Author Topic: Settling foreclosure  (Read 3587 times)

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nomorecredit

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Settling foreclosure
« on: May 17, 2012 06:53:27 PM »
Im in the process of a foreclosure on a rental property for about 6months now and about 9months behind on payments

I am not sold on keeping the house, but I don't want a foreclosure on my CR

I have an attorney working on this and frankly he just said he can buy me time.  He seems to be good at stalling, and collecting my money

However, I was thinking about deed in lieu or short sale.

What is the likely hood  of a mortgage company settling with me.

The only issue I have to stand on is that I am uncollectible.   Unemployed and judgement proof.
There is no victory without a struggle.

deepkimchee

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Re: Settling foreclosure
« Reply #1 on: May 17, 2012 06:59:58 PM »
Depends on the state you are in.  With more and more caselaw against lenders for unfair and deceptive trade practices, lenders are being MUCH more lenient on short sales and deed in lieu.  At least in my state.

Personally, I would rather have a root canal than do the above.  I haven't paid my mortgage in over 25 months and they haven't even started the forclosure process yet.  If I would have SS or DIL I would have given my house away and everyone but me would have made money.

But my credit is trashed anyway...........for now.
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

nomorecredit

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Re: Settling foreclosure
« Reply #2 on: May 17, 2012 07:03:32 PM »
Wow.  How did you do that? 

Are you working with an attorney?

Im in Ohio  and they started the foreclosure process after I was 4months behind.
« Last Edit: May 17, 2012 07:32:31 PM by nomorecredit »
There is no victory without a struggle.

deepkimchee

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Re: Settling foreclosure
« Reply #3 on: May 17, 2012 07:14:43 PM »
There are a couple factors.

 One, I am a FIRM believer although I can't prove it that, becasue I haven't applied for a home modification I am still in my home. 

Everyone I know who is still in their home never applied, one friend going on four years now.

Two, we have been in a moratorium on non-judicial foreclosures for almost a year.

I expect to be in my house a very long time.  My state has the toughest foreclosure laws in the county.

Basically, to foreclose they have to meet with you face to face at a state mandatory meeting with a state mediatior (pro consumer).  They have to show the proper paper work, MERS is no acceptable and the robo-signers are investigated thoughly.

Lender or borrower can choose judicial, but get this.  The lenders attorney has to sign their personal name to the authenticiity of the proper documents to foreclose.  As we know most docs are lost.  Sorry if I went beyond you question.
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

nomorecredit

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Re: Settling foreclosure
« Reply #4 on: May 17, 2012 07:31:12 PM »
No, you didn't go beyond my question.

You've explained why you have been in you home for 25months now. Tough foreclosure laws

I should have lived I your state.
There is no victory without a struggle.

deepkimchee

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Re: Settling foreclosure
« Reply #5 on: May 17, 2012 07:33:18 PM »
Personally, I think more states are going to comply.  Take your attorney's advice stall, stall, stall.  Collect rent on your place and enjoy the fruits of your labor!!

My states laws are modeled from Nevada and New York.
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

innocentme

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Re: Settling foreclosure
« Reply #6 on: May 18, 2012 05:59:00 AM »
Depends on the state you are in.  With more and more caselaw against lenders for unfair and deceptive trade practices, lenders are being MUCH more lenient on short sales and deed in lieu.  At least in my state.

Personally, I would rather have a root canal than do the above.  I haven't paid my mortgage in over 25 months and they haven't even started the forclosure process yet.  If I would have SS or DIL I would have given my house away and everyone but me would have made money.

But my credit is trashed anyway...........for now.
+1 

30 + months no payment, and still not in foreclosure.  State doesn't allow non-judicial on MERS loans currently.  State not equipped for judicial foreclosures. 

They are really trying to get me to do a deed in lieu or a short sale.  I am asking for more than the $3000 that they are offering me.

Just tell them when they call that I am rejecting their current offer, and please call me back when they have a better offer. :whackacow:
I am not an attorney.  I just love to know my rights, and to defend them at all costs.  Even if that means going on the offensive.  I'm always nice, until I'm not.

deepkimchee

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Re: Settling foreclosure
« Reply #7 on: May 18, 2012 06:21:52 AM »
The better offer would be a mortgage one can afford. 

I can not for the life of me understand why someone would do a SS or DIL.  If they sued for the deficiency then BK would be the answer.  To save a credit rating makes little sense if one is already behind, the damage is done.  If one isn't behind then the SS or DIL dings the credit rating in itself.

And let's not for get the ole 1099c for the forgiven debt that one might have to pay after a SS.

Living for free to recoup the investment, or collecting 100% rent as long as one can makes total sense.

