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Foreclosure

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.

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.

What happens to an investment property foreclosure that’s under your personal name?

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Question: What happens to an investment property foreclosure that’s under your personal name? Can they go after your personal assets, home, etc? Under Illinois law.

Answer: -As with all states, it depends on what’s in the agreement with you and the bank. Just look at the closing docs and it should specify what happens. For most lenders, the property is sufficient collateral for the loan or they wouldn’t be loaning you the money in the first place, so they don’t come after you for anything else. However, since I don’t invest in Illinois nor am I familiar with all their laws, you may want to get a 2nd opinion with a local attorney.

Can the 2nd lien holder start foreclosure process?

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Question: If the primary residence has two mortgages and the first one is up to date, but the second is not, can the 2nd lien holder start forclosure process?

Answer: -Yes, any lien holder can initiate the foreclosure process to get paid what’s owed them. However, many junior lien holders wait longer before they initiate foreclosure because they are responsible to payoff any senior lien holders. So at the auction if no one bids, the 2nd has to payoff the 1st. This is why if you are bidding at the auction, it’s critical to know who is foreclosing because sometimes they start the bid a what’s owed the 2nd and you think you’re getting a steal. Come to find out you have to pay off the 1st as well.

Deficiency judgement on a Trustee Sale?

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Question: In the state of Idaho can a lender obtain a deficiency judgement on a Trustee Sale or must they use a Judicial Foreclosure?

Answer: -Yes, lenders can file a deficiency judgment no matter if it was foreclosed judicially or non-judicially. Typically it’s more common to see deficiency judgments on properties foreclosed judicially but I live in a state where trust deeds are the primary security instrument and deficiency judgments are filed sometimes. In most cases they 1099 the homeowner.

Can the bank wreck my credit for my spouse’s foreclosure?

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Question:  I’m wondering if the bank can wreck my credit for my spouse’s foreclosure?

This story takes place in Florida.

My wife was divorced for two years when we got married. She had purchased a home with her ex-husband, and because he had lousy credit, hers was the sole name on the mortgage. However, both she and her now ex-husband are on the deed.

When they split up, she moved out of their marital home, which her ex-husband still occupies and made the mortgage payments on–until January, when his business collapsed, and he hasn’t made a payment since.

My wife and I have lived together for a year, ever since we got married, in a home we rent together.

The mortgage company has already started the foreclosure machine to take back the marital home which she left. Of course, there’s no way her ex-husband can save it. Thanks to the on-again off-again payments her ex-husband was making to the mortgage company, my wife’s credit is now obliterated. Now she will have a foreclosure on her credit as well, thus torpedoing any chance we might’ve had of buying a house of our own.

My question is this: Can the bank attack my credit as well, even though I’m not on the mortgage, and had nothing at all to do with the property, but am “guilty by association” for being married to the person who “is” on the mortgage?

My common-sense feeling tells me that I’m safe from attack by the mortgage company. However, when the foreclosure paperwork was being served by the bank’s attorneys, “both” my wife’s and my name were on it. That spooked me out a little. Could the bank’s lawyers try to come after me, since, because we’re married, we count as one financial unit?

Any insight would be appreciated.

Cheers!

 

Answer:

No, you are fine. The home is only collateral for the loan. When they foreclose, it only affects those who’s name are on the loan, not on title. So you will be fine. Her ex will be fine as well if his name is not on the loan. Your wife is the one who is stuck with the foreclosure on her credit. This is why “subject to” investing is so popular. Investors can take control of properties without any credit risks.

Hope this helps.