Foreclosure University

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Jarad

If I hold the first and the second is forclosing

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Question: If I hold the first and the second is foreclosing
what can I do to ensure that I will still be paid?

Answer: -Lien holders get paid based upon lien priority and there are a few “rules”. Lien priority is based upon when things are recorded. So if you are in 1st position, you will get paid before someone in 2nd, 3rd, etc. So if they 2nd forecloses and no one bids, they have to pay off all senior lien holders. Property taxes are the only exception, they always get seniority over everything no matter when they are recorded.

Idaho laws? How many days to file deficiency judgment and 1099? Can the lender do both, send a 1099 and file deficiency judgment?

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Question: Idaho laws? Balance at time of foreclosure 465K, opening and closing bid 247,500 sold back to lender. How many days to file deficiency judgment and 1099? Can the lender do both, send a 1099 and file deficiency judgment?

Answer: – Typically they will choose to either 1099 you or file a deficiency judgment. Not both. In terms of when that will happen, your guess is as good as mine. Usually it’s pretty quick. Sometimes it takes a little while. There are other factors that also influence when they will issue the 1099 or judgment. Like what lien position they are in. It makes a difference whether they are in 1st position or 2nd position. A lot of times, the 2nd lien holder will not file for a very long time, sometimes up to several years before you see anything. I’m assuming in this case you are referencing a 1st lien holder so my guess it that you will know something very quickly.

The most common outcome is a 1099 from the 1st lien holder. So really what you have to be aware of are the tax obligations. They will count that deficient amount as income to you. So make sure you have a good accountant who can usually counter that tax obligation by claiming insolvency. Usually that’s a far better option that bankruptcy or having to work out a payment plan to pay back the amount that is deficient.

Short sale and release of lien

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Question: Close to signing a short sale agreement between my first(Countrywide) and second(WAMU). this is a rental, Countrywide has settled, second will accept $7000 to release the lien, however they still want to come after me for the $93,ooo balance. Broker(advocate) was told that WAMU has already charge of the second as bad debt. Can WAMU sell the note to a collector that will still come after us for the full 93,000K. Been advise to try to settle with wamu at an agreed amount and make $100/MONTH PAYMENTS TO LIMIT LIABILITY. Any other questions to consider? If the house goes into foreclosure, Countrywide does a trustee sale are we finished with wamu too?

Answer: The best thing you can do is ask for a satisfaction of the loan. Ask them how much they need to “satisfy” the loan. Typically you’ll have to pay more for a satisfaction of loan, but they give up their right to come after you for the difference. If they’ve agreed to “release the lien” then yes, they can and usually will come after you for the difference. If the home goes to foreclosure, you can bet WAMU will file a deficiency judgment because it sounds like that is what they are planning to do anyway. So, no, you are most likely not finished with WAMU. The best thing you can do is try to get them to accept a satisfaction. Good Luck.

who do i pay rent to when the apartment is in foreclosure?

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Question: who do i pay rent to when the apartment is in foreclosure?

Answer: -You’ll have to work that out with your landlord. I personally knowing if the property was in foreclosure would have a difficult time making payments to anyone because they are causing me an inconvenience by moving. If I was renting and knew the property was in foreclosure I would approach the landlord and ask him to sell it to me (that is if I knew I could rent it out or wanted to live there). Then I would ask to take it over “subject to” the existing loan. The loan would stay in his name but he would have to deed the property over to me, that way I control it. Then I’d have to cure the loan and I’d have to be creative in doing so. I’d either use a credit card, family member or lease it to someone else and require a large enough down payment to cure the loan and put $5,000 in my pocket. So now I own a piece of property, I have $5,000 in my pocket and I have no risk. Worse case I walk away with 5K and I have to move which I was going to have to move anyway.

What questions should I ask before making an offer on a short sale?

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Question: What questions should I ask before making an offer on a short sale?

Answer: – I hope I understand your question… You want to ask as many questions as you can to help you identify what the property is worth and their motivation. I like to start out with some basic questions to get a feel for the property, then ask additional questions when I show up to the property. Here are some you can start with.

  1. Are you the owner?
  2. What’s the house worth?
  3. How did you get to that price?
  4. What do you owe on the home?
  5. How many payments are you behind?
  6. Have you received a NOD?
  7. Has the lender set an auction date?
  8. What do you want from your home?
  9. What’s the address of the property?

Now go verify the information they gave you and see what it’s worth to you.

Can you legally rent a home to someone knowing your home is in foreclosure

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Question: Can you legally rent a home to someone knowing your home is in foreclosure

Answer: -That’s pretty much considered rent skimming, which is illegal. Where you are using the rent money from the rental for personal use and not applying it towards the loan. Maybe you can get away with it if you disclose to the renters that the property is in foreclosure, you’re not planning to make any payments, and they’ll have to move out when the bank forecloses on it. Do a search online for “rent skimming” and you can make your own decision on it. As for me, I’d stay away from it.