I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

Belle2004

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Re: Settling foreclosure
« Reply #8 on: May 18, 2012 02:36:56 PM »
I live in Ohio as well. I am going through the same thing.

Beware that there may be a special rider in your mortgage papers that says if it is a rental property, the mortgage holder has the right to the rent from the moment they notify you that they have started foreclosure proceedings. I know they have the right to it, but don't know if anyone has actually collected on it.

 Our county has intervened on behalf of the borrower because we have had so many foreclosures. The OC must go through a mediation process and offer a modification, SS or DIL. They must forgive any balance due on SS or DIL.

We have paid on this mortgage for 10 years and are now underwater on the mortgage (although not by much). I am grateful for our county's intervention. When we get to it ( it has been 6 months and I am doing this myself)  I will be very happy to sign a DIL and be able to walk away from this property without owing the bank any money. It will be a huge relief.

I think you have a very good chance of a DIL with a walk away. After 6 months I was sent a paper saying both SS and DIL were viable options. Since you have an attorney I don't know how that impacts things. I would check with him.

I don't know what your credit looks like but a SS or DIL is better than a foreclosure...how much better I am not sure.

erikd75

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Re: Settling foreclosure
« Reply #9 on: May 18, 2012 04:41:19 PM »
Deepkimchee I think your are correct.

As soon as we pursued a loan modification the "kind" loan servicer couldn't get our paperwork to their external lawyer to start foreclosure proceedings fast enough.

We stopped paying our mortgage in February (not by choice) and we are already in the foreclosure process.

It amazes me when one hears creditors in the press saying "talk to us so we can work with you" and the moment you ask to work something out all they say is "no".

Whatever happended to the banks trying to work something out WITHOUT going through a HARP mod first?

deepkimchee

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Re: Settling foreclosure
« Reply #10 on: May 18, 2012 07:33:35 PM »
When you apply for a home mod now they have all your financials.  I think that is what they really want. 

After 25 months, and our moratorium ending, I finally applied for a home mod per my attorney's advice.  We have been going round and round on this one.

Basically, if I don't get the mortgage in the mod that is very affordable to me, then I am going the judicial route.  If it ever makes it to trial could be up to seven years, it won't look good for me if I didn't apply.

Because of our tough new laws (see above), I just might get it.  I am not overly worried about what they can see on my financial at this point, but it took two years for that to happen.

I will post what happens with this.  It will be interesting how this plays out with the new law.

« Last Edit: May 18, 2012 07:38:47 PM by deepkimchee »
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

erikd75

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Re: Settling foreclosure
« Reply #11 on: May 18, 2012 10:07:20 PM »
That is what happened to us.

Our attorney said try to work it out, and we are.

But as you know they (servicer, investor, MERS, etc.) have no real interest in helping.

We sent all paperwork they requested and they still want more.  Basically, dragging their feet to increase the servicing and lawyer fees they want to tack onto any settlement.

I wish you the best in your fight...

deepkimchee

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Re: Settling foreclosure
« Reply #12 on: May 18, 2012 11:42:59 PM »
I've already won

In the end I am going to BK weather I get the mod or not.  Attorney says after BK they are more willling to work with you.

If they foreclosed today, I have lived in my home 25 months @ 3000.00 per month saved 75,000 in payments.  100,000 second mortgage that will never be paid back, and a 50,000 lien that will never be paid back.

If they modify, more than likely most of this debt, over 200,000K will be paid back.

My attorney thinks it makes more financial sense to foreclose, but I am more than willing to pay my debts if the terms are right.  With our new laws, by me fighting, I have years of living in my home without paying.
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

erikd75

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Re: Settling foreclosure
« Reply #13 on: July 05, 2012 03:55:47 PM »
Finally got mortgage modification offer from servicer.

Get this...

What they give - a 1/2 percent interest rate drop which lowers monthly payment by about $140.

What they take - adding $10K (and counting) in fees/int to the loan principal and starting the mortgage as a new, 40 year loan.

So they end up with a lot more money, in exchange for a slightly smaller monthly payment.

Also, since I've been through a CH7 discharge I would have to sign and be personally liable again for this "new" mortgage.

I can't accept these terms as the new, monthly payment they are offering is still 75% of my net pay each month. I asked them to cut it in half and they just laughed (as expected).

They said it does not matter they only look at gross pay for these mods. I told them if they can convince the federal and state government to stop taking out payroll withholdings and taxes I can have gross wages available to make the payment they want, but until then I would only have net wages available.  1214

BTW - they tell me the modification they presented is it. No counter offers accepted- take it or leave it.

Unbelievable.



« Last Edit: July 05, 2012 04:02:14 PM by erikd75 »

 

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