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Foreclosure

If I stop making payments now do they have to go thru foreclosure all over again?

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Question:  I had rented my house out and thought I could never save it but about 8 months of no payments they said lets do a loan mod. Took another year before I got it. In the meantime they knew I did not live in it and had rented it (told them) and I was working 100 miles away. They insisted that it be owner occupied and told them I would have to quite…no cares here so I did hoping I get could work here. So now I am not making enough to pay the mortgage with the modification. With the terms I will never pay this house off. the mortgage is $200 more than its worth.
If I stop making payments now do they have to go thru
foreclosure all over again. Read my mod agreement and nothing has addressed that question. HELP…thank you

Answer:  – Yes they will start the foreclosure process all over again.

My mortgage company, PNC, has accepted a shortsale offer on my house.

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Question:  My mortgage company, PNC, has accepted a short sale offer on my house. I owe approximately $149,000 and the accepted offer is for $115,000. Coinciding with my application for short sale, PNC moved forward with foreclosure. The court, in Pennsylvania, granted judgement in foreclosure for the owed mortgage balance plus legal fees. Based on what I have read, because I do not have a second mortgage, HELOC and have not refinanced I am at low risk of being sued for the deficient balance after short sale. My concern is that PNC will, however, pursue me for legal fees involved with the foreclosure even though the short sale was accepted post hoc. Can you provide any insight or advice?

Answer:  – Most of the time banks won’t come after you for just legal fees, if they come after you, they will file a judgment for the amount they lost because it costs them a great deal more to pursue someone for a deficiency. So unless they are confident you can pay, they typically will 1099 the homeowner instead. And if you’re like most homeowners, the debt relief act will counteract the 1099 or you could claim insolvency. Best to talk to you accountant if you have specific questions.

Home in Virginia foreclosed!

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Question: I had a home in Virginia that was foreclosed upon. The second lien holder is trying to collect from me. Can they do this and what options if any do I have?

Answer: – Yes, they can try to collect what they lost. They could file a deficiency judgment against you for the amount they lost which would require you to pay the amount back in full. Most people file bankruptcy. You could work out some sort of re-payment plan over several years or ask them to forgive some of the debt and settle for a smaller amount.

Rental property in WA and am in military in NC presently.

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Question:  I have property in WA, currently it is a rental property since I am in the military and am in NC presently. Being that I cannot come close to renting the house for what I pay in mortgage, I am facing letting the house go. Trying to find out all the ramifications of foreclosure.

Answer:  – Well, the bank will either 1099 you for the difference if they are not able to collect what is owed, or they will file a deficiency judgment against you for the amount they lost. Ideally, you are hoping for a 1099-c because in most cases you can counteract the 1099-c if it’s your primary residence or you are insolvent.

short-sale, foreclosure, or bankruptcy… what should I do?

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Question: Looking at short-sale, foreclosure, or bankruptcy… only is Social Security Disability, VA Disability (100%), and disability insurance monthly payment… what should I do? can they come after any of my income in a deficiency judgement? will they even come after me? how will bankruptcy affect me… I currently have NO assets at all except for about 15,000 dollars in savings. thanks Tom from FLORIDA

Answer: -Tom, I have to make the assumption that you’re planning on or you’ve already stopped making payments on your home or you wouldn’t be asking these questions. A short sale in my opinion is by far the best option if you can’t sell your home for what’s owed, rent it out or can’t work out something with the bank like a forbearance or loan modification. A short sale will affect your credit but will eliminate a foreclosure on it. If done properly will also eliminate the possibility of a deficiency judgment. If a short sale is not accepted an ultimately your home ends up at the foreclosure auction, then you will either receive a 1099 or they will file a deficiency judgment against you. If they file a deficiency judgment and you can’t pay, they can garnish wages. Depending on the amount of the judgment, this forces most people to file bankruptcy to eliminate the judgment.