able to arrange an inspection and title insurance. In that way, it's safer than an auction.
Jenny Nelson recently bought a home in Stone Mountain, Ga., from the lender that seized it. She had time to research the home, which had been empty for about a year and was in rough shape. "It's nerve-racking to think what could have happened to this house," she says. Nelson had heard that when the house was vacant, homeless people had moved into it for a while.
Once Nelson hired an inspector, she learned that a broken pipe in the basement had caused mold to grow. Nelson, who had the problem repaired and cleaned up, plans to move in in June.
Pre-foreclosure.
Because an auction is risky and an REO is more costly and time-consuming, some experts recommend buying a home in pre-foreclosure.
You can find a house in pre-foreclosure by studying the public notices about homes in default. The information is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac. You'll pay a fee, though, for their services.
Plus, there will be little if any competition because the home usually isn't up for sale. It's a private deal. You offer a price that's less than market value but more than the amount owed on the bank loan.
"The thing that makes it difficult for people," McGee notes, "is the idea of soliciting somebody who hasn't put a for-sale sign up front."
Buyers don't all have the same opportunities, because the number of foreclosures varies considerably across the USA. The top states now include Ohio, Indiana and Michigan, according to the Mortgage Bankers Association.
Now may be a good time, for example, to buy a home in the Detroit area. "Homes are a lot more affordable than they've been for the last 15 years, and our inventory is at least double what it normally is," says Ron Simpson of the Detroit Association of Realtors.
Simpson says he recently sold one home in foreclosure for $415,000 that would have cost $600,000 not long ago.
Not every would-be buyer in such areas, of course, can capitalize on the attractive prices, because many have lost jobs themselves. In fact, the main reason for foreclosure is unemployment, says Jay Brinkmann of MBA.
But be aware: Some homeowners don't even try to stop foreclosure, because of something wrong with the neighborhood or structurally with the house.
"There are various reasons for people to live rent-free for close to a year, ride through the process and let it go into foreclosure," Brinkmann says.
If you're too nervous about buying a home in foreclosure, consider other options to find attractive deals. The overbuilding of homes in some parts of the USA, for example, has swelled the supply for buyers.
Some who have done it say buying a home in foreclosure is best suited to buyers who can accept the stress and hard work.
"You have to have vision and patience and be able to live in a little chaos," says Mangione, the happy buyer.
How can I get bank of America to help me refinance my home loan?
Tubby
They are not the servicer, but they are the investor of the loan. I'm current. They took tax payer dollars to stay afloat. I believe they should help me.
Answer
Remember, when you re-fi, you have to pay closing costs all over again.
This can easily add thousands of dollars to your loan.
Google "should I re-finance calculator".
Money Magazine stated to only re-fi if you can make your loan term shorter, know that you will be in the home for 5 to 7 years, and if your interest rate will be 1.93% lower.
You may be better off putting all the money you would pay in closing costs into the principal of your home.
.
Remember, when you re-fi, you have to pay closing costs all over again.
This can easily add thousands of dollars to your loan.
Google "should I re-finance calculator".
Money Magazine stated to only re-fi if you can make your loan term shorter, know that you will be in the home for 5 to 7 years, and if your interest rate will be 1.93% lower.
You may be better off putting all the money you would pay in closing costs into the principal of your home.
.
If everyone in America decided to take out a $200,000 home loan, would that cause a recession?
Lever
Some people could afford to pay back that loan, but some could not. How would this affect the economy and businesses? Would it be considered a recession?
Answer
My home loan is 4 times that
My home loan is 4 times that
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