Foreclosure University

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Foreclosure

what is strict foreclosure and how long i have to wait to purchase a home in the strict foreclosure process

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Question: what is strict foreclosure and how long i have to wait to purchase a home in the strict foreclosure process

Answer: -Strict Foreclosure is foreclosure without an auction. It’s basically where the lender obtains a court order to transfer title of the delinquent property back to them (the lender), without having to go through a foreclosure sale. Typically there is a redemption period that is set by the court so it really depends on what the court says as to when you can purchase a home in strict foreclosure.

A condominium has gone into foreclosure the lending company has it back.

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Question: A condominium has gone into foreclosure the lending company has it back. The condominium has a lien on
it the lien was filed against the original owner.
The owner is about to file bankruptcy. Does the lien
stay with the condominium? Can the association still
collect when the property is sold?

Answer: – The foreclosure auction will wipe out any junior liens that are attached to the property if they don’t protect their position. If a judgment or lien was filed against the homeowner, then it will stay with him unless he files bankruptcy, in which in most cases, liens and judgments are wiped out. So no, the association wouldn’t be able to collect. The only liens that don’t get wiped out are the property taxes and IRS tax liens. Those get paid first when the property is taken back by the bank.

Landlord is trying to collect the rent. Place is up for foreclosure. What should I do?

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Question: My landlord is trying to collect the rent for the month of september 2008 we had a letter put on our door telling us this place is up for foreclosure the auction will be held august 28 2008 i called and told him whats this about he said oh we already took care of all that but i keep calling the phone number thats on the paper all it say is that the auction date was changed to september 29 2008 when i called the place they said yes its up for auction the 29th of september i called a real estate attorney and asked him. He told me to give a 30 day notice and have him keep my deposit as last mouths rent. My landlord would not take my 30 day notice and also said that i must pay this mouths rent and that once i moved he will give me my deposit back. i also let him know of all the things that needed to be fixed from when we moved in not till after i told him about the foreclosure. he start saying oh as soon as they save the house there going to fix every litte thing not to worry and when i told him, well i’m just going to move. he said well you still owe me my rent. then why did i give first and last months rent when i moved in? then he had nothing to say to that all he did was to start threating me tell “you don’t want to mess with me i’ll take you down” also “i know how to take care of you if you don’t pay me my rent” and now today september 13,2008 he gives me a three day notice i just said ok thats fine here’s my 30 day notice that i’ll be moving “he says i don’t want that why would i want that you have three days to get out of my house i’ll be back thursday to make sure your out” i told him you still have to give me a 30 day notice all he said was “no you have three day thats all”. what could I do about this man because come thursday september 18,2008 i don’t know what he will do. will he follow thru the threats. so please help me as soon as possible. should i call the police or what should i do. i am worried i have a three year old litte girl also a 14 month old daughter with a seizure disorder that still dose not hold her head up or nothing she is like a new born chid still what if trys something and one them get hurt please help please

Answer: -listen, this sounds like more than just a rental issue. Clearly this landlords intentions are not good. It sounds like he has already spent your deposit and has no intentions on paying it back. He’s just trying to get as much money as he can from his tenants before they foreclose on the property. In many cases this can be considered ‘rent skimming’ which is illegal. This is where the landlord uses the rent money to pay for personal belongings and lets the property go into default. If he is giving you 3 days to vacate, I would get the heck out before something worse happens, especially if he is threatening you. Let him keep your deposit money a better place to live. And if you feel you need to contact the authorities, do it. Who knows, they may even help you find a better place. Good Luck

Liens on the home, (other than property tax or Federal) am I obligated to pay that lien?

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Question: If I buy a home at a foreclosure sale, and later determine there is another lien on the home, (other than property tax or Federal) am I obligated to pay that lien to obtain clear title?

Answer: – Yes, if the lien has seniority, you are responsible as the high bidder to pay off all liens to clear title. That’s why it’s so important to run a title report to make sure there are no liens on the property and to find out how many liens are on the property. I’ve heard of cases where individuals will bid on properties thinking they are a great deal and find out later it was the 2nd mortgage they were bidding on and they have to now payoff the first. Most lose their deposit and it goes back up for auction because they thought the opening bid was for the 1st mortgage. Hope that helps.

I WAS A WINNING BIDDER AT A TRUSTEE SALE, BUT IT WAS A SECOND LIEN. WHAT SHOULD I DO NEXT?

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Question: I WAS A WINNING BIDDER AT A TRUSTEE SALE, BUT IT WAS A SECOND LIEN. WHAT SHOULD I DO NEXT?

Answer: – Pray there is not a first mortgage or any back taxes you have to pay…Ha Ha. Hopefully you did your research prior to the foreclosure auction and found the property to be worth a great deal more than what the 1st was owed and what you paid for the 2nd. If not, you may want to think hard about an exit strategy. But assuming you did all your due diligence, as the winning bidder your state and county will determine when you need to come up with money to pay for the property. It ranges from state to state anywhere from 24 hours after the foreclosure auction to 30 days. If you can’t get the money within that time, you lose any money you may have had to put down. Then you may still have to wait to do anything to it if there is a redemption period in your state.

My husband passed away and left the house to me in his will…

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Question: My husband passed away and left the house to me in his will, although I am nowhere on the loan or title. I was out of work and taking care of him for a year before he died, so I got behind on the mortgage following his death in May 2008. I have been trying since August of 2008 to work with the lender(Chase)to modify the loan and have since remarried and now able to make regular payments again. I only owe $74,000 on a house worth approx. $170,000, but am having a terrible time getting any response from Chase. I have worked with Hope Now and am supposedly being reviewed by Chase for a modification. I am terrified because a sale date has been set, and my husband and I only have fair credit scores, yet have a great L-to-V ratio and income (he is a retired officer, 100%disabled USAF)but can find NO ONE willing to refinance us. There has to be an answer to this – it’s a true hardship situation since it stemmed from my husbands death last year, but I don’t know where to find help. I’ve called everywhere I know!!! Please suggest help – I’m afraid to wait much longer or they may foreclose before I find help. Thank You!!

Answer: -Even with the auction date set, you still have some options…especially if there is equity in the home. At this point, time is your biggest enemy and since the auction date has been set you have no time to play around. Unfortunately, since your credit is not spectacular, it may be difficult at this point to refinance, especially if you can’t back it up with income. As for loan modifications, it’s definitely a great option, but you should have a back up plan also. Maybe your new husband is in a position to buy the property? Maybe you have close family members that would but it, just temporarily until you could buy it back from them. Whatever you do, don’t lose it to the bank because you’ll lose most of your equity if not all of it because the opening bid is only what you owe plus some fees. If someone bids more than that amount, that money goes right to you.